City finance staff presented a first reading of Ordinance No. 18 (City of Valparaiso 2026 budget) and Ordinance No. 19 (salary ordinance) and answered council questions before the council voted to carry both items to the next meeting for final action.

City Treasurer Bill Oeding reviewed the budget highlights and answered council questions about revenues, the property-tax “growth quotient,” and personnel costs. Oeding said the state-set maximum levy growth quotient is 4% and described conservative budgeting steps the city used in drafting the 2026 spending plan. He told the council that health insurance premiums for the city’s plan declined by 3% for 2026 and that every city employee will receive at least a $2,000 pay increase in 2026.

Oeding also described employee health savings-account (HSA) contributions that the city funds: he said single-employee HSA contributions are set at $1,800, employee-plus-one at $3,100 and family at $4,100. He said employee premiums have not increased in 13 years and that the city expects to carry a conservative fund balance into 2026.

Council members asked for details about pothole and paving funding. Staff said the 2026 paving appropriation includes a budgeted $1.6 million in general-fund paving set aside (from refuse-related fees routed through the general fund) plus additional restricted and state funds (an MBH-restricted line item for roadway maintenance and local road funds such as excise/surtax and wheel-tax receipts). City staff noted the city will apply for a $1,000,000 Community Crossings Grant that requires a local match; if awarded, staff said the city’s total paving funds could rise significantly for 2026.

The council opened a public hearing on the budget (an official public hearing will be held again at City Hall at 5 p.m. on Friday per the published schedule). No members of the public spoke at the hearing that evening. Following discussion, the council voted to carry Ordinances No. 18 and No. 19 to the next meeting for final consideration.

Votes at a glance: Ordinance No. 18 (City budget, first reading) — carried to next meeting by motion; Ordinance No. 19 (salary ordinance) — carried to next meeting by motion.