City Council adopts final millage and budget; adds public-safety positions, 1% COLA and 3% pay adjustment

The City Council approved the final ad valorem millage and the fiscal year 2025–26 budget following required public hearings, voting 5–0 to adopt the millage resolution and the budget resolution.

Finance Director Jeff Cooper presented the millage and budget details. He said the council was being asked to adopt a final ad valorem millage of 5.1128 and explained that the rate is about 6.27% above the rollback rate of 4.811 (the rollback rate being a statutory calculation of tax-neutral revenue). Cooper described typical property-tax calculations and said staff recommended approval of the millage resolution. The council voted to adopt resolution 2025-097R (millage) on voice roll-call 5–0.

Cooper then presented the proposed fiscal 2025–26 budget and the accompanying public hearing. Key figures and items he cited included: - Total proposed budget: $214,800,000 (staff said this represented a 31.5% decrease from the current fiscal year, primarily because large public‑safety projects were funded in the current year and are not repeated in the new budget). - General Fund: noted as about 41% of the budget; Cooper cited a general fund amount of $87,900,000. - Public safety: staff highlighted that police and fire together account for a majority of general fund spending (serially referenced as about 58% together) and called out funded increases including: 13 new positions overall (8 in public safety), two newly funded school resource officers, four new police officers, and a part‑time park ranger and grants assistant. - Personnel and benefits: a proposed 1% cost-of-living allowance (COLA) and a 3% pay adjustment for staff, totaling approximately $1,144,000 for the city; public-safety union contract impacts were quoted at $834,925. Cooper also cited increases in police and fire operating costs (about $1,200,000), public-safety pension costs (nearly $1,500,000), and health benefit increases ($474,000). - Capital and projects: previously funded projects (public-safety complex phase 1, station construction, vehicle and apparatus purchases) account for part of the year-over-year change; Cooper said the city’s bond rating had increased to AA by S&P and Moody’s, which staff noted when discussing funding for capital projects.

Council discussion included requests for clarification on how the millage and budget relate to new staffing and contingency funds; staff explained statutory sequencing (millage adoption precedes budget adoption). Council asked whether a separate line-item labeled “council contingency” would be preserved; staff said money remains in general fund contingency but agreed to restore the council-controlled contingency account via budget amendment if that was the direction. The council also discussed strategic‑initiatives funding: several council members questioned the need to fund a full strategic-initiatives administrator at the proposed level and asked staff to return with options. Council members expressed support for prioritizing public‑safety staffing and directed staff to explore adding an officer positioned for the lakefront — council signaled consensus to add one bicycle patrol officer to lakefront operations without changing the current budget numbers, with the understanding staffing tables would be adjusted and final budget amendments would account for the change if needed.

After discussion, the council approved resolution 2025-098R, adopting the final budget, by a 5–0 roll-call vote.

Why it matters: the adopted millage and budget set tax rates and spending priorities for the city for the coming fiscal year, including additional public‑safety staffing, compensation adjustments, and capital planning; council members pressed staff on contingency account structure and the scope of an administrative strategic‑initiatives position.

Next steps: staff will publish the final budget book within statutory timelines and prepare any ordinance or budget amendments requested by council (for example, to re-label contingency or to reallocate funds if council decides to move strategic‑initiatives funding). Staff also will provide an organizational/position report in the final budget book as requested by council.