The mayor presented the administration’s 2026 proposed budget at a Sept. 11 workshop, saying the plan is “pretty flat” while describing personnel changes, higher health costs and one-time capital pressures that will affect the city’s cash balances. The proposed total 2026 budget presented to council is about $69.1 million.

The mayor said the budget includes a 2% across-the-board pay increase for employees and that some positions were restructured or converted to part time to manage benefits costs. The presentation also described targeted pay adjustments for a handful of roles: animal-control pay was increased toward the state average, golf maintenance staff received raises tied to new certifications, and the event director’s salary was raised to match other park leadership.

Why it matters: the mayor framed the budget against several financial constraints — rising health-care claims, vehicle and equipment price increases and an anticipated change in state law that will alter how municipalities receive revenue. The presentation said last year’s cuts set a lower baseline for 2026, reducing the need for deeper reductions now but forcing use of one-time funds in some areas.

Most important fiscal details and context
- Employee pay: 2% across-the-board raise included in the proposed budget; certain roles received larger increases tied to market parity or new certifications. The mayor said ranges will be added to the salary ordinance to differentiate new hires from long-tenured staff.
- Riverboat revenue: the riverboat transfer to the general fund included in the proposal is $4.3 million (up from about $3.7 million last year). The mayor also said the city expects additional riverboat receipts tied to House Enrolled Act 1448 but that those payments are not reflected until collection begins (the mayor said some payments are not expected to start until August of the relevant payment year).
- Health care: the budget assumes about $23,000 per employee for health coverage in 2026 (up from $21,000 last year). The mayor said last year’s total spend on insurance and claims was about $8.7 million and that year-to-date claims are trending toward $9.5 million or more.
- Permitting revenue and planning: since implementing Cloudpermit in March, the mayor reported $622,421 in permit fees. The planning and building functions were split into separate budget lines to reflect operational changes and the city is considering outside assistance for large projects while local staff focus on smaller commercial and residential permits.
- Capital and grants: the mayor said three refuse trucks were purchased under a 2022 grant but price increases raised the city’s match; the mayor gave the truck cost as about $496,000 and said the grant match consumed much of the grant balance, requiring use of fund balances to cover the shortfall.
- Cash balances: the presentation showed several funds drawing on cash balances for 2026. The mayor said the city will continue to rely on Baker Tilly for budget oversight and long-term forecasting, and that the administration will present a policy on debt reserve and further cash-balance guidance.
- Promise scholarship and targeted programs: the mayor said the Promise scholarship program will serve 63 students in the coming academic year (33 new freshmen and 30 returning recipients).

Operational changes and fees
The mayor said the administration is standardizing pay ranges (for example, placing all CDL operators in the same pay range across departments) and converting some full-time roles to part time to reduce benefit costs and provide a trial period for new hires. The presentation also identified missed fee categories during the last fee update — examples include fire inspection fees that are currently a single flat amount regardless of building type — and said the city will evaluate additional fee revenue for time-consuming engineering and planning reviews.

Park operations and riverboat transfers
The mayor noted park operations are not self-sustaining: parking revenue is recorded to the park operating fund, and the park fund’s budget includes a $500,000 riverboat transfer to balance operations. The administration reported roughly 230 park properties and about 600 acres under management and said park operations include two golf courses, a zoo and beach facilities; the park fund showed only about $9,000 of revenues over expenses in the packet, after transfers.

Enforcement collections and liens
Council members raised repeated concerns about the timing and effectiveness of recovering costs for code-abatement work (for example, grass-cutting and nuisance remediation). The mayor described the current process (citations, liens, weekly court) and said liens are often collected only when a property is sold or when taxes are paid; the administration is exploring better real-time lien and permit checks to prevent repeat offenders from receiving new permits while owing city charges. Any changes to withhold permits or add administrative barriers would require legal review and possible ordinance changes.

Next steps and schedule
The administration announced the public presentation of the mayor’s handout on Sept. 16 and a council public workshop for department heads on Sept. 24 with a possible carryover on Sept. 25; a budget follow-up workshop is scheduled for Sept. 30. The packet shows a second reading and public hearing on Oct. 7 and a possible third reading on Oct. 21.

Quotations and attribution
The mayor summarized the presentation several times; for example the mayor said, “It’s pretty flat,” when describing the overall 2026 proposal. On the demand side of the budget the mayor said, “We had a $400,000 increase in our total share” of insurance-related costs this year and noted staff are urging employees to use the city clinic to reduce claims.

Ending
Council members asked questions about specific line items (lids, riverboat distributions, park transfers and collections). The administration said it will circulate an updated slide deck with a few missed adjustments (for example, park maintenance overtime changes) and that Baker Tilly will continue assisting with forecasting and cash-reserve policy development.