City staff presented a detailed proposed fiscal year 2026 budget that holds some staffing steady while targeting one‑time transfers and capital expenditures for streets, water and wastewater infrastructure.

The presentation covered the general fund, water and sewer fund, enterprise funds and multiple trust funds and CIP accounts. Staff told the council that street‑materials purchases are budgeted at roughly $800,000 for the coming year; water‑meter replacements are budgeted at approximately $400,000 with a $100,000 supplemental, and water distribution staffing shows a proposed increase of three employees to support hydrant and main improvements. Staff also noted an increase in payments to the water district (approximately $3.1 million) and several capital equipment financing items across the public works division.

Staff warned the council that operating costs have risen across vehicle and equipment maintenance, utilities (including pump station electrical costs), chemicals and laboratory testing at the wastewater plant, and contractor costs where rock or special trenching is required. The utility‑billing section reported a projected fiscal 2025 year‑end of $900,642 and a proposed FY‑26 budget of $724,008.85 driven largely by reduced merchant processing and credit‑card fees; staff said a convenience‑fee option is under study.

Other fund notes included: a proposed transfer to defease portions of the 2018 bond debt (reducing I&S fund balances), the proposed closing of the Coronavirus Recovery Fund (balance to be moved), and the report that the insurance fund has accumulated assets projected for an $800,000 transfer back to the general fund as a one‑time item in the financial plan.

Council members asked for additional detail on how far the street materials budget would go in on‑the‑ground repairs. Staff said per‑road costs vary widely — roughly $70 per linear foot for prepared chip‑seal work performed in‑house, $100 a linear foot for some city crews, and roughly $600 a linear foot for contractor work such as on MH 379 — so the $800,000 material line's street mileage depends on the mix of methods and locations chosen. Staff said collaborations with county and school district officials on joint projects could increase reach but required renewed coordination.

Staff indicated the budget timeline will continue with presentations Sept. 2 (utility‑rate study), continued budget discussion, and formal public hearings and adoption planned for Sept. 16.