City manager recommends nearly $1.3 billion operating budget, cites $56 million trust disbursement

The city manager’s recommended biennial operating budget for fiscal year 2026 totals just under $1.3 billion, city budget staff said during a public hearing that opened the final community comment period on the proposal.

Dr. Dudas, presenting for the city’s budget office, told the Budget & Finance Committee the recommended budget keeps five strategic priorities unchanged: public safety and health, growing economic opportunities, thriving neighborhoods, fiscal sustainability and excellent and equitable service delivery.

The recommendation matters because it sets spending priorities for the coming two-year cycle and gives council the draft they will amend before the legal June 30 deadline. Dr. Dudas said the package balances a roughly $10 million deficit that existed between the tentative tax budget in January and this recommended version through a mix of higher-than-expected revenue and expenditure reductions.

Most immediately, the recommendation counts on increased revenue from multiple lines. Dr. Dudas said the city expects a “significant increase in interest revenue” and upgrades to admission tax, short-term rental excise tax and building and permit fees based on current trends. He also…