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City manager outlines FY2025–26 budget, proposes tax-rate increase and places workshop on next agenda
Summary
City management presented a preliminary FY2025–26 budget framework proposing a 4-cent property tax-rate increase, personnel pay adjustments, and potential rate increases for water; council agreed to schedule a dedicated budget workshop to refine assumptions and priorities.
City Manager (name not specified in the transcript) presented the administration’s initial framework for the fiscal year 2025–26 budget, recommending a 4-cent increase in the city’s property-tax rate and pay adjustments to address recruitment and retention concerns.
“On the revenue side, you see $3.9 million in property tax based on my recommendation of a 4-cent increase,” the City Manager said, explaining the rate proposal would move the rate from 65.5 cents to 69.5 cents per $100 of taxable value under the assumptions shown to council. The presentation included proposed personnel adjustments (a 3.5% increase for police and a hybrid scale for fire personnel), conservative sales-tax revenue estimates, and a suggested $250,000 working reserve for the general fund.
The manager discussed other fund-level assumptions: a proposed 6–7% increase in water rates to address an apparent dip in metered-sales revenue and to sustain enterprise operations; a $200,000 subsidy projection for the airport; and separate budgeted support for the Young County Arena and library operations. The manager said the water fund currently holds roughly $3 million in unrestricted cash and recommended using reserves for any one-time shortfalls while monitoring consumption trends.
Councilmembers asked clarifying questions and several said they wanted dedicated time to review the numbers. Councilmember Jack requested a special meeting; the council agreed to place a budget-workshop item on the April 24 agenda to set a date and provide additional detail. The manager said updated appraisal-district values and other late-arriving assumptions would be available for the next iteration and that a detailed budget workshop would likely follow the May election.
The presentation was informational; council provided direction to staff to schedule a focused workshop and refine assumptions for subsequent consideration.
