Auburn manager outlines FY26 budget and five‑year CIP, flags rising debt share and new solid‑waste contract

City Manager Phil Kroll presented the proposed FY26 municipal operating budget and five‑year capital improvement plan to the Auburn City Council on March 17, describing changes in operating and capital drivers and previewing a set of supplemental requests the council will review in upcoming workshops.

Kroll said the citywide increase measured across all expenditures is about 5.96 percent year over year, with the municipal operating budget itself rising roughly 3.1 percent. He told councilors the composition of that increase has shifted: "Last year, debt and TIF accounted for about 25 percent of our total increases; this year it's 62 percent of our overall increases," a change he called “a big shift for us.”

Why it matters: the presentation re‑frames near‑term budget choices by showing how borrowing and intergovernmental costs are driving the bulk of the increase, while also identifying operating priorities that could require new ongoing funding if the council approves supplemental items.

Key budget highlights

- Solid waste and recycling: Kroll confirmed Auburn signed a new trash contract with Casella and included the high‑end cost estimate for converting to automated curbside service (two bins per household, third‑party management and delivery). He said, "We signed a new solid waste and recycling contract, and we signed that with Casella. So they'll be our new provider for solid waste." The city included both curbside subscription incentives (an estimated $107,000 placeholder) and continued drop‑site collections (about $25,400 annually as proposed) so residents have options while the program scales. Kroll said actual city cost will vary with participation levels.

- Capital operating and vehicle policy: The manager reiterated the administration’s practice of shifting certain vehicle and equipment purchases out of long‑term bonded debt and into a $40,000 capital‑operating reserve that funds recurring, non‑building capital needs.

- Supplemental requests: The manager walked councilors through three supplemental tabs (administration, council and non‑municipal). Notable items include funding for automated solid waste bins, continuation of the EMS third ambulance for a full year (if council approves the expansion), an added code‑enforcement position tied to enforcing a recent vacant‑building ordinance, and two separate $400,000 entries tied to homeless services (one administrative contingency and one non‑municipal request from Cadence Kitchen). Kroll said the homeless cleanup and bulky‑waste pilot costs have been absorbed in recent years but should be identified as explicit line items going forward (he estimated cleanup costs around $35,000 per year).

- Organic waste pilot and subscription model: The FY26 materials include support for an organic curbside subscription the bid required (roughly $10 per month per subscriber under the vendor’s proposed fee). The city included a $107,000 incentive placeholder to lower subscription costs or provide a free first‑year offer for early participants.

- Five‑year CIP and Engine 2 fire station: Kroll emphasized that the FY26 CIP column now reflects the city manager’s recommended bond package; the Engine 2 fire station replacement is a major FY26 driver, listed at about $3.7 million in the bond proposal. He said councilors will get full design drawings and a project cost presentation before any final action.

- Debt and intergovernmental items: The presentation included intergovernmental requests (CityLink, LA‑911, Auburn‑Lewiston Airport) and an assessment of how county and regional charges affect the municipal budget. The manager noted some interlocal obligations (for example, the airport) must be funded at least at last year’s level under existing interlocal agreements.

Process and next steps

Kroll said the council will consider the administration, council and non‑municipal supplemental tabs in the next workshop (scheduled for the following Monday at 5:30 p.m.), then discuss target tax‑levy policy and move to detailed departmental reviews in subsequent sessions. He said the audit for FY24 is expected to be complete in May and that staff will supply follow‑up materials at the start of each workshop, including requested detail on previously funded items (grab‑and‑go and related community projects).

Council and staff participants

City Manager Phil Kroll led the presentation and was joined by City Engineer Dan Goya for CIP details. Councilors who asked questions during the briefing included Adam Platt, Belinda Gary, Rick Whiting, Tim Cowan and Leroy Walker. Finance details and supporting schedules were prepared by Kelsey (finance director), who the manager credited for assembling budget documents and bond materials.

The council did not take final votes on FY26 totals at the meeting; Kroll’s presentation set the framework for upcoming workshops where the council will consider which supplemental items to include in the municipal budget.