City presents $316 million FY2025-26 budget; general fund driven by property and sales taxes

At a city budget hearing, Interim Chief Financial Officer Fidelis Malenbecker presented the administration’s proposed fiscal year 2025–26 budget, detailing $316 million in total projected revenues and a $147.5 million general fund. "General property tax makes up the significant portion of our revenues, which is, roughly 47%," Malenbecker said.

The budget package shows $60.3 million in special revenues, $21.9 million for debt service, $33.4 million for capital projects and about $53 million in enterprise revenue. Proposed department-level spending across all funds totals roughly $298 million, with public works, planning and development, police and general government among the largest shares.

The overview matters because the revenue mix determines what programs the city can sustain without raising taxes. Malenbecker told council members the administration will not seek a tax-rate increase in the coming fiscal year and said the city will manage within current revenues.

Malenbecker walked council through the revenue breakdown for the general fund: general property tax is estimated at about $68.5 million (roughly 46.5% of the general fund total); intergovernmental state funds (which include sales tax) are the second largest source; fines, licenses and fees and operating transfers make up smaller fractions. She also noted that some revenues shown under the general fund line include receipts that technically originate in other funds managed by specific departments.

On the expenditure side, Malenbecker highlighted personal services and benefits as the single largest category, with personal services budgeted at about $97.1 million. She underscored the city’s employee health benefit, noting the city covers 100% of the employee portion for single coverage and 85% for family or additional coverage. "The city covers a 100% of the employee portion, and we also cover 85% of the cost, outside of single coverage," she said.

Council members pressed for details about forecasting assumptions and contingency planning. Malenbecker described a conservative forecasting approach for grants: unless a grant award is confirmed, the budget assumes $0 so as not to obligate expenditures on uncertain revenue. She also confirmed that workers’ compensation and other insurance funds sit outside the department operating totals presented.

Questions from council included whether the city could earn more interest on its cash balances; Malenbecker said staff had previously issued an RFP and one proposal estimated roughly $3 million in additional earnings but that the item had been tabled by council. She said staff can reissue or update the solicitation if the council directs it.

The administration will take additional questions and refine numbers through the public hearings process ahead of the council’s budget adoption schedule.