University City reviews FY2026 operating budget; proposes 1.5% COLA, higher reserve, and equipment replacements

City Manager Gregory Rose opened the June 16 study session of the University City City Council by presenting the proposed fiscal year 2026 operating budget, telling the council the proposal was “drafted, with the priorities that you have established, in mind ranging from economic development, through and including our employees.”

The proposed budget estimates about $32,000,000 in general‑fund revenues, roughly $34,000,000 in general‑fund expenditures and a projected ending general‑fund balance of about $11,000,000 — roughly 32% of expenditures — a level Rose said is higher than the city’s policy minimum because of recent natural disasters and anticipated capital needs. Rose recommended a 1.5% cost‑of‑living adjustment (COLA) for FY2026 and noted many employees are eligible for merit or step increases that can be about 5% for certain classifications.

Why it matters: the council will vote on the budget at a subsequent meeting, and the document proposes both ongoing increases (a permanent $5,000 addition to the Starlight concert series) and near‑term capital and staffing choices tied to multi‑year projects, including debt for the annex and Trinity renovation and a planned retention‑basin project.

Property tax, Hancock amendment, CPI

Finance Director Keith Cole explained how the city’s property‑tax rate is set under the state rules the presenters referenced as the Hancock amendment and adjustments tied to the Consumer Price Index. Cole summarized: “If there’s an increase in the assessed valuation, then the property tax is gonna get lowered. … Then these adjustments then ensure that the district or the city remains revenue neutral, only allowing for an increase in the revenue up to the CPI.” For FY2026 the presentation used a CPI rate of 2.9% (compared with 3.4% in 2024) and said the anticipated increase in assessed valuation would lower the levy rate for the city.

Council members asked how a newly discussed senior tax‑freeze program might affect the city’s revenues;…