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; Cole said the city would need to work with the county to estimate the effect and that the mechanics are complex because eligibility and enrollment must be determined at the county level.

Reserves, transfers and major funds

Rose recommended retaining a 32% general‑fund reserve. He said that, while some internal funds (for example, solid‑waste and stormwater) have not transferred as much as they could to the general fund because of their own constraints, the general fund remains “in a very good, financial position.” He told council the proposed budget is the first year the city is proposing to fund debt service for the annex and Trinity project at the full amount and that some fleet and equipment costs remain covered by the general fund pending internal adjustments.

Council members sought and were told where amounts could be found in the budget book for items referenced in the presentation (for example, debt service for the annex/court transfer and the revenue attributable to the Market at Olive development). Rose said some revenue impacts are aggregated in the packet and not broken out by single sources, but he identified the Market at Olive (including an Osco tenant) as the principal recent change affecting revenues.

Staffing, compensation and pensions

Rose told council the budget proposes a 1.5% across‑the‑board COLA while leaving merit/step increases (about 5% between steps) for many employees, particularly public safety. Council member questions about whether merit is tied to performance were answered in the affirmative: merit increases are performance‑based. Rose said a compensation study and a resident satisfaction survey are included in the budget and that the city has not conducted a compensation study in about five years.

Police and public safety items

Police Chief Hampton told the council the department is proposing replacement of duty weapons because “Beretta is no longer manufactured in The States and the in America,” and that the department is reviewing alternatives such as Smith & Wesson, Glock and Springfield Armory; the department intends to remain with a 9‑millimeter platform and for the city to retain ownership of duty weapons to streamline replacement and maintenance. The budget includes vehicle and equipment replacement and reflects the planned move of municipal court and police to new facilities expected in March–April 2026; staff said utilities for those facilities should be budgeted for roughly nine months in FY2026.

Capital projects and grants

The presentation referenced ongoing capital items: an $1,800,000 ladder truck for the fire department purchased this fiscal year; continued street, curb and sidewalk maintenance; tree replacement and emerald ash borer work; and a proposed electric‑vehicle charging program tied to a federal grant. Rose said the city was notified it had been awarded a federal grant for EV charging but that Federal Highway Administration notice of award could be uncertain; the presentation described the award as an 80/20 match (approximately $500,000 federal, $130,000 local match) but cautioned the award remained subject to federal confirmation.

Stormwater/retention basin funding questions drew extended council discussion. Rose said the stormwater fund will need to be built up to meet future match requirements for the retention‑basin project. At different points during the session staff referenced a roughly $5,000,000 match figure and later discussed a larger local share figure; Rose said final timing depends on the U.S. Army Corps of Engineers design and federal appropriation timelines and that he would likely recommend a general‑fund loan to the stormwater fund to help bridge the timing gap.

Other operational items

The budget includes a proposal to pilot a new document‑access software that would require a part‑time or temporary assistant city‑clerk position to support the pilot; Rose said the city clerk would hire that position if the pilot moves forward. Other highlights: funding for a resident satisfaction survey, continued funding for automated parking equipment and a communications consultant, maintenance of current municipal court staffing (three staff), and adjustments to solid‑waste and fleet internal transfers.

Library, Third Ward revitalization and other funds

Rose said the library board will present its budget separately and that the proposed city budget packet does not include a finalized library budget. The Third Ward revitalization fund is shown with transfers from general fund (about $108,000) and Rose said the plan anticipates the Third Ward fund covering a new third‑ward position for approximately three to five years before transitioning to the general fund.

Next steps and Council requests

Council members asked for additional detail before final adoption. Rose and staff agreed to provide supplemental information, including a September planning‑session report on police staffing and a plan for sidewalk and street project targets. Rose said the vote on the budget is scheduled for next Monday: “I believe the vote on the budget is scheduled for next Monday.”

Votes at a glance

A motion to convene a closed session under the cited state statutory references was moved and seconded; roll call recorded the motion as approved and the council went into closed session. The clerk recorded: “Motion made by council member Timon, seconded by mister Fuller.” Roll call: Council Member Timon — Aye; Council Member McMahon — Aye; Council Member Brenner — Aye; Council Member Fuller — Aye; Council Member Smotherson — (no roll‑call response recorded in the transcript); Council Member Clay — Aye; Mayor Crow/Crowell — Aye. Outcome: approved (move to closed session).

Ending

Staff and council members requested follow‑up detail on several line items (detailed debt transfer amounts, the Market at Olive revenue estimate, stormwater match timing and the pilot software scope) that the city manager and finance director said they would supply before the final budget vote.