Hewitt proposes marginally lower tax rate, adds firefighter positions and trims some hires in draft FY2025–26 budget

City staff presented a preliminary fiscal year 2025–26 operating and capital budget at the July 21 workshop that would slightly reduce the city’s property tax rate while funding several new positions and capital purchases. The proposed budget document uses a preliminary property tax rate of 0.534974 per $100 of assessed value (just under 53.5 cents), down from the current adopted rate of 0.5390. Staff projected total property tax revenue in the budget at just over $8.8 million, with roughly $5.77 million budgeted for maintenance and operations and just over $3 million for debt service. Sales tax revenue is projected at about $4.3 million for the fiscal year, and interest earnings are tentatively budgeted at $420,000. Staff noted July produced an unusually strong sales tax month and that revenue is seasonal. Personnel changes in the proposed budget include three new full‑time firefighter positions, with a total salary cost just under $238,000. The memo described a 2% cost‑of‑living adjustment and 2% step increases in pay where steps remain; at a later point in the workshop staff also said a previously proposed 1% COLA was removed from the budget. Staff said they will phase in fire station staffing to match the expected opening of a new station next summer; the presentation said the station will ultimately require six firefighters but the budget initially includes three full‑time equivalents because hires would be timed to coincide with the station opening. Staff highlighted capital outlay in several departments: three police vehicles (two patrol, one admin), a police dispatch console replacement, utility and drainage equipment, a dump truck for general services, a mower for parks and a new server for the library. The proposed capital plan includes short‑term financing for some items; the utility and drainage funds would buy equipment without short‑term financing. Staff also flagged a near‑100% increase this fiscal year in animal shelter costs tied to higher intake (11 more animals this year, including one call that brought in nine animals). The memo proposed a short‑term kennel behind the police facility to temporarily hold a few animals and attempt reunification before transfers to the contracted shelter. Staff removed several requested positions and some other items from the proposed budget — an HR and court position and a building maintenance position among them — and said those reductions were part of trimming the draft ahead of further workshops. The council did not adopt the budget; staff said the numbers are preliminary and will be refined in subsequent workshops before any formal adoption. No formal vote on the budget was held during the July 21 meetings; council members asked for additional detail on training and continuing education for department directors and asked staff to return with clarifications on the removed budget items and potential uses of restricted funds such as PEG and child‑safety funds.