Livingston commission adopts final FY2025–26 budget, approves water and sewer rate changes and zones annexed property

The Livingston City Commission on July 15 approved the city’s final budget for the fiscal year that begins July 1, adopted modest utility rate adjustments for water and wastewater customers and rezoned a recently annexed parcel on Loves Lane.

Budget adoption

The commission voted to adopt resolution 5164, described in the meeting packet as the final budget for the fiscal year beginning July 1, 2025 and ending June 30, 2026. City Manager Greg Gager told the commission the proposed fiscal‑year general fund includes $8,422,434 in operating revenues and $8,417,560 in operating expenditures, leaving the operating budget in balance. Gager said the budget contemplates an ending general‑fund balance of about 26.2 percent of general fund expenditures, above the Government Finance Officers Association guidance he cited.

"I am happy to report for the, third year in a row that I am recommending a budget that is in balance and where operating revenues exceed operating expenditures," Gager said during the presentation.

The resolution adopted the budget amounts shown in the packet and the commission carried the resolution by roll call.

Utility rates

The commission also approved two separate resolutions adjusting utility rates.

- Water rates (resolution 5165): City staff recommended an adjustment that staff said corresponds to recent inflationary pressure; the staff presentation calculated monthly customer impacts ranging from about $0.84 to $2.28 depending on consumption. Commissioners voted to adopt the rate resolution.

- Wastewater rates (resolution 5166): The commission voted to adopt the proposed wastewater increase that staff said would raise monthly bills an estimated $0.97 to $4.77 depending on usage. Gager said revenue from sewer rates supports operations and capital work, including inflow and infiltration projects and maintaining the water reclamation facility.

All three resolutions passed on roll‑call votes.

Zoning: 38 Love’s Lane

The commission approved second reading of ordinance 3061 to zone the parcel at 38 Love’s Lane as mixed‑use (MU). Planning director Jennifer Severson said the parcel had been recently annexed, that the owner intends a professional/office use (the USDA was mentioned by staff as an intended tenant) and that the parcel would be brought into the city’s Gateway Overlay design district soon after zoning to ensure applicable design standards.

What the decisions mean

- The adopted budget keeps ongoing revenues aligned with ongoing expenditures and retains a fund balance above standard guidance, city staff said. - The utility rate adjustments, as presented, will modestly increase typical monthly bills; staff noted the increases support operations and capital needs and reflect higher energy and materials costs. - The Loves Lane parcel will receive MU zoning and will be subject to the Gateway Overlay design standards once that overlay designation is added to the zoning map by the commission, city staff said.

Votes at a glance

- Resolution 5164 (final budget adoption): Outcome—approved. Motion text in meeting: "I move to approve resolution number 5164 and authorize the chair to sign the resolution." Vote: roll call; motion carried. - Resolution 5165 (water rates): Outcome—approved. Staff projected customer impacts of $0.84–$2.28 per month depending on use. Vote: roll call; motion carried. - Resolution 5166 (wastewater rates): Outcome—approved. Staff projected customer impacts of $0.97–$4.77 per month depending on use. Vote: roll call; motion carried. - Ordinance 3061 (zone 38 Love’s Lane as mixed‑use): Outcome—approved on second reading. Motion carried.

Ending

Commissioners discussed mill levies and the effect of reappraisals on mill rates; staff said the city’s levied property tax revenue is constrained by state law and recent revaluation reduced the city’s millage rate even as levy revenues increased. Several commissioners said they would publish explanatory materials to help taxpayers interpret the changes and how the adopted budget affects individual tax bills.