Livingston City Manager delivers FY2026 budget; commission sets public hearings for budget and utility rate increases

City Manager Grant Gager presented his recommended FY2026 budget to the Livingston City Commission on June 17, reporting a proposed total budget of $31,775,333 and a general fund operating plan that keeps operating revenues above operating expenses while using limited one‑time fund balance for capital projects.

The proposed budget includes the following principal items:

- Public safety: Conversion of four reserve firefighter/EMT positions to full‑time staff (one additional full‑time firefighter/EMT on each shift) to reduce overtime and reserve dependence for 24‑hour coverage; associated equipment purchases were included in the annuals fund.

- Public works and utilities: Creation of a Public Works operations manager position to coordinate multi‑disciplinary projects, continued unpaved road treatments, water and sewer capital projects (including Bennett Street loop and I&I work), and a recommended 4.22% rate increase for both water and wastewater enterprise funds to offset inflationary costs. Solid waste rates were not increased for FY2026; staff expects savings from moving transfer station freight to Logan Landfill.

- Permitting and IT: Implementation of an online building and planning permitting system contracted at no cost to the city, expected to reduce review times and improve efficiency.

- Community services: Continued funding for the housing coordinator, funding for the warming shelter, and $11,000 for the urban forestry program (Livingston Loaves Trees). The budget also includes funding to continue planning for sidewalks, rapid‑flashing beacons and pedestrian crossings along Park Street and for railroad crossing planning and potential grade separation preparatory work.

Gager emphasized that the general fund will end FY2026 with an estimated fund balance of about 26% — above the Government Finance Officers Association recommended 16.7% — and said the recommended water and wastewater rate increases (each 4.22%) are intended to maintain enterprise fund health in the face of rising costs. Gager noted energy cost increases as a driver for wastewater operational expenses and said the average residential monthly bill would rise by roughly $0.84 to $2.28 for water and $0.97 to $4.77 for sewer depending on use tier.

Commission action: The commission voted to set a public hearing on the final budget and rate adjustments for July 15, 2025. During the June 17 meeting the commission adopted:

- Resolution 5161: Notice of the preliminary FY2026 budget (approved by roll call vote). - Resolution 5162: Notice of intent to adjust water rates (4.22% recommended; public hearing set for July 15). - Resolution 5163: Notice of intent to adjust wastewater rates (4.22% recommended; public hearing set for July 15).

Questions raised during deliberations included whether water tiers should be modified to add a higher top tier for very large users (staff reported fewer than about 15–40 accounts exceed 100,000 gallons and said staff would return with analysis if the commission directed), and whether the seasonal averaging period for sewer billing (currently October–March) should move to November–April; staff said that changing the sewer averaging period requires ordinance action and that a usage analysis showed little net change in averages but that staff would return with the detailed findings.

Next steps: Staff will publish the budget and rate notices, hold the public hearings on July 15, 2025, and return with any ordinance language necessary to implement rate changes or modifications to sewer averaging periods.