Huntington mayor presents flat $78 million FY26 budget, warns of shrinking federal grants and growing liabilities

Mayor Steve Farrell on Monday delivered the required budget message to Huntington City Council, proposing a largely flat fiscal year 2026 general-fund budget of about $78 million and warning that shrinking federal grants and falling tax receipts will put pressure on the city’s cash position.

Farrell said the city’s top-line revenues have fallen from a COVID-era peak and that federal grant funding that boosted recent years is likely to decline. “Our biggest revenue source comes from taxes and fees. And the slope of that line is on a downward trajectory,” Farrell said. He added that the city has about $15,000,000 in delinquent taxes and fees that reduce available cash.

The mayor framed the budget as a disciplined, priority-driven plan: full funding for police and fire, more infrastructure spending, and steps to spur economic growth. “Public safety is job number one. The second thing is infrastructure. And the third is economic growth,” he said, summarizing the administration’s priorities.

Why it matters: Farrell said Huntington faces rising costs — notably health insurance and personnel — even as revenue sources contract. He estimated roughly $250,000,000 in combined unfunded liabilities across city entities, including an actuarial shortfall of about $123,000,000 tied to pension/retirement liabilities and roughly $93,000,000 in other post-employment benefits such as health care and vacation…