Council reviews FY26 operational budget: COLA, health insurance spikes, GEMT uncertainty, debt‑service fee changes and parks capital

City staff presented the proposed FY26 operational budget and walked the council through revenue assumptions, departmental expenses and capital priorities. Key assumptions included a proposed 2.5% cost-of-living adjustment and a 2.5% step merit (5% total), estimates for health-insurance premium increases, and revenue growth assumptions.

Presenting staff said: "So this year, we are proposing a 2.5 percent COLA, along with a 2.5% step merit. So that's 5% total." They also estimated a 12% increase in health-insurance premiums for the first nine months and modeled a 15% increase for January–March in the new plan year. Sales tax revenue was projected to increase 5% and water costs were modeled to rise 5%; the staff proposal was to absorb the water cost increase in the short term but pass a 4.2% solid-waste increase from GFL to customers.

GEMT and federal grants Staff discussed…