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 uncertainty in the state/federal GEMT (Ground Emergency Medical Transport) reimbursements: recent audit changes and stricter data review reduced the city's expected GEMT payment this year. Staff described GEMT as a pooled Medicaid/Medicare reimbursement program and said the city had experienced a lower reimbursement figure this year; they are reviewing billing data and plan to contest or reconcile the audit findings.

Debt-service fees and utility billing The presentation covered existing debt-service fees on water and wastewater bills (examples cited: wastewater $5.55 residential; water $6.11 residential) and proposed reductions. Staff recommended cutting both the water and wastewater debt-service fees in half rather than removing one and leaving the other, citing fairness and the continuing debt schedules. Council directed staff to prepare the debt-service schedule and to highlight changes on bills to improve customer understanding; staff also discussed potential outsourcing of bill printing to improve electronic bill display and reliability.

Powell sidewalk program and parks capital Council approved increasing the Powell sidewalk cost-share program funding from $60,000 to $100,000 and directed staff to treat it as a capital project so unused balances could accumulate for larger future sidewalk projects. Parks staff described a planned $800,000 all-inclusive playground at Wallace Park; the department has applied for a Land and Water Conservation grant of roughly $400,000 and will submit additional grants; staff budgeted the full project cost in case grants are not awarded. Parks also expects to bid an outdoor restroom complex and expand parking at Cleveland Lake, and to fund phase 1 of outdoor pickleball courts at Wallace Park.

Golf operations and equipment Council discussed golf fund performance and a proposed transfer to general fund rather than a general-fund subsidy to golf. The FY26 budget includes capital for golf, including the 80 GPS-equipped golf carts authorized via the budget appropriation earlier in the meeting.

Budget gaps and next steps Staff reported a projected general-fund deficit of roughly $1,060,000 in the proposed budget and said they were coordinating with department heads to reduce that gap before final adoption. Staff indicated the city remains able to absorb several potential federal grant reductions, and that debt-service schedules extend into the 2030s, giving time to plan further adjustments. Council asked staff for follow-up materials including the full debt-service schedule, a plan for the 10-year lead-service-line inspection program, and options for billing-printing outsourcing or replacement.