Riverside manager lays out 2026 budget; council establishes year‑one stormwater and solid‑waste funds amid resident objections

City Manager Josh presented a draft 2026 budget Monday night to the Riverside City Council that keeps overall spending largely consistent with 2025 while launching new utility funds for stormwater and solid waste and continuing work to start city utility billing. The presentation warned that income‑tax receipts have been buoyed this year by timing of Defense Finance and Accounting Service payments and that the federal government shutdown creates revenue uncertainty for the remainder of 2025.

The budget proposal includes a new stormwater utility intended to generate ongoing revenue for maintenance and capital projects identified in Riverside’s 2015 stormwater master plan. Staff told council the master plan identified roughly $15 million in deferred capital needs a decade ago; after inflation that figure is likely higher. For year one the city expects about $1.4 million in stormwater fee collections, short of staff’s $2.0 million target to fully fund both personnel and capital work. To get the program started the draft budget includes a $250,000 advance from the general fund that staff expects to repay if collections meet projections. The city also plans to pay its own stormwater fee (about $28,000) from internal accounts in year one.

Manager Josh said the stormwater fund is structured so it can support future bonding for larger projects if revenues materialize. “If this money doesn’t come in, there is no program,” Josh said, noting staff will update the city’s 10‑year plan and cost estimates as part of implementation work.

During public comment several residents urged the council to reconsider the fee schedule and to grant waivers for parts of Overlook, a neighborhood that maintains private streets. Tim Gosnell of 12 Beatrice Drive said he researched neighboring communities’ rates and believes Riverside’s tiers are higher. “Riverside has decided to enact the highest fee in the surrounding area based on their tier structure,” Gosnell said. Patricia Yates of 4524 Baezville Boulevard asked whether seniors could receive discounts on the new fees. James Kenny, representing Overlook Mutual Homes, asked whether properties in Overlook would be classified as commercial and requested the association be considered for a waiver; the council signaled it would take the feedback under advisement.

The draft also creates a city‑run solid‑waste fund tied to a multi‑year contract with Rumpke. Staff estimates the new solid‑waste fund will collect about $900,000 in year one and require a one‑time general‑fund transfer (about $625,000) to cover early‑year payments to the hauler before billing begins in April. Manager Josh said the contract is multi‑year with renewal options and that the start‑up transfer is intended to be one‑time to get the fund running.

On revenues, staff said the city is likely to collect between about $10.55 million and $10.8 million in income tax in 2025 and reiterated the council’s current revenue split: roughly 40% of income‑tax receipts flow to the general fund and 60% to public safety, which itself is split evenly between police and fire. The manager flagged that DFAS payment timing inflated some 2025 collections because a 2024 payment posted this year and that the federal shutdown and furloughs add uncertainty to late‑year receipts.

Manager Josh also reviewed other major funds: the fire fund, supported in part by EMS billing, is stable; the police fund includes a voter‑approved property tax and a transfer from the general fund; the streets fund will receive motor‑fuel and vehicle tax receipts plus a reduced general‑fund transfer because some street personnel costs are planned to be supported by utility fees; and RightPoint, the city’s building/lease program, will continue to be managed as a separate fund while staff seeks a long‑term solution.

Council members responded to public comments and asked staff to review Overlook’s concerns about fee classification and senior discounts. Manager Josh said staff will continue to refine the draft budget and the ClearGov budget book and will return to council in November with a near‑final budget and an accompanying appropriation ordinance. He emphasized that the stormwater and solid‑waste programs are “year‑0” startup efforts that will be reassessed as actual collections are recorded.

Votes at a glance - Ordinance 25‑0‑871, third‑quarter supplemental appropriation (second reading and potential adoption): Motion to adopt made by Councilman Denning and seconded by Councilman Joseph; roll call vote recorded as Yes — Denning, Joseph, Brown, Fry, Lomax, Maxfield, Mayor Williams. Outcome: approved. - Resolution 25‑R‑3055, Lions Club Project Share recognition and $250 donation: Motion by Councilwoman Lomax, second by Councilman Denning; approved by voice vote. Outcome: approved. - Resolution 25‑R‑3056, authorize contract with Axon Enterprises for replacement of police TASER units: Motion by Councilman Denning, second by Councilman Maxfield; approved by voice vote. Manager Josh said Axon offered state‑bid pricing and a five‑year payment plan; staff included the first payment tranche in next year’s draft operating budget and warned pricing could increase by about $15,000 if delayed. Outcome: approved.

What’s next Manager Josh said the budget committee will continue monthly reviews and that the full budget book will be returned to council at the November meeting along with the draft appropriation ordinance. Council members asked staff to examine fee‑structure fairness for Overlook and senior discounts before final adoption.