Brookings council reviews 2026 budget; general fund rises about $1 million while city uses conservative revenue assumptions

Brookings city staff presented the first budget workshop on the proposed 2026 operating budget and outside-agency funding, outlining a balanced general fund that includes roughly $1 million more in spending than the 2025 adopted budget and a modest overall decrease of about $650,000 in the city’s total budget compared with 2025.

Assistant City Manager Samantha Beckman and Finance Director Ashley Wrench told the City Council that the 2026 budget reflects a 3% sales-tax growth estimate and a 5% increase in property-tax revenue; staff said total spending reductions are driven mainly by fewer one-time enterprise and CIP projects carried forward from 2025. “We are budgeting this 3% increase over 2025’s budget,” Beckman said, adding the budget uses multi-year averages and other conservative assumptions to hold spending to sustainable levels.

The presentation emphasized that the general fund is the city’s primary operating fund and will absorb most personnel- and inflation-driven cost increases. “The general fund increase is really having to do with staffing increases, so wages and training in there, as well as the BMU water treatment plant project revenues coming in and just kind of cost escalations of materials,” Beckman said. Staff said no additional full-time positions are recommended for 2026 and that wage changes that affect negotiations with unions remain subject to the ongoing meet-and-confer process.

Why this matters: The workshop sets the framework for the council’s fall budget decisions, including the formal property-tax-levy ordinance readings and a later public discussion of the capital improvement plan and the consolidated fee schedule. Council members pressed staff on the revenue assumptions and on near-term fiscal risks; staff said conservative revenue projections and existing reserve policies should provide flexibility for unexpected needs.

Key details and council questions - Revenue assumptions: staff proposed a 3% sales-tax growth rate for 2026 and noted they intentionally budget less than recent actuals “to be fiscally conservative.” Finance Director Ashley Wrench said, “Each year, we propose a lesser amount than what we actually receive, to be fiscally conservative. So then, anything over and above what we have budgeted, then will fall into the city council financial policy projects for the next year.” - Property taxes: staff presented a $209,516 increase in total city property-tax revenues for 2026, driven by a 2.09% new-construction growth factor and a 2.9% consumer-price-index factor provided by the county; staff reiterated that state law caps both CPI and growth at 3%. - Fund balances and reserves: staff noted the city maintains a sinking/equipment fund (capable of up to $1 million in 2026) plus general-fund reserves (a 15% reserve policy and an additional 5% reserve) to respond to emergencies or unplanned capital replacements. - Outside agencies: the presentation described about $3.1 million in outside-agency funding across several funds (about 4.33% of a roughly $72 million total budget). The Brookings School District’s request of $195,000 was recommended for funding; many tourism and economic-development grants are paid from the city’s “3B” bed, booze and board tax. - Cost drivers: increases across departments are primarily personnel and inflation-driven: police (~7% increase), public works (~8.5%), parks (~6.3%), administration (about 15.9% due to a new city-attorney contract and ordinance recodification work), and fire (about 12% due to personnel and vehicle maintenance).

Council discussion highlighted two areas of potential near-term vulnerability: lower-than-expected hotel stays (which reduce the pillow/BID tax) and potential legislative or Medicaid-related funding shifts that could affect local nonprofits and the health-care system. Assistant City Manager Beckman and Finance Director Wrench repeatedly underscored the city’s conservative budgeting approach as a buffer against these uncertainties.

Next steps: staff said the council will review the 10-year capital improvement plan and the consolidated fee schedule at a September 23 meeting; an optional study session is scheduled for October 14 if the council requests additional review. The budget process will culminate in formal ordinance readings and adoption in November.

Ending: Councilmembers thanked staff for the presentation and asked for additional detail on a handful of line items at future meetings. The presentation materials and detailed fund tables will be revisited at the September 23 meeting.