Oak Grove advances preliminary 2026 budget framework: 4.95% levy, 3.5% COLA included

Oak Grove city staff and its finance consultant presented a draft preliminary 2026 budget Sept. 8 that would hold the citywide levy increase to 4.95% while including a 3.5% cost-of-living adjustment (COLA) for all staff.

The budget summary presented by Carrie, a consultant from ABDO, lists a total levy increase of $221,008 and shows the city—s tax rate moving from 25.88 last year to about 25.441 under the proposed levy. "With the proposed 4.95% budget, that does include a 3.5% COLA increase for all staff," Carrie said. She also reported the total increase as "$221,008."

Why it matters: the council aimed to keep the levy increase below 5% while addressing wages and a multi-year capital-improvement plan (CIP). Council members pressed staff on whether near-term cuts rely on one-time grants or transfers and asked for clearer CIP balances so future years are not left with steep catch-up increases.

Key elements and council direction

- COLA and levy: Council members signaled informal consensus to include a 3.5% COLA in the proposed budget that produces the 4.95% levy scenario. Staff said other COLA scenarios (3%, 4% and 4.5%) were modeled but the 3.5% scenario is included in the current draft.

- CIP and fund shifts: Staff described multiple adjustments to CIP and operating accounts to reach the levy goal. The fire…