Livingston commission adopts $3.78 million final budget; approves modest utility rate increases and zones annexed parcel

The Livingston City Commission adopted a final fiscal year 2025–26 budget and approved related utility rate changes at its July 15 meeting, voting unanimously on each matter.

The commission approved Resolution 5164, the final budget in the amount of $3,775,333 for the fiscal year beginning July 1, 2025. City Manager Greg Gager told commissioners the budget is balanced: current operating revenues and ongoing expenditures align and the budget anticipates an ending general‑fund balance of about 26.2% of general fund expenditures — above the Government Finance Officers Association (GFOA) guideline of 16.67%.

Nut graf: The final budget keeps the city operating in balance while preserving a higher-than‑recommended fund balance to cover the timing of tax receipts and other contingencies; the commission also approved modest utility rate increases intended to cover inflationary input costs for water and wastewater operations and to fund needed capital and maintenance work.

What the commission approved

- Final budget (Resolution 5164): Adopted. Amount: $3,775,333 for FY 2025–26. City manager Greg Gager said operating revenues would cover operating expenditures (roughly $8.4 million of operating revenues versus $8.417 million of operating expenditures in the general fund) and that the budget includes one‑time investments while keeping an ending fund balance equal to roughly 26.2% of general fund expenditures. - Water rates (Resolution 5165): Adopted. The city set a water rate adjustment tied to inflation (staff characterized this as a roughly 4% adjustment to keep pace with cost increases). City staff estimated the change would increase typical customer bills by a range of about $0.84 to $2.28 per month depending on water use. - Wastewater rates (Resolution 5166): Adopted. The commission approved a wastewater rate adjustment roughly equal to the recent observed inflation rate (DNRC/staff cited 4.18% for wastewater). Staff said the increase supports operation and capital demands, including inflow and infiltration work at the water reclamation facility. - Zoning ordinance (Ordinance 3061): Adopted on second reading. The commission rezoned a parcel at 38 Love's Lane (recently annexed) to Mixed Use (MU). The planning director said the MU zone allows business and professional offices and that the owner expects to site a USDA office; the parcel will be required to extend city water and sewer when developed and will be subject to Gateway Overlay design standards.

Votes at a glance

- Resolution 5164 — Final budget ($3,775,333) — outcome: approved (roll call 4–0). Notes: staff reported balanced operating revenues vs. expenditures; estimated ending general fund balance ~26.2% (above the GFOA recommendation of 16.67%). - Resolution 5165 — Water rates (inflation adjustment, approx. 4%) — outcome: approved (roll call 4–0). Estimated customer impact: about $0.84–$2.28 per month depending on usage. - Resolution 5166 — Wastewater rates (4.18% inflation adjustment) — outcome: approved (roll call 4–0). Estimated customer impact: about $0.97–$4.77 per month depending on usage. - Ordinance 3061 — Zone 38 Love's Lane as Mixed Use (MU) — outcome: approved on second reading (roll call 4–0). Notes: site will require extension of city water and sewer and will fall under the Gateway Overlay design district for building and landscaping standards.

Discussion highlights

City manager Greg Gager walked through how the local mill levy and taxable valuation interact: reappraisal this year increased market values and drove the city’s mill rate lower (Gager noted the city’s mill rate was shown in the budget materials as dropping from about 154.56 to roughly 132.47); he emphasized that taxable value and allowable levy growth are constrained by state statute and recent legislative changes. Gager said the recommended budget is in balance and that fund balance was intentionally maintained above typical guidance to preserve the city’s ability to cover several months of operations between tax receipts.

Commissioner comments touched on staffing and service structure: commissioners said recent budgets emphasize converting overtime and temporary coverage into more stable, permanent positions (for example in emergency services) and that a measured, inflation‑tied utility adjustment helps sustain service and capital work without large one‑time spikes later.

Public comment

Residents asked how rate increases will affect low‑income households and whether utility assistance programs are available; staff said local low‑income utility assistance (including programs run by HRDC and other agencies) can help customers in need, and city staff offered to work individually with customers who are struggling.

What to watch next

- Staff said they will return to the commission with additional detail on impact fee and capital funding plans tied to projects such as the proposed grade‑separated rail crossing and downtown mobility improvements. - The parcel rezoned at 38 Love's Lane will require site plan review, utility extension and Gateway Overlay design review before development proceeds.

Ending note

The four recorded votes on July 15 were unanimous, with commissioners voting to adopt the final budget, the two rate adjustments and the zoning assignment for the annexed parcel.