Woodstock council takes first vote on $86.2 million FY2026 budget; approves 2% COLA, new firefighters and water rate increase

The Woodstock mayor and council cast a 6-0 vote May 19 on the first reading of the fiscal year 2026 proposed budget, a roughly $86.2 million spending plan that city staff said is balanced as presented.

Miss Welch, a city finance staff member presenting the budget, said the proposal assumes 2% estimated new construction growth, includes a 4% water rate increase effective July 1 and uses some reserves to blunt higher health insurance allocations. "This is the first reading of fiscal year 20 26 proposed budget," she said during the presentation.

The budget summary shows a citywide total of about $86.2 million, with the general fund proposed at about $32.3 million (roughly 38% of the total). Major line items spelled out by staff include a 2% citywide cost-of-living adjustment capped at $2,000, an average merit increase equivalent to about 3% (phased), the addition of 14 full-time positions (12 of which are firefighter positions), and a $100,000 council contingency reserve.

Why it matters: the proposal would add public-safety capacity and advance a multi-year parks program while preserving a target unassigned general fund balance above the city's 25% policy, according to staff. Council members and the mayor emphasized the package's investments in parks, trails and emergency services while noting the budget still represents a rollback of the millage rate compared with several years ago, as cited by the mayor.

Key components and details - Personnel: 14 new full-time positions (12 firefighters), one part-time municipal court bailiff and several reclassifications and certification-based salary adjustments. Police and fire budgets assume a 4% vacancy rate in salary budgeting. The pension contribution (GMAVs) increases about 9% per actuarial recommendation. - Rates and funds: a 4% water rate increase is included; stormwater is listed as under consideration for a rate change with new revenues to fund projects. The water/sewer fund proposed budget is slightly over $14 million. The water/sewer tap fee fund is proposed at about $2.3 million and proposes use of reserves for capital work. - Capital and bonds: Little River Park construction is budgeted to begin in FY26 as an 18-month project; the parks bond program lists Little River Park work at $12.5 million in FY26. The budget authorizes ordering a new fire engine now because of a long lead time (staff noted 36 to 48 months). - Insurance and reserves: health insurance cost allocations increased but are offset in part by a planned use of $1.5 million of health insurance reserves; property and casualty insurance increased notably. A new internal service fund for property and casualty is proposed to prefund deductibles and claims. - Revenue and timing: staff reported tax-related revenues make up the largest revenue category (about 51%), and noted a delay in county assessment notices that may shift tax-timing details; certified digest and millage-rate consideration remain on the usual summer schedule.

Discussion and next steps: Council members asked clarifying questions during the presentation but did not amend the document. The mayor and finance staff reminded the public that this was the first vote; staff said formal millage-rate consideration typically occurs in August after certified digest receipt. The council recorded a formal motion to approve the first reading; the motion carried 6 to 0.

Ending: The budget will return for additional readings and final adoption steps later in the summer once property assessments and related calculations are finalized.