Utica council adopts 2026 budget, keeps millage at prior-year levels; water, sewer budgets and rates approved

The Utica City Council on Tuesday adopted the city's fiscal year 2026 budget, voted to levy the same millage rates used last year for the July 1, 2025 tax cycle and approved the water and sewer fund budgets and new consumption rates.

Treasurer Joseph Paneraster told the council during a public hearing that the council was recommending continuation of the millage rates levied last year rather than reducing them under the Headlee rollback formula. The four millages proposed are a general operating millage of 16.4024 mills, a public safety millage of 1.6398 mills, a public library millage of 0.8197 mills and a 2016 supplemental library millage of 0.3894 mills, a combined levy of 19.2513 mills to be billed July 1, 2025. Paneraster said a base tax rate fraction of 0.9717 means the proposed levy would collect approximately $5,133,578 compared with $4,988,248 at the base rate'about a $145,000 difference as presented to the council.

The city's general fund budget for the year ending June 30, 2026, projects $7,522,009.84 in revenues and $7,461,070 in expenditures for a net surplus of $61,009.14. Major street fund revenues are projected at $1,412,270, including a $728,000 federal grant and $654,002.70 in gasoline taxes. The major street proposed expenditures total $1,116,000, with $936,000 listed as capital outlay. The local street fund anticipates $196,500 in revenue (about $180,000 from gasoline taxes) and $135,000 in expenditures. Other funds presented include a liquor control fund, building code enforcement, drug law enforcement, the public library fund, a municipal building authority account and an OPEB trust fund.

Paneraster asked the council to adopt the annual appropriation ordinance, which enacts the budget as an ordinance and authorizes raising $5,133,578 in property taxes to fund the general and library funds; the council did so later in the meeting.

Council also considered the water and sewer fund proposed budget for the fiscal year ending June 30, 2026. The draft shows anticipated revenues of $4,263,400 and expenses of $4,319,980; Paneraster noted after receiving a late message from Superintendent Diamond he would confirm a $15,000 capital outlay item before finalizing an internal line-item adjustment.

The council adopted proposed water and sewer rates to take effect for July 2025 consumption. The example ready-to-serve charge shown for a 5/8-inch meter (RU factor 1) in the packet is $2.99 for water and $9.64 for sewer; the consumption charge listed in the budget packet is $6.58 per 1,000 gallons for water and $11.71 per 1,000 gallons for sewer. Paneraster said a modest $15,000 change in capital outlay would alter rates by only "pennies" on typical bills and not the ready-to-serve charges.

The council opened the evening with a formal public hearing on the tax rates and budget; no members of the public spoke during the hearing. The council voted by roll call to enter and then close the hearing before adopting the budgets, millages and the annual appropriation ordinance.

The ordinances and rate schedules approved at the meeting are recorded in the adopted fiscal year 2026 budget and the 2026 annual appropriation ordinance filed with the city clerk. Council members voting in favor were Torenzi, O'Donnell, Dionne/Deane, Backus, Weaver, DeVrent and Mayor Calandrino; the roll calls are in the official minutes.

The budget documents presented to council exclude the water and sewer enterprise fund from the general fund totals and show the municipal building authority and the OPEB trust fund separately. Treasurer Paneraster said the budget packet includes worksheets and the official State Form L-4029 millage request that will be filed with the county clerk.

The council adopted the millages and budgets by roll call after the public hearing; the appropriation ordinance followed in the same meeting.

A copy of the adopted 2026 budget, the water and sewer fund budget and the ordinance raising taxes to support the general and library funds are available from the city clerk's office and in the packet filed with these minutes.

The council returned to regular session after the hearing and proceeded with other agenda items.