Mayor outlines 2025–26 budget priorities; finance director requests amendment to health/dental fund
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Summary
Mayor presented the proposed city budget emphasizing public safety, infrastructure and a $10 million parks improvement investment from reserves; finance director proposed Budget Amendment No. 2 to increase the health and dental self-insurance fund by $319,800 to cover roughly $500,000 in outstanding claims.
Mayor delivered the city’s annual budget address, outlining department requests and broader fiscal priorities for the 2025–26 fiscal year, and Finance Director Jason Lewis presented a budget amendment to address rising health and dental claims.
In the address, the mayor said the proposed budget focuses on public safety, infrastructure maintenance, economic development and “smart growth.” The mayor told council staff have proposed adding personnel in police and fire to respond to increasing call volumes and expanding geography, upgrades to body-worn cameras and other equipment, and that administration and finance departments are seeking technology and staffing to handle greater public engagement and records requests.
The mayor proposed using reserves to invest $10,000,000 over the next two years in improvements to six city-owned parks as the first phase of a four-phase parks program. He also said staff will evaluate reductions in the insurance premium tax and property tax rates and that those proposals will be discussed later in summer tax-rate hearings.
Finance Director Jason Lewis said medical and pharmacy claims are up 23% over the prior fiscal year and that large claims are driving increases. As of May, Lewis said the city had around $500,000 in outstanding claims that do not include June submissions. He proposed Budget Amendment No. 2 to raise expenses in the health and dental reinsurance fund by $319,800 (an 8% increase versus previous amendment number 1) to cover current claim volumes. Lewis also noted higher bank service charges (about $5,000 year-to-date) and an uptick in HRA and FSA claims.
Lewis and the mayor said they would continue to monitor organic growth in revenues as federal ARPA/CAREs funds dry up, and they will present updated fund balances during the summer budget amendment cycle after the fiscal year closes.
No formal council vote on the budget or the amendment was recorded during the caucus meeting; Lewis said the ordinance to be presented at next week’s first reading will be identical to the copy provided to council.
