Public Works Committee reviews draft FY26 operating budget; staff to present department-level details at May 5 workshop

Committee staff summarized the mayor’s proposed FY2026 operating budget at the April 22 Public Works Committee meeting. Staff said the draft operating budget currently shows a projected shortfall of roughly $833,000 and includes a 2% cost-of-living adjustment for all employees and a projected 15% increase in health insurance costs.

Paving and capital priorities: staff outlined proposed paving allocations: $2.7 million from the general fund for paving, $1.0 million from State Street funds, and $3.7 million from the PIP fund (total roughly $7.5 million) for streets and paving programs. Staff said a list of candidate streets will be presented at the next workshop (May 5) and that the proposals would allow the city to address streets in poor condition.

Debt and reserves: staff presented a schedule showing $2.1 million of debt reduction in the coming year and said the city’s unassigned fund balance is healthy (staff referenced roughly $20 million available with a comptroller-required minimum around $10 million). Committee members discussed the timing of debt payments and the biannual nature of many debt schedules.

Staffing and compensation: the draft includes a 2% COLA and step increases (a 2.5% step raise example was noted). Committee members proposed additional compensation ideas: a suggested $2,000 across‑the‑board salary supplement for non‑police staff (approximate recurring cost estimated at roughly $500,000 annually based on the staff count discussed: ~387 total employees, ~130 police officers who already received a prior adjustment). Staff cautioned that recurring salary increases require recurring revenue and recommended care before reallocating capital dollars to recurring operating expenses.

Hotel/motel and golf course request: the committee discussed the hotel/motel fund, where the proposed ending fund balance was shown at about $113,000. The parks/golf commission asked for a one-time transfer of about $40,000 (the parks commission’s request—original ask near $45,000) to finish building improvements at the city-owned Country Hills clubhouse; staff said this would leave approximately $70,000 in the fund and that the mayor could consider including such a transfer in the proposed budget.

Next steps: staff will provide department-level organizational charts, position lists, and detailed line items in advance of the May 5 budget workshop; the committee also requested that staff explore financing options and nonconventional loan alternatives when reviewing LED conversion financing. Committee members proposed further discussion of COLA, step increases, and targeted supplementary pay during the May 5 workshop.

Ending: The committee set the budget workshop for May 5 and asked staff to return with department-level position information, a street list for paving, and additional financing scenarios for the LED project.