Committee reviews draft FY26 operating budget; flags $833,000 shortfall and paving priorities

City staff briefed the Public Works Committee on the proposed fiscal year 2026 operating budget during the April 22 meeting. The draft operating budget, as presented, showed an approximate $833,000 shortfall and includes a 2% cost-of-living adjustment for employees and a 15% assumed increase in health benefits.

Staff said departments were asked to limit nonessential increases to 1% and that step increases and a 2% COLA are included in the draft. The committee reviewed revenue assumptions (projected roughly 2.3% revenue growth year-over-year), and staff said sales-tax growth has moderated compared with prior years. Committee members and staff discussed salary and benefit composition (public safety comprises the majority of salary and benefit costs) and asked for departmental staffing lists by position and pay grade ahead of the workshop.

Capital and paving priorities were a major topic. The draft budget as presented includes $2.7 million for general-fund paving, $1.0 million in state Street 8 paving and $3.7 million in pit-fund paving — a combined total roughly $7.5 million for paving across funds. Committee members said they want a street-by-street list for the planned paving by the next workshop (May 5).

Members also discussed the hotel-motel fund, where staff projected an ending balance of about $113,000. Members asked whether $40,000 could be allocated from that fund to complete needed repairs at the city-owned Country Hills golf clubhouse; staff indicated such a transfer would be possible with Board approval and recommended documenting the use for tourism-related facilities.

The committee scheduled a budget workshop for May 5 to focus more deeply on public works and parks operating questions and to review a departmental organizational chart, position counts, and further financing options.