Milton previews 2026 budget with lower capital spending and steady reserves

Milton City Council study session — Interim Finance Director Robec presented the city’s preliminary 2026 budget on Oct. 13, 2025, saying total proposed expenditures are 9.2% lower than the prior year and that further budget briefings are scheduled for Nov. 10, Nov. 17 and Dec. 1.

Robec said the decline in overall spending is “primarily due to decreased expenditures in the capital improvement fund as well as in the electric capital and water capital funds.” He attributed much of the reduction to finishing multi‑year projects initiated in 2025 and the “drying down of grant funds.”

The budget message and citywide summary show decreases across capital-related funds totaling about $2.6 million, including an approximately $1.6 million reduction in the capital improvement fund. At the same time, total proposed revenues for 2026 are about 3% lower than 2025, driven by reduced transfers into capital and asset-replacement funds and by fewer expected grant drawdowns.

Key items in the operating budget include wage and benefits assumptions and modest general‑fund growth. Robec said nonuniform and nonexempt employee wages and exempt wages were increased by the CPI‑U of 2.7% for 2026 and that wages were budgeted at the top step of each pay range with benefits budgeted at the highest applicable rates.

In the general fund, expenditures are budgeted to increase about $124,000 (1.6%), mainly because of higher municipal court and parks facility costs. Robec said municipal court spending rose about $109,000 largely from cost increases charged by the city of Puyallup. The budget includes a $100,000 transfer to the asset replacement fund, which Robec said “will bring the total amount of funds accumulated for future property acquisition to $600,000.”

General‑fund revenues are projected to increase roughly $265,000 (4.5%), driven by modest increases in property and sales tax estimates. Robec noted the city’s general‑fund balance has grown from about $1.3 million in 2020 to roughly $5.7 million at the end of 2024; the budgeted ending balance for 2026 is about $3.1 million, equal to about 40% of budgeted expenditures and well above the city target of 8%.

Robec walked council through enterprise funds, noting notable changes: criminal justice fund expenditures up about $298,000 (6.2%) to fund an additional patrol officer and vehicle, electric utility revenues increased primarily from a 3.8% rate adjustment tied to Milton municipal code, and water utility revenues were raised roughly 9% based on a 2023 rate study. He also reported stormwater fee revenue increases following a 2024 stormwater rate study.

Council members asked for clarifications on program scope and timing. Council Member Hall asked whether sidewalk and parking work for Oak Street could be completed within the budget; staff said costs have not yet been estimated and phasing may be required. Council Member Whelan asked for updates on the city memorial project and cityhall sign work; staff said those items are included in the capital projects list or can be funded from street‑department clearing funds as appropriate.

Robec closed by reminding council that this was the first presentation and that staff will return with updates and additional detail at the November study session.