Moscow council adopts $139.6 million FY2026 budget, OKs tax levy and foregone recovery

The Moscow City Council on Aug. 4 adopted the city's fiscal year 2026 appropriation ordinance, approving a $139,578,442 budget and authorizing the mayor to certify a total tax levy used for next year's property tax collections.

The vote followed a formal public hearing led by Bill Beltknap, who presented details of the proposed budget, and included staff responses to public questions. Council members then approved a foregone tax recovery resolution, suspended the rules to adopt the appropriation ordinance by summary, and authorized the mayor's signature on the L-2 property tax certification form.

Beltknap said the appropriation ordinance frames expected revenues and the city's spending priorities for the Oct. 2025'Sept. 2026 fiscal year. "The budget is a very important policy action by the council. It is our fiscal plan," he said during the hearing.

The budget package highlights and context

- Total appropriation: $139,578,442 (ordinance read and approved by title as "annual appropriation ordinance appropriating $139,578,442"). - Property tax certification (L-2): council authorized the mayor to sign a certification in the aggregate amount of $9,088,502. - General fund and priorities: the city plans to continue a multi-year emphasis on capital reinvestment and public safety; the police department represents the single largest general fund operating cost. Council and staff identified roughly $37 million in general-fund capital needs over the next 10 years, largely for roadways and public facilities. - Cost-of-living and compensation: the budget includes a 4% cost-of-living adjustment for employees and a 3% pay-for-performance pool; the city also continues a multi-year plan to increase dependent health coverage from 60% toward 80%. - Capital and projects: the budget funds nearly $3.4 million to complete the city shop project (new 16,000-square-foot addition plus renovation of the existing shop); just over $3 million is allocated to roadway improvements (including TAP grant projects on Mountain View North and South and a South Main pedestrian underpass); $335,000 is…