Finance Committee recommends proposed 2026 budget after third‑quarter update showing revenue gains

ALLISON, finance staff, presented the third‑quarter financial update and walked the committee through fund‑level performance and the assumptions behind the proposed 2026 budget.

Allison said general fund revenues are $506,000 greater year to date compared with the same period last year (excluding transfers), with tax and franchise fee collections up about 3%. "75% of the year is complete, and we've collected 77% of total budgeted revenues for the year and expended 67% of budgeted expenses," she said.

On the tourism fund, Allison reported year‑to‑date revenues are up 12%. She highlighted that theater collections are up 34% over the prior year while campground revenue is down about 6%. "As of quarter 3 revenue, it's up 12%, and we continue to see an increase in the revenue in the tourism fund," she said.

For utilities, Allison said staff presented cash‑basis figures as requested by the mayor; year‑to‑date cash collections for the utility fund were $9,700,000, an 8.5% increase over last year. She noted the presentation used cash receipts rather than accruals to show what the city has actually collected.

Allison then outlined key budget assumptions for 2026: sales tax budgeted at a 2% increase over the 2025 budget; tourism tax budgeted at a 4% increase over 2025; personnel assumptions include a 1% cost‑of‑living adjustment and a 4% merit pool, with health insurance budgeted at a 10% increase and workers' compensation at 5%.

Hailey (personnel staff) told the committee the combined COLA and merit will result in an average increase of roughly 3% for most employees, with higher performers eligible for larger merit increases.

Committee members asked about legal outsourcing. Allison said some outstanding litigation will be finished by outside counsel (Carnahan Evans) but the 2026 budget aims to build internal capacity so most matters are handled in house with only limited outsourcing when necessary.

The city clerk read a proposed motion for the finance committee to recommend the proposed 2026 budget to the Board of Aldermen and to direct staff to prepare a memorandum memorializing the committee's recommendation. A committee member moved the recommendation, the motion was seconded, members voted "aye," and the clerk announced the motion carries.

The committee also discussed the proposed 2026 quarterly meeting schedule and, after weighing participation concerns, agreed informally to set quarterly finance committee meetings for 3:00 p.m. on the fourth week following each quarter.

Notes: The committee made no financial appropriations at this meeting; it recommended the proposed budget to the Board of Aldermen for final approval.