Superior council adopts 2026 budget after debate over reserve accounting and TIF receivables

The Superior Common Council on Nov. 4 adopted the 2026 city budgets after several hours of committee reports and discussion about reserve accounting and tax-increment financing (TIF) receivables.

Finance staff presented a reserve analysis and explained a change in methodology: unreimbursed TIF receivables were included as assets in the net-assets calculation used to measure the general fund reserve. The finance director said auditors and the city's municipal advisor recommended including those receivables in the calculation. "Assets aren't just cash," the finance director said, explaining that net assets include receivables and other noncash items.

Several councilors questioned whether counting TIF receivables was consistent with the reserve ordinance, which they interpreted as intended to direct excess cash to reserves meant for emergency draw-down. One councilor said that including multi-year TIF receivables "inflates" the reserve and may obscure actual cash availability; he urged caution before relying on receivables to justify transfers to capital projects. The mayor and finance director told the council that the reserve calculation followed policy and that outside advisors agreed with the approach.

The budget as proposed includes a $1.5 million transfer to the capital improvement program (CIP). Councilors discussed bonding proposals noted in the budget documents, including a potential fire station bond and golf-course irrigation borrowing. The finance director clarified that planned bond sales are scheduled in fiscal 2026 with payments beginning in 2027 and that the levy numbers shown in the proposed budget do not include debt service for bonds that would be issued later.

After discussion, the council voted by voice to adopt the 2026 budgets. The finance director and mayor said they would continue discussions about TIF accounting and the policy implications for future budgets and disclosures.