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Council gets proposed 2026 budget showing $1.69M gap; staff recommends 1‑mill increase and limited fund‑balance use; monitor purchase tabled
Summary
Finance presented a proposed 2026 operating budget showing a refined $1.692 million gap; staff proposed a 1‑mill tax increase and limited fund‑balance use to cover a one‑time pension increase, and council requested more detail on revenue assumptions and positions.
Finance staff presented a proposed 2026 operating budget on Nov. 5 that reduces a previously reported gap of roughly $3.3 million to $1.692 million through expenditure reductions and refined revenue projections. The presentation identified pension obligation increases ($790,000) as a primary driver; personnel costs and health insurance were additional pressure points. Personnel represents roughly 60–75% of the operating budget in the municipality’s accounting, staff said.
To close the remaining gap staff recommended a mix of options: a 1‑mill property‑tax increase (projected to generate about $887,000), use of about $790,000 of fund balance to cover the pension spike as a one‑time item, and continued identification of expenditure reductions. Staff emphasized that fund‑balance use for a one‑time pension increase would be a targeted approach to preserve credit rating and that the pension obligation is expected to decline the year after.
Council members pressed for supporting detail behind revenue increases, including a projected $250,000 bump in fines and forfeitures tied to expanded parking enforcement and the reopening of formerly restricted courthouse parking. Council also requested a line‑by‑line breakdown of staffing changes, promotions and associated costs; several members expressed concern about non‑recurring uses of fund balance and the sustainability of relying on parking enforcement revenues.
During the meeting council considered a separate resolution to purchase Dell computer monitors (a $47,365 procurement to complete a staged technology refresh), but members asked for further detail about configuration, alternatives and compatibility with existing hardware. That monitor purchase resolution was tabled for follow‑up information and review of prior bundle pricing and warranty options.
Finance staff will post the proposed budget for public review and the council plans further deliberation and line‑by‑line clarification before final adoption (advertising and public‑hearing steps were described). The final adoption is scheduled to follow required advertisement and public‑hearing procedures.
