City presents a conservative, balanced 2026 general fund budget and creates a parks capital fund

City finance staff presented the proposed appropriations ordinance for 2026 and described the general fund as balanced, with total revenues exceeding expenditures under a conservative planning approach. The proposed budget is up 8.4% from the 2025 budget but only 0.3% from projected 2025 actuals as staff accounted for one-time adjustments (including stop-loss health insurance timing) and ongoing uncertainty in municipal revenue legislation.

The presenter said property taxes are expected to rise and that the city has recovered $1.5 million previously advanced to its self-insurance fund. The council and staff discussed outstanding labor contracts that could affect final numbers and a space-needs/facilities study that may require near-term funding.

A new Parks Capital Fund is proposed with an initial transfer of $1,000,000 from an excess in the old parks levy; the goal is to budget parks capital and operations more transparently and to allocate a portion of parks revenues annually to capital needs.

Staff said routine maintenance items have been moved from the capital program into the operating budget to avoid misclassification and the resulting deferred maintenance. Council will continue review in future readings; the budget was presented in its second-reading public hearing.

Next steps: additional public hearings per charter requirements and further council readings before final appropriation.