Mayor outlines 2026 budget focusing on core services, proposes sales-tax option and modest levy rise

Mayor delivered an overview of the mayor-recommended 2026 budget and framed it as a maintenance-focused plan that prioritizes core city services including police, fire, public works and parks.

The mayor said the city proposes a 3.4% levy increase—about a 3% mill-rate change—that would equate to roughly $60 on the tax bill for an average $250,000 home. He also proposed a 2.5% cost-of-living adjustment for employees, with departments accounting for step increases separately.

The budget includes new position requests, such as a financial/data analyst position for the fire department and three community service officer (CSO) positions intended in part to in-source City Hall security and create a pipeline into police work. The mayor said personnel costs and salary adjustments account for a substantial share of the increase in expenditures.

A significant driver of higher expenditures is increased debt service tied to infrastructure borrowing. The mayor estimated debt-service payments would rise by about $2.3 million as the city invests in capital projects.

To address the ongoing gap between local needs and state support, the mayor urged continued advocacy for increased state shared revenue and floated language for a potential local half-cent sales tax, to be considered by referendum if pursued. He noted the county’s sales tax produces an estimated $40 million and used a population-share estimate (roughly 40%) to suggest the city could capture a portion of that revenue if a local option were available.

On revenue-side detail, the mayor emphasized that municipalities are receiving higher shared-revenue payments tied to statewide sales-tax growth and that certain municipal service payments and transportation aids are projected to rise modestly in 2026. He closed by asking committee members to raise questions as staff worked through line-item details.

The committee’s members asked for clarifications about the COLA, the sales-tax scenario, and whether the city’s portion of county sales-tax receipts could be verified with the Department of Revenue. The mayor said staff would work to provide additional detail.

The committee took no final vote on the overall budget at this meeting; instead, members advanced departmental items through the committee’s regular motions during the session. The budget process will continue with full council consideration and detailed follow-ups from staff on several line items.