Belgrade sets June 16 hearing on preliminary FY2026 operating budget; staff outline salary increases and fund transfers

Belgrade city council voted unanimously to set a public hearing for June 16 to consider adoption of the preliminary fiscal year 2026 operating budget after a staff presentation detailed proposed operating changes and revenue estimates.

Finance staff told the council the preliminary budget covers operating expenses only — no new capital projects except a vehicle for a recently added public works superintendent — and includes a 5% salary increase for employees who are not under contract or directors. The presentation used a 6% estimate for increased taxable value and a 2.11% inflation adjustment; the finance director said the estimate translates to an increase of about $6.59 per $100,000 of assessed value for the general fund.

Officials also explained a change in bookkeeping for the library: historically a portion of the general mill levy and some state entitlement revenue were effectively earmarked for the library. Staff said the budget will now show those amounts as transfers from the general fund so the city can more transparently display how much the library requires from general revenues. The county’s contribution to the library was described as roughly “200‑something thousand,” and staff said intergovernmental revenue and federal grants are part of the library’s mix.

City Manager Cardwell and budget staff raised a separate concern about the planning fund. They reported an opening fund balance of $895,990 and said planners anticipated about $318,000 in charges for services this year but have collected roughly $170,000 so far, with a possible $75,000 later in the fiscal year. Cardwell said staff will review whether fee items were missed in implementation, whether collection practices need correction, or whether shifting project types (more commercial work with longer billing cycles) are delaying receipts. He added the city has been using a 3% administrative impact fee collected from developers to smooth planning staffing costs until a law change takes effect on Oct. 1 that will eliminate that charge.

On staffing and reserves, staff noted the general fund is currently healthy enough to subsidize planning and other funds if needed, but warned repeated subsidies reduce capacity for larger capital projects in the strategic plan.

During public comment a resident asked whether the proposed HEQA (cited in the meeting) would require additional taxes; Cardwell replied it would not unless the council chose to ask voters for a bond. With no further public comments, the council voted to set the June 16 hearing. Cardwell told the council he will be absent for that meeting.