Interim director updates council on 2026 budget; IBEW agreement and staff changes reflected

Interim Director provided the City Council with updates to the proposed 2026 budget at the Dec. 1 meeting, saying the packet (available Oct. 13) incorporates a new labor agreement and internal staffing changes.

"The 2026 budget document was provided to the city council and available to the public on October 13," the interim director told council, noting study sessions on Oct. 13 and Nov. 10. The director said the packet was updated to reflect a new labor agreement with IBEW for non-uniformed and non-exempt employees that provides for wage increases of "4.5 in 2026" and includes additional increases for specific positions. The director also said the public works coordinator position has been defunded and replaced with a maintenance worker 3 lead position, and that 2025 budget amendment No. 4 was incorporated.

The mayor opened the public hearing on the 2026 budget at 7:07 PM and, because no residents signed up to speak, closed the hearing the same night. The director said the budget must be adopted prior to Dec. 31 and that council discussion will continue; the council indicated the item will be brought back next week for further action.

Councilmembers asked whether the labor and staffing changes would materially affect the utilities or the overall 2026 numbers. The interim director said staff had updated indirect cost allocations, the IT fund, interfund charges and the wage scale and that they did not anticipate a significant impact to the 2026 budget actuals from the ordinance-level changes presented that evening.

The council scheduled further consideration at a special meeting next week, when the council expects to act on the budget.