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City manager outlines 2026 budget guidance, flags $320,000 projected expenditure increase
Summary
The city manager presented preliminary budget guidance for 2026, forecasting about $320,000 in increased operating costs (excluding utilities), recommending 2.5% general wage guidance and department-level cost controls; directors were asked to explore health-insurance options, CIP software and other efficiencies.
The city manager briefed the council on preliminary budget guidance for 2026 at the July 22 meeting, describing projected cost pressures and departmental instructions aimed at balancing services and limited resources.
The manager said operating assumptions for 2026 (excluding utilities) point to "about a $320,000 increase of expenditure costs," driven by fleet inflation, living‑adjustment wage guidance of roughly 2.5 percent, a 3 percent adjustment for WPPA law‑enforcement wages set by bargaining expectations, and an estimated 6 percent increase in health‑insurance costs. The manager noted anticipated revenue offsets, including an estimated 2.3 percent increase in shared revenues and a one‑time availability from a recently closed tax‑increment district, but said the net effect will require careful departmental planning.
Directors were asked to build budgets with conservative operational increases (about 2 percent where possible), to pursue grant opportunities, and to present options on health‑insurance design and premium sharing. The manager also asked staff to evaluate contracted appraisal services, CIP‑tracking software, and potential structural changes in public‑works staffing to improve service delivery.
The manager closed by noting the guidance is iterative; worksheets have been sent to directors and staff will return with updated proposals as budgeting continues.
Next steps: departments will prepare budget worksheets following the manager’s guidance; council discussion will continue in subsequent meetings, and staff will return with recommendations or options for personnel and benefit choices.
