City finance director presents FY2027 budget; proposed levy would lower homeowners' city property taxes

Bridget Wood, the city's finance director, told the council at a work session on April 6 that the proposed FY2027 budget she will publish includes a levy the mayor wants certified so homeowners would pay less next year.

Wood said the state's rollback for the year (44.5345%) reduces the taxable value of a $100,000 house to about $44,535. "Since it will be published in the paper, we have to note that we cannot increase or go over what is being published, but we can decrease," she said, explaining constraints on changes after publication and how the rollback affects tax bills.

The proposed certification would lower the city's portion of a typical homeowner's bill by roughly $63 annually, a drop Wood described as about a 6% decrease. She told the council the presented figures balance roughly to a net zero change when revenues and expenses are combined: estimated revenue increases (about $1.8 million excluding property taxes; about $2.28 million including property taxes) and corresponding expense increases (about $2.285 million) brought the general fund into balance.

Wood walked the council through components of the levy and the general fund: police and fire, debt service and other services. She flagged a $561,000 increase in consolidated general fund levies and said the debt service levy is about $1.7 million higher than last year, in part because some paybacks from other sources have not yet been received.

The presentation covered other funds and major budget items. Wood said the city plans about $71 million in capital projects for FY27, including streets and bridges, fiber backbone work, parks and airport projects; the sewer fund shows roughly $31 million tied to State Revolving Fund projects such as lift-station and lagoon improvements. Stormwater and sanitation budgets both increase (the stormwater increase is roughly $2 million for system improvements). She also noted a decline in expected federal CDBG funding and a modest decrease in federal housing program revenues.

On revenue sources, Wood said the city will use the full 20% local option sales tax transfer for property tax relief in FY27 and that the change means more local option dollars flow to the general fund than in the prior transition year. "This will be our first full year utilizing the full 20% ... to decrease our levy rates or help with property tax relief," she said.

Council members asked clarifying questions during the session. When a council member asked about the grout project at the library, Wood replied, "this budget fully funds the grout at 625,000." On reserve usage, Wood said the draft budget currently includes $2,234,590 of planned fund use (part of a roughly $4 million fund-use line on the slides) but emphasized that budgeting use of reserves is a placeholder and does not guarantee the funds will be spent.

Using a $100,000-house example, the presentation showed what residents would see: Wood said the current city portion for such a home is about $1,034 and that, if the council certifies the proposed levy, the city portion would be about $971. She said residents should see that reduction reflected on tax statements if the city proceeds with the certification as presented.

The council was reminded the budget Wood presented is the one slated for the public hearing on April 20; if nothing changes before adoption the published budget would be adopted at that hearing. Wood offered to meet individually with council members in the two weeks before certification to review details.

The council carried an unrelated procedural motion at the start of the meeting to approve the agenda and the March 16, 2026 minutes; no final action on the budget or levy certification was taken at the April 6 work session. The council moved on to the next agenda item after the budget discussion.