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Council reviews FY26–27 draft budget and fee changes as utilities face rising costs
Summary
City staff presented a first‑draft FY26–27 budget showing a roughly $115,500 general fund shortfall before adjustments, proposed modest fee increases (pool punch‑passes, ATV permits, water base fee) and flagged a 13% rise in power‑purchase costs that may require rate adjustments or transfers.
City finance staff presented the first draft of the FY26–27 budget and a recommended fee schedule update, flagging revenue shortfalls and utility cost pressures.
Staff reported comparative actuals and year‑to‑date figures and said total general fund revenue is projected at about $3.6 million, including a contingent $250,000 from CVG. Finance staff noted the draft currently shows a general fund gap (approximately $115,500) that will require adjustments, transfers or updated revenue assumptions. "Our total revenue, you can see, is projected to be 3,600,000 in the general fund," the presenter summarized.
The council reviewed individual enterprise funds: water showed recent reimbursements pending, sewer is tight and likely to require a substantial improvement project, and the electric fund faces higher power‑purchase costs after notice from the supplier. Staff said they had received notice of an approximate 13% increase in power‑purchase cost and that the utility funds may need modest fee increases to preserve sustainability.
On the fee schedule, staff proposed raising the swimming‑pool 10‑punch pass to $45 and a 20‑punch pass to $85, increasing ATV permit fees, and recommending a $2 increase to a proposed $35 base water fee; a new sewer impact fee of about $3,100 was also recommended per a recent study. Council members discussed family‑pass options and the tradeoffs between access and added operational costs (for example, additional lifeguards), and requested further analysis before final adoption of the fee schedule.
Council asked staff to refine the budget, consider modest annual utility rate adjustments to avoid large shocks, and return with updated numbers at the next meeting.
