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Council hears tight FY 2026–27 budget, votes to seek county consolidation for November sales-tax measure and two council seats
Summary
Staff presented a proposed $16.44 million budget and warned of lower sales- and lodging-tax receipts; council directed staff to reduce revenue projections and return with a balanced budget, and voted to consolidate the city's November election — including a proposed transactions-and-use tax measure — with the county-run general election.
Council held a public hearing on the proposed FY 2026–27 budget and heard department-by-department presentations before deliberating on revenue projections and election timing.
Staff presented a proposed total budget of about $16.44 million, with a general-fund projection a little over $6 million. The finance presentation noted sales-tax receipts were trending down and that enterprise-fund reserves for water and wastewater are low: "the water enterprise fund... a reserve of just under $86,000" and the wastewater reserve "just over $18,000," staff said. The finance speaker flagged that sales-tax and transient-occupancy ("TOOT/bed tax") projections may be overstated in the draft and recommended adjusting the estimates downward to avoid an unbalanced budget.
Department heads described operating pressures and capital needs: the fire chief stressed staffing and equipment replacement needs; the police chief described staffing levels, grant-funded positions and a lack of capital-vehicle replacements in the police budget; planning and public-works staff detailed water-system work, drainage projects and grant applications for street reconstruction.
After public comment and deliberation, council directed staff to reduce the sales-tax and bed-tax revenue estimates by roughly $50,000 each and to prepare a balanced budget for final action on June 22. Council members emphasized the importance of presenting accurate revenue figures and noted the city may need expenditure adjustments if projected receipts fall short.
Separately, council adopted Resolution CCR-26-08 to ask the county to consolidate the city's municipal election with the November 3, 2026 general election, a step required to place a proposed local transactions-and-use (sales) tax question on the ballot and to elect two council members. Council discussed cost considerations and transparency about how any new tax revenues would be used and noted that consolidation with the county is substantially less expensive than a stand-alone special election.
Council did not adopt final budget appropriations at the meeting; staff will return with revised revenue numbers and a balanced proposed budget for adoption in June.
