Kingston presents balanced FY26–27 budget with small pay raises, proposed sanitation and utility rate increases

City staff presented a balanced FY26–27 budget to the Kingston City Council during a work session, highlighting no proposed property-tax increase while including a 3% cost-of-living raise for full-time employees and a $1,200 Christmas bonus. Michelle, a city staff member who led the presentation, said the budget includes a health-insurance premium estimate of about 10.5% and ‘‘we do not have a tax increase. We have a 3% cost of living raise for all full-time employees.’’

The budget narrative stressed revenue growth and cost pressures. David, a city staff member presenting revenue projections, noted local sales tax has grown to about $2.2 million and state sales-tax receipts are estimated at $785,000, and reported the city’s fund balance was $3.2 million as of June 30, 2025. Nonetheless, officials flagged rising operating costs: staff estimated an additional $26,000 per year for water-treatment chemicals and said depreciation now accounts for ‘‘over 10%’’ of the utility budget, a change that increases long‑term operating expense.

Sanitation and utility rate proposals were the most notable potential changes. Michelle said the sanitation fund—recently separated from the general fund—has been operating at a loss because vendor charges and fuel surcharges now average about $11.91 per household while the city charges $11. Staff proposed raising the monthly residential sanitation rate to $12.40 (staff also discussed a rounded $12.50) so the fund would break even rather than drawing down its roughly $160,000 balance. Council members asked procedural questions about whether the change must be made by separate ordinance; staff said a rate-change ordinance or addition to the budget pages will be required.

On utilities, officials proposed a 5% increase in water and sewer rates (up from the previously recommended 3% escalator) to offset inflation, materials cost increases, and a growing depreciation burden tied to recent capital projects. Kevin, a utilities staff member, explained the increase reflects higher costs for copper, brass, meters and chemicals and that the difference between a 3% and 5% adjustment is modest on customer bills. Staff noted falling outside-water sales from two nearby mobile-home parks that closed recently, which tightened revenue forecasts.

Council did not take formal votes in the work session; staff said contested items and ordinances (including the sanitation-rate change and budget ordinances) will be on the Tuesday council agenda and detailed figures will be finalized before first and second readings.