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Council previews tentative 2026–27 budget: staff suggests 15–25% general‑fund reserve and excludes G.O. bonds from debt cap
Summary
Finance director presented interim budget guardrails—15–25% general‑fund balance, $500,000 or 25% stormwater reserve—and discussed whether to exclude general obligation bond debt from debt-service limits. Council asked for additional analysis and will receive final certified tax rates in mid‑June.
Finance director Scott Jurgis reviewed interim budget policies and suggested guardrails for the city’s 2026–27 tentative budget, including a general-fund balance target of 15–25% and a stormwater reserve set at $500,000 or 25% of revenues, whichever is greater.
Jurgis said the 15% placeholder excludes general obligation bond (G.O.) debt, which typically carries its own revenue source and public vote. He explained the city is carrying roughly $4 million in current debt‑service transfers on about $30 million of general fund revenues and that excluding G.O. bonds would reduce the debt-service share used to compute a cap.
Council members pressed staff on the metric basis (expenditures vs. revenues) and whether transfers out should be included in the calculation; opinions varied. One council member suggested excluding transfers; another argued transfers are a genuine drain on the general fund. Council members also asked the finance director to revisit percentages and to circulate a revised draft in the coming weeks.
The finance director noted one near-term procedural item: the final certified tax rate is expected between June 10 and 13 and staff will update the property-tax impact schedule once those numbers are available. No formal adoption occurred at the work session; council members asked for additional analysis and refinement before the budget is brought forward for adoption.
