Monmouth adopts FY 2026–27 budget, accepts state revenue sharing and approves 6% electric rate increase; council also OKs local mural

Monmouth City Council on June 2, 2026 adopted the fiscal year 2026–27 city budget, authorized state revenue-sharing distributions, approved a 6% rate increase for Monmouth Power & Light, and unanimously approved a proposed mural by local artist McKenna Brinkman.

Budget and revenue sharing Finance director Sean Wait walked the council through statutory steps necessary for the city to receive state revenue-sharing funds and presented the proposed budget. The FY 2026–27 general fund includes $331,000 in state revenue-sharing; the budget also budgets $900,000 in gas-tax revenue dedicated to the street fund. Wait said the total city budget is $51.9 million and includes approximately $10.1 million in capital improvement projects. “This approach allows the city to continue to invest in infrastructure and facilities while minimizing impacts to operating funds,” Wait said.

Council opened the public hearing on accepting state revenue sharing; there were no public comments. Councelor McKel moved adoption of Resolution 2029 electing to receive state revenue-sharing and the council approved the resolution on a 6–0 roll call.

The city then held a public hearing and adopted Resolution 2030 to adopt the FY 2026–27 budget and the 2027–2031 capital improvement plan. Councilors emphasized that the CIP is a five-year planning tool, not an appropriation for future years; the budget passed by roll call (6–0).

Electric utility rates Staff reported on a 6% electric rate increase recommended by a previous cost-of-service analysis to keep utility revenues aligned with wholesale and operating costs. Wayne Kerry (electric director) said similar regional providers have been raising rates: “We’re just one of many facing the same problem,” he said. Councilors raised concerns about impacts on low-income residents and asked staff to follow up with Polk County FCO about assistance; the council adopted Resolution 2031 setting the new electric rates (vote 6–0).

Public-art approval Communications coordinator Sabra Juel and artist McKenna ("Mickey") Brinkman presented a mural design for the back of the Gentle Woods Park restroom. Councilor Lopez moved to approve the artwork and a $6,375 budget; the motion passed unanimously. The artist said the design features native flowers and is intended to be visible and legible to motorists as they pass on Highway 99.

Urban Renewal Agency budget The Monmouth Urban Renewal Agency held its own hearing and adopted a FY 2026–27 urban renewal budget of $7,629,739, which includes authority to seek up to $5 million in financing for future infrastructure projects. The agency’s board adopted Resolution 47 with no public comment.

Votes at a glance - Motion to approve Gentle Woods Park mural (artist McKenna Brinkman) with $6,375 budget; mover: Councelor Lopez; second: Councelor Belts; outcome: approved unanimously (6–0). - Resolution 2029: Elect to receive state revenue-sharing for FY 2026–27; outcome: approved (6–0). - Resolution 2030: Adopt FY 2026–27 city budget and 2027–2031 CIP; outcome: approved (6–0). - Resolution 2031: Set electric utility rates and charges (6% increase); outcome: approved (6–0). - Resolution 47 (Urban Renewal Agency): Adopt URA FY 2026–27 budget; outcome: approved (6–0).

Why it matters: The adopted budget sets spending priorities, funds capital projects and service levels for the coming year, and establishes the utility rate path that will affect monthly household bills. The UGB ordinance (first reading) remains pending and could affect long-term land supply.

What’s next: Staff will implement the adopted budget and rate schedule and return the UGB ordinance for a second reading and final vote. Council asked staff to follow up with Polk County FCO about options to assist residents who may struggle with the utility increase.