Council reviews 2027 tentative budget, directs staff to model 10–15% rodeo ticket revenue share

City finance presenter Amy (Speaker 11) gave an annual budget briefing and proposed amendments to the 2026 budget, then outlined the tentative 2027 budget. Key items included a proposed 3% cost-of-living adjustment for employees, no proposed property-tax increase for 2027, an expanded legal budget for land-use matters including River Haven, and capital-account placeholders for grants and projects such as trails and the bridge betterments.

Amy told the council the city had taken on USDA debt for a new well project (the USDA financing for the cattail well was noted at approximately $4.3 million) and that staff had budgeted an intra-fund transfer policy that previously moved $125,000 annually from the general fund to the water fund. Given the capital-improvement plan and large upcoming infrastructure needs identified by Aqua Engineering, several councilors argued to redirect that $125,000 toward the capital account instead of accelerating water-fund debt repayment.

Council discussion focused heavily on the proposed rodeo revenue sharing. A new proposal — reported by staff as a previous conversation between the mayor and the rodeo chair — would allocate a percentage (proposals discussed ranged from 10–25%) of rodeo ticket sales to the general fund to cover newly imposed state water-assessment fees and support general operations. Council members debated whether to base the transfer on ticket sales (more straightforward) or on net revenue (subject to accounting adjustments). Several members expressed concern that a large fixed transfer could leave the rodeo fund with insufficient reserves for arena improvements.

After discussion, the council directed staff to model the fiscal impact of a ticket-sales share between 10% and 15% and to present those figures at the June 24 public hearing; staff will also present options that use net revenue as a comparator. Councilors emphasized the need to preserve a cushion in the rodeo fund to cover capital projects and recommended examining options that permit the rodeo committee operational autonomy while providing a predictable contribution to the general fund.

Council members also discussed several enterprise-fund items: water and sewer rate adjustments (continuing a five-year schedule adopted in 2023), the Humbug chlorination building that is roughly half complete, and a Maple Ridge booster-station design budget (~$25,000–$30,000). The rodeo fund had been awarded approximately $350,000 in a restaurant-tax grant targeted to arena improvements, and councilors expressed interest in making use of that funding for complex upgrades rather than drawing down the rodeo reserves.

Council requested staff produce amended budget language reflecting tonight’s direction, to be released for public inspection before the June 24 public hearings and adoption vote.