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Colfax council adopts balanced FY 2026–27 budget, agrees to revisit $30,000 community allocation
Summary
The Colfax City Council adopted a balanced FY 2026–27 operating budget that staffs said relies on steady sales-tax receipts and includes $501,000 for capital and transfers. Council directed staff to return with a refined plan for how to allocate a $30,000 community/economic-development fund.
The Colfax City Council on June 5 adopted a balanced FY 2026–27 operating budget projecting $3.45 million in revenue and approximately $3.29 million in general fund expenditures.
Katrina Olsen, the city’s administrative services officer, presented the budget, saying the city ends FY 2025–26 “in a very strong position” with a year-end estimate of $3.46 million and that sales tax accounts for roughly 55% of general fund revenue. The proposed budget would maintain current service levels while funding a modest set of capital projects and reserve allocations.
Staff outlined key assumptions: a 3.58% cost-of-living adjustment for employees, a small safety-pay increase, a 12% rise in health benefit costs, and $501,000 earmarked for capital and transfers to address infrastructure needs. Olsen said the budget reflects a transition from a two-year cycle to an annual cycle to improve forecasting and align with a new financial system.
Council discussion focused on how to handle a $30,000 pool of council-directed funds that staff had separated into two line items in the proposed budget—$15,000 categorized for events and $15,000 for economic development. Several council members said they prefer to keep the $30,000 intact and determine allocations later. City Attorney David Rudman clarified that workshop direction can be given to staff but final budget decisions rest with the council at a noticed meeting.
After deliberation, a motion to adopt the FY 2026–27 budget passed on a voice vote; no opposition was recorded during the roll call on the motion. The council directed staff to return with a revised presentation reconciling the community/economic-development and events line items for formal review.
The budget package presented included a capital improvement program for $390,000 in near-term projects, ongoing wastewater fund projections (no rate increase proposed), and a recommended strategy to allocate the prior-year surplus across capital replacement, pension obligations and operating reserves. Olsen recommended adoption to maintain service levels and address long-term infrastructure needs.
The council’s next step is for staff to bring back the reworked funding-line presentation for the $30,000 community allocation and any requested line-item clarifications.
