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Nowthen reviews budget process and rising bond levy as council prepares July meetings
Summary
At a June 5 budget workshop, Nowthen city staff outlined the annual budgeting calendar, recommended fund-balance targets and flagged a projected rise in the bond levy tied to proposed road and equipment bonds; council members also discussed staff salaries, recycling-center finances and the timing of budget hearings in July.
Nowthen held a budget workshop on June 5, 2026, where staff walked the city council through the annual budget process, projected revenues and capital needs ahead of formal July budget meetings.
Lori, a city staff member leading the session, said the budget starts with inputs from the capital-improvement plan (CIP) and enterprise projections and that staff use last year’s actuals and current-year budgets to assemble a preliminary 2026 draft. She told the council the city’s 2024 year‑end fund balance was about $1.5 million and reiterated a common target of roughly five months of operating expenditures in reserve, which provides flexibility for transfers and emergencies.
Why this matters: the council must decide how much of fund balance to spend, how much to cover with levy increases and which capital projects to fund. Lori warned that heavy use of fund balance in one year reduces options in subsequent years and that the responsible approach is to levy for operations while using reserves for capital or emergencies.
Staff highlighted a projected increase in the bond levy for 2026 driven by road and equipment bond proposals. The packet showed a scenario in which the bond levy would be the single largest driver of the levy increase and could rise by roughly $200,000 if an equipment bond is included. Council members asked staff to return updated bond levy scenarios and cost estimates at the July budget meetings.
Council members also requested salary‑increase benchmarks and guidance on proposed pay adjustments so the council can weigh personnel costs in July. Lori recommended the council provide salary-direction by the end of June or at the first July budget session to allow staff to incorporate those figures into revenue and levy calculations.
Other budget items discussed included recycling‑center finances and county grants. Staff reported the center showed a small profit for 2024 (cited roughly $13,400) but said county reimbursements and grants often arrive on a different schedule than expenditures, complicating cash‑flow accounting. Staff will follow up with a more detailed reconciliation for the council.
Next steps: staff provided a calendar of proposed budget meetings in July and asked council members to confirm dates. The council agreed to continue budget deliberations at those July sessions and asked staff to return with updated levy scenarios, bond-cost estimates, salary guidance and any updated quotes for public‑safety equipment discussed in the CIP.
The council had earlier approved the meeting agenda at the start of the session and adjourned after wrapping up the workshop.
