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Highland manager presents FY 2025–26 budget with $340,784 projected deficit; council reviews capital priorities
Summary
City Manager Christopher Conrad presented a proposed $57.31 million FY 2025–26 budget that anticipates a $340,784 deficit, increases capital spending to 16%, and uses prior reserves for planned projects including public works, pools, and equipment replacements.
City Manager Christopher Conrad presented the proposed Fiscal Year 2025–26 budget to the Highland City Council, saying the plan forecasts a $340,784 deficit and totals $57,310,625, roughly a 10% increase from the prior fiscal year.
"We submit for your review the FY 2025-2026 Budget that shows an anticipated $340,784.00 budget deficit as we will be drawing on reserves for several infrastructure projects and large equipment purchases," Conrad said, describing the budget as "admittedly an aggressive budget" that shifts allocations to capital to address deferred maintenance and equipment needs.
Conrad and department directors outlined major items driving capital increases: a planned $500,000 project to add about 30 downtown parking spaces; $300,000 for pool filtration/HVAC work at the Korte Recreation Center; replacement of a sewer vac/jet truck estimated at $600,000; CIPP lining funding of $300,000 for clay pipe mains; and multiple vehicle and equipment purchases across Public Works and Electric. The proposed budget changes the usual allocation metric (historic 85% O&M, 10% capital, 5% reserves) to 77% O&M, 16% capital, and 2% reserves for FY 2025–26.
Directors identified departmental priorities and cost pressures: Public Safety Director Carole Widman flagged personnel as the largest police expense and potential costs from a countywide radio project; EMS Manager Stephanie Nicklin described capital needs for two auto-load stretchers (about $146,000) and said staffing and overtime reductions had been achieved; Electric Director Dan Cook cited higher costs from Ameren, generator capacity credits from IMEA, and planned infrastructure work.
Conrad highlighted that unrestricted revenue growth is lagging and that the city has relied on reserves to smooth the timing of purchases and projects. He emphasized that the budgeted deficit is planned to be filled from reserves previously set aside for such projects and that management expects to monitor revenue and expenses throughout the year.
The council received the presentation and discussed project timing and staffing; no final vote to adopt the budget occurred at the March 17 meeting, which served as the council's review and departmental hearing prior to formal adoption procedures.
