Livingston commission approves preliminary $36.5M budget, schedules hearings on water and sewer rate changes

The Livingston City Commission on July 7 approved a preliminary fiscal 2027 budget of $36,527,357 and voted to set public hearings on proposed water and wastewater rate adjustments, moving both items to formal public notice before final action.

Mister Gager, the city manager, opened the budget discussion by summarizing the packet and the timetable: "this is acknowledging that the preliminary budget has been set and setting a date for adoption of the plan," and staff scheduled a public hearing for July 21 at 5:30 p.m.

Why it matters: The budget and the attendant rate proposals touch operational funds that pay for aging water and sewer infrastructure, capital projects and debt-service requirements. Staff repeatedly told the commission that several enterprise funds are below recommended reserve targets and that modest, phased rate increases are the principal tool to shore up reserves without jeopardizing regulatory compliance.

What the commission approved and the votes: Commissioners moved and seconded a resolution (Resolution 5192) formally acknowledging the preliminary FY2027 budget; the motion carried on a roll-call vote. The commission also approved resolutions of intent to adjust water rates (Resolution 5193) and sewer rates (Resolution 5194), which will be the subject of the public hearings on July 21. Each motion to set the hearings carried in roll-call votes during the meeting.

Staff numbers and constraints: In response to public and commissioner questions, staff said the water fund is budgeted with a net deficit for FY27 driven by capital outlay (approximately a $690,000 recommended deficit in the water fund), while the sewer fund is projected to show a modest recommended surplus (roughly $100,000) after capital allocations. Finance staff and commissioners discussed the Government Finance Officers Association (GFOA) guidance to hold enterprise fund reserves at roughly 150% of operating expenses; staff warned reaching that target rapidly would require very large rate increases and recommended a phased approach.

Stormwater and capital priorities: Several residents urged more public engagement specifically on stormwater and on the timing of major transportation and rail-crossing projects. Staff said stormwater feasibility work and a preliminary engineering report date back several years and that the city recently presented service-development analysis; however, creation of stormwater rates was not part of the packet and would be handled in future deliberations. Commissioners debated whether to accelerate downtown stormwater fixes (including localized underpass work) or keep larger projects such as the separated grade rail crossing on a longer schedule, noting some funding sources (impact fees) carry restrictions on allowable uses.

Public reaction: Public commenters pressed two themes: concern about affordability for households and small businesses, and the need to invest to avoid larger failures later. Patricia Gray told the commission, "I think this is simply the worst budget I have seen in 25 years," voicing frustration over perceived lack of public discussion on items such as stormwater. Chamber of Commerce representative Leslie warned restaurants and other local businesses are feeling cost pressures and urged the commission to consider business impacts. By contrast, Hannah Anthony said she supported the measures, calling infrastructure maintenance "important for the future community I want to leave for my children."

Next steps: The commission’s votes on July 7 authorized formal public notices and hearings; staff said notices will be mailed to every utility account (about 3,700), included in the city newsletter and posted on social media. The public hearings on the budget and the proposed rate changes are scheduled for July 21, when commissioners may adopt final rates and the budget or amend them after hearing public testimony.

The meeting record: The commission approved Resolution 5192 (preliminary budget notice) and separately approved notices of intent for water (5193) and wastewater (5194) rate changes; each action advanced the matters to a public hearing and possible final action on July 21.

Ending: The commission concluded the evening after additional procedural business and scheduled outreach events about the wellness center; formal public hearings will determine final budget appropriations and any adopted rate changes.