Council reviews FY2027 budget: $117.8M total, proposed shift to self-funded health plan, 5% water rate increase proposed

City staff walked council through the FY2027 budget overview and long-term financial strategy. The proposed total budget is $117.8 million; removing interfund transfers yields roughly $96 million of operating and capital activity. Staff reported a projected general fund ending balance of approximately $23.2 million (97% of general fund expenditures under the proposed budget) and outlined a reserve policy goal of 50%. The presentation included a staffing plan that increases authorized full-time equivalents from 204.75 to 208.75 and a proposed move from fully-funded to self-funded health insurance with stop‑loss coverage (stop-loss attachment point cited at $7,575,000).

"Right now, what we're proposing is no increase to the premiums, for either the city or the employee," staff said about the self-funded health insurance plan, noting stop-loss insurance and a proposed one-time gaming-fund seed to reach a 40% reserve for the program. Staff and council also discussed capital projects funded from the gaming fund (Burlington watermain, pumping stations) and the multi-year nature of those projects; staff noted the city currently carries no debt and may consider revenue bonds for large utility projects. A 5% increase to water rates in FY27 was presented as consistent with past rate studies and necessary to fund operations and planned capital improvements. Council asked for additional supporting materials (rate study) and for staff to return with budget updates on August 18 and a property tax hearing planned for September 22.