FY26 Proposed Budget

infrastructure in the face of diminishing purchasing power resulting from inflationary impacts on capital projects. Unfortunately, the strategic plan goal to increase the Emergency Fund balance by 5% annually is not met with the FY 2026 budget for the third year in a row. The Emergency Fund balance is currently around $5.4 million. Similarly, there is no budgeted transfer to bolster the Facility Reserve, another strategic plan goal. This fund is expected to be depleted in FY 2026, which means the City will have to more heavily rely on debt to fund critical facility projects going forward. The primary focus of this budget is to ensure the City can maintain core service levels and responsibly fund infrastructure and equipment repairs and replacement. This year’s budget focuses on providing the resources to support the City’s current level of service provided while keeping up with increasing demands. Given the aforementioned financial pressures, only two new positions are being proposed to the City Council for the first time including a maintenance worker in the Water division and a mechanic in the Equipment division. These two positions are not solely dependent on property taxes and are critically needed to maintain existing service levels. The Capital Improvement Program (CIP) outlines routine improvements in addition to larger projects. More than $4 million is planned each year for annual transportation system improvements such as pavement rehabilitation, bridge repair, bicycle accommodations, traffic signals, traffic calming, parking ramp restoration, and curb ramp enhancements. Another $800,000 in annual funding is planned for regular utility system improvements, including undergrounding utilities and sewer main replacement. The budget also includes several major projects for 2025-26 to maintain critical infrastructure, including the Court Street and N. Gilbert Street reconstruction projects, Bradford Drive Water Main Replacement, and Collector Well #1 reconstruction. Various water, sewer, stormwater, landfill, park, and public facilities projects are also scheduled in accordance with replacement and maintenance needs. Inflation and labor shortages continue to have significant impacts on operations, as well as project budgets and completion timelines. Rising insurance premiums continue to significantly impact the budget. Liability insurance is projected to increase 15% in FY 2026 after increasing nearly 16% in FY 2025. Similarly, Fire and Casualty insurance is projected to increase 35% in FY 2026 after increasing 23% in FY 2025. These significant market adjustments in the insurance industry have increased costs by more than $875,000 in fiscal years 2025 and 2026. As these essential costs consume more of the tightening available resources, investment in value-add programs and services must be adjusted accordingly. Prioritizing Core Services

Implementing City Council’s Strategic Plan

City Council’s Strategic Plan outlines the values, impact areas, and resources needed to execute the identified goals. Embodied in every element of the Strategic Plan, and within this budget, are three values that represent the lens through which we approach our work and the four areas of community impact in which the work will occur. The plan

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