FY27 Proposed Budget

original budget. While I am hopeful these deficits can be turned around through careful operational management, a General Fund that is continually under-resourced stymies the investment we need to deliver core services.

Prioritizing Core Services

Because ongoing financial pressure on the General Fund and the State’s continued commitment to property tax reform creates uncertainty, the City is taking a measured approach to personnel growth in FY 2027, despite strong justification for need in many of our operations. This proposal includes three positions that support core service delivery in alignment with the City’s Strategic Plan. An Administrative Coordinator in the Fire Department is the only new position presented in the General Fund. A Treatment Plant Operator in the Water division and a Maintenance Worker in the Resource Management division are included in enterprise funds. While these positions help address a few critical operational needs, other service areas continue to experience increasing strain from demands driven by community growth. The City must continue to monitor pressures and prioritize resources for core services as finances allow, or risk service level reductions and employee retention challenges. Of particular note, this budget continues to acknowledge that the City cannot financially support the service expansion required for the previously planned Fire Station #5 in this fiscal environment. Thus, a shift in strategy is needed to bolster our four-station foundation to better serve a growing population and tax base. The $300,000 in fire-specific contingency funds from FY 2026 is eliminated in FY 2027, which helps minimize the overall projected decrease of $1.5 million to the General Fund unassigned fund balance. However, this budget also maintains the FY 2025 over-hiring of two firefighter positions and adds an Administrative Coordinator, which will help support strained staffing. Fortunately, LOST does allow for conceptual studies in FY 2027 for a new Fire Station #1 and a modernization of Fire Station #3 which are critical investments for our four-station model going forward. The Capital Improvement Program (CIP) outlines planned infrastructure investment over the next several years. More than $4 million is planned in 2026 for ongoing transportation system investments, including pavement rehabilitation, bridge repair, bicycle accommodations, bus stop improvements, traffic signals, parking ramp restoration, and accessibility enhancements. Another million in annual funding is planned for utility system improvements, including undergrounding utilities, sewer main replacement, and stormwater projects. The budget also includes several major projects for 2026-27 to maintain critical infrastructure, including the completion of Court Street reconstruction, signalization of N. Dodge Street at ACT Circle, Carson Farms stormwater detention basin, and Collector Well #1 reconstruction. Other water, sewer, stormwater, landfill, park, and public facilities projects are also scheduled in accordance with replacement and maintenance needs. However, project budgets are still impacted by continued inflation, due in part to volatile tariffs and elevated borrowing costs. Consequently, carefully managing projects will remain important to addressing capital needs despite additional dollars from LOST.

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