FY27 Proposed Budget

increased by 10%. Beyond these, several new partnerships become possible with LOST funding, as does the continuation of ARPA-funded programs, albeit at lower capacities, such as the childcare wage enhancement program, housing stability program, and pre-apprenticeship training program. Not all partnership funding will increase in FY 2027 given financial uncertainties. The City’s Human Rights grants are maintained at $100,000, though funding is shifted to LOST and the City’s Black Lives Matter account, which has a current balance of over $600,000. This budget also maintains stable funding for public art, historic preservation grants, and economic development programs. These investments balance value-add activities that address key Council priorities in the City’s Strategic Plan while retaining the fiscal discipline necessary for long-term success. The FY 2027 budget also includes significant investment in public facilities to support short and long-term service delivery. New, expanded or renovated facilities that are funded in the plan include the Senior Center, transit building, equipment building, a new airport hangar, recycling transfer station, and more. Public facilities projects are supported in part by the Facility Reserve Fund. No FY 2027 transfer is planned for the Facility Reserve Fund, which is now expected to draw most of its fund balance down to support planned projects. Council’s financial policies continue to prioritize replenishing the Facility Reserve Fund in the future with any unanticipated surpluses that exceed our operational reserve needs. Paired with LOST funding, these thoughtful efforts help relieve some pressure on debt as the primary funding source for public facilities. The FY 2027 budget continues to address public facility needs as the community and demand for services grow. The City is evaluating possible sites outside of City Hall for the relocation of Fire Station #1 and continues to search for effective solutions to meet the need for a new police station after the City passed on the joint facility partnership with Johnson County. Progress on these projects lay the groundwork for meeting employee space needs at City Hall. However, temporary solutions may be needed in the meantime until a more comprehensive solution is achievable, such as the purchase or lease of off-site space to provide more suitable work environments for staff. The employee survey completed in 2025 provides evidence of the effects of poor work environments, especially for public safety and City Hall staff. This budget provides funding to support continued implementation of various City Master Plans. Nearly $12 million in the five-year Capital Improvement Program is budgeted for parks and recreation projects, many of which implement the Parks & Recreation Gather Here Master Plan. The FY 2027 budget includes funding for the development of Palisades Park, Reno Street Park improvements, rehabilitation of the Ped Mall fountain, and structural improvements at the Robert A. Lee Recreation Center. The City will also move to complete past projects such as establishing a new park west of Highway 218. This budget also continues implementation of the Bicycle Master Plan through annual multimodal investments in our transportation network, including extension of the Highway 6 sidepath from Broadway to Fairmeadows. Public Facilities Supporting Master Plans

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