City holds budget workshop; managers report balanced draft, some capital rollovers and vehicle replacements

City staff presented a budget update at a workshop Aug. 25 and said the draft remains balanced after several personnel and capital adjustments. The city scheduled first and second readings for the tentative and final budgets in September.

Why it matters: The budget frames city operations and capital projects — including a planned bond-financed city yard and other large capital investments — and sets staff positions and timing for key projects.

Key figures and changes staff described:
- Total proposed budget: $135,911,380.
- Personnel: council-directed salary increases were incorporated; staff removed a previously requested new police-sergeant position and added a citywide raise (presented as the council direction), with step increases for officers included.
- Capital rollovers: several CRA and city capital projects (H Street/Oakside improvements, Clock Plaza renovations, park signage) are out for bid or in design but are unlikely to be contractually committed before Oct. 1, so staff will roll those allocations into the next fiscal year.
- Airport and sanitation: an open airport position was delayed until midyear, lowering FY26 airport personnel costs; sanitation will need an additional $44,000 for a vehicle replacement after a crash and a planned sanitation truck purchase was pushed to FY27, reducing FY26 sanitation capital spending.
- Bond and financing: staff said a planned bond closing could occur late November or December; staff intend to draw bond proceeds into secure investments and draw them down as construction payments are made. The council earlier adopted fund-balance and debt policies to frame borrowing capacity.

Timing: Staff said they will present a first reading of the tentative millage and budget on Sept. 8 and the final millage and budget on Sept. 22. Staff also said they will return with additional detail if any proposed changes arise before those public hearings.

Provenance: Budget workshop and council discussion recorded Aug. 25, 2025.