Unified Government proposes 2026 budget with 2‑mill increase, pilot cut and $10 million debt cap

County Administrator David Johnston presented a recommended Unified Government budget on Aug. 7 that would include a 2‑mill increase in both the city and county levies, a 1 percentage‑point reduction in the BPU pilot charge and a limit of $10 million in new debt issuance for the 2026 fiscal year.

Johnston told commissioners the recommendation balanced competing priorities of fiscal sustainability, economic development, customer service and infrastructure investment. “I’ve done my job. I presented to you a balanced budget under the guidelines you have given me,” he said. He warned the commission remains exposed in future years: “44% of our property tax bill pays for debt and that’s not sustainable.”

The nut of the proposal is to reduce the pilot charge from 10.9% to 9.9% (a roughly $1.2 million reduction in the general fund), raise the authorized levy by 2 mills per governing unit, freeze vacant positions across departments, and curb capital and one‑time spending. Johnston said those moves cut the city’s budget gap from several million dollars to roughly $1.1 million of reserves and reduced the county’s projected draw on reserves to about $833,000.

Under the plan, the Unified Government would also: cap new debt issuance at $10 million in 2026 (down from near $30 million in prior years), stop using anticipation notes and issue bonds only when authorized; move away from budgeting against an assumed vacancy trend and instead fund positions at current staffing levels; and limit capital projects to those approved for the fiscal year rather than committing to later years’ CIP funding in advance.

Johnston and budget staff outlined how one‑time revenues from a cleared West Side TIF balance (about $7.3 million) could be applied to immediate street repairs and pavement preservation — including an estimated $1.9 million to repair two streets damaged in recent flooding and additional dollars aimed at Parallel Parkway and similar corridors.

Budget director Reggie told commissioners the full proposed Unified Government budget totals about $509 million across all funds, with roughly 68% of that supported by taxes and sales revenue. He also supplied lists of positions frozen (police and sheriff positions accounted for a large share) and a roster of outside agencies recommended for funding consideration.

Residents and several commissioners used the meeting to press for deeper review and more transparency. Nurse practitioners Stephanie Moss and Brianna Vaughn urged that the budget protect public‑health funding, citing high local rates of hypertension and low physician availability. Multiple residents and commissioners said rising property appraisals and levy increases are squeezing seniors and working families.

Commissioner Christian Burrows, Commissioner Andrew Davis and others asked for a more detailed line‑by‑line review, a look at sale or disposal of surplus assets, and a personnel assessment to test whether the organization is top‑heavy. Commissioner David Stites and others requested options to streamline departments and consolidate functions that appear redundant (for example, vehicle fleet work and some shop functions). Several commissioners urged the administration to continue pursuing a sales‑tax ballot measure to fund infrastructure in a geographically balanced way.

Johnston scheduled budget workshops for Aug. 14 and Aug. 24, a public hearing on Aug. 26 and tentative adoption for Aug. 28, noting the final budget must be balanced and filed with the state by Oct. 1. He emphasized the proposal is the administration’s recommendation and that the commission may amend it during the public process.

No final vote on the budget occurred at the Aug. 7 meeting; commissioners said they would use the upcoming workshops to make changes.

Ending: The administration left commissioners with a recommendation that attempts to protect core services while trimming debt growth and capital commitments; commissioners and community members said they will press for further cuts and clarified priorities before final adoption. The public record includes two planned workshops and a public hearing ahead of an expected adoption vote in late August.