City projects $2.7M positive variance for FY26; council asks for more detail on new construction revenue

Gwen Riddle, the city’s budget director, presented the FY26 second‑quarter financial review to council on Feb. 3, 2026. The forecast showed an approximate $2.7 million favorable variance for the fiscal year, driven primarily by higher real‑estate assessments (about $2.8 million), an additional $1.0 million projected in state school aid and approximately $200,000 in increased ambulance transport fees.

Staff reported that average real estate assessments increased roughly 3.5% across property types and projected $64.2 million in new construction to be added to the tax base in calendar year 2026 (estimated to yield about $700,000 in annual real estate tax revenue when phased in). The city’s unassigned fund balance is projected at about 15.7% of the general fund after planned uses — above the city’s 15% policy target.

Councilmembers asked for a more detailed breakdown of the projected $700,000 in annual tax revenue tied to the Norfax/Brightview developments and for additional context on how maintenance projects moved from the CIP into the operating budget will affect future years. Staff committed to follow up with the real estate director and provide the requested detail ahead of the FY27 budget process.