Crescent City adopts lean FY 2026–27 budget and new water, sewer rate structure

The Crescent City Council unanimously approved the city’s fiscal year 2026–27 budget, a revised salary schedule and the appropriations‑limit adjustment during Tuesday’s meeting, adopting three resolutions that staff said are designed to stabilize municipal finances while preserving core services.

Finance Director Linda Lever summarized the budget process and said staff used cautious revenue estimates and conservative spending assumptions. "When we develop the budget, we try to use conservative but realistic estimates," Lever said, noting the city projects a general‑fund ending balance of roughly $2.6 million if all budgeted items are spent and an estimated unallocated balance of about $55,000 under conservative assumptions.

Why it matters: the adopted budget incorporates recently approved water and sewer rate increases the council adopted at a June 1 hearing. City staff and the accompanying rate study told the council the new rates are intended to cover operations, maintenance, debt service and a multi‑year capital improvement program for both utilities.

Key details: the budget document shows revenue and expenditure projections across major funds, including the general fund (~$10.6 million in projected revenues), the sewer fund (projected operating revenues of $6.9 million including rate increases and a capital improvement plan of about $2.44 million) and the water fund (about $4.1 million in revenues and a $2.7 million capital program). Lever said the city is budgeting conservatively for health‑insurance and benefit cost increases and plans a mid‑year review once audited closing numbers are available.

Public reaction at the meeting included sharp questions about past transfers and accounting in the water and sewer funds. Local resident Donna Westfall alleged mismanagement and urged an independent citizens’ advisory committee: "There's a pervasive culture of fraud in this town concerning the sewer plant and the sewer rates," she said. City Manager Eric Weir told the public the city would meet with residents who requested details and reiterated that grant and utility revenues are tracked in the respective funds.

What’s next: council adopted the three budget resolutions (2026‑47 adopting the budget; 2026‑48 revising salary schedules; and 2026‑49 selecting factors for the appropriations limit) by unanimous roll call (Councilmembers Alman, Go, Shamblin, Mayor Pro Tem Candace Tinkler and Mayor Wright all voted yes). Staff said a more detailed budget‑to‑actual report will return to the council in the fall after close‑of‑year numbers are finalized.