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HomeMy WebLinkAbout2026 Work Session Presentation2026 Draft Budget Work Session SEPTEMBER 29, 2025 9/29/2025 1 Topics •2026 Budget Calendar •Tax Revenue •Fire and Police Pension Funds •Property Tax Estimation •2026 Proposed Budget General Fund Park & Recreation Fund Water Fund •Big Picture 9/29/2025 2 Budget Calendar May - June – Forecast performed by departments July – Budgets due from departments August – Recommended revenue adjustments due from departments September – Balance/Discuss budget; provide draft budgets to Council October – Provide draft budgets to Council; First reading on revenue adjustments; property tax estimation resolution November – Second reading on revenue adjustments; Public hearing for budget; first and second readings on property taxes December – Approve budget; provide tax levy ordinances to County Clerk 9/29/2025 3 Tax Revenue •Tax Revenue is 52% of all revenues received •3 Categories: ◦Collected by the State ◦Locally Collected ◦Property Tax 9/29/2025 4 State Sales Tax •The State of IL collects these funds and distributes them to the various taxing bodies •The City of Galesburg receives 2.25% of the 9.00% sales tax Unit Rate Illinois 5.00% Local 1.00% Home Rule 1.25% County 0.25% County: Public Safety 0.50% County: Education 1.00% Total*9.00% 9/29/2025 5 State Sales Tax Sales Tax by Municipality State Home Rule County: School Facility County: Public Safety Total Rate Moline 6.25%1.25%1.00%0.00%8.50% Rock Island 6.25%1.25%1.00%0.00%8.50% Galesburg 6.25%1.25%1.00%0.50%9.00% Peoria 6.25%1.75%0.50%0.50%9.00% Normal 6.25%2.50%1.00%0.00%9.75% Monmouth 6.25%2.00%1.00%0.75%10.00% 9/29/2025 6 State Sales Tax •The Local Tax of 1.00% is distributed between the General and Parks and Recreation Funds 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 2021 2022 2023 2024 2025 Sales and Use Tax 2021 - 2025 (as of Sept) Sales Local Use 9/29/2025 7 Grocery Tax •The 1.0% Local Sales Tax on groceries will be eliminated by the State of IL as of January 1, 2026 •591 municipalities have adopted ordinances implementing the Grocery Sales Tax at the local level •Galesburg elected not to adopt 9/29/2025 8 Home Rule Tax •The Home Rule Tax of 1.25% is distributed between the General, Parks & Recreation, Community Improvements & Infrastructure, and Economic Development Funds 2,000,000 2,200,000 2,400,000 2,600,000 2,800,000 3,000,000 3,200,000 3,400,000 3,600,000 3,800,000 4,000,000 2021 2022 2023 2024 2025 Municipality Tax 2021 - 2025 (as of Sept) 9/29/2025 9 State Income Tax •The State of IL has a flat rate of 4.95% for income tax 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2021 2022 2023 2024 2025 Income Tax 2021 - 2025 (as of Sept) 9/29/2025 10 Replacement Tax (PPRT) •The State of IL determines the annual allocations •There is a 2.1% increase from Fiscal Year 2025 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2021 2022 2023 2024 2025 Replacement Tax 2021 - 2025 (as of Sept) 9/29/2025 11 Video Gambling Tax •Amount received is based on Net Terminal Income (bets in – bets out) •The City receives approximately 5% of NTI 300,000 320,000 340,000 360,000 380,000 400,000 420,000 440,000 2021 2022 2023 2024 2025 Video Gambling Tax 2021 -2025 (as of Sept) 9/29/2025 12 Motor Fuel Tax •Current State tax is 48.3 cents/gallon •Distributed to the municipalities on a per capita basis •Maintenance and construction of City streets 9/29/2025 13 Local Tax •The City of Galesburg has 4 locally collected taxes: ◦Food & Liquor Tax – 2.0% ◦Hotel/Motel Tax – 10.8% ◦City Gas Tax - $0.045/gallon ◦Utility Tax – 5% of gross receipts 9/29/2025 14 Food/Liquor and Hotel/Motel Tax •The Food and Liquor tax was effective in 2007 °2.0% for retail purchase of food & liquor prepared for immediate consumption •Hotel/Motel Tax was effective in 1977 °10.8% for short term rental of a hotel or motel room as of 2016 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2021 2022 2023 2024 2025 Food & Beverage Hotel/Motel 9/29/2025 15 City Gas Tax •$0.045/gallon since Fiscal Year 2015 •The tax is used for maintenance and improvements of roads and streets 9/29/2025 16 Utility Tax •These taxes are paid through public utilities (Ameren) for consumption of electricity and natural gas °33% to Stormwater Utility Fund •Maintenance of existing storm water system and construction of new storm water facilities °67% to the Utility Tax Capital Projects Fund •Capital improvement and infrastructure projects 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2021 2022 2023 2024 2025 Utility Tax 2021 - 2025 (as of Aug) Electricity Natural Gas 9/29/2025 17 Property Tax •Based on 2 factors: ◦Equalized Assessed Value (EAV) of property ◦Tax Rate determined by the various taxing bodies 9/29/2025 18 Equalized Assessed Value Tax Year EAV % Increase 2016 334,539,615 3.03% 2017 338,014,245 1.04% 2018 347,323,679 2.75% 2019 355,551,263 2.37% 2020 363,713,908 2.30% 2021 367,918,987 1.16% 2022 396,985,017 7.90% 2023 416,662,504 4.96% 2024 437,929,179 5.10% 2025 (estimate)462,694,402 5.66% •Average annual increase of 3.63% 9/29/2025 19 Taxing Bodies Unit School District 205Galesburg City Knox County Galesburg City Fire Jr. College District 518 Public Library Galesburg Sanitary District City of Galesburg Township 99 Knox County Soil & Water Conservation Taxing Bodies 2024 Rate 2024 % Unit School District 205 4.60798 49.66% Knox County 1.23765 13.34% Galesburg City 1.02009 10.99% Galesburg City Fire 0.92272 9.94% Jr. College District 518 0.62805 6.77% Public Library 0.44424 4.79% Galesburg Sanitary District 0.29581 3.19% City of Galesburg Township 99 0.12126 1.31% Knox County Soil & Water Conservation 0.00051 0.01% Total 9.27831 100.00% 9/29/2025 20 Public Safety Pensions •The City makes contributions to Public Safety Pensions based on a State required amount and an Actuarially determined amount •The State funded Target is 90% funded over 16 years ◦Minimum Contribution is based on funding parameters outlined in the IL State Statutes for pension funding •The Actuarially Recommended Contribution (ARC) is 100% funded in 15 years This target is determined by the Police and Fire Pension Boards 9/29/2025 21 Police Pension Funding FY2016 - 2026 •From 2016 – 2024 the City has contributed $24,688,778 •This is $5,541,511 more than the State requirement •For 2026, the difference between the State requirement and ARC is $1,323,568 •Percent Funded 53.17% •At the end of each year, the General Fund balance is reviewed and any excess funds go to fully fund public safety pensions 1,621,627 1,860,991 1,907,926 1,931,121 2,074,943 2,294,124 2,478,490 2,434,385 2,543,660 2,748,704 2,668,962 2,294,319 2,650,318 2,511,651 2,528,343 2,780,269 3,108,165 3,360,350 3,345,948 3,573,722 3,922,034 3,992,530 1,968,698 2,389,748 2,199,249 2,229,641 2,423,797 2,287,839 4,270,139 3,345,945 3,573,722 3,335,370 2,768,962 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Budget 2026 Draft State Min - Police Actuarial - Police Actual - Police 9/29/2025 22 Fire Pension Funding FY2016 - 2026 •From 2016 – 2024 the City has contributed $25,310,692 •This is $5,666,764 more than the State requirement •For 2026, the difference between the State requirement and ARC is $1,213,591 •Percent Funded 51.79% •At the end of each year, the General Fund balance is reviewed and any excess funds go to fully fund public safety pensions 1,569,321 1,643,826 2,067,910 2,210,533 2,347,760 2,554,521 2,460,541 2,341,675 2,447,841 2,540,705 2,615,915 2,357,896 2,482,676 2,734,369 2,833,708 3,054,249 3,337,911 3,324,323 3,261,480 3,463,347 3,648,725 3,829,506 2,104,275 2,119,698 2,389,691 2,522,306 2,697,162 2,547,344 4,205,389 3,261,480 3,463,347 3,094,715 2,715,915 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Budget 2026 Draft State Min - Fire Actuarial - Fire Actual - Fire 9/29/2025 23 Public Safety Pensions 3,190,948 3,504,817 3,975,836 4,141,654 4,422,703 4,848,645 4,939,031 4,776,060 4,991,501 5,289,409 5,284,877 4,652,215 5,132,994 5,246,020 5,362,051 5,834,518 6,446,076 6,684,673 6,607,428 7,037,069 7,570,759 7,822,036 4,072,973 4,509,446 4,588,940 4,751,947 5,120,959 4,835,183 8,475,528 6,607,425 7,037,069 6,430,085 5,484,877 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Budget 2026 Draft Public Safety pensions State Min - Police & Fire Actuarial - Police & Fire Actual - Police & Fire 9/29/2025 24 Public Safety Employer Pension Contribution Options Pension 2025 Budget and Levy Fire 2,590,745 Police 2,798,718 Total 5,389,463 2026 State Minimum 2026 Median 2026 Actuary (ARC) 2,615,915 3,222,711 3,829,506 2,668,962 3,330,746 3,992,530 5,284,877 6,553,457 7,822,036 2025 Fire ARC recommendation $3,648,725; State minimum $2,540,705 2025 Police ARC recommendation $3,922,034; State minimum $2,748,704 2025 public safety pension contributions are $2,181,296 less than total ARC 9/29/2025 25 Public Safety Pensions 2026 Property Tax Options Fire and Police Pension Levy Amounts Public Safety Pensions Levy Criteria Public Safety Pension Amounts Public Safety $ Increase from 2025 Levy Public Safety % Increase from 2025 Levy State Minimum 5,284,877 (104,586)-1.94% Prior Year + $150k 5,539,463 150,000 2.78% Median 6,553,457 1,163,994 21.60% Actuary 7,822,036 2,432,573 45.14% All Levy Line Items for City Estimated Tax Rate Estimated Tax Amount per $100k $ Change from 2025 Levy Per $100k *Truth in Taxation Hearing Required $2.29 $764.88 -$30.81 No $2.35 $783.22 -$12.46 No $2.57 $856.27 $60.59 Yes $2.84 $947.66 $151.98 Yes 9/29/2025 26 Proposed 2026 Property Tax Comparison to 2025 Property Tax Description 2025 Rate 2025 Extension 2026 Est. Rate 2026 Proposed Levy $ Change % Change 2025 % of Levy 2026 % of Levy General/Park & Rec $0.259 1,133,361 $0.260 1,203,793 70,432 6.21%11%11% IMRF $0.065 285,048 $0.065 302,762 17,714 6.21%3%3% Social Security $0.057 250,145 $0.057 265,690 15,545 6.21%2%2% Police Pension $0.639 2,798,718 $0.621 2,873,718 75,000 2.68%27%26% Library $0.444 1,945,457 $0.437 2,023,275 77,818 4.00%19%19% General - Fire $0.331 1,450,115 $0.332 1,536,749 86,634 5.97%14%14% Fire Pension $0.592 2,590,745 $0.576 2,665,745 75,000 2.89%25%25% Total $2.387 10,453,589 $2.350 10,871,732 418,143 4.00%100%100% 9/29/2025 27 Property Tax Estimation Examples 2025 Current Value 2026 Estimate No Change in Value 2026 Estimate Value Increases $5,000 Home Value $ 100,000 $ 100,000 $ 105,000 Assessed Value (33.33%)$ 33,333 $ 33,333 $ 35,000 Tax Rate 2.3871 2.3497 2.3497 Annual Tax Owed (City Portion)$ 795.68 $ 783.22 $ 822.38 Annual Change from 2025 ---$ (12.46)$ 26.70 9/29/2025 28 FY26 Proposed Budget 9/29/2025 29 2026 vs 2025 Revenues Fund 2026 Proposed Revenues 2025 Approved Budget Change General 32,938,076 31,355,075 1,583,001 Park Fund 5,742,585 5,980,410 (237,825) Economic Development 1,474,605 1,372,100 102,505 Public Transportation Services 2,981,365 2,814,615 166,750 Storm Water Utility 809,885 841,175 (31,290) Other Special Revenue Funds 13,020,390 8,003,675 5,016,715 Debt Service Funds 1,494,195 1,490,845 3,350 Replacement Program Funds 1,783,115 1,233,065 550,050 Utility Tax Capital Projects 1,640,865 1,700,435 (59,570) Other Capital Project Funds 859,690 808,820 50,870 Water Operations 8,474,375 8,194,795 279,580 Refuse 3,614,585 3,352,035 262,550 Risk Management 1,332,965 1,308,275 24,690 OPEB Trust 149,820 1,146,750 (996,930) Permanent Funds 28,895 26,330 2,565 Grand Total - All Funds 76,345,411 69,628,400 6,717,011 9/29/2025 30 Revenue Changes •Revenues are increasing $6,717,011 ◦Majority of this increase is from the Other Special Revenue Funds and General Fund •Other Special Revenue Funds increasing by $5.0 million ◦Mainly from anticipated grant revenues $4.5 million •General Fund increasing by $1.58 million •Parks and Recreation Fund decreasing by $237,825 •Water Fund increasing by $279,580 9/29/2025 31 Revenue Distribution – All Funds 9/29/2025 32 Expenses 2026 vs 2025 Fund 2026 Proposed Expenses 2025 Budgeted Expenses Change General 33,067,970 32,207,320 860,650 Park Fund 5,868,735 7,104,180 (1,235,445) Economic Development 1,843,640 1,963,995 (120,355) Public Transportation Services 2,978,280 2,814,615 163,665 Storm Water Utility 1,345,715 1,036,615 309,100 Other Special Revenue Funds 13,805,305 10,519,325 3,285,980 Debt Service Funds 1,494,195 1,490,845 3,350 Replacement Program Funds 1,937,490 1,040,720 896,770 Utility Tax Capital Projects 1,645,520 1,707,405 (61,885) Other Capital Project Funds 3,978,580 3,493,965 484,615 Water Operations 7,528,050 7,394,115 133,935 Refuse 3,615,090 3,419,770 195,320 Risk Management 1,464,555 1,257,585 206,970 OPEB Trust 149,820 1,146,725 (996,905) Permanent Funds 15,575 18,450 (2,875) Grand Total - All Funds 80,738,520 76,615,630 4,122,890 9/29/2025 33 Expenditure Changes •Expenditures are increasing $4,122,890 ◦Majority of this increase is from the Other Special Revenue Funds, Replacement Funds, and General Fund •Other Special Revenue Funds increasing by $3.2 million ◦Mainly from anticipated grant revenues $4.5 million •General Fund increasing by $860,650 •Parks and Recreation Fund decreasing by $1.2 million •Water Fund increasing by $133,935 9/29/2025 34 Expenditure Distribution – All Funds 9/29/2025 35 Personnel Changes MAJOR CHANGES •Full-Time Salaries increased 4% •Health Insurance increased 17% •IMRF Pension increased 14% •$1,774,620 increase to the budget •74% to General Fund •9% to Water •7% to Parks and Recreation •6% to Public Transit 2026 2025 Increase Full-Time Salaries 20,269,440 19,493,590 3.98% Health Insurance Premium 5,728,695 4,896,070 17.01% IMRF 1,331,300 1,165,155 14.26% Total 27,329,435 25,554,815 6.94% 9/29/2025 36 FY26 General Fund 9/29/2025 37 General Fund Revenues by Category Taxes 86% Permits and Licenses 1% Fees and Fines 1% Use of Money and Property 3% Intergovernmental Revenue 5% Penalties and Fines 4%Other Revenue 0%Description 2026 Proposed 2025 Budget $ Change % Change Taxes 28,245,336 26,985,185 1,260,151 4.7% Licenses & Permits 446,090 435,380 10,710 2.5% Fines & Costs 384,425 289,260 95,165 32.9% Use of Money & Property 1,005,440 1,137,175 (131,735)-11.6% Intergovernmental Revenue 1,520,950 1,394,380 126,570 9.1% Charges for Current Services 1,273,835 1,064,695 209,140 19.6% Other Revenue 62,000 49,000 13,000 26.5% Total Revenues 32,938,076 31,355,075 1,583,001 5.0% Taxes make up 86% of revenue 9/29/2025 38 General Fund Expenditures by Department Department 2026 Proposed 2025 Budget $ Change % Change Administration 690,805 662,945 27,860 4.2% City Clerk 433,165 404,400 29,565 7.3% Human Resources 305,635 265,360 40,275 15.2% Legal/Contracts 2,638,065 2,756,065 (118,000)-4.3% Finance 1,052,020 961,130 90,890 9.5% Mgmt Info Systems 665,855 768,020 (102,165)-13.3% Community Development 1,878,185 1,555,405 322,780 20.8% Public Works 3,477,470 3,318,200 159,270 4.8% Police 12,975,310 13,006,610 (31,300)-0.2% Fire 8,951,460 9,000,280 (48,820)-0.5% Total 33,067,970 32,698,415 370,355 1.1% 9/29/2025 39 General Fund Expenditures by Category Category 2026 Proposed 2025 Budget $ Change % Change Personnel Services 27,170,075 26,738,100 431,975 1.6% Contractual Services 3,201,460 3,864,760 (663,300)-17.1% Commodities 756,245 1,036,225 (279,980)-27.0% Other Charges 1,940,190 1,059,330 880,860 83.1% Total 33,067,970 32,698,415 369,555 1.1% 9/29/2025 40 FY26 Parks & Recreation Fund 9/29/2025 41 Park Fund Revenues by Category Description 2026 Proposed 2025 Budget $ Change % Change Taxes 4,086,670 4,367,280 (280,610)-6.4% Use of Money & Property 1,573,915 1,522,880 51,035 3.4% Charges for Current Services 35,000 40,000 (5,000)-12.5% Other Revenue 34,500 39,200 (4,700)-12.0% Transfer from Other Funds 12,500 11,050 1,450 13.1% Total Revenues 5,742,585 5,980,410 (237,825)-3.9% Taxes 71% Use of Money & Property 27% Charges for Current Services 1% Other Revenue 1% Transfer from Other Funds 0% 2026 PROPOSED 9/29/2025 42 Park Fund Expenditures by Division Fund Name 2026 Proposed 2025 Adopted 2024 Actual 2023 Actual $ Change % Change Parks & Recreation Admin 2,409,310 2,416,850 2,143,351 2,126,058 (7,540)0% City Hall Bldg & Grounds*- 297,630 331,208 191,051 (297,630)-100% PSB Bldg & Grounds*- 193,465 181,751 166,772 (193,465)-100% Parks Operations & Maintenance 701,375 1,026,395 596,911 665,032 (325,020)-32% Golf Course 989,005 1,292,750 1,189,341 829,895 (303,745)-23% Allison Campground 98,530 86,280 75,486 89,460 12,250 14% Lake Storey Beach 84,255 107,870 70,872 75,022 (23,615)-22% Pavilion 113,105 130,475 94,023 86,736 (17,370)-13% Recreation Special Programs 231,155 310,595 182,360 207,198 (79,440)-26% Lakeside Recreation Facility 97,085 85,035 138,190 79,330 12,050 14% Lakeside Water Park 320,170 371,550 454,381 246,860 (51,380)-14% Hawthorne Pool 140,995 131,200 103,054 45,893 9,795 7% Hawthorne Gymnasium 52,640 42,675 35,898 37,453 9,965 23% Linwood Cemetary 212,510 245,190 208,372 174,367 (32,680)-13% Forestry 418,600 366,220 235,048 229,345 52,380 14% Total Parks & Recreation 5,868,735 7,104,180 6,040,246 5,250,472 (1,235,445)-17% *City Hall and PSB Bldg & Grounds is moving to Division 304 in the General Fund in 2026. 9/29/2025 43 Park Fund Expenditures by Category Description 2026 Proposed 2025 Adopted $ Change % Change Personnel Services 3,222,925 3,394,130 (171,205)-5% Contractual Services 1,405,550 1,681,835 (276,285)-16% Commodities 653,885 787,030 (133,145)-17% Other Charges 586,375 750,090 (163,715)-22% Total 5,868,735 6,613,085 (744,350)-11% Personnel Services 55% Contractual Services 24% Commodities 11% Other Charges 10% 2026 PROPOSED The 2025 adopted budget does not include the City Hall or PSB Bldg and Maint divisions 9/29/2025 44 Park Fund Facility Costs Description 2026 Proposed Revenues 2026 Proposed Expenditures Surplus/(Loss) Bunker Links Golf Course 837,600 989,005 (151,405) Campground 132,500 98,530 33,970 Lake Storey Beach & Concessions 26,100 84,255 (58,155) Hawthorne Pool & Gym 42,700 193,635 (150,935) Lakeside Pool 146,100 320,170 (174,070) Lakeside Recreation Facility 31,130 97,085 (65,955) Pavilion Revenues 42,000 113,105 (71,105) Recreation Programs 201,500 231,155 (29,655) Total Recreation Facilities/Programs 1,459,630 2,126,940 (667,310) 9/29/2025 45 2026 Water Fund 9/29/2025 46 Water Revenue Description 2026 Proposed 2025 Adopted 2024 Actual $ Change % Change Sale of Water 4,054,000 4,290,160 4,024,375 (236,160)-6% Water Facility Fees 2,854,000 2,854,000 2,759,537 (0)0% Penalties 165,000 140,000 193,660 25,000 18% Turn On Fees 39,000 39,040 37,410 (40)0% Delinquent Fees 200,000 150,000 203,435 50,000 33% Charges for Current Services 72,300 72,265 79,686 35 0% Sanitary Service Fees 250,000 200,000 241,116 50,000 25% Miscellaneous Other Revenue 840,075 449,330 758,968 390,745 87% Total Revenues 8,474,375 8,194,795 8,298,187 279,580 3.4% 2026 Sale of water and facility fees combined equals $6,908,000 or 82.7% of water revenue Sale of Water 48% Water Facility Fees 33% Penalties 2% Turn On Fees 1% Delinquent Fees 2% Charges for Current Services 1% Sanitary Service Fees 3% Miscellaneous Other Revenue 10% 2026 PROPOSED 9/29/2025 47 Water Fund Revenue Highlights SALE OF WATER Month 2025 2024 $ Change % Change January 295,905 337,376 (41,471)-12% February 355,776 345,757 10,019 3% March 311,396 306,357 5,039 2% April 337,833 302,918 34,915 12% May 297,931 337,302 (39,371)-12% June 372,766 381,699 (8,933)-2% July 332,039 350,971 (18,932)-5% August 373,175 314,088 59,087 19% Total 2,676,822 2,676,468 354 0% FACILITY FEES Month 2025 2024 $ Change % Change January 237,306 229,633 7,673 3% February 237,359 229,642 7,717 3% March 236,705 229,334 7,371 3% April 237,576 229,778 7,798 3% May 237,683 230,201 7,482 3% June 237,522 230,399 7,123 3% July 237,190 230,360 6,830 3% August 237,562 230,345 7,217 3% Total 1,898,903 1,839,692 59,211 3% 9/29/2025 48 Water Rates Past, Current, and Proposed Monthly water costs for a household with consumption of 4,488 gallons (6 units) Fiscal Year Unit Rate Facility Fee Total Cost of 6 Units (4,488 Gallons) $ Increase for Total Water Fees for 6 Units % Increase for Total Water Fees for 6 Units 2023 $2.68 $17.04 $33.12 $1.11 3.56% 2024 $2.77 $17.64 $34.26 $1.14 3.44% 2025 $2.87 $18.26 $35.48 $1.22 3.56% 2026 $2.87 $18.26 $35.48 $0.00 0.00% 9/29/2025 49 Water Fund Expenses by Category Description 2026 Proposed 2025 Adopted $ Change % Change Personnel Services 2,780,100 2,547,645 232,455 9% Contractual Services 2,117,215 2,155,300 (38,085)-2% Commodities 1,105,650 1,050,110 55,540 5% Other Charges 1,525,085 1,541,060 (15,975)-1% Total Expenses 7,528,050 7,294,115 233,935 3% Personnel Services 37% Contractual Services 28% Commodities 15% Other Charges 20% 2026 PROPOSED 9/29/2025 50 Big Picture •Total Revenues $76.3M ◦Operating Revenues $57M ◦Grants $8M ◦Economic/Property Development $2.4M ◦Debt $1.5M ◦Risk Mgmt/OPEB $1.5M ◦Replacement/Maint $1.8M Amount Remaining: $4.1M •Total Expenses $80.7M ◦Operating Expenses $56.7M ◦Grants $8M ◦Economic/Property Development $3.7M ◦Debt $1.5M ◦Risk Mgmt/OPEB $1.5M ◦Replacement/Maint $1.9M Operations are 66.1% of the 2026 Budget 9/29/2025 51 Big Picture •City budget has been prepared within the guidelines of the Council approved Financial policies • The tax rate for the City is decreasing ◦Lowest rate since tax year 2008 •Challenges ahead: ◦Infrastructure challenges ◦Tax revenue 9/29/2025 52 2026 Budget What’s New? •Annual Maintenance ◦Vehicle Replacement (13 vehicles/equipment to be replaced) - $667,700 ◦Building Repair/Maintenance (Roofs, HVAC, Flooring, Doors, and Exterior Masonry) - $990,420 ◦Resurfacing/Seal Coat Roads - $1,025,000 ◦Park Maintenance Projects - $75,000 ◦Bunker Links Cart Paths - $60,000 ◦Demolitions - $955,000 •Total of $3,773,120 9/29/2025 53 2026 Budget What’s New? •Grant Funded Projects ◦Brownfield Assessment and Cleanup - $1,213,600 ◦Housing Grants - $1,124,740 ◦Airport Runway Rehab - $158,000 ◦Lake Storey Path - $655,560 ◦Community Center - $3,290,000 ◦Body Work Cameras - $230,000 ◦Storm Sewer Improvements - $1,000,000 ◦Cooke Park Splash Pad - $325,000 •Total of $7,996,900 9/29/2025 54 2026 Budget What’s New? •Capital Expenses ◦Starcom Radio System for Public Safety - $1,029,125 ◦Galvanized Water Line Replacement for Public Safety Building - $200,000 ◦Electrical Upgrade for Public Safety Building - $800,000 (split over 2026 and 2027) ◦Airport Terminal Demolition - $75,000 ◦Park Plaza Stage - $24,000 •Total of $2,128,125 9/29/2025 55 Questions??? 9/29/2025 56