CCP 04212025 - Laserfiche WebLink

Home

Attachment 1 Propose Fiscally Responsible City Budget Goal: Prepare and present a 2026 budget that minimizes cost increases in recognition of limited taxpayer resources while still meeting the needs of the community and providing resources to implement the Strategic Plan. Background: The 2025 City budget levy increased by 5.4%. With expected cost increases for personnel, supplies, materials, and equipment, requests for additional personnel in public safety, as well as state and federal funds no longer being available to help pay for City costs, the levy increase is expected larger than the 2025 increase. Couple that factor along with an uncertain economy and the challenge for taxpayers to pay for increasing taxes, it is imperative that the 2026 budget is fiscally responsible and financially sustainable for the future. As a point of reference, below is a chart showing the City property tax levy increase since 2020. Levy Increase (%) 10.00% 8.99% 9.00% 8.00% 7.00% 6.00% 5.44% 6.00% 5.10% 4.92% 4.67% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 202020212022202320242025 It will be a challenge to keep a levy increase in line withthe past six years average levy increase (5.85%). This will be a very difficult process as most, if not all, of our programs and services are needed and valued by the community. Nevertheless, it will be necessary to look at ways to limit the increase of tax levy dollars in funding City programs and services. Important Milestones: y-June 2025 April -Ma Discuss upcoming budget challenges with Department Heads and task them with reviewing programs and services to look at for potential reductions to moderate a tax levy increase. Department Heads submit CIP and budget for operational needs As part of budget formulation process, City Manager will focus on the following: o With individual Department Heads, review infrequent or one-off expenditures and explore alternative non-levy funding sources Qbhf!212!pg!216