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Attachment 1
<br />an increase of $10,000 (1.62 percent), driven primarily by a $10,000 increase in Water
<br />operating supplies based on historical spending trends.
<br />Contractual Services
<br />Contractual Services are projected to total $7,785,814.93, an increase of $609,879 or 8.50
<br />percent. Within Governmental Funds, costs total $6,065,758.99, reflecting an increase of
<br />$576,366 (10.50 percent). The primary cause of this increase is the $392,000 rise in the
<br />Police AXON contract for the new RMS system. The City Council approved this 10-year
<br />contract in January 2026, with the system transition scheduled for late 2027. Remaining
<br />increases within Governmental Funds are attributed to the standard three-percent annual
<br />adjustment. Enterprise Funds (Water, Sewer, Stormwater, and Golf) total $1,720,055.94, an
<br />increase of $33,543 (1.99 percent), also reflecting the standard three-percent assumption for
<br />most funds.
<br />Utilities
<br />Utilities are projected to total $12,690,209.70, an increase of $519,572 or 4.27 percent.
<br />Within Governmental Funds, costs total $951,434.56, reflecting an increase of $38,735 (4.24
<br />percent), attributed to the standard three-percent annual adjustment for most departments.
<br />Enterprise Funds (Water, Sewer, Stormwater, and Golf) total $11,738,775.14, an increase of
<br />$480,837 (4.27 percent), also reflecting the standard three-percent assumption for most funds.
<br />Debt Service
<br />Two levy-supported debt issues — the 2012A Park Improvement bonds and the 2020A
<br />Refunding & Utility Improvement bonds—are scheduled to be fully paid off in 2028. As a
<br />result, 2027 will be the final year in which the City uses property tax levy to fund the debt
<br />service payments for these two bonds. Beginning in 2028, this payoff is expected to generate
<br />an estimated levy decrease of approximately $2.2 million.
<br />Capital Improvements Levy
<br />Levies for the Capital Improvement Funds have been kept flat for this preliminary budget
<br />discussion, as shown in the table below. City staff are currently reviewing and updating the
<br />20-year Capital Improvement Plan (CIP).
<br />Based on the estimated expenditures and revenues for 2027, the City’s projected property tax
<br />levy will need to be increased by $3,093,597.01, reflecting a 9.36% increase over 2026.
<br />As has been stated, this estimate only accounts for the increased costs for continuing the same
<br />programs, personnel, and services as approved in the 2026 budget into 2027. This estimate
<br />does not include new programs, personnel, or services.
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