FY 2026 Budget
approvedStatus set at City Council Special Meeting on May 6, 2025 · ▶ watch the moment
- Proposed
- Under reviewMar 11, 2025
- approvedMay 6, 2025
Summary
The FY 2026 Budget for the City covers general operations, capital improvements (FY 2026–2030 CIP), school board tuition and bond referendum renovations, a pay study implementation for internal equity, and various fund appropriations. City Manager Bryan Foster first presented the proposed budget on February 25, 2025. A series of public hearings—opened March 11 and kept open through April 8, 2025—gathered extensive resident and stakeholder testimony on topics including real estate tax rates, a proposed meals tax increase from 4% to 6%, arts funding, public safety, and infrastructure. Multiple work sessions were held through April 22, 2025, including a joint session with the School Board on March 4. At the May 6, 2025 Special Meeting, after a failed deferral motion and three failed amendments, the FY 2026 Budget was adopted unanimously 6-0, with the Budget Change Document incorporated 4-3, and all ten fund appropriation resolutions (R-25-10 through R-25-19) approved unanimously 6-0. Tax rates were set at $1.0550 per $100 assessed value for real estate and $4.13 per $100 for personal property/machinery and tools.
What members have said
At the May 6, 2025 adoption meeting, Peterson asked for big-picture clarification on the budget process for the benefit of residents watching and in response to constituent emails. Peterson voted yes on three failed amendments (lower real estate tax rate at $1.75, deferral of Willard-Sherwood expansion, and 50/50 pay study split) and yes on the deferral motion to May 13, but ultimately voted yes on final budget adoption.
McQuillen voted yes on the motion to defer to May 13, yes on all three failed amendments (lower tax rate, Willard-Sherwood deferral, 50/50 pay study split), and no on incorporating the Budget Change Document. McQuillen ultimately voted yes on final budget adoption.
Hall voted yes on the motion to defer to May 13, yes on all three failed amendments, and no on incorporating the Budget Change Document. Hall ultimately voted yes on final budget adoption.
Read voted no on the motion to defer to May 13 and yes on incorporating the Budget Change Document. Read did not cast a recorded vote on the three failed amendments per the dated record.
Bates voted no on the motion to defer to May 13, no on all three failed amendments, and yes on incorporating the Budget Change Document. Bates voted yes on the first (failed) tax rate motion and yes on final budget adoption. At the April 22 work session, Bates engaged in discussion about the pay study, noting the magnitude of the ~$500,000 cost and the importance of understanding varying degrees of inequity among affected employees.
Hardy-Chandler voted no on the motion to defer to May 13, no on all three failed amendments, and yes on incorporating the Budget Change Document. Hardy-Chandler voted yes on final budget adoption.
Amos voted no on the motion to defer to May 13, no on all three failed amendments, and yes on incorporating the Budget Change Document. Amos voted yes on final budget adoption; the transcript notes he participated remotely at the May 6 meeting.
Positions as recorded in meeting minutes; votes without recorded comment aren’t summarized.
Discussion time
Minutes of named discussion per transcribed meeting.
Full history
[4c] City Manager Bryan Foster presented the proposed FY2026 budget, highlighting key initiatives including strategic goals, the FY26–FY30 Capital Improvements Program, and funding for the City School Board's tuition request and bond referendum renovations.
[1a] The City Council and School Board held a joint discussion on the proposed FY26 budget, with a presentation delivered by Schools staff. [1c] The City Council held a standalone discussion on the proposed FY26 budget during the work session; no formal action was taken.
[7a] Public hearing on the proposed FY26 budget was opened with no council action; the hearing was left open until April 8, 2025. [10b] The proposed FY26 budget was discussed during the work session; no formal action was taken at this stage.
[7b] Public hearing opened on the proposed FY26 budget; the hearing was left open until April 8, 2025, with no Council action taken at this meeting. [11a] Council held a work session to discuss the proposed FY26 budget in detail; no formal action was taken.
[1a] The proposed FY26 budget was presented and discussed during the work session. No formal action or vote was recorded.
[5c] Public hearing held with testimony from numerous residents and stakeholders on topics including public safety funding, real estate tax increase, meals tax, arts funding, and trail/infrastructure spending. No Council action taken; budget adoption scheduled for May 6, 2025. [10b] Council held a work session discussion on the proposed FY26 budget; no formal action taken at this session.
[10b] Council discussed the proposed FY26 budget during the work session. No formal action was taken at this meeting; budget-related public hearings and adoption are scheduled for May 6, 2025.
[3e] The FY 2026 Budget, including all sub-funds, was adopted unanimously 6-0 after multiple failed amendments; the Budget Change Document was incorporated 4-3.
failedMotion to defer consideration and appropriation of the FY 2026 budget to a date certain of May 13, 2025.✓ McQuillen✓ Hall✓ Peterson✕ Read✕ Bates✕ Hardy-Chandler✕ AmosfailedAmendment to set the real estate tax rate at $1.75 (resulting in reductions of approximately $500,000 for pay study implementation, $188,000 for merit increase, and ~$100,000 in nonprofit funding).✓ McQuillen✓ Hall✓ Peterson✕ Bates✕ Amos✕ Hardy-ChandlerfailedAmendment to defer the Willard-Sherwood community center expansion to the FY 2027 budget.✓ McQuillen✓ Hall✓ Peterson✕ Bates✕ Amos✕ Hardy-ChandlerfailedAmendment to implement 50% of the pay study in FY 2026 and 50% in FY 2027.✓ McQuillen✓ Hall✓ Peterson✕ Bates✕ Amos✕ Hardy-ChandlerpassedAmendment to incorporate all changes included in the Budget Change Document (Attachment I, previously published) into the main budget motion.✓ Read✓ Amos✓ Bates✓ Hardy-Chandler✕ Hall✕ McQuillen✕ PetersonfailedMotion to set the real estate tax rate at $1.0550 per $100 of assessed value, personal property and machinery and tools tax rate at $4.13 per $100 of assessed value, and personal property tax rate at $0.01 per $100 for qualifying volunteer fire/rescue members, effective January 1, 2025 (first vote).✓ Bates✓ Amos✓ Hardy-Chandler✕ McQuillen✕ Hall✕ PetersonpassedMotion to set the real estate tax rate at $1.0550 per $100 of assessed value, personal property and machinery and tools tax rate at $4.13 per $100 of assessed value, and personal property tax rate at $0.01 per $100 for qualifying volunteer fire/rescue members, effective January 1, 2025 (second vote).✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedMain motion to adopt the FY 2026 Budget (all funds), FY 2026 Schedule of Rates and Levies, FY 2026–2030 Capital Improvement Program, FY 2026 health benefit contribution rates, 2.0% merit increase effective January 1, 2026 for eligible general scale employees, and programmed annual step increase for public safety employees, as amended by the Budget Change Document.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedMotion to approve appropriation resolutions R-25-10 (General), R-25-11 (Capital), R-25-12 (Wastewater), R-25-13 (Transit), R-25-14 (Stormwater Utility), R-25-15 (Cable), R-25-16 (Old Town), R-25-17 (Transportation Tax), R-25-18 (ARPA), and R-25-19 (Debt Service) for the fiscal year beginning July 1, 2025.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
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