COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
SUBJECT:Title
Discussion and Action: Resolution No. 26-3918 Adopting a Tentative Budget for Fiscal Year 2026-27 (Jill Olsen)
Body
FUNDING SOURCE:
Various Departments and Funds
PURPOSE:
To consider adoption of a resolution adopting the Fiscal Year 2026-27 Tentative Budget as reflected on the attached State budget forms.
BACKGROUND:
Budget work sessions were held with City Council on April 16 and May 14, 2026, to review the proposed Fiscal Year (FY) 2026-27 budget.
No changes were made to the proposed operating budgets after the May 14, 2026, work session.
Three changes were made to the total Capital Improvement Plan information presented to Council at the April 16 and May 14, 2026 Budget Work Sessions:
1) The Multi-Use Fields project was moved to Fiscal Year (FY) 2026-27 for the planning and design ($1 million) and to FY 2027-28 for Construction ($6 million);
2) The Rotary Park Splash Pad project was moved to FY 2026-27 in the amount of $1.5 million with funding from the General Fund instead of Grants; and
3) The North Area Hangar Development project funding of $1.3 million in FY 2027-28 was split into FY 2027-28 ($800,000) and FY 2028-29 ($500,000).
All three projects are funded by the General Fund. Funds were shifted based upon projected available funds for each year in the five-year CIP.
The Tentative Budget was prepared with an estimated expenditure total of $303,688,635. The revenues include all resources available in all funds, including some carryforward amounts included for operating and Capital Improvement Plan items that will not be complete by June 30, 2026.
Attached for Council adoption are the Fiscal Year 2026-27 state budget forms for the Tentative Budget. Once the Tentative Budget is adopted, the expenditures may not be increased upon final adoption; however, they may be decreased.
If Council adopts the tentative budget at this meeting, the budget forms will be published on or about June 9 and June 16, 2026. A public hearing and special meeting will be held on June 23, 2026, for the Truth in Taxation requirements and to adopt the final budget. Council is scheduled to adopt the property tax levy at the Council meeting on July 14, 2026.
COMMUNITY IMPACT:
The budget is developed as a spending plan for outlining priorities and providing services to the community.
FISCAL IMPACT:
Projected expenditures of $303,688,635 which sets the maximum allowed for the FY 2026-27 budget.
ATTACHMENTS:
Resolution No. 26-3918
Official Budget Forms-Fiscal Year 2026-27 Tentative Budget (Schedules A-G)
General Fund Five-Year Forecast
Tentative Budget Adoption Presentation FY26-27
POSSIBLE MOTION:Recommended Action
I move to adopt Resolution No. 26-3918 adopting the Fiscal Year 2026-27 Tentative Budget.