What you need to know
The city’s FY 2025-26 general fund has $24.56 million in revenues and $24.89 million in expenses, with the majority of revenue coming from property taxes.
At the meeting, council also approved the city tax rate of $0.5226 per $100 valuation, which is a 4.72% increase from the FY 2024-25 rate of $0.4490 per $100 valuation. According to Director of Finance Anna Miranda, the average homeowner will pay around $13.78 more on an annual tax bill from the prior fiscal year.
Sales taxes account for 24% of revenues, with the budget document stating that growth has been slowing due to overall economic conditions. Staff stated in the budget document that continued sales tax growth is expected from new businesses opening later this year and into 2026, such as Crepeccino and Crust Pizza Co.
The largest increases in general fund revenues are in public safety and public works. According to the budget document, public safety additions include compensation adjustments to personnel as well as increases in interlocal agreements for dispatch and EMS services.
Public works added a full-time leadership position previously budgeted in the city’s utility fund.
Council member Jeff McGlothin said he understands that some residents are “up in arms” over the tax rate increase, but said it is due to a drop in average property values.
“[I have] the same burden that everyone else in the city is suffering through, but at the end of the day, we are here to make the right decision, even if it’s the unpopular decision ... we know that is the only way this city can continue to grow and thrive,” McGlothin said.
One more thing
As part of the budget, council approved a 2% Cost of Living Adjustment, or COLA, for employees not being market-adjusted in FY 2025-26. Council previously approved a market adjustment raise to select employees on July 8. Agenda documents stated the market raise was "competitive compensation based on knowledge, skills and experience relative to what comparable cities are paying for similar positions." According to agenda documents, the total impact of the COLA on the city will be $330,000.
Mayor Pro Tem Katie Cunningham said that providing the salary adjustment is “not going to make or break our budget” and will work toward keeping employees.
“When you lose an employee, the cost of getting a new employee is so much higher than retaining one that you have,” Cunningham said.
