PowerPoint Presentation (Added 4/18/2025)*

Council Workshop 
FY25-26 Budget Discussion
April 22, 2025

Budget Calendar
2
Item
Date
Workshop #1 – Budget Overview / Revenues / Five-Year Financial Forecasts 
January 28, 2025
Workshop #2 – FY26-35 Capital Improvement Plan 
March 4, 2025
Workshop #3 – (All Day) FY26 Operating Budget Department Presentations
April 1, 2025
Workshop #4 – FY26 Operating, CIP, Debt, Contingency
April 22, 2025
Voting Meeting – Tentative Budget Adoption
May 13, 2025
Voting Meeting – Final Budget Adoption / Property Tax Levy
June 10, 2025
Voting Meeting – Property Tax Adoption
June 24, 2025

Agenda
3
• FY25-26 Budget Highlights
• Changes to Operating Budget
• Changes to Capital Improvement Plan
• FY25-26 General Fund Transfers Budget
• FY25-26 Budget Overview
• General Fund Five-Year Forecast

FY25-26 Budget Highlights
4
• Conservative Forecasting Methodology
• No Property Tax Increases
– Property Tax Rate decreases annually due to flat levy policy
– Property Tax has decreased from $2.20 per $100 of property 
value in FY16 to $1.45 per $100 of property value in FY26
• Budget Aligned with Council Priorities
– Park Maintenance
– Public Safety
– City Infrastructure (Streets, Water/Wastewater, Etc.)

FY25-26 Budget Highlights
5
• Public Safety Increases in accordance with current 
Memorandums of Understanding (MOUs) for 
represented employees (Year 2 of MOU)
• Recommended Increases in Employee Pay
– 3.5% Cost of Living Adjustment (COLA) for non-
represented employees
– Up to 2.0% merit increases

6
Operating Budget Changes

FY25-26 Operating Budget Changes
7
• Circle of Cities Membership
– Added $2,500 ongoing beginning in FY26
– Budgeted in Non-Departmental – Memberships
• Nation’s 250th Birthday Celebration
– Added $250k one-time for FY26
– Budgeted in Economic Development – Special Events

FY25-26 Operating Budget Changes
8
• Fleet Vehicle Parts Supplemental
– Removed $50k ongoing beginning in FY26
– Department did not need supplemental if Equipment 
Mechanic FTEs were approved
• Vendor Validation Software Supplemental
– Added $112k ongoing beginning in FY26
– Chase Bank no longer using program where earnings 
credits can pay for the software.
– Software is critical to avoiding fraudulent banking 
transactions

FY25-26 Operating Budget Additional 
Discussion
9
• Manistee Ranch
– Added $20k one-time for FY26
– Budgeted in Non-Departmental – Building Maintenance
– Memo to City Council – Field Operations maintains 
Manistee Ranch House
• Sufficient budget to maintain house at current level of service
• Council Consensus – Add/Remove Supplemental 
Budget Request

FY25-26 City Manager Recommended 
Supplemental
10
• Police Traffic Safety Equipment
– Added $600k in one-time funding for police traffic 
safety equipment

11
Capital Improvement Plan Changes

FY26-35 Capital Improvement Plan Changes
12
• CIPPK19077 – Thunderbird Conservation Park 
Improvements
– Added funding for project based on Council-Approved 
Master Plan in FY27
• CIPPS23031 – Police Crime (Forensic) 
Laboratory 
– Moved project up from FY2028 to FY2027
• FY2026 $4M in Carryover

FY26-35 Capital Improvement Plan Changes
13
• Carryover Updated
– Carryover estimate refined with department
– $193M – March 4, 2025
– $270M – April 22, 2025

FY26-35 CIP Discussion
14
• CIPPS26026 – Indoor Shooting Range
– Preliminary discussions with Luke AFB regarding 
shared indoor shooting facility
– Enclosed Facility
• Office and classroom space
• Bathroom and locker room amenities
• 20 50-yard shooting lanes
– Added $100k placeholder in FY26 for programming 
study
• Council Consensus – Add $100k project in FY26

FY25-26 General Fund Transfers
15
General Fund Transfers In
General Fund Transfers Out
Public Safety Sales Tax – Police
$32,225,844 
Vehicle Replacement Fund
($3,541,510)
Public Safety Sales Tax – Fire
$17,054,216
Airport Special Revenue Fund
($175,399)
CAP Grant
($67,514)
Public Housing
($1,240,293)
GRPSTC
($4,256,364)
Maintenance of Effort Transfers
($2,262,044)
General Fund Capital Projects
($23,549,066)
Debt Service – COPs
($19,988,356)
Debt Service – MPC/Excise Tax
($32,183,126)
Total Transfers In
$ 49,280,060 
Total – Transfers Out
($87,263,672)

FY25-26 Total Budget Appropriation
16
Operating 
$710M
49%
Capital
 $478M
33%
Contingency 
$157M
11%
Debt 
$115M
8%
FY25-26 Total Budget
$1.46B

FY25-26 Operating Budget by Fund
17
General Fund
$338M
48%
Enterprise Funds
$151M
21%
Internal Service 
Funds
$122M    17%
Special Revenue 
Funds
$87M     12%
Vehicle Replacement Fund
$12M  2%
Total FY25-26 Budget
$710M

FY25-26 General Fund 
Operating Budget by Function
18
Police Services 
$145M
43%
Fire Services 
$72M
22%
Other
$58M   17%
Parks and Recreation 
$22M   6%
Public Works 
$21M   6%
Community Services 
$11M   3%
Non-Departmental 
$9M    3%
Total FY25-26 Budget
$338M

FY25-26 Capital Improvement Plan
19
Streets 
$108M
Facility Maintenance
$94M
Public Safety 
$65M
Water 
$55M
Parks
 $38M
Wastewater 
$32M
Drainage 
$26M
Parking Lots $17M
Airport $12M
Library $11M
Solid Waste $8M
Transit $6M
Landfill $5M
Arts $1M
Total FY25-26 CIP 
$478M

General Fund Five-Year Financial Forecast
20
FY26 Budget
FY27 Budget
FY28 Budget
FY29 Budget
FY30 Budget
Beginning Fund Balance
    294,781,246     280,171,846      253,597,868     224,231,965     185,306,206 
Operating Revenue
    361,370,921     352,975,525     364,120,851     371,633,645     378,783,930 
Ongoing Operating Expenditures
   (333,428,650)   (347,627,055)   (360,755,581)   (374,578,009)   (388,859,080)
One-Time Operating Expenditures
       (4,568,059)        (2,500,000)        (2,500,000)        (2,500,000)       (2,500,000)
Net Transfers
     (37,983,612)     (29,422,448)     (30,231,173)     (33,481,395)     (41,030,175)
Contingency
        (5,000,000)                     -                        -                        -                        -   
Total Surplus/(Deficit)
     (19,609,400)     (26,573,978)      (29,365,903)     (38,925,759)     (53,605,324)
Ending Fund Balance w/o Contingency
    280,171,846     253,597,868     224,231,965     185,306,206     131,700,882 
Assigned FB - General Govt CIP
        8,304,944         6,877,968          8,932,525        16,116,990       13,709,776 
Pension Reserves (Committed)
       20,000,000        20,000,000        20,000,000        20,000,000        20,000,000 
Unassigned Fund Balance w/o Contingency
    251,866,902      226,719,900      195,299,440     149,189,216       97,991,106 
Fund Balance Policy
25% Ongoing Operating Expenses
*Unassigned Fund Balance w/Arts Transfer
    249,866,902     224,719,900     193,299,440     147,189,216       95,991,106 
      83,357,163       86,906,764        90,188,895       93,644,502       97,214,770

Budget Calendar
21
Item
Date
Workshop #1 – Budget Overview / Revenues / Five-Year Financial Forecasts 
January 28, 2025
Workshop #2 – FY26-35 Capital Improvement Plan 
March 4, 2025
Workshop #3 – (All Day) FY26 Operating Budget Department Presentations
April 1, 2025
Workshop #4 – FY26 Operating, CIP, Debt, Contingency
April 22, 2025
Voting Meeting – Tentative Budget Adoption
May 13, 2025
Voting Meeting – Final Budget Adoption / Property Tax Levy
June 10, 2025
Voting Meeting – Property Tax Adoption
June 24, 2025

22
Questions?