Finance Director Jennifer Evans told the council the proposed 2026 budget is structurally balanced, budgets about $73.6M in revenues and $96.5M in expenses (excluding transfers), anticipates bond issues for water and wastewater projects, allocates $19.4M for personnel, and estimates $25.5M in unrestricted cash after accounting for restrictions.

The draft budget includes a 50th‑percentile pay adjustment, a 2.7% COLA, a proposed police step program and multiple department headcount requests; staff cautioned the city cannot afford seven new officers in a single year.