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HomeMy WebLinkAboutCity Budget Highlights FY 26City of Rexburg 2026 Budget Highlights Total Budget: $111,543,500 up $18,485,000 from the 2025 amended budget. Operating Budget: $47,168,500 up $1.5 million from the 2025 personnel/operations/other overhead expense amended budget. A Cost-of-Living Adjustment (COLA) of 2.42% effective on the 10/18/25 paycheck is included as well as a 7% increase in health benefits and an increase in PERSI benefits that may be deferred. Several new positions are also included. The General Fund has $125,000 in the Contingency budget for unforeseen increases in expenditures or reductions in revenues. A carryover of $1,329,800 was included in the general fund budgeted revenues to balance the budget. Revenue, including carryover and grants, available for street maintenance, reconstruction, and the construction of new streets is $14.1 million. The budget includes a 1% increase in highway user funds (fuel taxes) over the prior year to reflect the State estimates (Budget of $3.31 million in state taxes). We project to spend over $2.4 million in carryover in the street funds. We anticipate receiving $3.47 million in Federal Grant Funds and $2 million from Urban Renewal Contributions. Franchise and Right of Way Charges are $1.49 million with an additional $60,000 in revenue coming from the Fiber Ring Lease. Major reconstruction street projects include the following: • Reconstruction of Various Streets (LID 54 To finalize) $ 500,000 o 1st West - Main to 1st South, 1st South - 2nd West to Center, 5th West - Yellowstone to 7th South, Park Street - Pioneer to Seagull Drive • Reconstruction of Various Streets (LID 55 To begin) $3,000,000 o 4th West-2nd S to 6th S o Birch Avenue o 7th South-US 20 west to Summerfield • Miscellaneous Seal Coat/Chip Sealing $ 250,000 Major new street construction projects include the following: • 9th East River Crossing at 7th North-DIF, Federal Grant, URA $ 5,500,000 • Traffic Signal -7th S/Center-LHTAC Grant $ 893,600 • Safe Streets for All-Federal Grant $ 240,000 • 2nd East-Safety Improvements Consulting-Federal Grant $ 200,000 • Contributed Assets $ 500,000 Street operating capital-Multiple items totaling $94,000, which includes a Four-Wheeler, Pedestrian Signals, and the rebuilding of a Storage Shed. Community Safety Lighting Fund will be closed out in Fiscal Year 2025 and have no budget in Fiscal Year 2026 but may be completing its final projects in Fall this year. Property tax revenues are estimated to increase about $409,600 over the 2025 budget for a total of $7,342,000. The current city property tax levy rate is still one of the lowest for most cities in southeast Idaho and other similar size cities. A portion of the estimated increase is coming from new construction (TBD-projected at $147 K or less), annexation ($27 K), and foregone ($27 K). The largest portion of the increase is from the 3% increase allowed by state statute each year. Six new full-time personnel positions were included in the budget for a Building Plumbing Inspector (1), Building Maintenance Supervisor/Electrician (1), Police Patrol Officer (1), Assistant Fire Inspector (1), Assistant Groundskeeper for Golf (1), and an Assistant Golf Professional (1). Utility rate changes are being recommended in water, sewer, and garbage. The city is also planning to discontinue the Safety Lighting Fee. Changes would be effective October 1, 2025. The current suggested cumulative decrease for all city services ranges on average between 8.7% and 16.2% (see Rexburg Utilities Sample Bills document). A typical residential resident would pay 9.1% or $11.34 less per month. A public hearing will be held for recommended rate changes. The Utility Departments intend to finish up a rate study for capacity and utility fees and potentially look to update rates again by January or February of 2026. Major water construction projects include well #10 building and booster construction for $1,185,000, water line replacements and extensions of $850,000, and drilling a new well #11 on the hill ($1,000,000). The water operating budget also has some significant capital items, including a hydrant filling station, well re-piping, the building of a shop extension/storage building ($1,160,000), deepening well #3 in zone 1 ($1,070,000), installing a recharge/diversion structure ($300,000), and painting the water tower ($380,000). The Sanitation department plans to purchase a new garbage truck ($335,000). Included in the fiscal year 2025 budget is $3,276,500 for the Wastewater Treatment Plant Construction Fund. Also included is $5.9 million for replacement/oversizing of a gravity fed sewer line and lift station and the addition of a pressure line to provide improved collections and expand capacity for the Northwest side of the city. Revenues for the sewer line project include contributions from other cities that use that infrastructure of over $2.8 Million and a Federal Grant of over $3 Million. The wastewater operating budget also includes sewer line replacements and extensions of $950,000. There are several lift stations projects in the budget that include an upgrade to the lift station at the Airport on Main Street ($425,000) and a new lift station on 12th West near the Aderra Subdivision ($600,000). Work on the Digester Mixer and an electrical upgrade on the UV Bank are also in the budget for $800,000. A used haul truck is also in the budget for $100,000. Another large sewer project is a new wastewater line from the Northwest corner of the city to the Sewer Plant that includes a new lift station. This project is about $4.7 Million and is being funded 65% by the City and 35% by the Urban Renewal Agency. The Airport Environmental Assessment is set to be completed in FY 2026 as an FAA project. Another FAA project included in the budget is land acquisition for $4.3 million. These projects are funded approximately 90% by the FAA, up to 5% by the State of Idaho, and the rest by the City and the County. The City is setting aside reserve funds to meet their portion of any match to relocate the airport. The city projects to have $1.16 million of reserve set aside by the end of Fiscal Year 2026. The budget includes a transfer to a reserve fund from the general fund of $300,000 to continue saving for a future municipal building and/or police station. The city plans to put a general obligation bond on the ballot in November to potentially secure funding in Fiscal Year 2026 for a new police facility and has money in the budget that has been saved up to go towards that project. The city also has in its budget to potentially purchase some ground in the downtown area with other community partners. The Parks Impact Fund has budgeted to construct Phase I of the New Park on the Teton River between Barney Dairy Road and 7th North $1.6 Million. The city also plans to begin construction of a new park on 5th West at the Steiner Property in 2026 as well. The budget includes a contribution from the Urban Renewal Agency to help with these projects of $1.67 million. The Park Construction Fund budget includes a new Restroom at Riverside Park ($110,000). Construction or design of a new section of trail will also begin on 2nd East to Riverside Park and under the Teton River Bridge on 2nd East. The budget for capital improvements at the Romance Theatre includes a small remodel, a new projector, replacing the doors on center street, painting the front windows upstairs, and some lighting system improvements. The Tabernacle Legacy Campaign will continue, and the city plans to put in a new HVAC system ($875,000) and add an exhibit at City Hall for the Teton Flood and other items. The Flood 50 event is planned for May/June 2026. The city entered into a Public Private Agreement at Riverside Park with a Developer to construct an Ice Hockey Rink that will open this year. Over time the building facility and improvements will be fully donated back to the city ($240,000 in 2026 Budget). Golf has several capital purchases/projects including a fairway mower ($90,000), rebuilding mainlines at Legacy ($40,000), a Cushman Sprayer ($70,000), a reel sharpener ($30,000), and a golf simulator ($30,000). The City and County are planning to set aside $50,000 or more each for the next several years to save up to replace the irrigation system at Teton Lakes that is nearing end of life.