HomeMy WebLinkAboutCity Budget Highlights FY 27City of Rexburg 2027 Budget Highlights
Total Budget: $95,281,200 down $23,067,700 from the 2026 amended budget as of 6/10/26.
Operating Budget: $43,434,400 down $345,988 from the 2026 personnel/operations/other overhead expense projected expense. A
Cost-of-Living Adjustment (COLA) of 2.73% effective on the 10/23/26 paycheck is included as well as a 22.5% increase in health
benefits and an increase in PERSI benefits that may be deferred.
The General Fund accounts for 21% of the total budget ($20,088,500) and has $80,000 in the Contingency budget for unforeseen
increases in expenditure or reductions in revenues. A carryover of $734,700 is included in the general fund revenues to balance
the budget. The projected carryover at the end of the Fiscal Year is 20.81%, which is below our policy of between 25% to 33%.
Property tax revenues are estimated to increase by about $370,000 (5%) over the 2026 budget for a total of $7,660,000. The
current city property tax levy rate is still one of the lowest for most cities in southeast Idaho and other similar size Idaho cities. A
portion of the projected increase is coming from new construction ($145 K), annexation ($4 K), and the remaining and largest
portion of the increase comes from the 3% increase allowed by state statute each year ($221 K). Sales Tax is very flat with a
slight increase of 1.9% up to $4.47 million in the budget next year.
Revenue, including carryover and grants, available for street maintenance, reconstruction, and the construction of new streets
is $22.49 million. The budget includes a 26% decrease in highway user funds (fuel taxes) over the prior year to reflect the State
estimates (Budget of $2.43 million in state taxes). We project to spend over $6.15 million in carryover in the street funds. We
anticipate receiving $5.55 million in Federal Grant Funds and $5.16 million from Urban Renewal Contributions. Franchise and
Right of Way Charges are $1.7 million with an additional $75,000 in revenue coming from the Fiber Ring Lease.
Major street reconstruction projects include the following:
• Reconstruction of Various Streets (LID 55 To Finalize) $ 600,000
o 4th West-2nd S to 5th S
o Birch Avenue and Ash Avenue
o 7th South-12th W to Summerfield
• Reconstruction of Various Streets (LID 56 To begin) $ 4,000,000
o Trejo Street
o 4th West-2nd S to Main and 1st N to 2nd N
o 5th S-5th W to 2nd W
o 1st N-Near 2nd W to 2nd E
• Miscellaneous Seal Coat/Chip Sealing $ 350,000
Major new street construction projects include the following:
• 9th East River Crossing/Bridge at 7th North-DIF, Federal Grant, URA $10,900,000
• Traffic Signal -2nd E and Teton River Temple Street, URA $ 720,000
• 2nd East and Yellowstone Widen/Lights-Federal Grant $ 1,677,000
• Contributed Assets $ 500,000
Street operating capital-Multiple items totaling $230,000, which include a Compact Wheel Loader, Pedestrian Signals, and the
rebuilding of a Storage Shed.
Community Safety Lighting Fund closed out in Fiscal Year 2025 as far as funding goes but does have some carryover that will be
used in Fiscal Year 2027 for one last smaller project.
Five new full-time personnel positions were requested in the budget but only one position was approved in the Wastewater
Collections department for an Operator in Training.
Utility rate changes are being recommended in water, wastewater, and sanitation. The rate changes reflect the recent rate
study for capacity and utility fees completed in June 2026. Changes would be effective October 1, 2026. The current suggested
cumulative rate increases for all city utility services range on average between 4.3% and 10% (see Rexburg Utilities Sample Bills
document). A typical residential resident would pay an average of 4.3% or $5.83 more per month. A public hearing will be held
for recommended rate changes.
Major water construction projects include drilling a new well #11 for $1.18 million and water line replacements and
extensions of $1.3 million. The water operating budget also has significant capital items, including the completion of a new
shop building ($870,000), deepening well #3 in zone 1 ($1,070,000), installing a recharge/diversion structure ($300,000).
The Sanitation department plans to order a chassis for a new garbage truck ($150,000) as well as add asphalt around their new
shop ($140,000) that was completed in the prior fiscal year.
Included in the fiscal year 2026 budget is $4.82 Million for the Wastewater Treatment Plant Construction Fund for continued
headworks improvements and work on the biosolid dryers. Also included is the completion of the project 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 NE side of the city ($892,000). Revenues for this project included contributions from other cities that use
that infrastructure and a Federal Grant. The wastewater operating budget also includes sewer line replacements and extensions
of $1.15 million. There are two lift stations projects to be completed in the budget that include a new lift station near US 20/Main
($425,000) and a new lift station on 12th W near the Aderra Subdivision ($400,000). Another large sewer project is a new
wastewater line from the NW corner of the city to the sewer plant that includes a new lift station. This project is expected to be
completed in 2027 (Budget $1.34 million) and is being funded 65% by the City and 35% by the Urban Renewal Agency. The
Wastewater Operating Fund had an additional $1.1 Million in the budget for 20 other smaller capital projects.
The Airport Environmental Assessment will continue in 2027 as an FAA project. Another FAA project is land acquisition that is
not expected to happen until after 2027. 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 $1.25 million of reserve set aside by the end of Fiscal Year.
The budget includes a transfer to a reserve fund from the general fund of $125,000 to continue saving for a future municipal
building and/or police station. Although they were supported by a majority, two general obligation bonds on the ballot for a new
police facility failed to pass with the required super majority (66 2/3rd %) in the last two elections. The city does now own land on
Pioneer Road (4.95 acres) and the old School District Property (approximately .75 acres) downtown. That reserve fund
projects to have a carryover of over $1 million by the end of the fiscal year and $190,000 was left in the hired work budget to be
available as the city council further discusses options to consider for the future.
The Parks Impact Fund has budgeted to construct Phase I of the New park on 5th West at the Steiner Property in 2027. The
budget includes a contribution from the Urban Renewal Agency to help with this project of $650,000. The Park Construction
Fund budget includes a $100,000 transfer back to the general fund to help cover the cost of a project to bring canal water to
Porter Park for irrigation ($610,000). This project will also be funded with a federal grant of $303,000. 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 include a small project to Replace 3 Windows on the building
($15,000). The Tabernacle Legacy Campaign will continue and the city projects to carry over $170,000 in donations in the budget
for the next project to add bathrooms in the basement ($285,000). Additional funds will need to be raised before this project begins.
The city began operating the donated ice rink facility in February of 2025. Based on the limited months of operation and assuming
the facility will run year-round the budget shows a subsidy of this facility of $134,800 but included in that subsidy is $50,000 to
purchase another used Zamboni to have a backup unit. $225,000 is in the budget to replace the boilers at Rexburg Rapids.
Golf has several capital items totaling $375,000 that include a fairway mower, greens mowers, utility cart, landscape
storage/shop area improvements, and paving the overflow/shop parking area on the south. The City and County plan to set
aside $40,000 or more each the next several years to save up to replace the irrigation system at Teton Lakes nearing end of life.