General fund is for Day to day services - public safety, engineering, administration, community econ dev, parks and rec…

RITA transition is the reason for the increase. They don’t collect internally anymore, it’s a timing thing. Dec 2025 reported now in January 2026. So the number appears higher – it is not new growth and will not repeat.

2025 – flat and declining income tax revenue.

She's just transferring other funds into the general funds. Improvement fund now is part of general funds. Fire enhancement funds into general now.

She just moved money around.

That 6.9 million deficit is now 88000 surplus. THIS IS SUCH BULLSHIT.

Personnel costs were reduced by 2.3 million. Number of FTEs.

6.9 million deficit starting in 206. Targeted, voluntary incentive, and RIF – permanent improvement fund, airport fund….reductions we could balance it.

And decreased the retirement fund – that’s why they got rid of the highest 30 over 50.

She said the largest is income tax. To fund our core services. Last year, Rue said NONE of our income tax went to finance anything that was a result of the Haitian influx.

Changes at the state level have significantly increased our dependence on local income tax revenues.

The auditor requires that they reserve 1 month’s expenditures or 8.3 %.

5.6 million or 9.5 in reserve – 9.3 in 2026. Below the Commission’s 10% goal. But federal and state impacts and other economic conditions will require additional reduction.

Charter minimums, though.

595 to 568 – LOLOL. 27 people.

General fund – 288 to 261.5 VOLUNTARY SEPARATION. And targeted operational efficiencies.

And transfer to RITA saved 500K in staffing costs.

Reduced personnel cost by 2.3 million.

Fire and police – still remain authorized at higher than the Charter minimum.

Right sized for the revenues available.

Permanent Improvement Fund – not the water and sewere fund. A separate fund.

Most critical need – our commitment to roads and 500K for the sidewalks.

2027 neighborhood streets paving program.

PUBLIC SAFETY TRUCKS and FIRE TRUCKS. They also pursue state dollars for this.

8.4 million in requests – shows the need

But, 5.8 million is budgeted for 2026.

The city’s significant capital needs - $20 million in ARPA funds for public safety. So we didn’t have to use the Perm Improvement fund.

Eviston's high-level overview of the 2026 budget process:

• Begins in April of each year with the tax budget – the revenue forecast for the county.

• Depts then submit their budgets in late august.

• Dept leaders meet in September and October to refine and right-size.

• City Mgr worked extensively – city manager’s 226 preliminary budget.

• City charter requires that this City manager budget be done by Nov 1 each year.

• Shared with commissioners in mid-nov hey met in extensive work sessions. They were open to the public and no changes.

She said: This year’s was particularly challenging to operate as effectively as possible. Some decisions affected people. But we were able to deliver a balanced budget for 2026 for the fiscal reality that we are in.”

She talks about the Erie sewer. Rate increases in Jan 2026

Water is adjusting rates, too.

But this was listed in Heck’s September 2021 ARPA funds presentation.

2026 will also have future rate increases.

Her conclusion:

Period of rebound to restraint.

Revenue growth is declining.
Federal support ARPA are winding down.

WE’ve taken significant steps to reduce our expenses.

Public safety is the largest fund in the general fund. Costs continue to increase.

We face large infrastructure, and HUD funding and property tax – our heavy reliance on income tax. She’s so full of shit. These challenges require financial discipline and cautious spending. And highlight our commitment to fiscal responsibility operational excellence and service.

Rue thanked her for “squeezing this together” for our community.

Estrop thanked her and all of her staff members involved To present a balanced budget in these towns is unheard of. Perhaps our friends at the federal level should take note. With our new software, we can monitor expenditures and revenue throughout the year. We now have the tools in our Finance Dept.

Tackett – the state has a huge impact – I hope we continue to inform our state reps about local needs. As we continue to do our best

It will be available by the end of the week – the presentation and THE PDF OF THE FULL 2026 PRELIMINARY BUDGET.