Mayor presented a proposed FY2025–26 budget to the Gallatin City Council during the April 22 work session that would increase the operating budget to about $67.2 million, propose a five-step pay plan with market adjustments, add multiple staffing requests and identify a potential $30 million general-obligation bond to fund capital items including a new fire station, equipment and road/sidewalk projects.

The mayor said the proposal is based on a pay-study comparison with peer cities and recommended a five-step progression intended to move a typical employee to full proficiency within five years. The mayor described the plan as a mix of market adjustments, a $0.50 per hour supplement for some employees and step increases averaging 2.5 percent annually; the administration estimated the immediate budgetary impact of the pay-plan changes at roughly $2 million.

Key elements and why they matter: The budget proposal includes funding for 6 additional firefighters and five police officers (the mayor’s recommended package does not appear to include all requested positions), enterprise-funded GPU positions, and a vehicle/facilities maintenance technician in public works. The city’s proposed capital list includes an estimated $17.5 million for Fire Hall 1, a $1.2 million fire truck, signal upgrades ($500,000), parks/tennis courts ($700,000), sidewalk projects and nearly $2.6 million for roads; a $30 million bond issuance was presented as one funding option for these capital needs.

Financial reserves and constraints: The mayor said the city ended the prior year with a surplus and carried forward capital that increased the overall budget in 2025; the proposed rainy-day fund for 2026 is about $14.7 million and the administration identified a dedicated reserve of roughly $28 million for planned items and potential land purchases. The mayor also warned that state changes to census certification could reduce future state shared revenue and urged caution in forecasting those amounts beyond the coming year.

Staffing and costs: Departmental requests for new positions totaled about $2.86 million; the mayor’s recommended budget includes a subset of these positions with a combined recommended impact of roughly $1.7 million. The mayor emphasized public safety as a top priority and proposed that department heads receive an average personnel budget pool that they would distribute based on merit or cost-of-living decisions at their discretion.

Council action and next steps: After the presentation and questions, a member moved to forward the budget for consideration by the full council. The motion carried and the mayor’s office plans to return the ordinance for readings (two readings for the budget ordinance and three readings for the tax rate). Council requested that staff provide additional detail on comparables, benefit-cost impacts and the proposed bond package before final readings.

Quote: The mayor opened the presentation noting the proposal’s timing, “I want to start with a smile because it's a happy day that we have a proposed budget for,” and thanked the finance and HR staff for their work during the process.

What’s next: The council moved the proposed budget forward to the formal council process for readings and eventual adoption; staff will supply additional supporting documentation during that process, including the pay-plan detail, position descriptions and examples of comparable jurisdictions’ staffing and incentive programs.