The City of Geneva has officially launched its 2026 budget process, outlining the financial challenges and strategic goals that will shape the city’s spending in the year ahead. During a presentation to City Council on Wednesday, officials emphasized the growing costs of maintaining essential services and the importance of long-term planning to stabilize taxes and preserve service levels.
At the heart of the discussion were mounting internal and external cost drivers. Inflation has pushed the Consumer Price Index up 3% since 2024 and more than 23% since 2020, significantly eroding purchasing power. Meanwhile, labor costs and employee health insurance premiums are expected to climb sharply in 2026, with the city projecting a 12-15% increase in salaries and fringe benefits.
The city’s 2025 general fund budget sits at $20.9 million, and to maintain staffing and services next year, departments have been instructed to cut non-staffing service costs by 5%. Requests beyond that baseline, known as Above Requested Maintenance (ARM) budget requests, will be considered separately.
“Budgeting based on the cost of doing business, independent of the rise or fall of real estate values, is the most responsible path forward,” staff noted in the presentation. “We must use the resources we have to move results and strategically invest where it matters most.”
Council priorities appear focused on three key areas: public safety, infrastructure, and economic development. Public safety received the highest ranking from a majority of council members, with street improvements, seawall repairs, and replacing the Department of Public Works campus identified as top capital needs. Officials also raised concerns about deferred maintenance and called for better long-term financial planning around equipment, facilities, and IT infrastructure.
Council also expressed interest in new strategies for generating revenue and reducing expenses. Some suggestions included hiring a full-time grant writer, realigning staff to limit overtime, promoting economic development to expand the tax base, and revisiting shared services with surrounding municipalities. Others floated more controversial ideas, such as selling city parks or reducing social services.
Geneva’s tax rate remains relatively high compared to surrounding communities, at $12.16 per $1,000 of assessed value. Recent levy increases have been attributed to years of underinvestment in core services and infrastructure.
Looking ahead, the city will hold a series of public hearings and budget work sessions beginning in September. The proposed budget is due from the city manager on September 9, with adoption required by October 31.
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