The City of Lockport is anticipating its 2026 budget to be balanced by drawing on reserve funds to finance some of the city’s planned capital improvement projects.

The City Council met as a Committee of the Whole and discussed the proposed budget on Wednesday as presented by Finance Director Lisa Heglund.

The proposed 2026 budget includes $92,640,800 in projected revenue and $94,625,000 in expenses, with an additional $2,885,500 in reserve funds being utilized, she said.

The largest portions of the city’s spending will come from the General Fund, which makes up about 25% of expenses.

The General Fund provides the funding for the city’s Police Department and administrative staff, which together account for 70% of the fund’s expenses.

The Capital Projects Fund accounts for another $12.8 million, or 13.5% of the budget.

The water/sewer/garbage budget accounts for an additional 56.8% of the city’s expenditures.

Billing for water, sewer, and garbage services, which Heglund noted will include a 3% water rate increase in 2026, and a $1 additional charge for water and sewer per household, makes up much of the funding for that portion of the budget and will also be supplemented by $581,700 in reserve funds.

The remaining 30% funds the Public Works, Planning and Building, and Engineering departments, as well as other special projects.

The budget is funded primarily by taxes, including local property taxes which are determined by the annual levy, which the city is slated to discuss at its next meeting.

The proposed budget shows 30% of the General Fund, or $7,151,550, coming from property taxes.

Infrastructure spending

Heglund noted that the budget includes $52.5 million in infrastructure projects across the capital projects fund and water and sewer projects, including over $5 million in projects that will carry over from 2025.

Heglund’s budget document listed 50 individual projects which the city plans to undertake or complete in the next calendar year,.

Some of those projects include multiple large renovations to the water and sewer system, as well as multiple road projects.

Some of the major projects slated for 2026 include:

• the water department’s Well 13 House Rehabilitation project, slated at $4.2 million,

• the next phase of the city’s water main replacement and road construction projects on Hamilton and Washington streets at $3,375,000,

• and $3.1 million for roadway resurfacing.

Other new expenses planned for the 2026 budget include the hiring of a full time IT manager for the city and the hiring of a tree trimming service to assist the Public Works Department,

The proposed budget also designates funds for the city’s celebration of U.S. Route 66’s 100th anniversary, though the exact costs of those items were not discussed.

A public hearing on the budget will be held during the City Council meeting on Nov. 19, as well as the initial hearing on the property tax levy, before both items are slated for a vote on Dec. 3.

Both of those meetings are anticipated to take place at the Lockport Township Office as work on the city hall offices at Central Square is still ongoing.