The city of Lockport is expects 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’s Committee of the Whole met Wednesday and discussed the proposed budget, as presented by Finance Director Lisa Heglund.

The proposed 2026 budget includes more than $92.64 million in projected revenue and almost $94.63 million in expenses, with an estimated $2.89 million in reserve funds being used, Heglund said.

The largest portion of the city’s spending will come from the general fund, which makes up about 25% of expenses.

The general fund provides 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 an additional $1 charge for water and sewer per household, makes up much of the funding for that portion of the budget and also will 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 that 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 about $7.15 million, 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 more than $5 million in projects that will carry over from 2025.

Heglund’s budget document listed 50 individual projects that 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, 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 million

• $3.1 million for road 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, although the exact costs of those items were not discussed.

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

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