A recent government meeting revealed significant financial challenges facing the city as it prepares for the 2024 budget. The absence of a controller has resulted in increased auditor time and expenses, delaying the 2022 audit until early 2024. This delay has left the administration with an unclear understanding of the city's financial condition, complicating budget planning.

The 2024 budget projections have been criticized for being overly optimistic, particularly regarding sales tax and EMS revenues, which are expected to result in a $500,000 shortfall. Additionally, revenues from the Financial Restructuring Board were underestimated, leading to a further $700,000 deficit. The city also failed to apply for a state-approved funding extension of $1.3 million, compounding financial woes.

Health and dental expenses were notably underestimated, creating a $300,000 deficit, while retiree Medicare premiums were omitted from the budget, resulting in a staggering $900,000 shortfall. The administration acknowledged that employee health benefit contributions had not been adjusted in line with premium increases over the past three years.

While some council members may face blame for these oversights, it was noted that only the sales tax line item was within their purview to adjust. Last December, the council opted to leave a projected $2.2 million shortfall unaddressed, a decision that has now contributed to the current financial predicament.

Looking ahead, the city anticipates further challenges, including a projected increase of $580,000 in retirement costs and a rise of $827,000 in healthcare expenses. The omission of retiree Medicare Advantage costs from the 2024 budget, estimated at $118,000, adds to the financial strain. Additionally, escalating stop-loss claims and ongoing assessment litigation on commercial properties may further impact the city's taxable assessments, while union contract negotiations pose additional budgetary concerns for the year.