During a recent city council meeting, Mayor McEvers presented a comprehensive overview of the proposed budget changes, emphasizing the need for a tax increase to address a significant deficit. The discussion highlighted the city's financial challenges, particularly in relation to property tax revenues and the impact of legislative caps on new growth funding.

The mayor explained that the city is currently facing a deficit spending situation, largely due to limitations imposed by state legislation that restricts the amount of revenue the city can collect from new growth. Specifically, a 90% cap on new growth revenue has resulted in a stark decrease in funds available to support city services, with the city receiving less than half of the expected revenue from new construction compared to previous years.

To mitigate the deficit, the mayor proposed a 3% increase in the property tax levy, along with an additional 1% to recover lost revenues from prior years. This recommendation aims to stabilize the city's finances and ensure adequate funding for essential services, particularly public safety.

The budget discussions also included a detailed examination of expenditures, with wages and benefits identified as the largest cost category. The proposed budget includes a 3% increase in salaries and benefits, reflecting agreements with the fire and police departments. However, some council members expressed concerns about cuts to the police budget, particularly regarding funding for sign-on bonuses and an IT position critical for operational efficiency.

Council members emphasized the importance of prioritizing public safety in the budget, with discussions around reallocating funds from other areas, such as a discontinued motorcycle program, to support necessary IT staffing for police and fire services.

As the council deliberates on the budget, the proposed tax increase and expenditure adjustments will be crucial in addressing the city's ongoing financial challenges while ensuring that essential services remain adequately funded. The council is expected to continue discussions and finalize the budget in the coming weeks.