During a recent government meeting, city officials discussed a significant budget shortfall of approximately $1.8 million for the current fiscal year. This financial gap has prompted city staff to propose raising the millage rate from 4.1 to 6.2 mills, which is expected to generate an additional $1.3 million in tax revenue. The proposal comes amid concerns about rising costs and the impact of inflation on residents, who have already faced increases in sewer and water rates.

Commission members expressed apprehension regarding unexplained budget increases and emphasized the need for cost control before imposing further tax burdens on residents. One commissioner highlighted the importance of understanding the term \"unaudited\" as it appears in the budget documents, indicating that the figures presented may change once the audit is finalized. The city’s finance director confirmed that the audit process is ongoing and that adjustments are still being made.

The discussion also touched on the city's stormwater management issues, particularly a $2 million repair for a stormwater pond that failed. Officials are pursuing funding from FEMA to help cover these costs, although the process has been described as lengthy and complex.

Additionally, the meeting addressed the city's pension fund, with officials confirming that an actuarial report is completed annually. The minimum required contribution to the pension fund is currently set at 26.7% of payroll, while the budget reflects a higher contribution rate of 33.5%.

As the city navigates these financial challenges, officials are tasked with balancing the need for revenue against the economic pressures faced by residents. The upcoming budget decisions will be critical in determining the city's fiscal health and its ability to provide essential services.