The Mandurah City Council convened on July 22 for a work session focused on the ongoing budget process, with Budget Officer Matt presenting a preliminary overview of the governmental funds and internal services. The session aimed to provide council members with a snapshot of the current budget status and solicit their feedback as adjustments are made ahead of the final budget deadline in October.

Key discussions highlighted significant financial pressures, particularly a projected 55% increase in health insurance claims, which could add an estimated $1 million to the general fund. This increase, attributed to rising claims and substantial individual payouts, has raised concerns among council members about the sustainability of the current budget. The total additional costs related to salaries and benefits are projected to reach $2.6 million, further complicating the budget landscape.

Council members expressed apprehension regarding the accuracy of these projections, questioning whether the estimates from the actuary, Jay from Brown and Brown, might be overly conservative. Despite the uncertainty, the council agreed on the necessity of budgeting for potential worst-case scenarios to avoid future deficits.

The council also discussed the upcoming TRIM (Truth in Millage) notices, which are expected to be mailed out by August 16, ahead of the legal deadline. These notices will reflect the maximum millage rate, prompting further discussions on the operating millage rate.

As the council continues to navigate these financial challenges, they remain committed to prioritizing essential services while seeking to balance the budget, which currently shows a deficit of $2.8 million—slightly higher than the previous year's deficit of $2.5 million at the same point in the budget process. The council's ongoing discussions will be crucial in shaping the final budget and addressing the financial needs of the community.