In a recent budget workshop, city council members reviewed the proposed budget for the upcoming fiscal year, focusing on the general fund and utility fund. This marks the fourth workshop in a series aimed at finalizing the budget, with key deadlines approaching. The council is expected to set the maximum tax rate for fiscal year 2024-2025 during their next meeting on August 15, with the final budget submission due to the city secretary by August 19.

The finance department reported an overall increase in total property values within the city by 8.5% compared to the previous year, although this figure is slightly lower than earlier estimates. The proposed budget includes a tax rate that exceeds the no-new-revenue rate, primarily due to new debt associated with approved general obligation bonds. However, the maintenance and operations tax rate is set to decrease slightly.

Significant discussions included adjustments to the cost of living increase for city employees, which was reduced from 4.4% to 3%. The council also considered various funded and unfunded items, including cash funding for drainage projects, which will not require issuing certificates of obligation next year.

A notable proposal introduced was the establishment of a budget stabilization fund, aimed at mitigating potential operating deficits arising from unforeseen service changes or revenue reductions. This fund would be designed to minimize tax rate fluctuations and ensure the city can meet future financial commitments.

As the council moves forward, they will continue to refine the budget, with opportunities for adjustments remaining limited as they approach the finalization stages. The next workshop will provide a platform for further discussion on the proposed changes and their implications for the city's financial health.