City outlines ambitious 2025 budget amid rising costs

During a recent city council meeting, Finance Budget Manager Chris Johnson presented the preliminary budget for 2025, outlining key financial strategies and departmental requests. The session began with an overview of the city manager's budget philosophy, emphasizing fiscal discipline and a pragmatic approach to spending.

Johnson reported that the city ended 2023 with an unaudited general fund balance of $103.7 million, with an unassigned balance of $52.9 million after accounting for assigned and restricted funds. He noted a significant drop in the two K fund balance, which is tied to a 1% sales tax approved by voters in 2012, now at its lowest in years. The budget for 2025 anticipates a modest increase in sales and use tax revenue, projected at $132.4 million, despite ongoing declines in fines, court fees, and building permits.

The budget process included over 54 departmental requests totaling $9.6 million, of which $5 million were approved. Key areas of focus for funding included public safety, community appearance, and economic development. Notably, the police department is exploring hiring strategies to address staffing shortages, with a lengthy recruitment process taking up to 17 months.

Deputy Director of Public Works Jenna Hahn discussed the city's Capital Investment Program (CIP), highlighting 112 open projects, including 71 active ones. She emphasized the importance of completing these projects before initiating new ones and announced the development of a public-facing CIP dashboard for transparency.

Council members raised questions about the budget's significant increase from previous years, attributing it to inflation and staffing adjustments. Discussions also touched on the need for a co-responder program for mental health issues, with the police chief expressing support for such initiatives.

The meeting concluded with a timeline for the budget process, including upcoming public hearings and opportunities for council feedback. City leadership remains committed to addressing community needs while maintaining fiscal responsibility.