In a recent government meeting, officials outlined preliminary budget estimates for the upcoming fiscal year, emphasizing the importance of accurate revenue projections and the impact of various funding sources on the city's financial health. The budget worksheets are set to be distributed to departments by mid-July, with requests due back by mid-August, allowing for a comprehensive review of departmental needs and state aid.

The meeting highlighted that property tax revenue remains the largest source of funding for the general fund, accounting for approximately 60% of the budget. Officials anticipate a modest increase of about 1.4% in property tax revenue, influenced by a net new construction limit of 1.6%. However, the overall growth in net new construction has been declining, with recent years showing below 2% growth, raising concerns about the city's ability to maintain adequate funding levels amid rising inflation.

Other revenue sources discussed included room tax revenue, which has shown recovery post-pandemic, and various state aids. The city expects a 2.5% increase in shared revenue, reflecting growth in state sales tax, although the future of expenditure restraint aid remains uncertain as the city's tax rate is projected to fall below the qualifying threshold.

Officials also noted the implications of the stormwater utility referendum on the 2025 budget, indicating that ongoing discussions will be necessary to assess its potential impact. The meeting concluded with a review of the budget development calendar, ensuring that all stakeholders are aligned as the city prepares for the upcoming fiscal challenges.