During a recent government meeting, officials discussed the city's financial status as of December 31, 2023, revealing a total fund balance of $38.5 million. However, $25.4 million of this amount is restricted and cannot be utilized for city services, leaving an unrestricted balance of $13 million. City financial management policy mandates that three months' worth of operating costs be set aside, which translates to a requirement of approximately $4 million. This results in about $9 million available for discretionary spending.

The discussion highlighted the challenges the city faces in maintaining a balanced budget amid limited resources. Mayor Matthew has had to make difficult decisions, including cutting $3.1 million from department requests, which were deemed necessary for operations. The adjustments were necessary to avoid relying on the fund balance to cover recurring expenses, a practice that could lead to financial instability, as evidenced by the struggles of the local school district.

Council members emphasized the importance of transparency regarding the city's financial situation, addressing community concerns about the perceived availability of funds. They clarified that while the city has a significant fund balance, much of it is not accessible for immediate use, underscoring the need for prudent financial management to prevent future deficits.