In a recent public hearing, city officials presented the proposed budget for fiscal years 2024-2025, highlighting significant financial challenges that have led to a projected $13.3 million deficit. The budget process has been extensive, beginning with a public hearing on budget priorities in January, followed by a goal-setting session in February and a detailed budget study session in May.

Chief Financial Officer Veronica Alton outlined the current fiscal landscape, noting that key revenue sources have stagnated, federal funding for essential programs is dwindling, and operational costs are rising across the board. The city has seen a decline in sales tax revenues, projecting a shortfall of approximately $5.3 million due to shifting consumer spending habits post-pandemic.

The proposed budget includes a 15% wage increase over three years for city employees, with the first year front-loaded at 7%, amounting to an initial cost of $12 million citywide. This decision aims to enhance competitiveness in the job market but contributes to the overall budget deficit.

To address the financial shortfall, city officials plan to implement a hiring freeze and develop a zero-based budget for the 2025-2026 fiscal year. They are also exploring two revenue measures for potential ballot inclusion in November, alongside strategies to stimulate economic growth.

Despite the looming deficit, officials emphasized that there would be no cuts to current services in the upcoming budget. However, they acknowledged the need for careful planning and potential programmatic reductions in the future to ensure fiscal sustainability. The urgency of the situation was clear, with leaders stressing the importance of immediate action to stabilize the city's finances.