City budget reveals unexpected surplus and new initiatives

During a recent city council meeting, officials discussed significant budgetary updates and changes affecting the city's financial landscape. Health benefits for city employees saw an increase of 2.5%, a notable reduction from the previously budgeted 12%. This adjustment reflects a broader trend in managing city expenses, which also included a 3.85% increase in solid waste costs.

The council highlighted a total increase in expenses amounting to $752,000, with $350,000 attributed to waterline loop projects. However, this was somewhat offset by a revenue increase of $433,000, indicating a balanced approach to financial management.

A key policy change was introduced regarding cell phone allowances for eligible employees. The city will now provide city-issued phones instead of stipends, aimed at better managing devices and ensuring separation between personal and professional communications. Currently, 22 employees utilize city-issued phones, while 44 employees receive phone allowances.

In terms of personnel costs, the city is looking to add an accountant position and a part-time HR assistant to support growing departmental needs. Additionally, a temporary internship program is being proposed to provide graduate students with practical experience in local government.

The council also discussed the city's property tax rate, which is projected to decrease by approximately 5.6% for the average homeowner, reflecting a positive shift in the financial outlook. The average home market value is expected to rise from $582,000 to $619,000, yet the overall tax burden will lessen.

Looking ahead, the city anticipates total revenues of $19.7 million against expenditures of $20 million for the upcoming fiscal year, utilizing some fund balance while maintaining a healthy reserve. The council expressed optimism about the city's financial stability, with projections indicating a continued positive trajectory through FY 29.