City faces $8 million budget deficit amid housing affordability crisis

During a recent government meeting, city officials discussed pressing budgetary concerns and the community's expectations regarding housing affordability. Council member Connie raised critical questions about the definition of affordable housing, emphasizing the need for clarity on what residents truly desire. She pointed out that while the city aims to build future affordable housing, many community members prioritize maintaining the affordability of their current homes. Connie expressed skepticism about the effectiveness of the community survey, suggesting it lacks the specificity needed to guide budgetary decisions.

Interim CFO Andrew Snyder and City Administrator Balkans provided updates on the city's financial outlook, revealing significant budget deficits projected for the upcoming biennium—$7.2 million for 2025 and $8.4 million for 2026. They highlighted a current deficit of $5.3 million, cautioning against further depletion of ending funds. The administration is shifting its policy to maintain a 50% undesignated fund balance, indicating a more cautious approach to budgeting.

Balkans reflected on the progress made over the past five years under the current administration, noting that many community priorities have been addressed. However, he acknowledged that new challenges have emerged that require a reevaluation of the city's budget and strategic plans. The meeting underscored the importance of aligning budgetary decisions with community needs and expectations, particularly in the context of housing affordability and fiscal responsibility.