During a recent city council meeting, officials presented the proposed budget for the upcoming fiscal year, highlighting key financial metrics and anticipated expenditures. The total revenue for the city is projected at $137.2 million, while total expenditures are estimated at $161 million, resulting in a net impact of $24.4 million in reserve usage. This includes $6.12 million from the General Fund reserves, $4.8 million from special revenue reserves, and $8.3 million from enterprise funds.

The General Fund revenues are expected to reach $80 million, reflecting a modest increase from the previous year, primarily driven by growth in licenses, permits, and property taxes. However, sales tax revenues are projected to remain flat, indicating signs of an economic slowdown. Operating expenses for the General Fund are anticipated to be $78.65 million, marking a 5.57% increase compared to the revised budget for the current year. The increase is largely attributed to higher personnel costs and internal service fund allocations.

The city’s capital improvement plan includes $15 million in proposed projects, with significant investments in street maintenance and infrastructure. The council emphasized the importance of maintaining high service levels while being cautious about future expenditures, given the slower revenue growth.

Council members expressed concerns about the rising expenses outpacing revenue growth and discussed the need for exploring additional revenue opportunities. They also highlighted the importance of maintaining a healthy General Fund balance to ensure financial stability.

In addition, the council reviewed the implications of adopting a new reporting structure for the General Fund and internal service funds, which aims to enhance transparency in financial reporting. The proposed budget also includes a GAN limit of $180.6 million, with appropriations well below this threshold.

The meeting concluded with a recommendation for the council to adopt the proposed budget and capital improvement program, along with resolutions related to the GAN appropriations limit and adjustments to the city salary schedule. The new fiscal year is set to begin on July 1st.