During a recent government meeting, officials reviewed the financial health of various city enterprise funds, revealing a mixed picture. The electric fund is performing well, meeting all benchmarks set by the state auditor, while the water and sewer funds are under scrutiny due to concerning financial ratios. All four key ratios for the water fund fell below the benchmark, prompting calls for close monitoring as rate increases are implemented to ensure operating revenues cover expenses and build cash reserves.

In contrast, the sewer fund showed three ratios below the benchmark, although its operating margin ratio was slightly above. The meeting highlighted a significant disparity between revenue and expenses across these funds, with operating expenses for water and sewer increasing by 29% and 65%, respectively, since 2019, largely attributed to rising salaries and inflation.

Additionally, the interim city manager provided updates on various city projects, including progress on the NAPA project at the airport and water line installations at local parks. The completion of a bridge project ahead of schedule was also noted, alongside the library's busy summer event schedule.

A significant change in employee health insurance was announced, moving away from a self-funded model to a new benefits package aimed at reducing costs and providing employees with more options. This decision was driven by unsustainable premium increases that would have severely impacted both employees and the city budget.

The meeting concluded with discussions on upcoming community events and the budget process for the next fiscal year, emphasizing the importance of adhering to state guidelines and maintaining a positive cash flow in the general fund. Overall, the meeting underscored the city's commitment to financial stability and transparency as it navigates ongoing challenges.