The New Prague City Council convened on December 2, 2024, to discuss pressing budgetary concerns and potential adjustments to the city's financial plan. The meeting focused primarily on the city's budget, particularly the significant increases in health insurance and wages, which have raised concerns among council members.

The discussion began with a council member expressing the need for a thorough review of the budget to identify areas for potential cuts. They acknowledged that while previous meetings had covered many aspects of the budget, there may still be opportunities to trim expenses. The member highlighted the substantial rise in health insurance costs, which had exceeded their expectations, and emphasized the importance of understanding these figures in the context of overall budget increases.

Another council member noted that the average inflation rate over the past five years was around 4.2%, while the city's accumulated budget increases were approximately 4.3%. They acknowledged that while the current budget increase is significant, it aligns with inflation trends. However, they expressed dissatisfaction with the overall financial situation, particularly given that many residents had seen a decrease in their taxes in previous years.

The council also discussed specific budget items, including a $25,000 allocation for a compensation study and a $72,000 increase for parks funding. There was a suggestion to postpone certain expenditures, such as a $247,000 dump truck, to alleviate immediate financial pressures. The idea was to shift some planned purchases to future years, allowing the city to manage its budget more effectively.

The Economic Development Authority (EDA) budget was another focal point of the discussion. Council members debated the implications of potentially cutting EDA funding, noting that a significant portion of the EDA budget is allocated to wages. They clarified that eliminating the EDA budget would not result in a straightforward savings, as those costs would need to be absorbed by the general fund.

Overall, the meeting underscored the council's commitment to addressing the city's financial challenges while balancing the needs of the community. The discussions highlighted the complexities of municipal budgeting, particularly in light of rising costs and the need for strategic planning. The council plans to continue reviewing the budget and exploring options to ensure fiscal responsibility moving forward.