City officials discuss projected $34M budget deficit for 2024-2026 fiscal years

The Special City Council meeting held on June 12, 2025, focused primarily on the adoption of the city’s budget for the fiscal year 2024-2025, which is projected to have a significant deficit. The council discussed a proposed budget that reflects a $4.9 million deficit after identifying approximately $8.6 million in one-time budget balancing strategies. For the following fiscal year, 2025-2026, the city is facing a starting deficit of over $3 billion, with proposed reductions amounting to $20.6 million.

A key point of discussion was the potential revenue from a parking fee amendment, which could generate about $1 million annually. This adjustment would reduce the projected deficit to approximately $12.7 million for the current year. However, the council acknowledged that many of the budget balancing measures are temporary, leading to a structural imbalance exceeding $30 million in future years.

The meeting highlighted concerns regarding the city’s financial health, particularly the reliance on one-time fixes rather than sustainable solutions. The council noted that without significant expenditure reductions or revenue enhancements, the city could face severe financial challenges by 2027-2028, with reserves potentially dropping to around $50 million, close to the minimum charter-required balance of $46 million.

The council also reviewed various revenue sources, noting an increase in property tax revenue by $1.2 million, but significant declines in sales tax, utility user tax, and other fees. A particular concern was the anticipated loss of $7 million annually from the Shoal Canyon Landfill, which is expected to close permanently in 2029.

On the expenditure side, the council discussed increases in maintenance and operation budgets, including $2.5 million in salary adjustments due to the need to fill vacancies and compete in the job market. The city had initially projected $9.6 million in vacancy savings but filled $7.2 million worth of positions, impacting the budget negatively.

The council also addressed capital outlay expenses, including necessary equipment for the fire department and increased medical insurance premiums due to a strategic decision to lock in rates for 19 months.

In conclusion, the meeting underscored the city’s urgent need for long-term financial strategies to address its structural deficit and ensure fiscal stability moving forward. The council plans to continue discussions on sustainable revenue enhancements and expenditure reductions in future meetings.