The City Council voted to appropriate $260,000 in fiscal 2026 to fund negotiated increases in the firefighter collective bargaining agreement. City staff said the amount was needed because contract negotiations produced higher compensation costs than provided in the adopted FY2026 budget.

Councilor Brown moved an amendment to fund the $260,000 from the unassigned fund balance rather than by increasing the tax rate. Supporters of the amendment argued that the unassigned balance was large enough and that a one-time draw would avoid raising the current tax rate. Opponents said using fund balance to pay a recurring labor cost is poor fiscal practice because the city would need to recover the money in future budgets and the use could compound next year.

The amendment failed by roll call; several councilors outlined the longer-term fiscal effects of using fund balance for recurring wages. Council then voted on the original appropriation; staff and the city manager argued the city should recognize the 2025 contractual obligation in the current tax rate rather than postpone the burden to a future council. The motion to appropriate $260,000 carried and was included in the tax-rate calculations.

Public comment on the item included residents who suggested the funds could come from the unassigned fund balance and a resident who urged stricter accountability for firefighters involved in an incident that previously cost the insurer about $450,000. The council recorded the required vote and proceeded with the appropriation.