Mayor Matthew Feeney told council on Aug. 25 that the failure to place a paving renewal on the ballot means the city’s income tax will drop from 2% to 1.8% on Jan. 1, 2026, unless voters approve a measure in a future election. "That does a couple of things for us, but mostly, it means we don't have enough money to do a standard paving program in 2026," Feeney said, adding the city can run a smaller paving program next year using savings and its 2025 OPWC application.

Feeney said the closure or scaling back of Pixel's operations will reduce income tax receipts and utility consumption, and the city has begun budget planning to limit layoffs and retain permanent employees where possible. He said department heads were asked to draft operations budgets with an initial 20% reduction in non‑personnel operating expenses and that the city will use attrition and shortened seasonal employment as first‑stage saving measures.

Auditor's staff told council it had placed several items on the agenda to expedite routine cleanups to the city’s books. Council waived the three‑reading rule and adopted an ordinance to return $34,486 in unobligated Coronavirus State and Local Fiscal Recovery Funds to the U.S. Department of the Treasury. Council also waived readings and approved an ordinance to appropriate additional funds to cover higher citywide insurance costs and an ordinance authorizing the auditor to reallocate appropriated salary and fringe benefit line items within funds for the remainder of the calendar year.

Councilman Creed moved the motions to waive three readings on those items; roll calls in the transcript show unanimous 'Yes' votes for the waivers and for final passage of the three ordinances. The transcript does not record dissenting debate on those votes.

Feeney described longer‑term scenarios for balancing funds and asked council to consider whether to tolerate drawing on reserves in the short term. He said the general fund had an "unappropriated balance" he estimated at roughly $4 million to $5 million, but cautioned cash on hand and fund balances vary by department and enterprise fund. "In some divisions and departments and funds, we have started working through how we can start saving money, today," he said.

Why it matters: A large employer's closure can reduce both income tax receipts and utility usage (water consumption example cited by Feeney), affecting multiple city funds and services. Council approved several administrative measures to tidy fiscal accounts and allow staff flexibility while broader budget decisions are developed.

What remains unresolved: The transcript documents planning steps and budget requests but does not record specific personnel reductions, program eliminations or the final makeup of a 2026 budget. The mayor asked council to consider placing a paving levy on a future ballot; no formal vote on a ballot measure occurred at this meeting.

Ending: The auditor's office outlined a schedule for departmental budget presentations starting Oct. 13; council will receive further details as the city develops a balanced budget for 2026 under state law.