Auburn officials say $2 million budget gap remains; propose tax increase, retirement incentive

City Manager Jeff Dyger told the Auburn City Council on April 24 that the recommended 2025–26 budget still faces a $2,000,008.73 shortfall after departments cut spending, revenues were adjusted and options for debt restructuring were applied.

The shortfall follows an initial gap of about $8.6 million identified early in the budget process, Dyger said, and officials have narrowed it with a combination of cuts, revised revenue estimates and potential debt restructuring. “By doing that, we've gotten the shortfall down to $2,000,008.73,” Dyger said.

The gap matters because it affects core services and leaves the council with limited choices: further cuts to operations, restructuring debt for near-term savings, a modest property tax increase that would exceed the state cap if used, or additional one-time measures such as the newly adopted retirement incentive. Comptroller Mary Beth Leeson said the city must…