Clifton council approves tapping larger fund balance, authorizes up-to-$15,000 budget analysis amid $7–8M shortfall

The Clifton Municipal Council on April 8 voted to draw a larger portion of its reserve funds to help close a growing budget shortfall and authorized staff to seek a professional budget and financial analysis for up to $15,000.

Council members approved increasing the available fund balance from 50% to 60% during a special meeting that focused largely on the municipal budget. The council also voted 5–2 to request a written proposal — to be sought first from Phoenix Advisors — for a budget analysis and financial review capped at $15,000.

The move comes after repeated discussion that the city is roughly $7 million to $8 million short for the current budget year. "We are $8,000,000 short," Councilman Latona said during the meeting, pressing colleagues to put "everything on the table" to avoid layoffs. City staff and council members traced the shortfall to rising costs and one-time money used in recent years, including American Rescue Plan funds and other temporary sources.

Council members urged a mix of short-term and structural steps. Several members said the goal of the consultant engagement would be to identify efficiencies and potential revenue sources without immediately cutting services. Councilman Gibson, who pushed for outside help, argued the council needed a professional, independent review: "If we're going to spend a hundred and fifty thousand on a forensic audit ... a study like this for a budget planning and financial analysis probably costs us somewhere around $15,000." He added that the review should produce concrete, implementable recommendations.

City staff reported a range of estimates for the gap during discussions: council comments and staff remarks put the shortfall between about $6.8 million (an earlier figure) and as high as $8 million after accounting for the fire department contract and other items that have not been fully quantified in the draft. Council members also discussed one-time revenue and programmatic ideas raised in the meeting, including parking meters, rental of city equipment, and tightened fleet management, as ways to narrow the gap for 2025 and beyond.

Legal counsel and staff also cautioned that special-meeting notice requirements limit what the council may act on at a special meeting; council members accepted that counsel's advice and chose to seek the consultant proposal now so the information would be available for future agenda action. Council members said they expect to interview candidates for an interim city manager soon and that the interim would assist in implementing any recommendations from the analysis.

The council's roll-call vote to increase fund-balance use to 60% passed on a voice/roll call with the result announced as "Motion carried." The request to seek a budget analysis proposal up to $15,000 passed 5 yes, 2 no. Council members described the actions as short-term steps to buy time while the city pursues longer-term structural changes to its revenues and spending.

City staff were directed to contact Phoenix Advisors for a proposal and to return findings and options to council at subsequent meetings. The council scheduled further budget work sessions and said it would consider the consultant's proposal alongside recommendations from an incoming interim city manager.

Although council members differed on specifics and several warned that drawing additional fund balance is not a sustainable long-term solution, multiple members said the immediate motions were necessary to avoid more severe measures this year, such as deep service cuts or layoffs.

Ending: The council left open multiple follow-up items: staff will return with the Phoenix Advisors proposal (or similar estimate) and a detailed accounting of unfunded obligations; the administration will continue work on revenue options (including parking meters and equipment rental); interviews for an interim city manager are scheduled; and further budget sessions are planned before the introduction and final adoption deadlines.