Old Webster budget review flags projected shortfall; business-license collection and enforcement discussed

Commissioners reviewed revenue and expense worksheets and were told the final city budget adopted by council in June sets the official numbers for the coming fiscal year. A staff presenter described preliminary 2025 actuals and said finance is finalizing year-end figures after the June 30 fiscal year close. The presenter said the commission’s projected 2026 budget shows roughly $30,000 more in planned expenses than expected income and noted that some items are one-time costs. The presenter identified several line items discussed at the meeting: a $15,000 rooftop lighting upgrade described as a one-time cost; signage and parking-sign related expenses (about $7,000); and a $4,100 street-name sponsorship that would normally be recorded as revenue to offset the expense if a sponsor pays. The presenter said the commission’s reported cash balance at fiscal year end was shown on the worksheet as about $89,000, and that a number of adjustments remain pending as finance closes the books. Commissioners raised concern about falling business-license revenue. One asked whether the 2026 estimate for business licenses (approximately $40,000) was an estimate; staff confirmed it was an estimate based on collection trends. Members discussed targeted enforcement of brick-and-mortar businesses that have not paid, and staff described enforcement limits: late fees and denial of future permits are available tools, but staff said the city will not forcibly close doors or physically padlock businesses as an enforcement method. Commissioners suggested pursuing back years’ unpaid fees where possible, tightening collections, and using licensing tools such as withholding a city business license as a condition for other permits (liquor licenses and building permits were discussed as leverage points). Staff said auditors no longer allow reclassifying a sponsor payment as an expense reduction; sponsorships show up as revenue that offsets the expense. The commission agreed to take a closer look at the budget at the next meeting and requested a historical overview of business-license revenues and identified businesses that had not paid, so the panel can prioritize collection efforts.