City budget workshop proposes $751,000 in off-budget cuts, weighs employee pay options
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Summary
At a city budget workshop officials outlined $751,000 in proposed off-budget reductions and debated pay‑increase scenarios (1%–2%) while flagging uncertainties in sanitation, stormwater and utility costs tied to a planned City Hall move.
City officials on Tuesday discussed a package of off-budget reductions totaling $751,000 and options for employee pay adjustments as they prepare a budget that must be finalized by September. Finance staff said the current draft can stretch to a 1.1% across-the-board raise using existing budget lines without leaving a buffer for health‑insurance cost increases; a 1% raise was described as equal to $48,800 of the city’s share and related benefits. To reach a 2% increase, staff said the city would need to identify an additional $43,250 in recurring funds unless police and fire funding assumed elsewhere is confirmed, in which case the additional amount needed would drop to $18,350.
The proposed off-budget reductions were offered as a way to avoid cuts to operating departments while preserving services. “We were able to go through and do these cuts without having to cut any of the departments,” a budget staff member said, explaining departments identified savings within their own lines. The packet circulated to council members also includes single-year and two-year line adjustments staff said would produce the combined $751,000 reduction.
Officials singled out several specific adjustments. A $150,000 reduction is proposed in the 2026 sidewalks line, which would leave no funds that year for sidewalk improvements unless council directs otherwise. Staff said $75,000 in capital funding for Mass Park furniture is paid from a capital/capital-projects category and was included in the reallocation. Local streets funds (LRS) were identified as the intended source for a requested street department soft truck. Paving work is expected to continue using restricted/state grant funds, staff said, but those funds carry state-imposed restrictions on eligible uses.
Staff described several budget uncertainties that affect the city’s ability to add recurring raises. Sanitation revenue and hauling/landfill costs remain unclear while the city transitions to a new billing system; staff said it will likely take a year to stabilize and produce reliable revenue projections. Stormwater also remains an open variable: staff plan to stand up a stormwater department but do not yet know projected fee revenue; the stormwater superintendent position was estimated to carry roughly $90,000 in salary and benefits, a number staff said was still being refined.
Officials also noted the planned move of City Hall into Master Park will change utility and occupancy costs. “We’re taking what’s currently being paid to front this building and putting it in with the Master Park budget,” a staff member said, noting the two budgets combined will need to absorb higher electricity and gas usage.
Regarding reserves, staff said last year’s transfers restored the rainy-day fund to roughly $1 million; they also said the city has spent approximately $170,000 from that fund and currently has under $1 million available, and they do not plan further withdrawals this year if avoidable. Staff urged caution about drawing down capital lines that could be needed for safety or emergent repairs.
Council members asked staff to pursue potential revenue or one‑time savings to reach a 2% raise without cutting departments; staff said they would continue to look at sanitation revenue, local interest and other line items and report back. No formal votes or budget approvals were taken at the workshop.
The workshop closed with staff inviting council members to review the packet and to indicate whether they want staff to pursue the funding needed for a larger pay adjustment ahead of the September budget submission deadline.
