City Manager Benjamin Gunderson proposed two budget changes Tuesday aimed at preserving the city’s general fund: moving the annual subsidy for the municipal trash contract (about $300,000) into the stormwater utility fund, and creating a separate budget-stabilization reserve to hold general-fund balances above the city’s target level.

Gunderson told council the trash service currently draws roughly $300,000 per year from the general fund. He said moving the contract expense into the stormwater fund — which currently carries roughly $1.8 million in balance — would spread the cost across a utility fund that is dedicated to long-term infrastructure needs and likely avoid near-term rate shocks for residents.

Council members raised two caveats: several stormwater projects (Garfield Avenue, Laurel Avenue and others) have been pending for years, and using the stormwater fund for ongoing trash subsidies should not displace planned capital work. Gunderson agreed and said the intent is to temporarily use the fund balance while continuing prioritization of needed stormwater projects. He stressed that council would still decide project schedules and that staff would preserve transparency on any trade-offs.

Gunderson also recommended a budget‑stabilization fund — a formal “savings account” that would hold any general‑fund balance above the city’s target reserve (the city plans for 20 percent though some language referenced 16 percent). The fund would separate discretionary excess from operating reserves and provide a clearer source for one‑time needs or emergency draws.

Ending: The ideas were discussed but no ordinance or formal vote was taken; Gunderson said staff will return with analyses and proposed ordinance language for council consideration.