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Clear Lake adopts 2025–26 budget after workshop; council calls for cuts, hiring freeze
Summary
After a budget workshop focused on flat revenues and rising personnel costs, the Clear Lake City Council unanimously adopted a $2025–26 budget that relies on one‑time fund balance and departmental reductions while preserving core services.
Clear Lake City Council on Wednesday adopted its fiscal year 2025–26 budget following a workshop presentation that outlined slowing revenue growth, rising personnel costs and a shortfall covered in part by fund balance.
Acting Finance Director Matt Preci reviewed the proposed budget and told the council the city’s all‑fund total revenue plan is about $81.7 million against proposed expenditures of nearly $84 million, creating a gap the city plans to close largely by carrying forward existing fund balances. “Expenses are slightly more, and that’s mainly because there is fund balance available in some of the funds that is then carried forward,” Preci said during the presentation.
The budget matter was the central item of the workshop. The document the council approved includes a general fund roughly balanced at about $9.8–$9.9 million in revenues and matching expenses; personnel remains the largest cost across funds. Preci said the city employs about 74.5 full‑time equivalents and that salaries account for the largest share of personnel expenses.
City staff and council agreed to prioritize public safety, road maintenance and essential municipal operations while implementing spending reductions across most departments. City Manager Alan (staff member) told the council the administration has implemented a general‑fund hiring freeze for positions not already past background checks as part of additional reductions needed to close roughly $500,000 in revised shortfalls. “We are using one‑time funding for ongoing operations, which is not a situation we really want to be in,” Alan said, describing the structural revenue pressures.
Staff outlined the city’s capital program, with roughly $15.8 million planned for projects in the next fiscal year, including the Burns Valley Sports Complex, Arrowhead/Burns Valley road rehabilitation, a Dam Road roundabout and radio communications upgrades for the police department. Preci and staff said the city is continuing to pursue state and federal grants to support that capital work.
Council members asked for clarity about population figures and revenue projections. Preci said the city uses State Department of Finance estimates for certain calculations, including the appropriations limit, and noted those figures sometimes differ from local counts such as school‑district enrollments.
Staff said the city will continue to limit nonessential expenditures, move certain positions between funds where possible, and manage retirement and health‑insurance cost increases. Finance staff made the budget and detailed line items available online through the city’s interactive OpenGov portal.
The council voted unanimously to adopt “Resolution 2025‑26, a resolution of the City Council of the City of Clear Lake adopting the City of Clear Lake fiscal year 2025‑26 budget.” Vice Mayor Slotin moved the resolution and Council Member Downey seconded; the motion passed with a unanimous vote.
The budget workshop and adoption included additional council direction to seek new revenue sources and to continue leveraging grant funding. Staff emphasized they will return with further details as the fiscal year progresses and recommended continuing to protect reserves set aside for emergencies. The city reported a general fund reserve of about $1,625,000 and said that figure should be used only for major emergencies.
Votes at a glance for related administrative items appear in a separate summary article.
