Council workshop: finance staff warn general fund shortfall, police and fire showing negative fund balances

City finance staff told the City Council at a workshop that the city’s general fund will need to cover shortfalls in police and fire operations for fiscal 2025 and that the city must choose between cuts, new revenue or using one‑time reserves to balance the 2026 budget.

Raylyn, a city finance staff member, said her midyear analysis shows large differences between departments’ budgeted expenses and the revenues that support them. "This includes the added rollover POs. And so that's why you'll see that increase in budgeted expenses," Raylyn said, describing how the current-year budget incorporates carryover purchase orders and project obligations.

The presentation flagged roughly $1.8 million of negative fund balance for police and fire operations in fiscal 2025, and staff said that cash to cover those shortfalls would have to come from the city’s unrestricted fund balance. Rochelle, the city treasurer, clarified how public‑safety reserves are treated: "When public safety goes in the negative, we don't give them money to compensate.…