The council received a presentation of a draft budget framework that staff said would leave the city with a multi-year structural shortfall if new revenue is not secured. Michael Ormsbee, the city’s outgoing finance manager, told the council the city faces a roughly $2 million shortfall in 2025-26 and an ongoing $1.1–1.5 million annual gap thereafter unless new revenue sources are found.

Ormsbee and staff outlined that the city had benefited in recent years from one-time COVID-era and building-related revenues, and that those sources are now largely exhausted. He said cost-cutting alone would be insufficient and recommended an aggressive revenue strategy, including taking every reasonable grant, pursuing sales-tax-generating development and considering changes to sewer rates.

Staff signaled a likely sewer rate study and a planned increase in monthly sewer charges discussed in the meeting that could raise the sewer fee from around the current level toward roughly $69 per month; staff emphasized that enterprise funds for sewer must be self-supporting and that the last sewer rate increase dated to 2004.

Council members and public commenters debated trade-offs between delaying capital projects and incurring higher long-term costs. Multiple members urged pursuing new revenue streams and grants. Finance staff said they are restructuring internal interfund accounting and will present more detailed budget proposals and rate studies in coming meetings.