Speaker 2, presenting the finance packet, told the committee the city expects income-tax revenues to be flat into 2026 and urged conservative budgeting: "we are not expecting a large spike" in income tax. He said withholding — the city’s largest revenue component — is up but that net-profits receipts have been volatile due to state collection timing.

The packet’s top sheet shows an all-funds anticipated balance of $81,600,248, Speaker 2 said, but he emphasized that figure includes restricted enterprise funds (electric, water, sewer) and is not the general-fund balance. He noted the published all-funds estimate is down about $4.2 million (roughly 5%) from last year’s published figure.

Speaker 2 also warned of near-term expense pressures: recommended 2026 general-fund expenses are about 9.9% higher than 2025, driven by wage and benefit increases and higher costs for key supplies such as treatment chemicals. "We try to target 50% of operating plus 125% of debt service in fund balance," he said, describing the city’s reserve targets and the reason for conservative revenue estimates.

On borrowing and the five-year forecast, Speaker 2 said staff shifted a planned bond issue into 2028 after consulting the auditor to reduce short-term cash strain. The plan contemplates up to $15 million in borrowing, with debt-service payments starting semiannually in 2028 rather than 2027.

What happens next: staff will present final recommendations to the full council on Dec. 1 (the presenter repeatedly described this meeting as a workshop and said the committee will not take formal votes tonight). The committee was asked to consider these conservative assumptions and the potential need for reappropiations when projects move from design into construction.