Finance director: midyear report shows use of reserves, hiring freeze and capital hold

Finance Director Mary Foster delivered a midyear financial review covering January–August 2025 and told council the city is on track to meet its budget targets only with careful management and several near-term constraints.

Foster reported general-fund revenues of $29,100,000 compared with a full-year budget of $41,400,000 and year-to-date expenditures of $32,600,000 against a $50,300,000 budget. She cautioned that comparing eight months of actuals to a full-year budget is imperfect and provided an adjusted chart comparing eight months of activity to an eight-month pro rata budget.

“Revenues are better than budget by $1,500,000; expenditures are better than budget by $900,000 and we have spent $2,500,000 in capital,” Foster said during her presentation. She said the city has used $6,000,000 of general-fund reserves as of Aug. 31, 2025.

Foster announced fiscal measures the administration is pursuing: a hiring freeze (instituted Sept. 6, 2025), overtime restrictions, a temporary capital hold and a focus on revenue generation and process efficiencies. She said critical positions that remain under consideration include an electrical inspector and a plans examiner because contracting those services would be more expensive than hiring.

Foster also summarized enterprise funds: the water fund’s revenues and expenditures were roughly in balance through Aug. 31; the sewer fund was drawing on reserves; garbage/refuse and stormwater funds were covering costs with positive cash balances.

Councilors asked clarifying questions about the hiring freeze and fund balances; Foster confirmed the hiring freeze date and explained that the historical operating cash referenced in the slides is the same as the general-fund reserve figure used in her presentation.

Council did not vote on additional budget legislation at the meeting; Foster said she would provide hard copies of the presentation on request.