Finance director outlines preliminary 2027 framework: modest revenue growth and possible fund-balance draw
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Summary
Finance Director Jennifer Solinski presented a preliminary 2027 budget framework showing 2026 projected revenue of about $26.8 million and expenditures of about $27.0 million (an intended use of fund balance of roughly $326,000); she outlined options including a stormwater utility, revisiting garbage and fire protection fees, and the possibility of a referendum for operations.
Finance Director Jennifer Solinski gave the council an early look at the 2027 budget framework, explaining recent years' favorable results and options the city may use to close a structural levy gap.
Solinski said the city's preliminary 2025 results show revenues just over $26 million and expenditures just over $24.5 million with an increase in fund balance, in part because of higher interest revenue in the prior two years. For 2026 she estimated revenue around $26.8 million and expenditures around $27.0 million, leaving a planned use of fund balance of about $326,000 if all revenues and expenditures track to plan. She said the long-term levy gap identified in prior forecasts was roughly $1 million to $1.2 million and that the city has used cost-avoidance and one-time funds to hold that off.
Options Solinski said staff will study include revenue adjustments (net new construction growth, shared revenues), a stormwater utility (which would replace levy with a fee), shifting garbage collection or fire protection costs off the levy and onto fees, wheel tax options, or, if needed, a referendum. She laid out key timeline signals for revenue estimates and audit completion and said staff will present departmental and fund-level fund-balance updates before final budget decisions.
Council members asked clarifying questions about the size of the projected fund-balance draw and the timing for implementing longer-term solutions; Solinski said some solutions (e.g., a stormwater utility) would take multiple years to study and implement and that starting sooner is prudent if those options are chosen.
Next steps: staff will continue work on departmental budgets, present fund-level updates as audit results firm up, and return with more detailed proposals this year as the city moves toward the 2027 budget process.
