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City finance director outlines $25M shortfall, 0‑based budgeting and franchise fee increase
Summary
City Finance Director Vicky Van Buren told the Ward 6 NAB the city balanced the current year using $9.5M in one‑time funds and $16M in reductions after a multi‑year revenue shortfall; staff are pursuing 0‑based budgeting, hiring freezes and a sanitation franchise fee increase to help close gaps for FY27.
City Finance Director Vicky Van Buren briefed the Ward 6 Neighborhood Advisory Board on April 6 about the city’s fiscal condition, explaining how recent revenue trends and inflation produced a multiyear shortfall and what steps the city is taking to balance future budgets.
Van Buren said the general fund for the current year is about $321 million and that across all funds the city accounts for roughly $1 billion. She told the board the city had used $9.5 million in one‑time funds and $16 million in reductions — including staffing freezes — to close a roughly $25 million gap in the prior budget cycle.
"We started at $24 million short in our initial roll up for fiscal '27," Van Buren told the board, and staff are pursuing a mix of revenue‑increasing measures and expense reductions. She described a 0‑based budgeting process for the FY27 build so departments must justify all expenditures rather than carrying previous year baselines forward.
Van Buren described a recent policy action: the city raised the sanitation franchise fee from 8 percent to 14 percent (action taken by council on Feb. 11, as stated in the presentation). She said that change yields about $5.5 million in ongoing revenue and is consistent with actions taken by neighboring jurisdictions addressing similar fiscal pressures.
On expenditures, Van Buren said about 81 percent of the general fund goes to salaries and benefits, and public safety (police, fire, dispatch) account for the largest shares. She also reviewed capital spending priorities and debt trends (noting the city is issuing debt for an Advanced Purified Water Facility closing in April). Van Buren outlined the budget timetable: tentative state documents and council briefings in April and May, a public hearing and adoption in May, and a final budget due to taxation on June 1.
Board members asked whether another deficit is likely in FY27; Van Buren said the picture is still in flux because outstanding collective bargaining agreements and other moving parts remain, though staff are balancing the FY27 roll up through a mix of measures.
Next steps: staff will continue budget development, present further detail to council and hold public hearings as required by the fiscal calendar.
