Council hears 2025 budget results; library grant prospects hinge on LEED cost

Council received a detailed review of the city's 2025 finances and a library update during the March 25 meeting.

The finance director reported that 2025 revenue collections ended the year about 7% over projections, "or $1,600,000," and that expenditures were roughly 2% under budget. Because of the results, the city will add $988,000 to reserves rather than the $1,160,000 originally budgeted. The director said the revenue increase was driven largely by construction-related sales tax activity and one-time items, warning that these gains may not recur.

On reserves, the director said net undesignated reserves stand at $4.4 million, or approximately 73 days of cash on hand, short of a 90-day target. He described the trade-off in pursuing a Department of Commerce capital grant due April 15: the grant is a 50/50 match but requires LEED certification, and "we're gonna have to spend an additional million dollars just bringing it up to LEED certification," which could push the library project's cost from an estimated $5.2 million to roughly $6.2 million.

Abby Buell, regional manager for Timberland Regional Library, described library usage and programming in Aberdeen, noting physical checkouts have declined about 10% while digital checkouts exceed 5,000 per month; she highlighted popular outreach like Library in the Park, which had more than 1,000 participants last year.

Council members asked clarifying questions about the grant timeline, match requirements and whether to delay construction to apply. Staff said they plan to present building plans to the library board and bring a recommendation to the council in April for a Community Foundation funding decision; staff also signaled the grant process could delay construction and carries no guarantee of state funding.