Council weighs using safety tax (LIT) dollars to shore up general fund and fund a fire truck

Council members and finance staff reviewed a Baker Tilly analysis of the city’s finances and discussed options to balance the 2026 budget without sudden cuts to services. Staff described moving or reclassifying some Local Income Tax (safety tax/LIT) receipts and holding a portion of LIT (20%) over several years to build toward a planned fire truck purchase while using other reserves to soften immediate shortfalls.

Mayor and finance staff summarized the challenge: recent expenditures and an expected revenue change mean the general fund faces a shortfall unless some LIT-designated funds are reallocated. Council discussed the trade-offs of moving dollars out of the fire/police LIT allocations into general and whether to hold part of the LIT stream in reserve (staff presented example figures using a 20% holdback over three years, which staff projected could produce roughly $536,831 through 2027). One council member framed the choice bluntly: moving LIT will temporarily help general fund balance, but reduces dedicated safety reserves earmarked for equipment and vehicles.

Councilors and staff also discussed using the existing LIT set‑asides over multiple years to get nearer a $1 million target for a fire truck purchase and whether to reduce the annual fire set‑aside (one example discussed was lowering the $333,000 per‑year holdback). The group did not adopt a final plan; staff were asked to work with Baker Tilly to finalize appropriation entries in the city’s Form 100 and return with specific modeling and timing for public hearings.

Council set a process: allow staff and Baker Tilly to update appropriation numbers, advertise revised figures, and schedule a public budget follow-up (council canceled one Thursday meeting and discussed potential meeting dates in early September to adopt final appropriations). No formal votes on reallocation were taken during this hearing.