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Council reviews revenue updates, recommends 6% trust drawdowns to offset shortfalls
Summary
City staff presented updated revenue projections (higher excise tax projection, revised harbor and solid-waste receipts) and recommended 6% drawdowns of cemetery and library trusts plus a $377,004.75 transfer from capital projects to help balance the budget.
City Manager Herbig presented an updated revenue worksheet at the June 25 budget workshop and recommended several adjustments and one-time transfers to offset rising expenses.
Notable revenue revisions included an excise-tax projection of $1,288,984 (updated after reviewing current performance) and a projected increase in harbor receipts to $160,607. Herbig said vehicle-manufacturing slowdowns have suppressed excise-tax receipts in recent years but that this line is rebounding. He also noted solid-waste receipts were revised up (manager recommended $444,004.24) and that planning and permitting revenue lines have improved as development activity increases.
To help balance the budget, the manager recommended a 6% drawdown of the cemetery trust, equal to $151,810, up from a 5% drawdown last year; he proposed the library trust drawdown be matched at 6%, or $211,027. Herbig said the additional drawdown was prompted by expense pressures passed down to the city (for example, school, county and water-district costs) and rising benefits costs.
Herbig also proposed a one-time transfer of $377,004.75 from capital projects and suggested using the state's revenue-sharing stabilization account and the school-stabilization account to smooth tax impacts. On airport revenues, he described a new breakout for low hangar leases and recommended further follow-up with the airport manager to clarify lease- and fuel-related projections.
Councilors asked for follow-up information on a few lines (airport hangars, police building lease collections) and Herbig said staff would provide a consolidated document with adjustments at the next meeting.
What happens next: staff will provide an updated, consolidated budget document at the next meeting (manager said revisions would be plugged in and available next Monday). No formal votes were taken on revenue adjustments at the June 25 workshop.
