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Finance director warns of structural deficit; council considers grant‑matching pool and water reserve use
Summary
The finance update warned expenses have outpaced revenues and the city faces multi-year deficits; council members proposed a $254,878 grant-matching assignment and discussed drawing from the water system reserve for capital equipment, with staff reading a large figure from the transcript that requires verification.
Commissioner Kiernan told the council that outside auditors reported the city is in better shape this year than last, but cautioned the budget is "structurally unsound," saying the city has run deficits since 2022 and expenses have outpaced revenues "by 25% almost." He urged collaboration to address the shortfall and offered to meet with members to share detailed numbers.
Kiernan proposed a resolution to close the "rightsizing" assignment and establish a grant-matching assignment of $254,878 so departments have available match funds for competitive grants and to reduce unplanned appropriations when matches are required.
On capital funding, Kiernan read a proposed resolution to use the water system reserve fund for capital improvements and said staff will buy two pieces of equipment: a trailer-mounted diesel water pump and a "hydro stop." The transcript lists an approval amount read as "$150,909,159" and staff said the remaining balance in the reserve would be $4,600,000; council minutes will need to verify the intended dollar amounts and any transcription errors before publication.
Kiernan also described using $3,427.34 from a prior-year assignment for an approved Article 7 parcel matter and noted an addendum with Graybar for DPW cabling/network upgrades that has been outstanding since April.
No formal votes on these resolutions were recorded in the transcript; the items were presented for discussion and are expected to return for action.
