City manager outlines four millage options, recommends a 3% reduction balanced at 4.5444

City Manager Sarah Campbell told the commission that state voting‑threshold changes and revenue uncertainties require the body to set a tentative millage before receiving the full manager's budget. She presented four options: the current rate 4.6849; the statutory rollback 4.4425 (keeps revenue the same); a recommended modified rollback of 4.5444 (a 3% reduction, generating about $23.1 million); and a "what‑if" 4.8530 that would replace $1.5 million in paid‑parking revenue.

Campbell said she built the draft budget on the 4.5444 figure because of several positive developments—chiefly that golf and marina operations are now self‑funded, which saves about $1,000,000 for the general fund—and because she has identified additional headcount reductions and other adjustments. "If you were to keep that [current] rate for next year, that would generate $23,800,000 in property tax revenue," Campbell said. She noted the modified rollback is not a formal state term but a practical approach to protect general‑fund services while responding to valuation changes.

Campbell also flagged cost pressures that limit savings: "Our health insurance is projected to be up over 8%." Staff are reviewing alternatives to the current insurance arrangement and expect to present contingency figures when the manager's budget is delivered later this week. Commissioners were reminded that the tentative rate can be lowered at later public hearings but not raised above tonight's vote.