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Interim manager outlines $300,000 revenue shortfall, proposes budget amendments and sewer transfers
Summary
Interim city management reported an anticipated ~$300,000 revenue shortfall for FY2026 and proposed a '20 plan' of cost reductions and budget amendments, including a transfer of roughly $172,000 from water to sewer to cover an emergency sewer-line repair; council approved the transfers and amendments by voice vote.
The interim city manager presented the FYE 2026 budget variance forecast, saying the general-fund budget is $7.3 million and the city currently anticipates a revenue shortfall of roughly $300,000 (about 4.4%), mostly linked to property-tax revenue variances. The presentation emphasized cost‑reduction steps labeled the '20 plan' and proposed budget amendments that would reduce fund-balance appropriations and recognize operational savings.
"Column A is our budget, which is, shows $7,300,000 in revenue and $7,300,000 in expenditures," the interim manager said, then described a projected miss in revenue of roughly $300,000 offset partly by about $372,000 in underruns in expenditures. He said the city will submit a budget amendment to reduce fund-balance appropriations by $250,000 and to recognize operational reductions tied to the '20 plan.
The presentation also explained sewer system issues: the city consolidated prison accounts and installed meters that changed billable flow calculations, and a sewer line collapse near the prison required roughly a $205,000 repair, covered by transfers and set-aside funds. Staff proposed transferring about $172,000 from water distribution funds to sewer to cover costs and to adjust budgets; council discussed consultation and emergency procurement before approving the transfer and the related budget amendments by voice vote.
Managers said they plan to prioritize replacing damaged business meters and to begin meter installations in the April timeframe to improve billing accuracy and revenues.
