Commissioners debate timing and scale of millage cut; set Aug. 5 deadline for proposed reductions

Commissioners spent the bulk of the July 27 work session debating whether to enact a millage reduction for FY27 now or wait for the outcome of a statewide property-tax referendum.

City staff showed several illustrative millage-reduction options: a 0.0123-mill reduction (about $251,000), a 0.0251-mill reduction (about $500,000), and a 0.0505-mill reduction (about $1,000,000). President Peduzzi said he favored a small, symbolic reduction and called the lowest option ‘a step in the right direction.’ Commissioner Fox argued for starting reductions now to “get a head start” anticipating bigger cuts if the referendum passes. Several commissioners — including Warren and Sylvester — urged caution because much of the general fund is personnel and contract-driven, and a large revenue loss would force service cuts.

Faced with differing views, the commission set a procedural path: any commissioner who wants to propose cuts should provide specific line-item reductions to City Administrator Faye Johnson by noon on August 5; staff will compile impacts and distribute the results before an August 10 workshop. The administration will present a tentative budget at an August 19 meeting. The commission emphasized that staff will not be asked to ‘find’ $1,000,000 in cuts without specific direction: commissioners must identify which lines they would cut so staff can calculate programmatic consequences.

The debate included repeated reminders from administration and finance staff that much of the budget is composed of mandated or contractual expenses tied to public safety and other services, limiting the scope of discretionary savings. Still, several commissioners endorsed asking each department to identify modest percentage savings — for example, a 0.5–1% reduction in discretionary ‘green’ line items — to build toward a modest millage reduction.