City staff presents FY27 budget options; estimates $1.6M gap if millage lowered

At the budget workshop, Nicole Reitler, deputy financial services director, presented the City Manager’s FY27 general fund proposal and explained how millage choices affect the city's structural balance. "At the proposed rate of 5.1988, the general fund budget totals $285,012,674," Reitler said, and the proposed rate would be structurally balanced for FY27 but projected deficits of about $7.3 million in FY28 and $12.9 million in FY29 under current assumptions.

Reitler said correcting an earlier rollback-rate calculation produced an accurate rollback rate of 5.2174 mills and that reducing the millage to 5.1471 would decrease ad valorem revenue by approximately $1,642,783 in FY27. Staff presented three concrete options to close that gap: defer one-time capital of $1,500,000 for Musco lighting replacement at the Northwest Softball Complex and eliminate one vacant internal-auditor position; use additional interest earnings under a formal policy (staff noted $1,325,000 of interest is currently budgeted in FY27); or identify expenditure reductions. Reitler emphasized that interest recognition will only be used for non‑recurring expenditures once funds are actually received.

The presentation also highlighted the city's budget structure: personnel at roughly $162.7 million (57.1%), operating costs at $75 million (26%), capital outlay at $11.7 million, and transfers out at $34.2 million. Reitler closed by noting public hearings and key dates: additional workshops Aug. 11 and Aug. 18, tentative budget hearing Sept. 10 and final hearing Sept. 24.