Submitted by: City Administrator
Submitting Department: Administration
Agenda Section: Presentation
Item Title:
title
Introduction of the FY26 Budget
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Suggested Action:
recommendation
For presentation.
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Summary Background:
The March 24th introduction of the budget will provide an overview of our financial outlook, covering revenue projections, budget priorities, strategic goals and objectives, and current fiscal challenges.
Departmental budgets will be presented on April 2nd, including detailed projected expenditures and funding offsets. Staff continue to thoroughly analyze programs, services, and expenditures in response to several factors:
* Inflation
* Rising costs of goods, services, and raw materials
* Improved homeowners' tax credit programs (within the current property tax rate)
* Bond debt repayment obligations
* Competitive salaries and benefits requirements
* Mandatory funding requirements and contractual obligations
Financial Position
We are in a fortunate position as our total revenues have consistently met or exceeded budget estimates. We anticipate this positive trend will continue. Additionally, our staff has implemented effective cost control measures:
* Gapping or strategically managing vacant positions
* Securing alternative funding sources
* Recompeting contracts to ensure best value
* Implementing creative cost reduction strategies
These efforts have kept our actual expenditures below budget projections in most years and contributed to incremental growth in our reserve fund balance.
Fiscal Responsibility Measures
To address our current challenges, we are taking several proactive steps:
* Evaluating prior year spending patterns for positive trends
* Proposing a hiring freeze
* Reassessing existing contracts
* Planning strategic staff realignment to cover service gaps while avoiding layoffs
* Examining potential modifications, deferrals or cancellation of select programs and services
* FY26 budget does not include staff cost of liv...
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