The committee got an early look at the City’s 2025 audit and mid-year 2026 finances, with the big takeaway being this: the General Fund is still running deficits, while the City’s “overall” numbers look better mostly because of utility grants and capital contributions.
No public comments or communications recorded for this meeting.
Staff reported the City received a clean audit opinion, but the more important detail for residents is the General Fund ended 2025 with an operating deficit and about a $339,000 drop in fund balance. The City’s government-wide net position increased about $2.6 million, but nearly all of that was tied to utility capital contributions and grants—not stronger everyday operations. Management said it responded with spending controls, tighter overtime management, and new revenue initiatives in 2026; residents should watch whether those steps actually show up in the 2026 year-end results.
Page 1 — source unresolved
The committee reviewed health plan claims trends showing the plan paid out more than it took in during 2025 (a 117.84% loss ratio) and is still above 100% through May 2026. Staff warned that if claims stay above 100%, the City expects double-digit premium increases at renewal—meaning higher costs for the City budget and potentially employees. The carrier is trying to steer behavior with free Teladoc visits and a gift-card incentive for enrollment, but the underlying cost trend is the real issue.
Page 1 — source unresolved
At mid-year, revenues were at 38% of budget (staff said that’s typical because of when state money arrives) and expenditures were at 49%. Even with an improvement from last year, the General Fund still showed a mid-year operating deficit of about $1.4 million, which is the kind of number that can force tough choices later if it doesn’t narrow. Staff also walked through storm costs spread across funds and the City’s IT switch to AIT, including a one-time onboarding fee and a three-year fixed contract through March 2029 that staff expects will save at least $50,000 a year versus a full-time IT position.
Page 2 — source unresolved
Total overtime citywide was at 54% of the annual budget by mid-year, slightly better than last year’s pace, but the department-level story is uneven. Public Works overtime is low, but that’s partly because major projects are behind schedule after staff were pulled into blizzard and storm response—meaning residents may feel the delay in routine maintenance and infrastructure work. Police patrol overtime is the biggest red flag: about 97% of the overtime budget is already used, with some costs expected to be reimbursed later, but the near-term budget squeeze is real.
Page 3 — source unresolved
The committee tentatively planned its next meeting for the week of September 21, 2026, depending on the budget calendar. This matters mainly because the fall budget timeline is when financial decisions harden into next year’s tax and service levels.
Page 3 — source unresolved
