Recurring

financial sustainability

How the city manages money, debt, savings, audits, and long-term costs.

Illustration for financial sustainability
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What to Watch

Whether 2026 results show the General Fund deficit shrinking and reserves stabilizing, and whether any new revenue changes are recurring.

Coming Up

Typically discussed at City Council. Check back when the next agenda is published.

The Story

The city’s 2025 audit came back clean, but the day-to-day checkbook story wasn’t: the General Fund ran a deficit and finished about $339,000 lower. Staff says 2026 fixes include spending controls, tighter overtime, and new revenue; the real test is whether the 2026 numbers actually turn that around.

Key Decisions

  1. passed Explore Two Rivers Meeting of the Board of Directors · Jan 13, 2026

    TREASURER'S REPORT                                                                                            (Action Item)

    Motion to approve the Treasurer’s Report

  2. passed 8-1 City Council · Nov 3, 2025

    25-220 Resolution Reaffirming the City's Commitment to Financial Sustainability and Responsible Debt Management

    Motion to waive reading and adopt a Resolution Reaffirming the City's Commitment to Financial Sustainability and Responsible Debt Management.

    Mark Bittner Yes
    Doug Brandt Yes
    Shannon Derby Yes
    Bill LeClair Yes
    Darla LeClair Yes
    Tim Petri Yes
    Bonnie Shimulunas No
    Scott Stechmesser Yes
    Adam Wachowski Yes
  3. passed 6-3 City Council · Nov 3, 2025

    25-221 Ordinance to Create Chapters 2-7-16 of the Municipal Code Establishing a Policy for Responsible Capital Borrowing

    Motion to waive reading and adopt an Ordinance to Create Chapters 2-7-16 of the Municipal Code Establishing a Policy for Responsible Capital Borrowing.

    Mark Bittner Yes
    Doug Brandt Yes
    Shannon Derby Yes
    Bill LeClair Yes
    Darla LeClair Yes
    Tim Petri No
    Bonnie Shimulunas No
    Scott Stechmesser Yes
    Adam Wachowski No

Record

  1. City Council adopted a resolution stating its intent to keep city borrowing at or below 60% of the state limit; vote 8-1.

    City Council

  2. City Council adopted an ordinance creating a capital borrowing policy tied to changes in equalized property value, with reporting and safeguards; vote 6-3.

    City Council

  3. An agenda included an action item titled “Treasurer’s Report.”

    Explore Two Rivers Meeting of the Board of Directors

  4. Staff presented a plan to set up dedicated accounts at the Lakeshore Community Foundation to support perpetual care flowers and the community band, aiming to reduce reliance on property taxes.

    City Council

  5. Staff described transferring raised funds from the city to the Lakeshore Community Foundation for professional investment and long-term support of the flower program and community band.

    City Council

  6. The Lakeshore Community Foundation partnership item was presented for discussion only, with no formal council action requested.

    City Council

  7. Council asked staff to bring foundation representatives to a future work session.

    City Council

  8. Staff reported the city received a clean audit opinion for 2025.

    Personnel and Finance Committee

  9. Staff reported the General Fund ended 2025 with an operating deficit and about a $339,000 drop in fund balance.

    Personnel and Finance Committee

  10. Staff reported the city’s government-wide net position increased by about $2.6 million, with nearly all of the increase tied to utility capital contributions and grants.

    Personnel and Finance Committee

  11. Management said it responded in 2026 with spending controls, tighter overtime management, and new revenue initiatives.

    Personnel and Finance Committee
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