The City Attorney provided an update on the settlement with 3M concerning PFAS contamination, bringing the total amount received to over $8 million within four months. This financial boost is set to reinforce the city’s general fund and utilities, with discussions around allocating a portion to the Capital Improvement Plan (CIP). The Vice Mayor proposed earmarking $1 million from the settlement for this purpose, highlighting the need for infrastructure investments. The City Attorney’s office confirmed plans to continue litigation related to fire retardant foam.

The commission then turned its attention to the city’s financial framework, concentrating on the proposed millage rate and its implications for the upcoming fiscal year. The presentation outlined that the millage rate would remain at 7.8, translating to a 5.74% tax increase for state TRIM purposes. This decision was weighed against the potential $4.4 million revenue shortfall if the rate reverted to the rolled-back rate. Discussions included the impact of state-level homestead exemption adjustments, which might affect primary homeowners more than commercial properties.

Debate ensued over the millage rate, with a city manager recommending a cautious approach in maintaining it at 7.75 to prevent future budget shortfalls. The need for alternative funding sources was emphasized, given the significant portion of the general fund derived from ad valorem taxes, which account for approximately $60 million, or nearly 45% to 47% of the total budget. The city anticipates a debt service reduction of $7 to $9 million in the next budget cycle, potentially freeing up additional capital.

Resident David Wesley Cornish voiced strong opposition to the proposed tax increases, critiquing the administration for inadequate cost-saving measures and expressing dissatisfaction with the 5.74% tax increase. His remarks underscored a broader community sentiment against rising taxes, advocating for a reevaluation of the tax structure. Other residents echoed these concerns, urging the city to explore alternative revenue sources and reduce unnecessary expenditures.

One resident highlighted the absence of red light traffic cameras and called for increased police enforcement and higher fines for parking violations as potential revenue streams. Another resident, Susan Oyer, suggested capping property taxes and proposed budgetary reductions, including limiting take-home cars and printing practices. Oyer also recommended hiring an efficient event manager to cut costs related to outsourced services.

The commission further discussed the feasibility of transitioning to a fee-based funding system, which would require voter approval and could take approximately two years to implement.

Concerns about communication systems were raised, particularly in light of a recent water outage that left residents uninformed. Residents called for better public information dissemination and urged the city to allocate budget funds for this purpose.