During the work session following the regular meeting, the mayor highlighted concerns about a continued revenue shortfall in the water fund, primarily due to lower-than-anticipated irrigation usage resulting from increased rainfall. This trend, noted from the previous year, persisted into the current year, affecting the city’s water revenue. The mayor presented year-on-year data, detailing a marked decline in residential irrigation usage, which correlated with the wetter climate conditions. Residential water usage was categorized separately from irrigation, revealing the nuances in consumption patterns.

In response to this revenue shortfall, the council revisited the budget for water rates. No changes were proposed for 2025 and 2026, but the mayor mentioned an expected debt drop-off in 2027, which could influence future rate adjustments. While decreased water production and chemical usage were seen as potential cost-saving avenues, fixed costs would remain stable, necessitating careful financial planning.

The meeting also touched upon a peculiar incident observed in 2021, where commercial water usage spiked by an extra million gallons in a single month, though specifics were not disclosed. This anomaly underscored the need for ongoing monitoring of water consumption trends to ensure accurate budget forecasts. The council emphasized the importance of adjusting rates based on these consumption trends, acknowledging that while the water fund could manage current financial conditions, vigilance would be necessary, particularly given the impact of varying weather patterns on water usage and revenue.

In a related financial discussion, the council reviewed the statewide volunteer firefighter fund, examining potential budget adjustments. A proposal to reduce the funding percentage from 85% to 75% was considered. This adjustment underscored a cautious approach to budget planning, avoiding reckless spending while monitoring long-term trends.

The 2024 audit reported a substantial surplus of approximately $287,000 in the general fund, sparking debate over whether to allocate $111,000 to fully fund the firefighter account or defer the payment until 2026 when the financial situation might be clearer. With the funding ratio improving from 76% in 2023 to 93% in 2025, the consensus leaned towards delaying any one-time payments, allowing for further stabilization of trends.

Further discussion considered the strategy of maintaining a buffer above the 100% funding level for the firefighter pension, a common practice in other municipalities. This buffer, ranging from 110% to 120%, could safeguard against market downturns, enabling better management of assets and liabilities. The conversation briefly touched on the possibility of increasing pension benefits for firefighters, contingent on asset growth relative to liabilities.

The general fund’s robust position was highlighted, showing significant growth from a previous low to nearly $1 million. This financial health suggested that reallocating funds to create a buffer would not compromise the general fund’s stability. The dialogue concluded with a proposal to maintain the annual $35,000 payment to the firefighter fund, deferring any additional contributions until the next review, thus preserving financial flexibility while ensuring funds remain available for essential commitments.