The meeting opened with the adoption of a tentative fiscal 2026 millage rate set at 6.10 mills, which is expected to generate approximately $34.8 million in revenue. This increase was juxtaposed against concerns raised during public comments about the city’s financial strategies and accountability. A resident questioned the allocation of $8 million from the building fund reserves. The resident also contested the reported $18.5 million in unrestricted reserves, urging clarification and transparency.

Following these public remarks, the council delved into a presentation by the deputy city manager, outlining the financial outlook and challenges posed by the proposed budget. The general fund, projected at $75.8 million, is anticipated to fall short due to expenditures primarily driven by personnel costs, which account for 60% of the budget. To mitigate the deficit, there was a proposal to utilize $1.9 million from the existing fund balance. This proposal spurred a discussion on the feasibility of using reserves, with a particular emphasis on the stormwater fund, which was identified as having a negative balance.

The council members also grappled with commission-driven requests emerging from budget workshops. These requests, totaling close to $1 million, included staffing expansions across several departments such as procurement and police. The necessity for detailed explanations of budget increases was highlighted, as some council members expressed a desire for thorough scrutiny before approving the budget items. This revealed a potential divide among the council regarding fiscal priorities and the need for transparency in budget management.

Attention then shifted to the Capital Improvement Plan (CIP), with an allocation of approximately $4.6 million, of which 73% is directed towards priority projects. The discussion of the general fund balance noted $18 million currently available, with $12 million earmarked for balancing the budget, leaving $5 million for future needs. Concerns were raised about the adequacy of these funds for the next fiscal year, highlighting the risks of depleting the city’s reserves.

The council also addressed the library’s staffing challenges, with a request for an additional $535,000 to improve operations, including weekend openings and a bookmobile service. The library director noted the current staffing level of 14 full-time employees and several part-time staff, emphasizing the need for sustainable hiring practices.

The public works department’s beautification efforts were scrutinized, particularly regarding drainage, litter collection, and turf maintenance. A commissioner expressed skepticism about the improvements relative to the increased service levels reported. The department is tackling illegal dumping through a task force that collaborates with law enforcement and utilizes surveillance cameras.

Concerns about stormwater management were also discussed, particularly in response to flooding issues in specific neighborhoods. The council committed to refreshing the stormwater master plan, with assessments planned for areas like Eastern Shores. However, budget constraints limit the capacity to address these infrastructure challenges comprehensively.