The primary focus of the meeting was the discussion around the tentative millage rates for the fiscal year 2025-26. Mr. Cobb presented the proposal to maintain the operating millage rate at 5.9610 mills per $1,000 of assessed valuation and the general obligation bond debt service millage rate at 0.1140 mills. This would result in a total millage rate of 6.0750 mills, unchanged from the previous fiscal year. The proposed millage rate is expected to generate approximately $25,014,263 in ad valorem revenue for the general fund, an increase of $1,879,591 compared to the previous budget. Cobb noted that this rate represents a 6.10% increase over the rolled-back rate of 5.6184 mills.

The budget aims to maintain service levels while incorporating a 4% salary increase for general government employees and funding salary increases for police and fire personnel as per collective bargaining agreements. It also includes provisions for a new police records specialist, a facilities maintenance technician, and the reclassification of a fire marshal position. The budget maintains a 15% minimum reserve fund balance, adhering to financial policies.

Cobb discussed the potential for reallocating funds initially designated for city hall bathroom renovations towards vehicle replacement and debt repayment. Ms. Jones provided further context, explaining that lowering the millage by 0.1 mills would reduce general fund revenues by approximately $419,464 and might necessitate using additional funds from the budget.

The council also considered potential debt repayment strategies, particularly regarding annual debt service, which stands at approximately $678,000. Discussions included the possibility of issuing bonds with shorter terms of 15 or 20 years and the potential savings from such a strategy. The current fund balance was reported at around $20 million, growing at a rate of 4%, which exceeds the interest owed on existing loans.

Despite these financial deliberations, the council expressed caution about lowering the millage rate, concerned that it might lead to funding difficulties in the future. Maintaining the current rate was seen as a means to avoid tax increases and ensure financial stability, especially in light of potential bond issuances. The council highlighted the importance of a strategic plan to navigate collective bargaining agreements and changes in the law enforcement labor market.

In a vote reflecting a division in opinions, the council decided to lower the millage rate slightly to 5.8610 mills, still a 4.32% increase over the rolled-back rate.

The council also addressed the issuance of bonds and bank notes for city projects, noting the cost differential between the two. A bank note was deemed more favorable due to lower issuance costs, contributing positively to the construction fund. The conversation highlighted the importance of maintaining the millage rate to preserve financial options for the city.

In other matters, the council discussed a proposal to vacate a right-of-way near Brisket’s Barbecue, with the mayor suggesting it could enhance the utility of adjacent properties. The council expressed interest in revisiting this topic with input from staff and property owners.

Additionally, the meeting touched on the lack of regulatory frameworks for micromobility devices like electric bikes and scooters. The mayor noted local governments’ authority to regulate these devices and emphasized the need for educational efforts regarding their use.