Finance staff presented a six‑year general fund forecast and urged a mix of one‑time actions and gradual ongoing changes — including a proposed 2.5% across‑the‑board reduction scenario, recognition of $1.5M in probation fee revenue, a $7M one‑time capital transfer to REIT 2, and consideration of a 1% property tax levy — and asked the council to direct departments to submit full budget requests including a 2.5% reduction scenario.

Auditors told the council the general fund posted a roughly $1.3 million operating loss in 2025 — the first in the recent record — and projected a $16.5 million operating shortfall in 2026, driven in part by slow sales‑tax growth and inflation outpacing revenue.

Council agrees on strategic budget cuts while denying tax exemptions due to county deficits.

Officials debate $11 million budget exceeding past revenue and project future fiscal challenges.

Council members express frustration over budget mismanagement while approving necessary fund transfers.

Finance Committee advises building 2025 budget on actual revenue to avoid cash shortfall.