Council sets preliminary millage rates; staff warns of $500,000 gap without change

City finance staff presented the resolution to set preliminary operating and debt millage rates for fiscal year 2026–27 and explained the rationale for the proposed rates.

"What we have before you is to set the preliminary rates that will be going out in the notices... The debt millage rate ... will be going from 0.2446 to 0.2316. The operating millage rate though is the one that we're proposing to increase from the current 5.9604 to 6.3945," Finance representative Mr. Perez said, noting the operating rate proposal is about "9.95% over the rollback rate." He told council that without adjustment the city could face a roughly $500,000 shortfall that would affect staffing and COLAs.

Council opened the public hearing; no members of the public offered comments. A motion to adopt the preliminary rates was made, seconded and approved by roll call. The mayor announced "The motion carries." Staff emphasized that the preliminary rates can be reduced prior to final adoption but not increased beyond tonight's setting.