City staff presented a FY2024 budget update that emphasized a larger-than-expected health-insurance increase and discussed how different tax-rate options would affect revenue and services.
"Using those numbers... our current rate is 0.6813," Speaker 5 said, reviewing the city's options and explaining that the voter‑approval rate of 0.6936 would generate roughly $95,000 more revenue while a 'no new revenue' calculation would yield approximately $203,000 less after removing debt-related adjustments. Speaker 5 warned the council that insurance costs (about a 16% increase this year) and rising fuel and maintenance costs have consumed a substantial portion of tax revenue.
Council members debated whether to raise the rate, pass costs through utility or garbage rate increases, or absorb expenses by cutting services. After discussion Speaker 6 moved to "keep the same rate as last year," and Speaker 4 seconded; Speaker 1 called the vote and the motion carried.
The council's action approved a proposed tax rate to allow required legal notices and public hearings to proceed; the final official tax rate will be set in a later, separate vote following public comment requirements.