Commission discusses millage, reserves, capital assignments, events and priorities in budget workshop

City staff told commissioners the city continues to carry large unassigned general-fund balances and is approaching next year’s budget with a conservative posture, but the commission used a workshop to debate priorities and trade-offs including millage-rate impacts, capital project assignments, events, staffing and EV infrastructure.

Finance staff reported that one point of millage is roughly $1.3 million and that the current unassigned general-fund balance is about $55,000,000. Commissioner concerns centered on whether assigned capital funds and the accounting treatment of interest reduce flexibility to lower the millage and respond to unforeseen events.

"I believe that the total millage last year ended up equating to $1,300,000," Speaker 8 said when asked how a one-point millage change affects revenues. Later, Speaker 7 told the commission: "We have about 55,000,000" in unassigned general-fund balance.

Commissioner speakers asked staff to explain assigned vs. restricted funds. Finance staff said the city uses pooled cash and allocates interest to funds based on equity; some fees (for example, building-permit-related funds) are restricted by state statute to specific uses, while assigned capital dollars are accounting assignments that can be moved by ordinance or budget amendment. "That is a state statute," Speaker 7 stated when characterizing permit-fee restrictions.

On events and community programs, staff said the city currently lists roughly 99 events and will provide commissioners a program-mod form and cost breakdown so each commissioner can mark priorities. "We have 99 events in the city," Speaker 8 said, and staff asked commissioners to return a marked list with any deletions or additions by the extended Monday deadline to help finalize the budget.

Other substantive points included:

- Parks/Beach acreage: Staff will verify whether publicly accessible beach area may be counted toward park-acreage goals for the city's comp plan; staff said they will follow up.

- Staffing and building department: The manager said staff expect to propose four to five new positions in CCS and the Building Department, including an assistant building official already offered a position.

- EV stations: Staff reported an estimated installed cost of a quick-charge EV station of about $450,000–$500,000; neighboring jurisdictions are going to bid and staff will follow their results.

- Charitable donations: The prior budget included a $50,000 charitable-allocation line; vice mayor proposed splitting the allocation among commissioners with a clear eligibility process and conflict-of-interest safeguards.

Staff recorded the discussion and will provide more detailed budget line items, cost ranges for events (including staffing impacts), and a public portal for residents to submit budget proposals. The commission directed staff to return with the requested numbers and a program-mod form so the commissioners can finalize their priorities for the coming fiscal year.