Council approves utility fund budget after staff narrows projected deficit

Council members voted to accept the proposed utility fund budget for fiscal year 2026–27 after staff described steps that reduced an earlier projected deficit of about $1.2 million. The staff presentation said more accurate reporting of actual operating costs and expense reductions eliminated the shortfall.

"The beginning fund balance reflected with utility fund monies that deficit has been eliminated," Chambers said, and staff advised that the utility fund balance is expected to remain just above $3 million after the upcoming fiscal year, though aging equipment and declining reserves remain a concern. Council moved and seconded acceptance of the utility fund budget and the chair announced the motion carried with a 4–2 tally.

Council discussion noted that future utility-rate increases might be necessary to support debt service, maintenance and operations; staff said those considerations would be evaluated as the city completes additional financial reconciliations.