City weighing millage, fees and transfers to cover shortfalls; state rule could limit deep police cuts

Ms. Campbell walked commissioners through revenue levers they could use to offset projected property‑tax declines: the commission can raise millage (the city can legally go up to 10 mills), increase franchise or permit fees, levy special assessments, or transfer profits from enterprise funds to the General Fund where appropriate. "You have the ability to increase the millage," she said, noting current projections place millage around 4.6–4.8.

She cautioned that eliminating department programs could also remove revenue streams those departments generate and that state rules create limits on cutting police budgets; she described a trigger requiring an administrative hearing if the police department budget is cut by more than 5% and said the city would have an opportunity to participate and present evidence in such a hearing. Commissioners discussed the tradeoffs of fee restrictions (for example, whether recreation fees must stay in recreation) and staff confirmed some revenues are legally restricted to specified purposes such as police and fire pensions.