And then the public speakers are all questioning.

All right.

I know I'm gonna mess it up.

Um yeah, just a few.

That's what I had to do.

I'm a human life.

Sure.

I do feel like we do.

I just like I'll be like, hey man, copy um I'm not gonna do that.

It's not an omission.

Everybody would buy like uh we can do that.

This is what it's been like last year.

That's why we're like we need to come back.

Hello, thank you.

All right, welcome.

Before we uh have city council, we have a special meeting of the finance and personnel committee.

Uh sir, do you please take a roll?

Here.

Here.

Here.

So that present.

All right, thank you.

Uh under information only, we have a 2026 budget update and a 2027 budget preview.

I see we have Ms.

Hagerty here on there.

So uh we revise our 2027 budget uh process a little bit to add in a sort of year review for City Council uh to sort of bring together all the information financial information that's been communicated so far this year, kind of give you an update over as we move into the 2027 budget process.

Um so just a recap 2025 year end uh resulted in a general punch for call nine point four million, very high revenue performance between ambulance revenue and PPRT as we uh discussed with the 2025 supplemental appropriation ordinance.

Um at the end of 2025, our general fund balance is six point six million under the policy.

That policy is uh to maintain a fund balance of twenty percent of our operating budget.

That is for a number of reasons.

Um to prepare us to to be able to have resources to respond to emergency situations, to weather uh economic changes, um, and make um sound and reasonable budget decisions uh when we have an economic downturn.

Um and also for cash flow purposes, it's important to maintain that general fund balance policy of 20 percent.

So we're currently 6.6 million under that policy.

Uh year-to-date revenue, you can see the the bars are budget, the line is actual, you can see um we are underperforming in replacement tax and in other revenue in total, but through June, uh we are under budget on revenue by 2.7 million dollars or about 2.6%.

Uh if we were, and again, I just want to to make a really general statement here that this these numbers are very, very preliminary, and they're based on only four months of several of our major revenue sources.

So to call something after four months is is a it's really early in the process to do that.

But uh if we assume that current revenue trends continue through to year end, uh we estimate that revenue will fall short, $6.8 million or approximately 3% of the total.

Uh that would put us at about $6.8 million under budget on revenue in total.

Uh year-to-date expense here.

I know the scale's a little off because police and fire such uh are uh such large operating departments in comparison to others.

Uh but every operating department except the fire department is currently under budget.

Um through June in total, uh the general fund is 2.0 under budget or about 1.8%.

If we were uh if we assume that all departments and the fiscal year on budget, um and should current fire staffing practices continue, we estimate the general fund will be 4.4 million over budget for the year.

Um you can see there budget versus projection.

So if you take uh revenue underperformance and expense overperformance, uh you can see here the net of that is uh 11.1 million dollar shortfall for the year.

Um specifically some deficit challenges for 2026.

Uh the the general fund balance is not sufficient.

As I mentioned, we're already underneath our our general fund balance policy.

That general fund balance isn't sufficient to continue to absorb operating losses.

Uh 2026 needs to end in a positive position to begin to restore that fund balance to policy.

And uh finance staff will closely monitor department staffing vacancies and overtime use as the fiscal year continues to ensure that our departments stay at or below uh budget numbers for the year.

Uh revenue challenges that we've seen so far that we anticipate will continue into 2027.

Um as I mentioned, PPRT has continued um underperforming, not only in 2025, in 2026 year to date, but we anticipate we don't anticipate a recovery, so to speak, of those uh revenue numbers into 2027.

Uh ambulance revenue is currently under review and discussion with our billing partner to recommend a path forward that may include changes in our billing structure, um, other billing um updates to help make sure that we're collecting as much per transport as we are eligible to collect.

And our sales tax is currently lagging slightly as of and we'll have the full June year to date at next week.

But our as of the the fourth disbursement, we're about two and a half percent under budget.

I will say that's moving in the right direction.

After three disbursements, we were four percent under budget.

So we're hoping that that is an indication that we'll see some recovery there.

Uh this is just a general fund revenue uh graph to kind of show how our that bottom bar there is property tax, and that has remained flat since 2017.