City Council

10.a. FISCAL YEAR (FY) 2025-2026 ANNUAL BUDGET STUDY SESSION\nOn June 3rd, 2025, the City held its first FY25-26 Annual Budget Study\nSession. At that meeting, staff made a presentation to City Council\nsummarizing the General Fund's FY25-26 Proposed Budget, its 5-Year\nFinancial Forecast, and the causes of the main changes in those financial\nforecasts.\nThe General Fund's FY25-26 Proposed Budget showed a\ndeficit of $448,744 and growing over the next five years. City Council and\nstaff discussed, and agreed that the City must “tighten its belts” before\npursuing any additional tax revenues.\nRECOMMENDED ACTION: At the June 3rd FY25-26 Annual Budget Study\nSession, City Council raised various questions and proposed solutions for\nthe City to “tighten its belts”. Staff have gathered information to answer\nthose questions and assessed the feasibility of the solutions\nproposed. Staff recommends City Council review the answers, discuss,\nand provide further direction to staff towards finalizing the FY25-26 budget.