In the city's 6 month financial report presented at the last Council meeting (April 12th), the Mayor defended recent utility rate hikes; said total revenue intake was up $857K-- and spending $1.1 million over budget (about a $300K shortfall).One option he suggested to the Council for dealing with the deficit was transferring more utility profits to the general fund (from 60-80%), and concurrently lowering gas rates somewhat. (It was the stated goal of the Council last year to reduce transfers to only 60%-- to allow for repair of their deteriorating infrastructures.)
Also, Kant said to implement all of the just completed "5 year Capital Improvement Plan," the City will need an additional $51+ million (projects mentioned: a recreation center addition, new museum portico, new irrigation system for the golf course, police pistol range improvements, automatic warehouse gate, et al).
Five main areas of financial concern were recently flagged by FAC Chairman Chuck Zunk: Golf Fund operational deficit; employee medical insurance increases; higher salaries/overtime; Gas Fund deficit; unexpected recreation land purchase (Manley Rd.).
[The entire report is available on the city's website.]
Electric rates are the Mayor's first topic in the video.