Over the past several weeks, I have shared pieces of the City’s financial picture as I gained access to our internal systems and records. Today, I am publishing the 2026 budget, along with supporting financial reports generated from QuickBooks, and the letter I sent to City Council explaining those reports before we passed the budget.

My goal is straightforward: to show residents how the budget numbers were developed, what they are based on, and where we need to improve our financial systems going forward.

What You’ll Find in These Materials

The documents shared include:

• The 2026 Budget, showing proposed revenues and expenditures by department and function
• Summary financial reports from QuickBooks (Balance Sheet, Profit & Loss, and Cash Flow) for both the General Fund and Public Works
• My budget letter to Council, explaining assumptions, limitations, and next steps

These reports are intentionally high-level summaries. They support the budget without exposing sensitive operational or security details. Because prior-year accounting classifications were inconsistent, year-over-year comparisons should be interpreted directionally rather than as precise program-level audits.

How the Budget Was Built

Most of this budget was developed before I was sworn in, using:

• Annual audit data previously shared publicly
• Historical spending patterns
• Known contractual and debt obligations

Once I officially gained access to QuickBooks, I used actual transactional data to validate those assumptions. In most cases, the audit-based estimates were remarkably close to the real numbers. That consistency gave confidence in the overall budget framework.

However, that validation process also raised significant questions-many of which were confirmed through candid discussions with the auditor. Those issues are real, material, and will be addressed and investigated separately.

Staffing and Departmental Budgets

Department staffing breakdowns were used to determine personnel budget lines. These are not arbitrary numbers:

• Each position was evaluated for necessity, scope, and cost
• Staffing levels were tied directly to service delivery and legal obligations
• Compensation assumptions were grounded in historical costs and regional norms as well as department head input

The Reality of Our Financial Records

Now that I have had time to dig deeper, it is clear that the condition of the General Fund’s accounting records is worse than initially understood.

Specifically:

• Years of transactions were not consistently categorized
• Many expenses were assigned to incorrect or catch-all GL accounts
• Some transactions were not assigned to a meaningful GL account at all

This makes reliable budget-to-actual reporting nearly impossible in its current state.

By contrast, the Public Works accounts are in significantly better shape. They are more consistent, more traceable, and easier to reconcile-proof that good systems and discipline make a real difference.

Why the Chart of Accounts Must Change

We already knew that the City needed:

• A one-to-one relationship between budget lines and GL accounts
• The ability to run accurate budget vs. actual reports throughout the year

What we now know is that this requires a much deeper overhaul.

Our Plan Going Forward

• Design a new standardized GL Account Structure
• Align every budget line to a specific, enforceable account
• Reassign all 2026 fiscal year transactions to the new structure
• Establish rules so this problem does not repeat itself

This is foundational work. It is not glamorous, but it is essential to accountability.

Cash Position and Reserves

The financial reports show that the City currently has a strong cash position. Because of that:

• No reserve deposit is required at this time
• Cash flow is sufficient to support operations and obligations

That said, prudent policy still matters. My recommendation is that the City maintain 3–5 years of debt service payments in reserve, specifically earmarked for long-term obligations. This protects taxpayers from shocks and preserves flexibility.

A Fair but Honest Assessment

It is important to be clear and fair:

• The data and systems inherited were not managed to modern standards
• These issues accumulated over years, not months
• The lack of structure made oversight harder than it should have been

At the same time:

• The City remained solvent
• Core services continued
• Some departments, notably Public Works, demonstrate that good accounting practices are achievable.

Why This Matters

Budgets are not just spreadsheets. They are:

• A statement of priorities
• A contract with the public
• A test of whether government can be trusted with shared resources

Publishing these materials is part of rebuilding that trust-with facts, not spin.

As always, questions and constructive scrutiny are welcome.