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FY26-27 Commission Presentation - Rollback Overview Rollback, Fire Assessment & Budget Overview Special Session 07/14/2026 Alan Lawson, CFO 1 Millage & Fire Assessment Millage Review Current 7.7500 = $65.3M Rollback 7.4257 = $62.6M Impact = -$2.7M CRA Impact -$0.7M Fire Assessment Current $145 = $8.8M Proposed $170 = $10.3M Impact = +$1.5M Delta -$1.2M 2 Updated Budget (General Fund) **No Change Current/New Assumptions: 12 Month hiring freeze (Vacancies) = +$ 1.5M Rollback Rate = 7.4257 = -$2.7M COLA Walk-Thru COLA Impact — $2.9M (General Fund only) General Emp - $0.8M PD - $1.0M FD - $1.1M Add Pays - $0.6M (PD & FD) PD Step Plan - $0.3M Total Salary Impact = $3.8M Add Backs COLA Impact $2.9M Add Pays $0.6M PD Step Plan $0.3M Rollback $2.7M Total Impact $6.5M Revenue/Reduction Fire Assessment $1.5M Vacancies $1.5M Additional Plan Reductions $1.7M Draw from Fund Balance $1.8M 3 Next Steps Continuous Improvement Activities to Reduce the General Fund Draw Updates to the Commission as Need to Provide Transparency September 8th – First Budget Hearing September 16th – Final Budget Hearing 4 Annual Operating Plan - Strategic Foundation Simplify the budgeting process Allow for departments to know the number early and begin to strategize what projects and work need to be completed for next year now (6 months from now) Ensure Fiscal Sustainability Maintain a balanced budget while preserving adequate reserves Align expenditures with long-term revenue projections Reduce reliance on one-time funding sources Optimize Resource Allocation Prioritize funding for essential services (public safety, infrastructure, sanitation) Allocate resources based on performance metrics and community impact Implement zero-based or priority-based budgeting for transparency Support Economic Development Invest in projects that stimulate local business growth and job creation Allocate funds for workforce development and innovation initiatives Encourage partnerships with private and nonprofit sectors Improve Operational Efficiency Identify cost-saving opportunities through process automation Consolidate services where feasible to reduce duplication Implement shared services across departments Address Equity and Community Needs Ensure equitable distribution of resources across neighborhoods Fund programs that support vulnerable populations Incorporate community feedback into budget priorities Invest in Infrastructure and Resilience Allocate funds for critical infrastructure maintenance and upgrades Plan for climate resilience and disaster preparedness Support sustainable development initiatives Strengthen Long-Term Planning Align budget decisions with the city’s strategic plan and vision Incorporate multi-year financial forecasting Prepare for future liabilities (pensions, healthcare). 5