The National City Special City Council meeting held on June 12, 2025, focused primarily on the fiscal year 2026 budget and the management of city reserves. The council members engaged in a detailed discussion about the projected budget deficit and the implications of ongoing expenses versus one-time expenditures.

The meeting began with an overview of the budget process, highlighting a projected deficit of approximately $8 million. Council members emphasized the importance of prudent financial management, particularly regarding the city's reserves. One member noted that the city has traditionally dipped into reserves but stressed the need for caution in doing so, as reserves do not replenish themselves easily.

A significant point of discussion was the removal of Capital Improvement Projects (CIP) from the budget, which was expected to alter the financial landscape compared to previous years. Council members acknowledged that this change would affect how the budget is viewed and compared to past fiscal years, as unspent CIP funds had previously created a misleading narrative of savings.

The council also addressed the need for labor negotiations, which could further impact the budget. Members expressed a preference for one-time expenditures over ongoing expenses, citing the challenges of maintaining a balanced budget with ongoing costs.

A substitute motion was proposed to allocate $1 million from contingency funds for city revitalization projects, with suggestions to prioritize immediate revenue-generating activities. The council discussed potential adjustments to staffing requests, including reducing the number of new positions to align with budgetary constraints.

Overall, the meeting underscored the council's commitment to careful financial planning while balancing the need for city services and revitalization efforts. The discussions highlighted the complexities of budgeting in a challenging fiscal environment, with members agreeing to revisit the budget as the fiscal year progresses.