City Manager reported the administration will meet with council members in small groups to discuss proposed changes to utility-billing policy intended to reduce the city's exposure to unpaid arrears.

The manager said the city is carrying "anywhere from 2 and a half to $4,000,000" in outstanding utility arrears at various times and that current approaches "are not fiscally sustainable." The manager said some longstanding billing and payment arrangements dating back decades have led to ongoing carryover balances and that staff will present proposed policy changes that may take effect in February or March. The manager emphasized these are business decisions that do not require immediate council approval but that council members would be briefed before implementation.

The manager also told the council staff will evaluate the budget roughly six months into the fiscal year and may bring adjustment requests to the council depending on inflation and other fiscal pressures. No formal council action on billing policy or budget changes was requested at the meeting.