The City of Ferndale held a budget workshop on March 22, 2025, to discuss key financial strategies and challenges for the upcoming fiscal year. The meeting focused on addressing deferred maintenance, unfilled positions, and general operating cost savings, with an emphasis on the need for ongoing adjustments throughout the budget year.

The discussion highlighted several critical areas, including the impact of deferred capital projects on the city's financial health. Staff recommendations were presented, indicating that while some projects could be prioritized, the current funding situation limits the city's ability to address all needs immediately. The city anticipates that changes to the budget may be more frequent than usual due to these challenges.

A significant point raised was the need for improved risk management, particularly concerning maintenance and capital costs. The city plans to keep emergency repair line items adequately funded to mitigate unexpected expenses.

In a positive development, the city manager introduced new financing strategies aimed at enhancing operational continuity. These strategies include a two-phased approach to investment, combining long-term and short-term investment strategies to optimize cash flow and interest earnings.

Additionally, the city is considering the establishment of a vehicle equipment replacement fund to stabilize vehicle expenditure fluctuations over time. This fund would allow for a more predictable budgeting process regarding vehicle needs. A similar strategy for facilities maintenance was also proposed, aiming to create a long-term funding plan for building upkeep.

While these initiatives are still in the planning stages and will take time to implement, they represent a proactive approach to managing the city's financial resources effectively. The workshop concluded with an acknowledgment of the ongoing efforts required to navigate the budgetary landscape in the coming weeks.