GENEVA — With a sobering first look at city financial trends on Tuesday, it took Mayor Jim Cecere and City Council just two days to take action.

At a meeting Thursday initially scheduled to be largely an executive session, Cecere pushed for — and received — unanimous City Council approval for what was called “interim budget control measures” related to the 2027 spending plan that is under construction. They include a hiring freeze for administrative and “non-essential” positions — police, fire, and highway and public works are not affected — a suspension of non-essential travel, a review of labor contracts, and a suspension of mayoral and council member pay.

Suspending mayoral and council pay until the 2027 budget is adopted will be reviewed by the city’s attorneys.

Other positions currently vacant, such as deputy city clerk, also may be exempt from freezes because of functions the city needs to provide by statute, City Manager Amie Hendrix said.

City Council’s actions follow what Hendrix called “extremely preliminary” budget numbers for 2027 that indicate a structural gap of $1.65 million even with a “status quo” spending plan. It could result in a potential 20% tax increase, or about $326 more for a median home valued at $143,550.

Hendrix said in her report to City Council, following a request by Cecere for an analysis of the city’s financial condition, that the challenges don’t get any easier after 2027. Projected structural gaps rise from $2.13 million in 2028 to $3.85 million in 2031.

Hendrix told Council Tuesday the costs of running the city — largely driven by salaries, benefits and pensions — are rising faster than revenues. However, she stressed to City Council Thursday the city’s current financial condition is stable.

“(The report is) not a statement of where the city stands today,” she said. “It’s where we project it going in the future.”

Cecere agreed.

“This is not a crisis in terms of the 2026 budget,” he said. “The 2026 budget passed. It’s balanced.”

The mayor also noted Geneva has a strong credit rating.

Cecere stressed the moves approved by Council Thursday are not a “crisis response,” but a chance to save some money where possible and set the tone for greater fiscal discipline, given the projected gaps between spending and revenues over the next five years.

“We’re not about to hit the iceberg,” Cecere said in using a Titanic metaphor. “As a matter of fact, we can see it. We have time to turn the ship.”

In a prepared message to Council she also read to staff members earlier in the day, Hendrix said that she and her employees recognize the financial challenges the city faces. She also stressed the preliminary nature of her projections for the coming fiscal year, and questioned whether the measures approved by City Council were premature.

“The 2027 baseline figures are based on current assumptions and come several months ahead of the formal budget presentation,” she said in her statement. “They precede key inputs such as Q1 and Q2 actuals, sales tax data, state aid updates, healthcare renewals, labor negotiations, and the full structural gap analysis. These numbers will evolve, potentially in either direction, and I believe Council would benefit from reviewing refined data before committing to measures of this scope. The concern is valid. I would simply suggest that the response be paced to match the certainty of the information.”

Hendrix added that the “analytical work outlined in the mayor’s framework is already underway. This includes the baseline budget, structural gap analysis, departmental inventory, scenario modeling, workforce analysis, and revenue review. These efforts are designed to transform early projections into a more precise and actionable financial picture. Some elements of the current resolution overlap with this ongoing work, and Council may wish to consider whether adopting them now or after additional data is available would produce the strongest outcome.”

Hendrix also added that “many of the practices reflected in the resolution are already part of daily operations,” such as vacancy reviews, contract scrutiny, travel approvals, overtime monitoring, and budget tracking.

The measure was approved by a 6-0 vote. Councilors Peter Gillotte (Ward 4) and Pat Grimaldi (Ward 3) were absent, as was Councilor-at-Large Ahmad Whitfield, who has not attended a meeting this year since being arrested on drug charges in January.