Controller flags fund‑balance risk and questions stormwater fund allocations; council accepts report

Controller Hollins presented the monthly financial operations report for August 2026 and projected an FY27 ending general‑fund balance of roughly $294 million (11.2% of expenditures, excluding debt service), $45.5 million below the finance department’s projection. He warned that the assumed revenue from a proposed right‑of‑way fee and the $5 garbage administrative fee represented material risks to the projection.

Hollins said implementation timing and the exclusion of sales tax from initial calculations produced nearly a $3.7–$4.0 million shortfall tied to the garbage fee. "Because implementation of the fee remains uncertain, this revenue represents a significant risk to the projected ending fund balance," he said. Councilmembers and finance staff discussed sales‑tax treatment and the timing of implementation before moving to accept the report.

Hollins also raised concern that allocations for routine vehicle washing had been charged to the stormwater/dedicated drainage fund and requested those be reallocated to lawful sources, saying that the stormwater fund is restricted for drainage maintenance and improvements. The mayor and finance staff responded that purchase‑order and contract history shows these services historically have been charged to the funds that maintain those vehicles, and that backup is available in the city system of record (SAP).

After debate, the council voted to accept the monthly financial report dated 08/31/2026. Hollins noted his office had filed public‑information requests to obtain additional documents about a mayoral advisor’s employment and criticized retaliatory public‑information requests to his office as politics.