Council reviews first round of 2025–26 budget amendments, narrows projected deficit

Finance Director Tom Meldridge presented the first round of general-fund budget amendments at the Feb. 23 council meeting.

"Tonight we are bringing budget amendments to you for the general fund... These amendments will replace the previously approved $197,000 deficit budget, with a smaller $147,000 deficit budget," Meldridge said, explaining that recognized revenues increased roughly $792,000 while expenditures increased about $742,000 for the first half of the fiscal year.

Meldridge told council that a large share of the additional revenue came from building-permit activity tied to significant construction at a local manufacturer and a distribution center. He said roughly $400,000 of the added revenue came from about six or seven items, with building permits the largest single contributor; corresponding third-party inspection costs increased the related expenditures.

Other adjustments included state-source receipts (small one-time amounts tied to changes in personal-property tax provisions), MERS forfeited funds of about $80,000 (the city proposes to apply those funds back into pension funding) and conservative updates to sponsorship and interest revenue estimates. Meldridge emphasized conservative budgeting and said he expected further adjustments in a later spring amendment.

Council asked no substantive follow-up questions on the record and the memo will return for additional review in a subsequent meeting cycle.