Council reviews spring budget amendment raising appropriations and noting April 27 action date

City staff presented Ordinance 1054 on April 13, a spring budget amendment that would adjust the 2025–2026 biennial budget to address emerging needs and grant awards.

The staff presentation summarized the amendment as increasing appropriations by $19,500,000 and transfers out by $15,200,000, with financing sources of $31,800,000 in revenues, $15,200,000 in transfers in and $19,300,000 from prior accumulated fund balance. Staff projected a 2026 ending general fund balance of $15,100,000, or about 23% of general fund expenditures, which staff said remains within the city’s target range of 20%–25%.

Staff noted that Ordinance 1054 is scheduled for action on April 27 on the consent agenda. Councilmembers asked substantive questions about items contained in the amendment: the city’s responsibility for HVAC repairs at the Spartan Recreation Center (a city-used, school-district-owned facility), whether the $525,000 repair is for natural-gas equipment or an electric/heat-pump alternative and whether the school district would share costs; a $4.5 million West transformation/utility re-route set-aside; and a $23 million debt-service item tied to sidewalk and surface-water bonds previously discussed.

Councilmembers also clarified the relationship between contracts brought to consent and budgeted items: staff explained the difference between contract approval thresholds for the city manager and amendments that appear on consent when amounts fall within existing budget authority. For the Hamlin modular project, councilors asked whether a $437,000 amendment had been included in the spring amendment; staff said that if the amendment was already part of consent, it should already be reflected in the budget, but confirmed they would verify whether any additional increase would appear in this spring amendment.

The ordinance was not acted on that night; it was placed on the April 27 consent agenda for council action.