Council questions personnel expansion as HR outlines 72 requests and 945 positions

Nathan Watson, an HR analyst, presented the fiscal year 2026–27 personnel summary and a package of requested position changes. Watson told the council the city’s overall FY27 budget is about $120,055,000 and that total positions would rise from 924 to 945 (a net increase driven by 72 requests for new positions and reclassifications). Watson said the city budgeted vacancy savings of about $1.4 million based on 32 open positions and highlighted that 291 positions remain under fire and police union contracts that are still in negotiation.

Council members expressed concern that personnel cost growth is outpacing expected general‑fund revenue growth. "If we grow from 23 to 27, 11.6% in number of people ... and the personnel budget grew 22%," one council member said, urging caution on adding staff when revenue projections are flat. Several members urged embedding many financial positions in enterprise funds (electric, water) rather than the general fund, phasing hires, or staggering start dates to limit near‑term pressure on reserves.

Council also asked for clearer revenue-to-expense alignment and suggested returning to the revenue optimization study to identify sustainable options. Staff said many of the proposed analysts would be funded by enterprise or non‑general‑fund sources and explained the intent to improve in‑house financial analysis by embedding analysts in enterprise areas.

No final action was taken; council directed staff to continue refining the personnel package, consider phased hiring and vacancy management, and return with more detail as part of ongoing budget work.

The council repeatedly framed this agenda item within a broader concern about structural budget sustainability, noting that pending police and fire contract outcomes could materially affect the general fund.