Council reviews Schedule A1 budget changes as state homeless mitigation aid falls; administration proposes one-time fund balance uses and capital leases

City budget staff presented Schedule A1 adjustments at a June 9 work session, reporting changes across multiple funds and calling attention to a drop in state homeless mitigation funding.

Justin Sorenson told the council the homeless-mitigation award the city has relied on for several years is declining from roughly $4.3 million in FY26 to about $3.4 million for the upcoming year. To maintain 23 funded full-time positions and two temporary advocates tied to the prior funding level, the administration proposed a one-time use of general fund balance of "just over 194,000" to cover a set of prioritized items: $150,000 for the community-cleanup contract, $20,000 for client services tied to homeless advocates, and two software purchases totaling roughly $22,650.

Sorenson also described other Schedule A1 changes: increasing the budget line for trail support from $30,000 to $100,000 (offset proposed from interest income), moving a $700,000 CIP allocation pending appropriation for a Taylor Canyon property purchase, and recommending an additional $3.5 million in the water fund to better align annual replacement with a water master plan that estimates roughly $11 million per year would be required to meet a 1.2% system replacement target.

On fleet replacement, staff proposed a capital lease slightly above $2 million to acquire seven pieces of public-services equipment (sweepers, a storm-sewer replacement truck, a small refuge truck, skidsters and international trucks). Staff said much of the fleet is past typical useful life (10+ years, with some assets 13 years old and one mini sweeper possibly 30 years old) and that lease rates are charged back to operating departments under a replacement/lease model.

Council and staff also revisited the political history of using BDO lease revenue for ongoing operations. Glenn Sims and administration staff reminded the body that prior council votes (FY25 budget discussions and late-2025 ordinance amendments) rejected the use of recurring BDO lease receipts for ongoing general operations and that the administration has continued to express interest in future conversations. Staff warned that any permanent transfer of BDO lease revenue to operations would reduce the pool available for CIP projects and could affect planned purchases such as Taylor Canyon.

Staff asked council members to provide any final friendly amendments before Schedule A1 is finalized for the formal packet next week.