Council delays funding for three allocated positions, agrees to workshop discussion

Council members spent substantial time debating whether to fund three positions that appear in the FY27 budget: a staff attorney, a downtown coordinator and an engineering project manager. Several council members favored further discussion with downtown business owners about cost-sharing and a tax-overlay model before obligating funds, while others argued in-house staff could improve continuity and reduce outside-counsel spending.

Mr. Ray and the city attorney explained options: the city manager may leave the positions in the ordinance but the council can approve the budget and then enact a budget amendment in July to remove funding or move dollars to fund balance so positions are not filled until the council decides. The city attorney also noted centralizing legal expenses is intended to improve transparency and audit tracking of outside counsel spending.

Council Member Yanero suggested exploring contracting some services and getting buy-in from downtown owners before imposing a local overlay; Mr. Ray said some downtown owners have asked to see a position description before agreeing to additional assessments. Lorna Welch, the city attorney, described pros and cons of a full-time staff attorney versus contract counsel: a dedicated in-house attorney reduces conflict-of-interest risk and provides immediate availability, while a firm can provide a broader bench but may be costlier over time.

Outcome: Council adopted the budget ordinance but directed staff to prepare a July budget amendment and to schedule a workshop to examine funding options and downtown cost-sharing; hiring will not proceed until council takes explicit further action.