Council approves transfers, interfund loan to cover tourism events after budget cut

Council members voted to approve two measures aimed at closing a shortfall in the tourism events budget: a $250,000 transfer from contingency and a $100,000 interfund loan from the Community Development Fund to the visitor and tourism fund.

"So tonight what we're asking the City Council to consider, is a resolution transfer of our current contingency of $250,000 as well as approval of an interfund loan of 100,000 from our community development fund which would be repaid this fiscal year," said Christie, the interim city administrator.

The actions followed staff explanations that the contractor, Treadway, had budgeted and planned for $1,292,000 in events while the council-adopted appropriation was reduced to $700,000 during the budget committee process in May and June. Staff said that the contractor was not notified of the reduction until late August or early September, after event contracts were in place.

Council moved and passed Resolution No. 2099 (transfer of appropriations for FY 2026-27) and Resolution No. 2100 (authorizing a $100,000 interfund loan). Staff said the $100,000 loan would be repaid within the fiscal year and that an earlier interfund loan of $300,000 remains scheduled for repayment this year as well.

Next steps: staff will implement the approved transfers and loan and return to council with any required bookkeeping and repayment schedules.