Council approves budget amendment to address IRS payroll liability, ERP implementation and testing costs

Jun 1, 2026

Council adopted a budget amendment (Ordinance 2026‑02) that reallocates funds to cover outstanding payroll tax payments to the IRS, enterprise software implementation costs and increased water testing expenses; staff discussed interest, penalties and options to offset costs.

The full story

Council reviewed and approved Ordinance 2026‑02, a budget amendment that reallocates funds to address outstanding payroll tax liabilities, implementation costs for the city’s enterprise resource planning (ERP) system and increased water‑testing expenses tied to a permit change. Staff explained the city had collected payroll withholdings but some payments to the IRS remained unpaid after prior administrative turnover; the amendment allocates funds to reconcile those obligations.

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