City staff brief council on replacement funds, ARPA uses and special revenue accounts ahead of budget adoption

Finance staff summarized a range of non‑general‑fund accounts at the Aug. 21 workshop, describing replacement funds (fleet and technology), special revenue funds and the status of ARPA projects.

Why it matters: Many city services and capital needs are managed through dedicated funds; understanding those balances and timing is essential for council decisions on budgets, bonds and program reimbursements.

Highlights

Replacement and internal service funds: Staff said the FY26 fleet replacement plan is conservative (13 vehicles proposed for replacement) to allow the reserve to rebuild after recent high equipment costs; fleet charges come from departmental transfers. The high-tech replacement fund (general-fund technology and public-safety equipment) is budgeted for targeted replacements and software updates.

Special revenue and other funds: Presentations covered multiple smaller funds tied to restricted purposes: animal shelter donations (estimated FY26 revenue $30,000; planned expenditures $56,000 drawing down a fund balance), court security and court technology funds (fees restricted by statute), truancy and juror funds (fee-driven and limited to program uses), and a public arts fund created to isolate public-art project funding and planning.

ARPA and other grants: The city has used American Rescue Plan Act funds across 30 projects; staff said 28 of those projects are complete and two remain (four medic units and a clock-tower repair) pending procurement and delivery. The police department used ARPA funds for LPR camera pilot elements and fire used ARPA to acquire ventilators and ALS improvements.

Seizure and opioid settlement proceeds: Staff noted federal/state asset seizure revenues are unpredictable and will be budgeted when realized. They also reviewed the state's share of opioid‑litigation proceeds, which will be received over many years and distributed to municipalities; the city will amend the budget when funds are received and then allocate according to council direction and departmental needs.

Discussion and next steps

Staff emphasized that several funds have onetime or timing-driven expenditures in FY25 and FY26 that affect year-end balances, and that some grant‑ or settlement-derived revenues will be recognized only when received. Council members asked for follow‑up on large donation items (animal shelter legacy gift discussions) and public-art spending priorities.

Ending

Staff said more detailed fund schedules will be provided in budget documents and that council-directed priorities will guide any allocation decisions when one-time or grant proceeds are received.