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Board amends FY26 budget, uses fund balance to reduce tax rate and approves $1.6M for OptiComm traffic system
Summary
The Board of Mayor and Aldermen voted to allocate a majority of the FY25 fund balance to lower the FY26 tax rate, adopted amendments to the mayor—s proposed budget and approved using $1.6 million from a special reserve for replacement of the city's OptiComm emergency-vehicle preemption system.
The Board of Mayor and Aldermen adopted several amendments to the mayor—s fiscal year 2026 budget on Tuesday, voted to apply two-thirds of an estimated FY25 fund balance to reduce the FY26 tax rate and approved using $1.6 million from a special reserve account to replace the city—s OptiComm emergency vehicle preemption system.
Finance staff presented a projected FY25 fund balance of $2,069,000. By ordinance, that fund is normally split evenly among the rainy day fund, the severance reserve account and tax-rate reduction. The board suspended ordinance 35.032 for this year and voted to allocate approximately $689,666 to the severance reserve account and use the remaining balance to reduce the FY26 tax rate.
The board also approved a set of programmatic adjustments to the mayor—s budget, including an out-of-cycle compensation study adjustment and targeted increases funded from other revenues. The amended appropriation total voted during the meeting was raised to $196,511,261 (as presented during the session).
On capital items, the board approved using $1.6 million from a special reserve account to purchase and install a replacement OptiComm system that the fire chief had described as end-of-life and critical to emergency response timing at traffic signals. The special reserve account had an available balance reported at approximately $3.8 million; the allocation would leave roughly $2.2 million for future capital needs.
Why it matters: the fund-balance allocation will reduce next year—s tax rate rather than preserving a larger split into reserves; the OptiComm purchase is a capital expenditure intended to improve emergency response but draws from a general reserve rather than new bonding.
Votes and next steps: the motions to allocate the fund balance, amend the general fund appropriation and approve the OptiComm funding were carried by recorded voice votes and roll calls where recorded. The board discussed—but declined—an amendment to reduce a proposed $400,000 health insurance contingency line that had been included in the mayor—s budget.
Ending: Finance staff and aldermen said remaining budget resolutions would be enrolled and transmitted as required for the next steps in the city—s fiscal calendar.
