Council hears first reading of fiscal 2025 budget amendment showing higher revenues and capital changes

Council hears first reading of fiscal 2025 budget amendment showing higher revenues and capital changes At a council meeting, Chief Financial Officer Bob Ford presented the first reading of Budget Amendment No. 1 for fiscal year 2025, summarizing revenue improvements, changes to capital spending and adjustments to debt plans. The item was presented for first reading and council did not take final action at that time. Ford said the amended operating budget reflects an improvement of $1.1 million driven by revenue increases (including higher interest income) and fund-specific revenue updates. "This gives you an idea that now we've integrated this new rate structure into the budget," Ford said, referring to water and wastewater rate changes that increased revenue in those funds. Ford reported revenue increases he attributed to better interest income (about $210,000) and higher water and wastewater revenues: he cited $562,000 for the water fund and $503,000 for wastewater. He also reported offsetting revenue losses in parks due to inclement weather and a lost rental contract (a $41,000 loss) and said overall personnel costs are lower this year because of vacancies. On the capital side, Ford said the amended budget shows a net increase in capital spending of roughly $2.1 million, driven by a building cost increase (about $965,000), IT infrastructure ($565,000) and furniture ($450,000). He noted some of the increased capital has already been approved in prior resolutions and that the city is drawing on State Revolving Fund debt to finish wastewater plant phases. Ford described the recommended amended budget as available for review in the workshop materials and asked council to review before the next meeting; this meeting included only the first reading of bill 25-29. Council did not object to scheduling follow-up questions with staff before the next hearing.