Council adopts first FY2026 budget revision, approves transfer to capital projects and grant updates

The Farmington City Council adopted Resolution 2025‑2008, the first budget revision for fiscal year 2026, adding five grants, adjusting one grant to actual award, transferring general‑fund dollars to capital projects for police‑department renovations and correcting an expired water‑utility line item.

Why it matters: The budget adjustment updates revenues to reflect new grant awards and moves city funding to capital projects needed for public safety facility renovations; by removing a fully expended lead‑and‑copper grant line, the water enterprise fund’s budgeted expenses were reduced, strengthening the fund’s projected ending balance.

Finance staff summarized the package: the city requested an increase in revenues of $279,884 (grant‑funded, offset by corresponding expenses) and a $156,000 transfer from the general fund to the capital projects fund to support change orders on PD renovations (HVAC, power and insulation improvements). Staff also removed a previously budgeted lead‑and‑copper item that was budgeted in FY2025 and fully expended, lowering FY2026 water‑enterprise fund expenditures by about $3.2 million in the city’s budget system reconciliation.

Councilors praised the new process for regular, targeted budget adjustments and asked no substantive questions. A motion to adopt the resolution passed by voice vote.

Less critical/contextual note: Finance staff said this is the first of several expected FY2026 adjustments as grants are finalized and one‑time capital needs are prioritized.