The Board of Aldermen in Pacific approved an ordinance adopting the city’s fiscal year 2026 budget on Monday, passing Bill 5282, which became Ordinance 3453 after a 4-1 vote. Alderman Cleave moved to adopt the budget and Alderman Madrigal seconded; Aldermen Kelly, Cleave, Madrigal and Hoeven voted yes and Alderman Lesh voted no.

The vote followed hours of line-by-line revisions and public comment on tourism spending and departmental staffing. Attorney Jones and staff walked the board through multiple spreadsheet corrections and recommended numbers before the final motion. The adopted budget includes operating and capital appropriations for the fiscal year beginning July 1, 2025, and ending June 30, 2026.

Why it matters: the meeting resolved the immediate need to approve a balanced budget before the fiscal year start but left a disputed transfer from the Contingency Reserve Fund to pay for planned parks operating items. That transfer — discussed at length — depends on procedural requirements in the city’s contingency ordinance and may require additional board action.

Most of the closed deliberations focused on correcting payroll formulas, reallocating hours for police and public works positions and approving transfers into parks. City staff identified a spreadsheet formula error (cell referenced in the meeting as M118) that initially produced a roughly $93,000 operating deficit; staff corrected the formula during the session and presented updated totals before the vote.

Board debate centered on a proposed transfer totaling $355,000 from the contingency reserve to parks projects and operations. That package combines previously approved skate-park funds and an additional $235,000 proposed for parks operating needs. During discussion, Attorney Jones read the contingency ordinance language (Contingency Reserve Fund, 105.021), saying the ordinance requires a supermajority of the board to authorize withdrawals from the contingency fund. Board members differed over whether passage of the budget alone satisfied that requirement; Jones noted that the budget vote “would have the effect of approving that transfer” but also read the contingency ordinance’s five-vote threshold aloud to the board, prompting further debate.

The board ultimately approved the budget ordinance by a 4-1 margin. Alderman Lesh said he could not support the budget while the contingency draw for non-emergency operations remained in place. Several aldermen said they would bring a follow-up resolution or ordinance to clarify contingency withdrawals and asked staff to schedule that item for a future meeting. Attorney Jones confirmed that if the board lacks five votes when it acts on a contingency withdrawal, the transfer would not be available and the budget would need amendment.

The meeting record shows staff made additional adjustments on police hours (including a tentative September 1 start for an assistant chief), transportation and water/sewer position hour adjustments, and clarified tourism revenue lines (notably sponsorship and barbecue event revenues). After incorporating those changes the city’s general fund operating balance moved from a material deficit to a small surplus of $843, according to the version of the spreadsheet staff circulated at the meeting.

Looking ahead: staff and aldermen agreed to circulate an updated master spreadsheet and to return to the contingency/transfer question at the next meeting if the board does not achieve the five-vote threshold tonight. Several aldermen asked department heads to refrain from initiating new spending until the city’s cashflows and contingency status are settled.

The board also approved routine items earlier in the meeting, including interfund receivables/payables for the FY2024 audit and an authorization of revenues and expenditures for the 2024 rodeo from the rodeo cash account.

Ending: With the ordinance now passed as number 3453, the city moves into FY2026 with an adopted budget and a set of follow-up items the board has asked staff to bring back: clarifications on contingency procedures and any ordinance or resolution required to effect transfers the board intends.