Council approves third supplemental to FY2025 budget, including IGSA revenue and expense updates

The Fountain City Council approved a third supplemental amendment to the fiscal year 2025 budget on July 22, recognizing new intergovernmental support agreement (IGSA) revenues and associated expenditures and adjusting for higher insurance and equipment costs.

Finance staff presented the changes in the general fund and three enterprise funds. The supplemental recognizes roughly $4 million in additional IGSA revenue; corresponding increases in general fund spending include approximately $3.3 million tied to IGSA project activity, plus other items such as higher property‑casualty insurance premiums, a final payment on radios and vehicle upfitting that were ordered in 2024 but received in 2025.

Why it matters: the supplemental increases general fund reserves overall when accounting adjustments are completed, but reduces net positions in transportation, water and electric funds because some higher expenditures in those funds are recognized without offsetting revenues in this particular amendment.

Key figures: staff reported the general fund reserve will increase by roughly $206,000 as shown in the supplemental; with a planned $86,000 police vehicle upfit to be drawn from lease proceeds the reserve effect rises to about $293,000. Other line items noted were $20,000 for fire radio equipment, $86,000 for police vehicle upfitting and $15,000 for final payment on a pavement study.

Council approved Resolution 25-028 on a 7-0 vote. Finance staff said the insurance premium increases stemmed from the city’s membership in a pooled insurer and represented a system-wide rate adjustment rather than an event specific to Fountain.

Next steps: staff will track the amended appropriations and return results during the year‑end financial review.