Centerville council approves FY2025 budget amendments, sets 30% fund-balance policy

The Centerville City Council on June 25 approved Resolution 2025-11, a package of Fiscal Year 2025 budget amendments that recognize new revenues, allocate grant and donation money, cover higher-than-expected developer bond interest, and set a policy to return unspent wrap-tax dollars to dedicated funds.

The amendments, presented by Nate, a city staff member, cleared a public hearing with no public speakers and passed on a 4-0 roll call vote. Council actions included approving transfers to the parks and capital projects funds and authorizing use of fund balance for an expanded general-plan study.

City staff said the largest unplanned expense resulted from higher interest the city must now pay developers on cash bonds. "These are the developers that give us their cash bond. And then as they complete the work on their property, we refund the bond, but we are also now required to give them interest," Nate said, explaining the city originally budgeted $5,000 for that line but has spent far more as rates rose. Staff recommended using $50,000 of fund balance to cover the shortfall.

Nate outlined other revenue recognitions: a $25,000…