Finance committee approves transfers to cover leave payouts, IT transition and urgent laptop purchase

At a Finance Committee meeting, members approved a set of budget transfers and an appropriation to cover accrued leave payouts, short-term IT contracting during a municipal building transition and the purchase of cruiser laptops before an expected tariff-driven price increase, committee presenters said.

The moves shift savings from vacant salaried positions into contractual services and other line items, add $41,000 for utilities in the new building, provide $26,000 for fire vehicle maintenance and increase overtime funding for the fire department after several leaves and a retirement, and transfer $110,000 from the general fund into the accrued leave reserve to cover leave payouts, a finance presenter said.

"If we order these cruiser laptops before June 30 they will not have the increased price due to the tariffs. So currently they're $3,950. If we wait until after June 30 to approve this appropriation, the price goes to over $5,000," Maggie, a finance staff member, said when committee members discussed a time-sensitive purchase for police cruiser laptops.

The committee heard that the budget adjustments include $35,000 in contractual services for plumbing inspections tied to a large permit for Park Line apartments; officials said a large apartment project can drive unusually high plumbing-inspection costs. Finance staff said they moved about $99,000 out of vacant salary lines into contractual services and noted a net shift that reflects the plumbing-inspection estimate.

Fire-department requests included $26,000 for vehicle maintenance after a major engine issue on an 11-year-old front-line engine that the department said is being repaired while a new front-line engine ordered in 2022 or 2023 is still pending. Staff also asked for more overtime funding to cover three parental leaves, three medical leaves and one retirement in the fire department.

Committee members discussed accrued-leave payouts. "If you've been here if you have more than 10 years of public service, we pay out 25% for sick, then we pay 100% vacation, 100% personal leave, and then comp time as well is paid out, the 100%," Maggie said, describing the existing payout rules. Finance staff said the city typically budgets $150,000 for leave payouts but has already exceeded $200,000 this year, prompting the $110,000 transfer into the accrued leave reserve.

Staff also described a short-term plan to keep the current IT staff member on contract during the transition into the new building. "So this is money to keep Brian Lee on through the new building, all of bringing all the processes, all the systems online. So this is just for Brian Lee for six months at the most," Maggie said. Committee members asked about hours and cost; staff said Brian Lee is currently working about 40 hours a week as a contractor while department heads evaluate long- and short-term IT staffing needs.

On procedure, a committee member moved to approve the recommended substitute form of the appropriation and the motion was seconded; the committee voiced approval and the presenters said there was no negative fiscal impact to the reserve, according to the meeting record.

Staff indicated next steps include completing the laptop purchase before the June 30 tariff deadline, continuing short-term contracting for IT during the building transition and evaluating a permanent IT director hire and leave-payout policies (including any constraints from the collective bargaining agreement).

Less-critical line items included an additional $41,000 for utilities in the new building (staff said some utilities will be turned over to the city in August) and a $110,000 intra-fund appropriation from the accrued leave reserve to the operating budget to record payouts separately from base salaries.

Committee members asked multiple operational questions during the discussion, including how long contractor IT support would be needed, whether third-party evaluators would assist in assessing long-term IT needs and how leave and overtime policies interact with union agreements. Staff said they will return with recommendations and additional detail as the transition proceeds.