Council committee advances operating budget substitute that reallocates 311 costs and boosts minority business support

The Finance and Economic Development Committee voted to advance substitute number 1 to ordinance 25-009, the fiscal 2026 operating budget, after the administration outlined a set of revisions including reallocating 311 call-center costs, adding council beautification funds, and increasing targeted support for minority businesses.

OMB staff explained the substitute shows a net $177,688 increase to the general fund driven mostly by two items: a $75,000 allocation for council beautification projects and a $100,000 reallocation of the 311 call-center cost from the water and sewer fund to the general fund. The latter reflects an analysis of call types showing more general-fund calls (for example, parking tickets and property tax questions) than previously budgeted to be paid by the water fund.

The administration also reported reorganizations in land use and planning, public works and parks and recreation that were budget-neutral overall. In the water and sewer fund, the substitute reduces expected revenues by $275,000 after shifting $100,000 of 311 costs and recording $75,000 in contract savings; the water and sewer utility assistance program was increased from $250,000 to $350,000.

The operating budget substitute includes a personnel classification change in the real estate and housing department, with a $3,437 increase shown in special funds (reflecting a move from grade 7 to grade 8 for a development specialist, and the split funding between CDBG and general fund revenues and expenditures).

Council members asked for public access to budget materials and confirmed that electronic copies were available on the city's website and on the council's budget page. The administration also confirmed the council's request to transfer $350,000 from the Tax Stabilization Reserve into the Economic Strategic Fund as a set-aside for the minority business development program; staff said previous transfers had been one-time infusions and that the fund will receive periodic infusions as needed.

Committee members asked how small minority businesses apply for assistance. The administration identified the Office of Economic Development and James Williams, the city's small minority business manager, as the points of contact, and said residents could call 311 or visit the office on the third floor of the City-County Building. Staff committed to providing data on how prior infusions were used and to deliver that information to council by Thursday.

Committee members moved the operating-budget substitute out of committee; the ordinance will be considered on the full council floor later in the week.