Council approves deficit‑elimination plan, approves budget carryforwards after debate over HRCS expenditures

At the Jan. 24 Committee of the Whole meeting, city finance staff presented the fiscal year 2025 second‑quarter general fund status and a related set of budget items. The council unanimously approved a deficit‑elimination plan for the fringe benefits internal service fund and later approved a set of budget amendment carryforwards for FY23–24 into FY24–25 by a 7–1 vote after questions about timing and use of Human Relations and Community Services (HRCS) funds.

Why it matters: the actions adjust the city’s fiscal documents for obligations that cross fiscal years and address a shortfall in an internal fringe‑benefit fund. Several public commenters and council members pressed for clarity about how HRCS carryforwards—intended for homeless services, community needs assessments and racial equity grants—will be spent and tracked.

Jake Brower, Chief Strategies Officer, summarized the second‑quarter general fund position. He said the city adopted a FY25 general fund budget of about $165.2 million in total revenue and a similar level of expenditures and reported an updated general fund balance of approximately…