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Auburn council adopts $1.5 million in midyear adjustments; general fund projects modest surplus, reserves may reach 30%
Summary
City council approved midyear budget adjustments that increase the citywide budget to about $38.1 million, reflect enterprise and special-revenue changes and project a roughly $453,000 general-fund surplus that could bring reserves to the 30% policy goal.
The Auburn City Council on March 2025 adopted staff-recommended midyear budget adjustments and reserve changes, approving a resolution to increase the citywide budget by about $1.5 million to roughly $38.1 million and to set updated reserve targets, Finance Director Gretchen Johnson said.
Council voted by roll call to approve the adjustments; Councilmembers Bridal Harris, Davis, Don Calvio, Holmes and Mayor Sandra O'Mara voted in favor.
The package of adjustments includes a general-fund revenue increase of $644,567 and a general-fund expenditure increase of $198,890, producing a year-end projection that Johnson described as a $453,006.77 surplus. Johnson said that projection, if realized, would raise the general fund reserve toward $6.3 million, approximately 30% of general fund expenditures — the council's stated reserve target.
Johnson told the council the city has implemented a hiring freeze and targeted labor reductions that together produced ongoing savings. She said nine positions were frozen as part of attrition and other measures; those frozen positions moved the city's funded staffing total to about 80 positions, down from about 89 in the prior year. The hiring freeze and targeted labor reductions have contributed to roughly $1.08 million in savings so far, Johnson said.
Enterprise funds saw material adjustments: the sewer fund expenditure budget increased by about $744,000, driven primarily by a roughly $400,000 clarifier replacement project and sewer rehabilitation work; Johnson said the airport fund's budget decreased by about $155,599 because a terminal predesign project is progressing more slowly than anticipated. Special-revenue funds were also adjusted, and two funds previously reported as custodial were reclassified under new GASB fund-definition guidance.
Council members praised staff for the work and noted that the current projected surplus depends on continued conservative management. One councilmember said that because recent attrition met targeted reductions, staff will not need to issue layoff notices. City staff indicated the updated financial information and attachments are available on the city's transparency website.
Action: A motion by resolution to adopt the staff recommendations was made and seconded; roll call recorded five ayes and the measure carried. The motion text presented to the council was to adopt the staff recommendations in the agenda packet; the transcript does not record a named mover or seconder.
Ending: Staff will incorporate the approved midyear adjustments and proceed with quarterly monitoring; the council will receive a proposed FY202526#x2013;26 budget in June 2025.
