Council reviews Budget Amendment No. 2; staff to include specific‑purpose tax projects and state grant funding

City finance staff presented Budget Amendment No. 2 for council consideration, describing a package of grant awards, project appropriations and corrections to the current fiscal year budget. Pete (finance director) said the amendment includes multiple items and noted several large components: three specific‑purpose tax projects authorized by recent voter actions (staff described approximately $16.7 million associated with those projects), and a substantial Clean Water Development Commission grant for water/wastewater work. The amendment also includes smaller grant adjustments (police and fire grants, DUI enforcement, ARPA funds for treatment plant rehab, and a tap fee grant for a bridal project).

Pete said the specific‑purpose tax revenues will be collected over a two‑year period and that budgeting the full amounts now gives the city authority to start projects and enter contracts; the city will not collect all revenue immediately but wants expenditure authority to begin work. Staff explained collection timing and said subsequent budget amendments will roll forward or reconcile timing differences as projects and receipts proceed.

Councilors asked about cash flow, timing for construction and whether amendment authority required interim amendments; staff said revenues begin to arrive in the latter portion of the fiscal year and that the amendment is structured to allow early procurement but will be followed by additional amendments as needed. Pete noted a major grant from the Clean Water Development Commission intended for a reservoir/distribution project; staff referenced one figure of $5,700,000 for that grant and later references to a larger wastewater grant figure in meeting discussion were inconsistent in the transcript and will be confirmed in the finalized amendment documents.

City manager Carter warned of an additional uncertainty: recent federal executive orders and guidance affecting federal funding streams (including transit and some fire grants) may require an interim amendment before Amendment No. 3 in June. Pete asked the council to approve Amendment No. 2 tonight so staff could begin contracting and project work; council indicated informal approval to move forward.

Why it matters: The amendment bundles large project authorities and grants that will shape capital spending over the next two years and grants staff authority to begin contracting and construction activities. It also triggers follow‑up work to reconcile cash collections and to confirm grant amounts.

Next steps: Staff will file the formal amendment ordinance or resolution for council approval and will return with final grant agreements, confirmed dollar amounts for Clean Water Development Commission awards, and any interim amendments needed if federal funding guidance changes.