Council adopts supplemental budget adjusting capital carryovers and ARPA allocations

The City Council adopted a supplemental budget resolution on Jan. 21 to record carryovers, insurance reimbursements and timing adjustments that together account for roughly $12 million in changes across multiple funds.

Finance staffer Katie presented the supplemental package, explaining the largest adjustments were capital carryovers from FY2024 into the current year. Notable items included a $4.3 million increase in the Water Fund beginning balance (carryover for redundant supply, seismic and nonpotable projects), about $2.9 million in wastewater carryovers, and a $582,000 increase in street‑fund beginning balance tied to gas‑tax timing.

Other items: the Administrative Services Fund recorded approximately $975,000 more beginning balance due to timing of insurance reimbursements for the city hall flood; ARPA funds were adjusted to reflect project timing and a small repayment for incomplete projects; library gifts and memorials and building‑inspection revenues were trued up to reflect late receipts.

Katie said municipal court costs were increased modestly to add interpretation services on certain days, and staff proposed to use contingency to offset the minor general‑fund adjustments.

Motion and vote: Councilor moved and seconded adoption of Resolution No. 2025‑3958; the motion passed on a voice vote with no recorded opposition.

Ending: Staff said the adjustments reflect normal project timing and the city’s move toward a two‑year budget cycle should reduce year‑end carryovers in future biennia. The adopted resolution appropriates the revised amounts and directs staff to continue monitoring project progress.