Council approves first FY2025 budget amendment after staff carries forward prior-year encumbrances

The City Council on Jan. 22 approved Ordinance 1-25, the first budget amendment for fiscal year 2025, which recognizes prior council-approved items, accounting adjustments and carryover encumbrances from fiscal year 2024.

Acting Financial Services Director Crystal Feest explained the amendment repackages previously approved items that require ordinance-level appropriation, reclassifications between funds and approximately $45.1 million in carryover encumbrances (open purchase orders and contracts from FY2024). Feest described the largest identified items as construction and project-management expenses for JC Park improvements and stormwater/road reconstruction items previously approved by council. She said some position reclassifications were included but that net full‑time equivalents would decrease slightly.

Council members asked where the amendment funds come from. Feest said much of the amount represents funds already approved in prior resolutions and simply carried forward into FY2025; encumbrances that were not completed by fiscal year-end must be re-appropriated. She also said an accounting adjustment reduced the originally advertised amendment total; the city clerk read aloud that the amendment had been revised downward to $72,679,262 from a previously advertised larger amount because certain line items were removed or reclassified.

Council approved the ordinance by roll call (8 ayes, 0 nays). Several council members said they would continue to review the amendment details in upcoming budget workshops.