City budget panel remands proposed 2025-26 general fund budget to staff after reserve dispute

The City of Cami budget committee on May 15 voted to remand the proposed 2025-26 budget back to the budget officer for revision after sustained debate over whether to draw down strategic reserves to 15% to avoid staff reductions.

City leadership's budget message explained the recommendation: managers and the city administrator proposed intentionally lowering the strategic reserve to 15% for the coming year to avoid layoffs and maintain services while the city expects to receive additional revenue when the Urban Renewal Agency closes in 2026. The city administrator said that the decision was intended to be a "bridge" approach while staff continue efforts to secure grants and other revenues.

Why it matters: committee members and several councilors said the council previously adopted a fund-balance policy that targets higher reserves and that any reduction below policy should be a clearly authorized council decision accompanied by a plan to replenish funds. Members asked for…