Finance committee backs transfer from capital reserve to fix double-counted transportation roof funding

The Finance Standing Committee on Sept. 3 recommended approval of SA 4-26, a budget adjustment that shifts funds from the city's capital reserve to cover a Department of Transportation roof-replacement project after staff said a grant had been double-counted in the FY26 budget.

Director Moran (Finance Department) explained the error: a grant included in FY25 was double-counted in FY26, creating a shortfall. "We had a grant last year. We then double counted it for this year. And so we need to replace that accidental double counting with capital reserve funds," a committee member summarized; Moran confirmed the description.

Nut graf: Committee members pressed for specifics about the reserve balance and alternatives for replenishing it. Staff identified three options: 1) use capital reserve (the option advanced in SA 4-26), 2) reallocate capital reserve funding from another FY26 project, or 3) draw on the parking fund balance to support the transportation fund. Staff said taking $405,000 would leave about $600,000 in capital reserves and that the parking fund has already been subsidizing transportation activity.

Members asked staff to prepare a prioritized list of capital-reserve-funded FY26 projects that could be delayed and to involve the transportation and public works directors in those discussions. The committee voted to forward SA 4-26 with a favorable recommendation and asked finance staff to circulate options by email or present them at the next finance meeting for a proposed ordinance to replenish the reserve.

Ending: The committee advanced the item and set a follow-up to identify specific projects that could be deferred or reallocated to replenish capital reserve funds.