Universal City reviews proposed FY2026 general fund budget, explains audits and schedules tax-rate steps

Universal City council members met in a July budget workshop to review the proposed FY2026 general fund, hear a citizen27s questions about past audits and set the schedule for finalizing the tax rate.

The proposed general fund revenue for FY2026 is listed in the presentation as $20,000,532.29, with tax revenue representing about 78% of that total. The administration proposed a $1 million transfer from the venue (hotel/occupancy) tax into the general fund to offset parks-related operating costs.

City Manager (unnamed) summarized the staff27s approach to the draft: no new full‑time positions were requested for FY2026; several capital requests were deferred after one-on-one council meetings. Specific items deferred include a space needs assessment, Summit Park and Skate Park planning ($90,000), and a Versa-Lift bucket truck ($180,000) with staff noting rental as an alternative. The fire department deferred purchase of a larger utility vehicle, opting for a smaller vehicle to reduce the immediate price tag. The presentation also lists planned street and alley work and the debt-service needs for the coming year.

Why this matters: Finance staff said the city maintains a 12-month fund balance policy to protect operations from revenue volatility and emergencies. During the workshop, Finance staff (Ms. Green) and the City Manager told council that the city27s auditors are comfortable with the accounting and that differences between budgeted and audited figures reflect timing and accounting treatment (for example, how ARPA receipts were deferred in audited statements), not malfeasance.

A resident who signed up for public comment, Ken Metz, raised concerns after reviewing eight years of audit materials and suggested the general fund had been "over budgeted" in prior years. Ms. Green replied that year-to-year variances in the presentation resulted from timing differences, deferred ARPA accounting, and conservative budgeting practices (holding budgeted positions open in payroll even if vacancies persist). She presented side-by-side slides of budgeted versus audited revenues and expenditures and said most years were within single-digit percentage differences. She reiterated the council27s policy of conservatism and offered to meet with residents who had questions.

Capital projects and debt: The presentation lists FY2026 street projects (Churchwood, Crosswood Drive, Gamblewood, Inkswood, Longswood, Medicine Rock, Old Converse Road, Persia Drive, Travis Drive and the West Wright 6100 block) and CDBG-funded street work. Council and staff said they plan to work with the city27s financial adviser to prepare for a proposed $6 million bond issuance anticipated in the 2027 budget cycle; staff said any issuance timing will be driven by market conditions and council direction. The packet showed debt-service needs for the coming year of about $2,167,631 with estimated interest (based on current rates shown) at roughly $53,500.

ARPA and positions: Finance staff noted that ARPA funds awarded earlier to the city are near exhaustion; the budget contains two ARPA-funded mental-health officer positions now but, because ARPA payouts run out after FY2026, those positions would need to shift to general-fund support in FY2027 unless council directs otherwise. Staff advised council that will be a known "pinch point" for next year27s budgeting.

Process and next steps: Staff said the final certified tax rolls will be received July 25 and the council will see a tax-rate projection at the August 5 meeting. The formal public notice and final budget materials will be posted on July 31. Council will be presented tax-rate options August 5 and a required budget hearing and recorded vote on the tax rate will be held August 19.

No formal votes or ordinance adoptions occurred during the workshop; the session was informational and preparatory for the August decisions.

Ending: Staff asked council members to provide any further directions before the packet27s finalization. Finance staff offered to meet with any residents with follow-up questions about the audited figures or budget assumptions.