Mayor proposes mid‑biennial budget adjustments to cover nondiscretionary costs, recommends REET transfer and delays to some projects

Monroe City administrators brought the mayor’s recommended mid‑biennial budget adjustment to the City Council at a study session on Oct. 21, outlining steps to balance 2026 budgets, fund nondiscretionary obligations and preserve the city’s reserve target.

What the mayor proposed: City staff reported that the city’s actual beginning fund balance for the General Fund was about $1.9 million lower than previously projected and that nondiscretionary expenditures are running roughly $1.4 million over budget. To meet the city’s reserve policy target (17% of operating expenditures), cover non‑discretionary overages and maintain current staffing, the mayor recommended a package of adjustments that includes using contingency funds, a one‑time transfer of real estate excise tax (REET) revenue to the General Fund, reductions or postponements of several professional service contracts and delays to selected capital or nonessential projects.

Key figures and mechanics: Staff said the reserve policy target equates to about $3.2 million under the revised calculations. The mayor’s recommendation relies on these elements to close the gap: - Use of contingency and other adjustments totaling roughly $1.67 million to help meet reserve targets while leaving a contingency balance…