York City officials said Oct. 28 that the draft 2026 budget relies in part on proceeds from the sale of the municipal wastewater treatment plant and sanitary sewer system to balance the general fund.

Kim Robertson, the city’s business administrator, told the council and the public the city has used the sale proceeds as a resource since 2021 and budgeted a transfer from Fund 28 of roughly $24.8 million in the draft so Council can meet projected health‑insurance and debt obligations. “Every year … we have used money from the sale or the anticipated sale … of the wastewater treatment plant to balance our general fund, in terms of our budget,” Robertson said.

Why this matters: Fund 28 holds a mix of original sale principal and subsequent investment earnings; pulling money from that fund reduces a reserve that was created to limit tax increases. Robertson and finance staff emphasized that part of the $24.8 million is interest earned on the sale proceeds, not original principal, and that actual amounts withdrawn historically have been lower than the budgeted maximum.

Officials provided additional detail about the makeup of the Fund 28 balance. Robertson said about $7 million of the $24.8 million reflected earnings rather than original principal, which “means we’re looking at taking about $17 million out of the principal, not $24.8 million,” if the maximum amount were required. Jerry from finance confirmed the fund’s carryover is a combination of principal and accumulated earnings and that available balances will change as year-end reconciliations and invoices are processed.

City staff said several factors could reduce the expected transfer before the budget reaches a final vote: earlier-than-expected invoices, stronger-than-budgeted investment returns, reimbursements tied to specific projects, and potential reclassification of revenue. Robertson cited one specific contingent reimbursement tied to a lease at 1601 Toroneta — if the lessee invoices before year‑end, that would reduce the amount the council must budget from the wastewater proceeds.

Officials reiterated that the proposed use of Fund 28 money is a planning step in the draft budget and that the council can adjust line items before adopting the final 2026 budget, which the administration said it expects to present for consideration before Dec. 31, 2025.

Ending: City staff said they will refine the Fund 28 numbers between the draft and the proposed budget, including clearer splits between principal and earnings and any reimbursements that arrive before adoption.