Planning & Parks committee directs $350,000 from reserves to reduce FY2026 parks budget gap

The City Council Planning & Parks Committee on Oct. 21 voted to direct $350,000 from the city’s reserve fund to reduce a projected $483,000 shortfall in the Planning & Parks department’s fiscal year 2026 operating and capital budget.

City Administrator Tom Hoyt presented two budget options: Option A, a balanced budget that would require substantial cuts to services and programs; and Option B, a less severe reduction package that leaves a roughly $483,000 gap. “We’re expecting about $59,500 increase, a net increase to our overall general operating revenue, and we’re seeing a $160,000 increase from the police service contract alone,” Hoyt told the committee during the presentation of revenue assumptions and the proposed options.

The committee’s action directs staff to treat Option B as the baseline and use up to $350,000 from reserves to reduce the shortfall, while returning to the committee with an itemized plan identifying roughly $175,000 in additional, permanent savings. Committee members emphasized limiting immediate service disruptions where possible and prioritizing core operations and personnel pay adjustments.

Why it matters: Staff said several revenue streams have flattened or fallen in recent years, chiefly a long-term decline in the telephone utility tax and the phased reduction in the cable franchise fee following a 2021 state legislative change, and that increasing contractor and insurance costs are putting pressure on operating budgets. The department also noted near-term growth that could raise revenues in future years — staff estimates about 300 new housing units under construction in Wildwood — but said that will not erase the immediate shortfall.

What was on the table: The committee reviewed a workback of proposed cuts that, under the balanced Option A, would preserve a zero deficit but eliminate or reduce a number of programs and services. Items discussed included reduced employee COLA/merit adjustments, cuts to portable restroom service and special-event budgets, elimination of subsidized pool passes for residents, reduced consultant and contractual services, and suspension of some donations and banner purchases. Staff and committee members also discussed capital tradeoffs, such as buying permanent restroom structures from reserves to avoid long-term rental costs.

Reserve mechanics and next steps: Committee members asked staff to prepare a revised “Option C” recommendation that starts from Option B, applies the $350,000 reserve draw and documents the specific line items to be cut or modified to close the remaining gap. Members also asked for a later strategic session on reserve policy and possible investment or targeted use of surplus funds. Staff said they will return with the itemized reductions and updated budget documents for the full council’s work session.

Votes at a glance: - Motion to approve the Sept. 16 minutes — approved by voice vote. - Motion to direct staff to use $350,000 from the city reserve to reduce the FY2026 Planning & Parks shortfall — passed by the committee (voice vote). - Motion to postpone the city recreation schedule — passed. - Motion to schedule the Village Green opening ceremony in spring (April/May) — passed. - Motion to postpone final action on the Veterans Wall of Honor and seek grant funding/clarification — passed.

Committee comment and context: Members repeatedly returned to the size of the city’s reserve and whether a temporary reserve draw or a voter-approved tax for parks/stormwater should be pursued longer term. Several members urged transparency with residents if a tax measure is eventually considered and asked staff to model how different reserve drawdown scenarios would affect fund balances over a multi-year horizon.

What staff said they will provide: a) a revised budget packet showing Option B plus the $350,000 reserve draw; b) a recommended set of prioritized cuts (line-item detail) approximating $175,000; c) exact user counts for programs discussed (for example, pool-pass participation); and d) options for a council strategic session to set reserve policy.