Council approves quarterly budget reports, investment report and first-quarter budget amendment

The Berkley City Council approved a package of finance items at its Nov. 17 meeting: the quarter-ended 09/30/2025 budget-to-actual report (Motion M10725), the quarter-ended investment report (Motion M10825), and the first-quarter amendment to the FY25–26 budget (Motion M10925).

Finance Director Carl Johnson said the general fund ended the year about $1.2 million better than anticipated—driven by roughly $300,000 of favorable revenues (notably higher building-permit activity and carryover HVAC grant revenue) and about $800,000 of favorable expenditures, much of which consisted of rollovers. Johnson cautioned that most of the favorable items were one-time and that the city still faces limited capital funding for infrastructure and facilities.

On the investment report, Johnson noted roughly $25 million in cash holdings at the primary bank, with about $23 million in a single savings account; the recently amended investment policy will guide diversification and future quarterly reports. The city estimates current liquidity but plans to diversify holdings to improve yield and mitigate concentration risk.

Budget Amendment M10925 includes higher defined-benefit pension contributions (the city updated its expected contribution after receiving actuarial numbers), a roughly $20,000 increase in street-lighting costs tied to LED rebate reconciliations, adjustments to the assessing contract, and rollovers including a sewer-lining invoice recognized late in the year (~$700,000 invoice from a $900,000 contract). Johnson explained the city amends the budget to remain in compliance with Michigan budgeting law and to reflect realized revenues and obligations.

All budget motions passed on recorded voice roll-call votes.