At the meeting the council considered Ordinance 25-12-03, an ordinance adopting amended final budget changes for the fiscal year beginning Oct. 1, 2024. Finance staff told the council the changes are primarily housekeeping and internal reallocations and said they have authority under the charter to move funding within departments but not between departments without council approval.

City finance staff summarized that the amended budget "will be almost $2,800,000 less than the council approved at the beginning of fiscal year 25," attributing the difference primarily to ARPA funds that were not spent last year and TDD dollars budgeted but not used pending construction timelines. Staff said the actual general fund revenues and expenses are closer to $19,000,000, and that the perceived surplus reflects timing and accounting shifts rather than unbudgeted revenue.

Council members pressed on reserves and whether unspent project funds would carry forward; staff confirmed that project monies would be carried to 2026 or to the appropriate enterprise fund (for example, water and sewer) when transfers have been enacted. One council member asked whether the city had pulled repeatedly from reserves; staff said reserves were used in the current year but less than budgeted and noted prior years varied in reserve use.

The council approved the ordinance on the second reading after discussion. Staff offered to answer line-item questions and said staff would provide additional details as requested.

Next steps include updating official budget documents and posting amended figures for auditing and public record.