Council members used the Nov. 24 work session to probe several structural items in the 2026 recommended budget, focusing on stormwater funding, interest and fund-balance assumptions, and department cost-allocation processes.

Councilors flagged a reduction in the stormwater replacement line from about $7.9 million in the prior year to $650,000 in the 2026 recommended budget. Finance and road-and-bridge staff explained that the high prior-year figure included one-time heritage buyout funds that are not repeating; the department also said cost estimates from recent stormwater studies are not yet finalized and would not be available in time to obligate construction money for 2026.

Finance staff walked members through fund-balance accounting: the recommended budget reflects an estimated $105 million fund balance rolled into project plans for 2026 with $766,000 left as an operating reserve in the transportation fund example cited on the floor; staff reported an end‑of‑2024 general-fund balance of $37.7 million and noted a conservative approach to recognizing interest income (staff estimated $1.4 million for 2025 versus a higher actual in 2023). The finance director warned that sustained draws on reserves would reduce flexibility in a downturn and urged caution about one-time allocations from general operating funds.

Councilors also reviewed a $3,470,000 cost-allocation line that reconciles support-department charges (finance, HR, IS) back to the general fund. Staff explained that the allocation redistributes the cost of centralized services to non-general funds and shows as revenue in the general fund and as expense in departmental budgets.

Other budget items discussed included capital projects in parks and recreation (siding and building repairs), proposed park land-acquisition placeholders ($2 million), and clarifying the use of federal ARPA/CARES and Shuttered Venue Operators Grant money on prior Family Arena capital work. Several council members requested a supplemental summary showing truly new budget changes and any remaining unencumbered balances before final readings.

The recommended budget will be introduced as a formal bill at the council’s next meeting; staff said a revised document and a summary of changes would be provided before final passage in December.