City staff on Dec. 2 presented the governing body with a preview of the FY2026 first budget amendment, describing a roughly $3.2 million net increase to the general fund driven mainly by capital carryovers and technical revenue increases.

The presentation, given by a city finance/administration representative, said operating additions total about $512,000 (excluding ARPA funds), and called out unplanned expenditures including jail services and an unexpected veterinary surgery for a police canine. Staff said the amendment reflects carryovers for transportation, information-technology projects and a water-study that were not completed in 2025.

A key decision point flagged for the governing body is a $216,000 pool for year-end employee bonuses: $1,000 per full-time equivalent who met eligibility (on the payroll before June 2025) and $500 for permanent part-time employees who meet the same date requirement. The presenter said about 212 full‑time positions would qualify under the proposed rule.

Council members pressed staff for specifics. The presenter clarified the $3.2 million figure was a $3,200,000 increase from the adopted budget and estimated remaining ARPA funds at just under $1.7 million; staff said most ARPA allocations are committed, with a $22,000 smart-meter allocation possibly at risk of reallocation if rules require it.

Council members also asked whether elected officials could be included in any stipend or bonus scheme. The city manager said he would consult the city attorney and report back before the Dec. 16 meeting.

Staff asked that the council schedule the amendment for a public hearing and put the item on the consent agenda for the Dec. 16 meeting; that hearing and the consent vote are now planned for that date.

The council took no final action on the amendment on Dec. 2. The administration provided backup spreadsheets and said detailed line-item changes would be available for review ahead of the public hearing.