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Council moves 2026 budget to second reading after discussion of $22.4M property purchase
Summary
City staff presented a $35.57 million 2026 draft budget and a related amendment to record a $22.4 million property acquisition; council sent the budget to second reading and adopted the amendment to move acquisition funds into the capital projects fund.
Speaker 11 (budget presenter) told the council the proposed 2026 budget totals $35,567,460 and walked members through beginning fund balances, 2025 adjustments and planned uses for 2026. "We're looking at 35 and a half million dollars," Speaker 11 said when summarizing the totals.
Speaker 11 explained staff plans to roll over certain REET and park-development funds and that some large projects are being carried into 2026. He noted water/sewer operation fund balances appear low on paper because of internal transfers into construction funds and described staff options for using beginning fund balance and delaying transfers to maintain operational liquidity.
Councilors asked how the purchase of the former Rite Aid building would affect reserves. Speaker 11 said the 2025 purchase is recorded and 2026 funds are intended for design and possible renovation; the budget amendment makes a transfer to the general capital projects fund to properly record the transaction. The amendment identifies roughly $22,400,000 associated with the purchase and was presented as a clean transfer into Fund 301 (general capital projects).
On the council floor, members discussed reserve-policy targets. Speaker 11 noted the city’s estimated 2026 ending fund balance near 19% compared with the council’s stated policy target range of 25–30% for unassigned general-fund reserves and cited GFOA guidance as context.
Motion and votes: The council moved to send Ordinance 25-08 (2026 budget) to a second reading (motion by Speaker 4, second by Speaker 2) and recorded the ayes; one councilor recorded opposition during that vote. The budget amendment (Ordinance 25-09) to move the acquisition dollars into the capital projects fund was moved, seconded and adopted during the meeting.
What happens next: The budget ordinance will return for a second reading where council members may make further adjustments prior to final adoption. The budget amendment is now on the books to account for the property acquisition and associated transfers.
