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Finance Committee adopts year‑end appropriation; $1M seeded for shelter endowment, Metro subsidy increased
Summary
Committee adopted a dense year-end appropriation resolution (Legistar 90,967) that projects roughly $9 million in general-fund revenue above the revised budget, a projected $10.6M year-end surplus, moves underspending to cover deficits, increases Metro Transit subsidy, and seeds a $1M shelter endowment as the first half of a $2M commitment.
The Finance Committee unanimously adopted Legistar 90,967 on Dec. 1, a year-end appropriation resolution that adjusts the city’s 2025 accounting and moves underspending and centrally budgeted funds to cover agency deficits and priorities.
Finance staff presented a year-end projection that shows general fund revenues are projecting about $9,000,000 above the revised budget and a combined surplus and underspending that results in an approximate $10,600,000 year-end surplus. Agencies are projected to be about $2,800,000 under budget overall, with larger underspending concentrated in Information Technology (about $1,300,000) and the Community Development Division (about $700,000). Staff cautioned that the city is at its maximum expenditure-reserve capacity (expenditure restraint/E rip limit) and cannot appropriate new funds beyond that limit without moving underspending or using centrally budgeted reserves.
Key adjustments in the resolution include transferring $1,200,000 of a $4,300,000 comp absence escrow to agencies with retiree benefit expenses and moving remaining comp-absence and contingent-reserve amounts to cover other deficits; increasing the Metro Transit general-fund subsidy by roughly $5,800,000 to address higher personnel costs (overtime and benefits), purchased services (electricity and paratransit) and lower-than-anticipated partner and passenger revenues; and transferring $1,000,000 to seed a shelter endowment (the first half of a previously committed $2,000,000 endowment). Staff said the remaining $1,000,000 will need to be accommodated in a future budget.
Alder Revere, and others, asked for the committee to post the finance presentation to the Legistar file. Revere asked for estimated year-end fund balance; finance staff estimated approximately $120,000,000 (about 28% of the general-fund budget), versus about $110,000,000 (27%) at year-end 2024. Revere also questioned underspending patterns; staff said some underspending was caused by accounting timing for prepaid multi-year contracts under GASB guidance and by vacancies affecting contract performance. Staff said they will continue to monitor projections and may make transfers if unanticipated needs arise.
Eric Nett, former interim Metro general manager, briefed the committee on Metro’s outlook and said operations are “significantly more stable” than prior years, while cautioning that partner revenues and timing of revenue growth remain uncertain and that recruitment/retention of operators affects overtime costs.
The committee recorded a unanimous vote to adopt the resolution. Staff will implement the transfers and technical adjustments in accounting entries and incorporate the shelter endowment disbursement to Shelter Friends of Dane County (or designated shelter operators) with an attorney‑approved agreement for the endowment’s use.
