CFO reports early-year budget status; council adopts FY 2025-26 adjustments

Jason F., the city’s chief financial officer, presented the first-quarter financial report and a packet of budget amendments. He said year-to-date the city had spent about 27% of the operating budget and currently projects a smaller operating deficit than the 5% built into the adopted budget (roughly a 2.8% operating deficit current estimate). Health insurance premium increases were lower than budgeted (8.5% actual vs. 10% budgeted). Property tax assessed value was reported up 5.7% year over year.

Key fund notes included a water fund running about a 5% operating deficit and continued surpluses in wastewater and airport funds tied to large expansion projects; long-term debt rose significantly due to the airport project and a DEQ loan tied to the Wetlands Complex is expected to approach $45 million by year-end. The CFO noted development revenue and system development charges are down roughly 30% year-over-year, consistent with budget assumptions. The city’s fund balance was cited at approximately $12.7 million with a minimum policy threshold of $9.6 million.

Council was presented a set of budget amendments and a motion to adopt Resolution 2025-21 to adjust the fiscal year 2025-26 budget; council approved the resolution by voice vote. Staff said some amendments had been previously approved and others represent internal fund reorganizations (creating an internal services fund) and adding a $73,000 managed-camp contribution already approved at prior meetings.

Next steps: staff will implement the budget adjustments and continue quarterly reporting to council.