Council signals consensus on proposed $5.6M Fund 312 allocations for one-time capital projects

Finance Director Chelsea Walls presented the Fund 312 (capital reserve) analysis and a proposed allocation package built from a $5.6 million excess 2023 fund balance plus additional sources (RCO Flora Park reimbursement of $1,000,000 and net proceeds of $317,000). Walls said the transfer produces roughly $7.9 million available for one-time capital allocations and reviewed items already included in the 2026 budget such as pavement preservation ($1,042,000) and the local access street program ($1,750,000).

City Manager John Holman and staff described additional proposed allocations and local matches: about $672,000 for the Sullivan Road/Trent interchange local match, planning and alternatives for the Barker I-90 interchange, Plants Ferry Park improvements tied to a $9 million county upgrade, $300,000 for Balfour Park sports courts (plus state-requested lighting/audio infrastructure), public safety campus study placeholder, Sullivan Road property parking rehabilitation and a $500,000 reserve for the cross-country course. Staff said the allocations are one-time funds and that specific project expenditure lines will be presented later when projects advance.

Councilmembers debated priorities and several expressed support for the finance committee's package; Councilmember Merkel noted she submitted a separate budget amendment with alternative allocations but the council ultimately signaled consensus to follow the finance committee recommendations. Staff said the $5.6 million will be included in the upcoming budget amendment and that project-specific expenditures will appear as future budget items when work begins.