Council Approves Budget Moves: Year‑end Surplus Reported; Funds Shifted to YMCA and Homeless Services
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Summary
Finance staff reported an estimated FY25 fund-balance surplus of about $8.5 million; council approved reallocations including $45,000 for YMCA egress renovation and $469,000 to support sheltering and homelessness services, and adopted code changes to settlement-authority thresholds.
The council heard a year‑end finance briefing and approved several funding reallocations to support community services.
Chris Cullin, the city’s director of finance, told the council the FY25 general fund showed roughly an $8.5 million fund‑balance surplus (about 3.4% of the adopted budget), driven by stronger‑than‑expected real‑estate and personal‑property tax receipts and interest income. Cullin cautioned that much of the improvement was one‑time in nature and recommended holding surplus funds in the city’s CIP contingency rather than using them for ongoing commitments.
Council approved a set of off‑cycle reallocations. The council reallocated $45,000 from the council’s strategic initiatives fund to support a Piedmont YMCA egress renovation project necessary to preserve childcare slots at the Jefferson School City Center. Councilors said the work will prevent closure of childcare space and urged acting by single reading where appropriate.
Separately, the council approved reallocating $469,000 of funds originally earmarked for a low‑barrier shelter (which has not yet been activated) to cover three emergency requests: a $65,000 operating gap for PACHA, $234,000 to replace funds supporting permanent supportive housing operations administered by BRAC (serving 32 households), and funds to help the Salvation Army open six family shelter units at its Ridge Street location. City staff said the reallocations are short‑term, and work is ongoing to develop a permanent plan for a low‑barrier shelter in subsequent months.
Council also adopted a code update changing settlement authorities: the city attorney may settle claims up to $25,000 on their own authority, the city attorney and city manager together may settle claims up to $50,000, and larger settlements will continue to require council approval. The update adds a reporting requirement for settlements handled under those thresholds.
Councilors responded to questions about timing and one‑time versus ongoing uses of surplus funds and voted to pass the reallocations and code changes as presented.
