Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Budget topic
No spam. Unsubscribe anytime.
Council reviews FYE 2026 capital requests and sees PAYGo funding shortfall
Summary
Budget staff told the council the capital sales-tax forecast is about $17.5 million for FYE 2026 while requests exceed available PAYGo funds, producing a projected negative PAYGo balance of roughly $9 million; staff summarized major department requests and set a May 6 follow-up for the preliminary budget review.
Jacob Huckabee, budget analyst, presented the FYE 2026 capital improvement plan framework at the March 4 study session and told councilmembers the city is projecting about $17,500,000 in capital sales-tax revenue for FYE 2026, roughly flat with the previous year.
Huckabee walked the council through existing bond programs (a five-year $27 million street maintenance bond, the 2019 transportation bond, and a 10-year $50 million bridge maintenance program) and then summarized new and recurring requests across departments. He said the capital sales-tax requests and other project proposals exceed projected revenues and that PAYGo-funded projects show an estimated available balance of negative $9,000,000 for FYE 2026. "When we plug those into our projections, we're estimating for PAYGo projects having an available balance of negative $9,000,000 for FYE '26," Huckabee said.
Major requests enumerated: public works requested design and intersection studies (including a $100,000 Main Street two-way conversion study and a $320,000 roundabout design tied to a tribal grant). Police asked for multiple items including a $3.2 million package to renovate training facilities and range infrastructure, design funds for a potential new police headquarters ($150,000), and other capital repairs. Fire department requests included a proposed new Station 10 (~$7.4 million) and a Station 1 rebuild (~$6.2 million), tied to recommendations from a public-safety resource allocation study. Parks and recreation requested a $1.25 million playground replacement to improve ADA access at Reeves Park, a $700,000 splash pad, and parking expansions including $400,000 at YFAC; councilmembers cautioned against adding large amounts of surface parking without long-term planning.
Other budget context: staff noted Norman Forward and TIF fund balances, specific bond-program allocations and federal matching opportunities for larger transportation projects, and the possibility of using TIF infrastructure financing for certain police or station relocations. Council discussed tradeoffs, potential grant opportunities, and whether to prioritize recurring projects versus new requests.
Next step: staff said a preliminary CIP and the draft budget will return on May 6 for review before adoption. Huckabee and the finance team recommended that council consider appropriation markers or contract analyses (for example, a $100,000 structural/feasibility study for a chapel on Griffin land) to clarify costs prior to final budget adoption.
Ending: the session closed the budget presentation with staff and council members noting the competition among priorities and reaffirming the May 6 schedule for the next formal review.
