Stanton staff outlines midyear budget adjustments, council approves recommendations

City staff presented midyear budget adjustments Tuesday, telling the Stanton City Council the revisions reflect rising litigation and liability costs, new parking-enforcement expenses and several project and revenue updates, and the council approved staff recommendations by voice vote.

The presenter said "our actual litigation related costs are $1,200,000," and that general liability insurance claims are expected to total more than $200,000 this year, up from about $100,000 in the prior fiscal year. Staff said roughly $160,000 of the increased liability expense will impact the general fund; other portions will be borne by enterprise and special funds such as the housing authority and sewer fund.

Staff attributed much of the revenue adjustment to parking citation receipts and interest. The council was told a new overnight parking enforcement pilot, which began around November 2024, has produced an expenditure increase of about $150,000 so far. Staff also noted an earlier omission in the adopted budget: the county share of parking citation revenue, now estimated at $135,000, had not been properly recognized and is being corrected in the midyear adjustments.

The presenter said the Premier Park renovation project, previously budgeted at more than $1 million with $200,000 expected from the general fund assigned fund balance, is complete and public works did not need that $200,000; staff is removing that appropriation from the midyear budget.

On staffing, council was asked to ratify funding for one full-time limited-term code enforcement officer to be funded 50% by a new three-year federal tobacco grant and 50% by incoming cannabis community benefit fees negotiated with local retail cannabis businesses. "One of them has fully satisfied their payment," staff said of the four retailers with negotiated community benefit fees.

Staff also reported that the Verve developer loan for public benefit fees was fully repaid earlier than expected, increasing available public benefit fee revenues. On transportation and capital projects, the city returned $258,000 to the gas tax fund after completing citywide street rehabilitation, reduced a planned sewer project from about $1,800,000 to $600,000 after public works completed the scope and RFP, and lowered the overall CIP budget from $22,800,000 to $21,300,000.

City staff summarized reserves and fund balances, saying general fund reserves rose to about $15,200,000 (roughly 46% of operating expenditures) and the unassigned fund balance is about $18,700,000 (about 57% of operating expenditures); combined reserves and unassigned fund balance total approximately $33,900,000, or about 103% of the operating budget, which staff described as a healthy position.

Council members asked for an update on the city's Unfunded Accrued Liability; staff said an update will be included in the May budget workshop. After the brief discussion, council members voiced approval of the staff recommendations; the transcript records a voice vote and indicates the motion passed, but does not include a roll-call tally in the record.

The council directed staff to include additional detail on the UAL in the upcoming workshop and to bring a plan for use of the public-safety outreach grant to the May budget workshop.