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Council approves $718,000 reserve transfer and adopts midyear budget update
Summary
Council approved transferring $718,000 from available general-fund reserves ($50,000 to IT equipment; $334,000 to facility rehabilitation; $334,000 to park and trail maintenance) and adopted the FY25-26 midyear budget, which projects the unassigned fund balance rising about $282,000 to $25.6 million after savings and MOU adjustments.
The City Council on March 10 approved two related fiscal actions: a reserve transfer totaling $718,000 and the fiscal-year 2025-26 midyear budget update.
Stacy Timani, chief financial officer, explained the reserve calculation: audited unassigned fund balance for FY24/25 is $25.3 million and the policy-required 20% reserve is $24.6 million, leaving $718,000 available for transfer. Staff recommended splitting that available amount as follows: $50,000 to the IT equipment fund, $334,000 to the facility rehabilitation fund, and $334,000 to the park and trail maintenance and rehabilitation fund. Council approved the resolution by roll call.
Timani also presented the midyear budget update (Resolution 11574). She summarized earlier cost-saving measures (Phase 1 staffing reductions yielded about $3 million in savings; Phase 2 generated about $1.2 million), encumbrance carry-forwards and approved MOU adjustments. After those adjustments, the city projects the unassigned fund balance to increase by approximately $282,000 to $25.6 million. Timani said the adopted midyear incorporates prior council-approved changes and reflected the recent audit.
Council members thanked staff for clearer budget presentation and voted to adopt the midyear budget. The city manager noted the result is a positive step but cautioned that long-term maintenance needs will still require ongoing attention.
