Council advances transfer ordinance to move $1.49 million surplus into emergency fund

Council voted 6-0 on the first reading of transfer ordinance No. 8 to move $1,489,234 of 2025 revenue above the budget into the city’s emergency fund. Councilmember Livermore, who carried the ordinance, told the council the increase reflects the way earned income tax (EIT) was collected after the municipality changed vendors.

Livermore said the budgeted EIT for 2025 was $2,800,000 and that the city’s actual EIT receipts were approximately $3.6 million, explaining: "For 2025, the revenue was $1,489,234 above the budgeted revenue." She said the difference is partly timing and accrual changes after Keystone began handling collections, noting the city "took in about $800,000 extra in the, for 3 months" because of that collection timing. Council members clarified that the $1,000,000 taken from reserve to fund the 2026 budget does not affect this 2025 surplus transfer.

The ordinance is an annual procedure that transfers tax revenue above the budget into the emergency fund; council discussed the numbers but raised no substantive objections. The measure passed on first reading by voice/roll-call vote 6-0. Staff will include the transfer in accounting records and report final year-end balances as required.

The ordinance remains at first reading; any formal changes would appear on subsequent readings or at final adoption.