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Midway council approves $1 million transfer to capital projects in fiscal-year budget amendment
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Summary
The Midway City Council adopted Resolution 2026-08, a fiscal-year 2026 budget amendment that rebalances revenue and expenditures, increases some capital project allocations and transfers roughly $1,000,000 from the general fund to the capital projects fund to maintain required reserves. Council discussed project timing for Bergey Lane paving and water‑fund adjustments.
The Midway City Council voted April 21 to adopt Resolution 2026-08, a fiscal‑year 2026 budget amendment that adjusts revenues, reduces several departmental line items and moves roughly $1,000,000 from the general fund into the capital projects fund to comply with state reserve expectations.
Brad, filling in for the budget director, told the council the amendment "adjusts line items to be more reflective of actual revenue and expenditures over three quarters" and reallocates funds among capital projects. He said the amendment increases general‑fund tax revenue by about $72,000 (largely prior‑year tax redemptions), reduces miscellaneous revenue by about $33,000 because cemetery sales are suspended and cuts professional services by nearly $87,000 due to lower development‑driven legal and engineering needs.
The amendment also proposes a net transfer of about $1,000,000 to the capital projects fund. Brad said the transfer is not increased spending but a movement of reserves to the capital fund and that interest earnings from bonded open‑space reserves have also increased overall interest revenue. "We have millions of dollars sitting there in reserve waiting to be used for open space projects, and we're just gaining interest off of that," he said.
Council members questioned accounting details and project timing. One asked whether the budget is accrual or cash; Brad replied the city uses accrual accounting and that prior‑year collections recognized this year are included as current revenue. Members sought clarification on several line items, including street sign supplies and a proposed reduction in water‑fund expenditures tied to prior efficient project completion.
A substantial discussion focused on the Bergey Lane project, which the council expects to pave this fiscal year in conjunction with water work. Brad said the packet's fiscal‑year labels caused confusion and staff agreed to correct mislabeled entries and to break out multi‑year payments so funding and payments align with the correct fiscal years.
The council also heard brief adjustments to other enterprise operations: the ice sheet and souvenir shop saw revenue increases (roughly $15,000 and $35,000 respectively), which reduce required transfers from the general fund.
After a short public hearing (no public speakers), the council moved to approve the resolution; the motion carried on an aye vote. Staff will finalize packet labels and confirm payment timing and line‑item rollups so the public record accurately reflects fiscal‑year allocations.
The amendment takes effect per normal city budgeting procedures; staff will report back on any clarifications requested by council members and confirm the Bergey Lane payment schedule.