Georgetown reviews FY26 midyear budget amendment, including $2.5M visitor center renovation and $1.5M council transfer

City staff presented the FY26 midyear budget amendment at a Georgetown City Council workshop, highlighting reallocated capital funds, fund closures and several one‑time transfers.

Budget Manager Randy Cormack outlined the package as a first reading, saying the amendment covers project price escalations, special fund cleanups and personnel updates. "So we're bringing this in the midyear budget amendment," he said, and closed his presentation by noting, "That is all of the budget amendments." The council did not take a formal vote.

Why it matters: the amendment moves city money among capital projects and reserves, recognizes insurance and grant receipts, and uses one‑time balances for near‑term needs. Major items include recognizing $741,000 in insurance proceeds for the San Gabriel Low Water Crossing, rerouting a $1,000,000 allocation originally for Berry Creek Trail to another parks project, and transferring $2,500,000 from the tourism fund to the general fund to pay for a visitor center renovation.

Key details and changes presented by staff: Randy Cormack said two capital projects—Ridgeline ($200,000) and Bluff View Trail ($147,000)—had price escalations that will be covered with bond interest; the Berry Creek Trail allocation of $1,000,000 is being removed because the project is not moving forward; and the visitor center renovation is proposed at $2,500,000, funded by the tourism fund. He also described developer‑funded traffic signal work ($400,000), a Sycamore to South Highway 195 study ($40,000) to be paid from transportation impact fees, and several smaller capital and operating adjustments.

Staff listed personnel items: the electric fund will add a SCADA systems analyst (midyear impact about $52,000; estimated start 06/01; ongoing annual cost ~$155,000), and a water project‑manager position reclassed out in FY22 will be reinstated with a hire in FY27 (no FY26 fiscal impact).

Special revenues and transfers: the animal service special‑revenue fund (about $413,000 remaining) would be closed and its balance moved to the general fund to cover the Williamson County Regional Animal Shelter payment; police forfeiture funds would be appropriated in full; and the council discretionary fund would receive a $1,500,000 transfer described by staff as a transfer out of the general fund. Randy said the tourism fund transfer to the general fund is intended to pay for the visitor center renovation. The library would draw $64,000 from its reserve to address a projected donation shortfall.

Electric utility impacts: staff reported electric purchase power and retail sales have trended below budget (about 80,000 megawatt‑hours), reducing purchase power expense by roughly $6.3 million and retail sales revenue by about $4.8 million; staff proposed using the revenue stability reserve to offset a combined $829,000 reduction in pilot and franchise fees. Randy also noted a $326,000 reduction in renewable energy credit revenue and a $16,000 Motorola service agreement expense that was omitted in prior accounting.

Council questions and clarifications focused on funding sources and the one‑time nature of several transfers. A council member asked whether the $1.5 million transfer to the council discretionary fund is being returned; staff confirmed it is a transfer out of the general fund and characterized several items as one‑time expenses. Council discussion also confirmed that the city portion of funds originally earmarked for Berry Creek Trail would be rerouted to the Blue Hole renovation after council consensus.

Next steps: staff described this as the first reading and said the second reading is scheduled for the next regular meeting on April 28. No final action was taken at the workshop; capital planning workshops are scheduled through May and June.