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City staff previews $9.5M out-of-cycle 2026 budget amendments; council asks follow-up on CDBG timing and large land purchase
Summary
Finance staff briefed the council on a roughly $9.5 million out-of-cycle 2026 budget amendment package covering a new cable-services utility tax revenue line, a parks maintenance position, an e-bike grant ($216,000), a $350,000 climate grant, CDBG reconciliation (~$686,000) and water fund items including a possible $6.2 million land acquisition; staff will return with ordinance language and further details.
Troy, a city staff member, presented an out-of-cycle set of budget amendments that staff plan to bring to the council in ordinance form next week.
Key items noted in the briefing included:
- Utility tax revenue: projected cable-services tax estimated at about $710,000 annually (staff said January collections were close to projection with $55,000 received in January and a $60,000/month projection). Staff said the revenue is being tracked as a separate line item in the general fund.
- Staffing and operations: a journey-level parks maintenance technician position is included as an out-of-cycle addition; partial-year salary and start-up equipment costs for the meter transmission unit replacement program were included (staff said the city has replaced about 1,400 meters since last November).
- Grants: a Department of Transportation-funded e-bike lease-to-own program for employees (~$216,000) and a $350,000 Department of Commerce grant for climate initiatives within the comprehensive plan were noted.
- CDBG reconciliation: staff proposed a $686,000 request to obligate Community Development Block Grant funds received in 2025 and anticipated in 2026; councilmembers asked whether the two-year approach aligns with earlier guidance to hold funds for one year before public distribution; staff said the first two years are being used to build internal capacity and reporting systems and that public distribution is expected in later years.
- Water capital: staff listed three amendments including design work ahead of schedule, a possible land acquisition (approximately $6.2 million) to be budgeted if it comes to fruition, and a $60,000 out-of-cycle water-rate analysis.
Troy said the amendment package is estimated at about $9.5 million in total and that staff will return with ordinance language for council consideration next week.
Next steps: staff will prepare ordinance language and additional detail on CDBG timing, the proposed land acquisition, and any council-requested clarifications.
