Auburn council approves midyear budget tweaks, sets March 9 pension discussion

The Auburn City Council voted Feb. 23 to approve second‑quarter adjustments to the city’s FY 2025–26 budget and to adopt an updated position allocation list and pay schedule.

Finance Director Gretchen Hoskins told the council the adopted budget in June was about $37.1 million and that earlier first‑quarter adjustments temporarily raised the citywide budget to about $38.6 million. An audit and accounting timing rules reduced the carryover the staff had earlier estimated; Hoskins said the official general fund balance from the audit is $854,000. After recommending roughly $1.3 million of uses from available funds, she said about $362,335 remained unearmarked.

Hoskins flagged sales tax as the city’s largest ongoing revenue source — roughly 45% of general‑fund ongoing revenue — and said the city’s sales‑tax consultant is watching for year‑over‑year declines even as longer‑term projections show potential increases. She said the city is holding sales‑tax estimates flat for now and can tap its economic contingency reserve if revenues fall short, then prioritize replenishing reserves once conditions improve.

Council members pressed for clarifications about the numbers and trade‑offs. Questions covered the composition of the small changes shown in 187 individual budget adjustments, specific program revenues (for example, a $10,000 donation and a few entertainment‑zone permits accounting together for a $12,124 line), and higher revenues from EV‑charging fees. Hoskins noted several one‑time items that affected carryovers, including grant reimbursements tied to the COPS grant and the Safe Streets for All grant, and said the city is using ClearGov tools to tighten personnel and benefits estimates.

On the expense side, Hoskins said some unanticipated one‑time capital and personnel costs absorbed savings in other areas. She cited larger adjustments to funds such as the airport (an increase of about $354,000, paid by external grants/insurance) and sewer (about $558,000 for emergency repairs and studies). She also said staff removed an assumed $500,000 asset‑forfeiture settlement from projections after it appeared unlikely to materialize.

Council member Holmes moved approval of the midyear adjustments and the updated position and pay schedule. The council approved the motion in a roll‑call vote with all members recorded in favor.

Hoskins told the council she will return on March 9 with a more detailed, “robust” discussion of options to address the city’s unfunded pension liability, noting the city previously released $1 million from an unfunded pension reserve and that the council will need to consider a range of solutions going forward.

The council’s action on Feb. 23 implements staff’s recommended midyear corrections and keeps the city on track to review and adopt the FY 2026–27 budget materials in the spring and finalize the next year’s budget in June.