City manager outlines FY26 budget amendment, says developer will remit $250,000 before occupancy

City Manager Newkirk told the council the administration will present an amendment to the fiscal-year 2026 budget to carry over unspent bond proceeds and other items into the current fiscal year as part of the normal spring housekeeping process.

"The majority of the change in the budget amendment that's before you this evening as it pertains to bond proceeds that we did not receive," Newkirk said, describing the amendment as the routine step used to carry forward project funding.

Newkirk also updated the council on a downtown development at 455 Central. Owner Scott Cannell agreed to pay $250,000 to the city to support economic development initiatives tied to the project; Newkirk said Cannell’s legal counsel anticipates remitting the $250,000 "certainly before the CO" (certificate of occupancy). The city manager said staff had provided the owner and counsel a list of potential tenants and that build‑out for a dermatology tenant is underway with a final inspection expected soon.

Newkirk announced scheduling for upcoming budget and planning work: a Committee of the Whole workshop (planning and budgeting for FY27) is posted for next Monday at the Senior Center (1201 Park Avenue West), and the regular May meeting will be shifted to May 27 because of the holiday. He also noted separate meetings for public engagement on the "place of remembrance" design concepts in June.

What happens next

Staff will present the formal budget amendment for council consideration at a future meeting consistent with the city’s public‑notice requirements; staff said it will notify council when the $250,000 remittance has occurred or if plans change.

Provenance: Staff report and budget/development update introduced SEG 606–SEG 761.