Council members press administration on PAYGO, unspent funds and contingency reserves

During a lengthy exchange, several council members raised concerns that PAYGO — intended for one‑time capital outlays such as systemic renovations or equipment pilots — has been used repeatedly for items that look recurring. Chair Walsh and Council Member Young pressed staff to explain why items that appear ongoing (ammunition purchases, systemic school renovations) are labeled one‑time and paid from PAYGO.

Administration budget staff, including Dr. Sun and departmental directors, said the county evaluates each PAYGO submission for one‑time criteria (pilots, equipment replacement, non‑recurring capital) and that some large unspent balances reflect timing, supply‑chain delays, or multi‑year redevelopment processes. Staff said more than 85% of FY25 PAYGO funds have been disbursed or encumbered and that the remainder is expected to be expended by year‑end; they agreed to provide updated, quarterly breakdowns showing awarded grants/loans, spend‑down and remaining balances by project.

Council members also questioned the administration’s policy reserve and the choice to use fund balance to partially close the school budget gap. Several members urged clearer public narratives on prior appropriations versus new receipts so residents can track whether “new” grant awards were actually appropriated in prior years and remain available for current use.

The council asked staff to (1) resend the project spreadsheets and narratives immediately, (2) post the consultants’ modeling of scenarios if expected funding fails to materialize, and (3) produce quarterly PAYGO expenditure reports that break down which fiscal‑year awards were actually spent and what remains encumbered.