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Mayor presents conservative 2025–26 budget, flags larger use of fund balance
Summary
Administration presented the proposed 2025–26 budget with conservative revenue estimates, a higher planned use of fund balance, a $4.692 million interfund transfer and a $1.6 million unencumbered amount—measures the mayor said are needed absent a capital renewal.
City leaders reviewed the administration’s proposed 2025–26 budget and emphasized a conservative revenue posture and limited capital planning while the council considers whether to place a capital renewal on a future ballot.
Key numbers: Staff called out a $4.692 million interfund transfer and an ‘‘excess revenue over expenditures’’ line of about $1.6 million in the five‑year column. Finance staff also noted a roughly $1 million upward tweak to the sales‑tax forecast in the draft, while the overall planned use of prior‑year revenues and fund balance rose materially compared with the prior year.
Why the adjustments: The mayor and finance staff said the adjustments reflect lagging data (sales tax receipts are reported with months’ delay), the withdrawal of one‑time federal stimulus funds from recent years and an intention to avoid overstating recurring revenue. The administration said conservative revenue and higher fund‑balance use are preferable to building a budget based on optimistic assumptions.
Program details and tradeoffs: The draft shifts some general capital funds into utility capital to maintain core reliability work (transformer and substation maintenance). The budget adds one‑time capital to the zoo and to vehicle/equipment replacements for sanitation and motor pool. Staff warned that without a renewal, the city will have less capacity to plan multi‑year capital projects.
Attribution and next steps: Finance staff (DJ) walked council members through the revenue tables and said the $1 million sales tax increase was judged historically plausible but they remain cautious. The council asked for additional clarifications, and staff said they will circulate a more detailed project list and updated five‑year pictures before the April 8 public meeting.
Ending/what to watch: The budget is a proposal; the council must still deliberate amendments. The administration repeatedly cautioned that multi‑year capital planning is constrained until council acts on whether to put a renewal before voters.
