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Takoma Park staff present FY26 budget amendment with $860,003.85 in added expenditures; council warned reserve may fall to 14%
Summary
City staff presented the fourth FY26 budget amendment including a $860,003.85 increase in general‑fund expenditures driven by police overtime, snow removal and legal costs; staff said assigned reserves and carryovers should cover a possible drop below the council’s 17% reserve goal and the council will vote next week.
Takoma Park city staff outlined the fourth fiscal‑year 2026 budget amendment at the June 2 council meeting, explaining a series of line‑item adjustments that together increase general‑fund expenditures by $860,003.85 while raising revenue estimates by $15,800.
The amendment affects the General Fund, the red‑light camera fund, ARPA accounts and the stormwater fund. Director Chung said the general‑fund net budget increase is $844,585 and highlighted key expenditure changes, including $465,364 in additional police overtime, roughly $88,300 for snow removal, $173,079 for city attorney and legal labor services, and smaller increases for public‑works staffing and HVAC replacement work. Chung said the stormwater fund shows a $19,628 write‑off tied to a CDBG stormwater project the county did not reimburse.
Why it matters: council members pressed staff on whether the changes would lower the city’s unassigned reserve below its 17% policy target. Director Chung and City Manager Disperto said current estimates could bring the reserve down to about 14% in FY26 but defended the city’s position, pointing to an assigned reserve of $3 million (broken down by staff as roughly $811,000 for potential salary shortfalls, $535,000 for income‑tax risk, $260,000 for camera revenue shortfall and $1.5M for grant funding contingencies) and year‑end expenditure carryovers.
“The overtime items for the police department reflect a once‑a‑year adjustment,” City Manager Disperto said. “They encompass all 12 months to date plus our estimate through June 30. That’s why we save this line for the final amendment.”
Councilors asked for follow‑up data on how the city’s execution‑rate assumption for personnel (the percentage of budgeted personnel cost expected to be spent) is tracking against actual salaries and vacancies, and whether sustained multi‑category overruns would constitute a fiscal ‘red flag.’ Disperto said staff will provide additional monitoring and that a firmer assessment will be possible after the fiscal year closes and the auditors complete year‑end reporting.
On camera program revenues, staff said the red‑light camera program’s original estimate of $2.6 million was reduced to $1.3 million after actual traffic counts were reviewed and because delays in bringing new camera locations online lowered receipts this year. Staff said stop‑sign camera receipts and existing fund balances should soften the shortfall.
A staff clarification noted the HCD‑funded stormwater project ($302,000) had one missed invoice and a contract timing issue between county CDBG agreements, which prevented reimbursement; staff said they’ve adjusted SOPs to catch similar problems earlier.
No vote was taken. The council scheduled formal votes on the budget amendment for next week and asked staff to return with additional data on execution‑rate impacts, year‑to‑date personnel spending, and updated reserve projections.
Ending: The council will consider the FY26 amendment at its next meeting; staff said audited year‑end figures will be available in the fall if members wish to revisit reserve calculations then.
