Assistant city manager outlines 'Path to Sustainability,' urges long‑term funding for streets and infrastructure

Assistant City Manager Nick Kimbrell presented the city’s proposed operating budget and a strategy he described as a “path to sustainability” at the May 26 Public Safety Commission meeting.

Kimbrell said police and fire together account for about half of the general fund operating budget and that property tax makes up roughly 40% of the city’s general fund revenue. He said the administration reallocated internal costs (insurance, facility maintenance, vehicle replacement) into department budgets through internal‑service charges to more accurately reflect the true cost of operations.

To create dedicated funding for insurance claims, fleet replacement and facility maintenance, staff proposed one‑time transfers from the general fund reserve into special reserves; Kimbrell said that will reduce the general fund reserve from about 40% to an estimated 31% while keeping the city above its 25% policy minimum. He said about $3.2 million in transfers is shown in the draft budget primarily to seed the self‑insurance fund and fleet/facility reserves rather than represent ongoing structural deficits.

Kimbrell noted that streets and sidewalks are underfunded and described a potential 10‑year resurfacing plan tied to a revenue bond that could raise roughly $80 million and raise the city pavement condition from the mid‑50s to around 70. He said spending down a modest surplus on one‑time projects would produce little city‑wide benefit; a revenue measure would allow a broader, equitable program.

Commissioners pressed whether the city should spend reserves now to repair failing streets; Kimbrell responded that while spending reserves on capital is an option, the city is only approximately $2.9 million above its 25% reserve minimum, and one‑time spending would not produce a city‑wide solution. He said staff will return to council with financing options and that the proposed budget includes a customer success center to centralize service requests and prepare for expected development.

Next steps: staff plan to present financing options for infrastructure (including a potential bond) to the City Council and make budget materials available to commissions and the public.