Lindsay staff present balanced FY 2026–27 budget that relies on grants and an $850,000 transfer; council awards $5.32M road contract

City staff told the Lindsay City Council on Thursday that the proposed fiscal year 2026–27 budget is balanced after program reductions, account consolidations and a mix of grant revenue, but it depends on a one‑time $850,000 transfer from the general fund to subsidize Parks & Recreation operations, including a $600,000 pool‑deck capital project.

The budget presentation, delivered by finance and administration staff (S5), said general fund revenues are ‘‘just over $12,000,000’’ with a projected narrow surplus cited as roughly $543. Staff described about $2.8 million in cuts and re‑phasing of projects to achieve balance and flagged multiple deferred maintenance items and a multi‑year CIP backlog that will drive higher costs if delayed.

Why it matters: the council was told that while the city has secured several grants — including an EPA community grant noted in the meeting materials for $1,750,000 to cover portions of water‑system work — operating pressures and rising personnel costs mean the city is using reserves and one‑time transfers to avoid deeper service reductions.

Staff said the budget keeps staffing levels stable but implements several reclassifications and new job descriptions (to be filled from internal candidates where possible) rather than adding new headcount. The council followed staff recommendations and approved the reclassifications and an updated salary schedule, recorded as carrying on 4‑0 votes.

On the parks and wellness center subsidy, council members pressed staff on sustainability. One council member noted that the wellness center’s operations require an $850,000 general‑fund subsidy and asked for a short‑, mid‑ and long‑term strategy to reduce that reliance. Staff said the $600,000 pool‑deck repair is drawn from general‑fund reserves and that portions of wellness‑center operations are not self‑sustaining.

Items at a glance: the budget presentation also highlighted the transit center (about 60% design), a roundabout project and related community facilities district planning (staff cited a total project estimate of about $25,000,000 for roundabout and related land acquisitions), and progress on a water‑main replacement project.

Contract award and schedule: the council awarded a road rehabilitation contract for multiple streets to the lowest responsive bidder listed in the staff report as "American Haiti Company" for $5,321,719 and authorized a 15% contingency (about $798,260), for an authorization of roughly $6,119,000. Staff said seven bids were opened and the engineer’s estimate was about $6.5 million; preconstruction is scheduled to begin next week and mobilization could start within two weeks.

Other council actions: the consent calendar was approved by a 4‑0 vote; the council also opened and passed the annual update to the city fee schedule (credit‑card convenience fees, new wellness center membership tiers, pickleball rates and concession fees) and set a public hearing on landscape and lighting assessment districts to consider proposed rate adjustments and capital projects.

What’s next: staff said public notices for the CFD and assessment‑district hearings will be mailed to property owners in the coming weeks and that staff will continue to monitor revenue streams and project timing. Council members requested follow‑up reporting on wellness‑center sustainability and O’Hara subdivision permit‑revenue timing and asked staff to prepare additional fiscal scenarios to show impacts if anticipated development revenue does not materialize.