Finance director outlines first reading of 2026 budget amendment showing $2.4M variance

At the June 22 meeting Finance Director Kristen Reed presented the first reading of Ordinance No. 2841, the city’s 2026 budget amendment, and summarized adjustments prompted by an almost $2.4 million difference between estimated and actual beginning fund balances.

"The difference between our estimated beginning fund balances and our actuals was almost $2,400,000," Reed told council. She said most of the variance was due to projects expected to finish in the prior year that did not, creating rollovers into 2026.

Reed said the amendment raises estimated revenues by about $1,400,000 (primarily grant rollovers and fund transfers) and increases expenses by about $2,600,000; after those changes the ending fund balance would increase by just over $1,000,000. The ordinance also includes staffing adjustments: increasing the media services technician from 0.5 FTE to 1.1 FTE and adding a temporary 0.5 FTE administrative specialist in finance to support implementation of new financial software.

Reed noted most items on the amendment had appeared earlier on the consent agenda and offered to answer questions; none were raised at first reading. This was the first reading by title; council did not adopt the ordinance on June 22. Additional detail about specific line items and project rollovers was not provided during the meeting and would be available in the ordinance exhibit and staff packet.

Next steps: the ordinance will return for second reading and potential adoption; no adoption vote occurred at the June 22 meeting.