Council adopts midyear budget amendment to cover fire overtime, heating and capital repairs

Fairbanks — The City Council on July 13 adopted Ordinance 63-51, a midyear amendment to the 2026 operating and capital budgets meant to stabilize city services for the rest of the year. The ordinance passed on a 4-3 roll call after an amendment that reduced some line items. Mayor O'Neill voted in favor; Councilmembers Tidwell, Sprinkle and Therrien joined the mayor in supporting the measure; Councilmembers Ringstead, Marney and Cleworth voted no.

The amendment adds an estimated $490,000 in municipal assistance revenue and increases general-fund expenditures by $1,173,700, according to Chief Financial Officer Margarita Bell. Bell said the package includes $600,000 added to overtime and benefits (primarily for the Fire Department), $200,000 for Public Works temporary salaries and benefits for winter operations, and $202,000 for information-technology costs including security maintenance and fiber services. "I am adding 600,000 to the budget to, for overtime," Bell told the council as she explained the change.

Fire Department officials described an unusual personnel situation driving much of the cost. Fire Chief (identified in the record) told the council that several captain-level officers suffered long-term injuries, leaving the department short at a higher pay rank and increasing overtime needs. "What nobody in this room, October of last year, realized is that we would have 3 captains injured and hurt for approximately a year's worth of time," the chief said. He added that acting arrangements and new hires helped, but they do not immediately replace missing higher-ranking staff.

On the capital side, the amendment increases the capital fund by about $1.97 million to cover property repair and replacement, including $400,000 for the city hall steam heat system, $125,000 for public restrooms on the main floor, and $760,000 for final Polaris building costs. Bell told the council the capital fund would retain an estimated unassigned balance of roughly $7.9 million after the changes, above the required $4 million minimum.

The vote followed several procedural twists. Councilmember Cleworth moved to postpone the entire ordinance, citing a small projected operating surplus after the amendment; that motion was withdrawn and members negotiated targeted adjustments instead. Councilmember Cleworth argued repeatedly for more cushion in the unassigned balance, saying the council had previously told voters the city needed more revenue. Councilmember Ringstead and others urged caution about adding midyear spending without firmer revenue confirmation.

Council members who supported the final package said it was intended to prevent further destabilizing budget amendments later in the year and to preserve critical public safety services. "This stabilizes our workforce to get to the end of the year," Mayor O'Neill said when urging passage. Opponents said they were uncomfortable increasing the budget midyear after a recent mill-rate vote and wanted more detailed accounting on savings and projected revenues.

The ordinance includes several nonmonetary adjustments as well, such as expanding clerk department travel authorization for municipal leagues. City staff and department heads told the council the amendment was intended to avoid multiple additional amendments later in the year and to address items that are already committed or necessary for winter operations.

Next steps: The ordinance was adopted as amended and becomes effective according to the city's normal ordinance schedule. Council members said staff will provide additional budget detail and the council may revisit specific line items if new information or revenue materializes.