Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the ARC Finances topic
No spam. Unsubscribe anytime.
Officials say ARC opening helped create FY2026 shortfall; city expects membership revenue to narrow gap
Summary
City officials said the opening of the ARC and added staffing contributed to a preliminary FY2026 gap (FY26 revenues cited ~ $69M vs expenditures ~ $71M); staff have not yet added amended ARC revenue to FY26 and expect first-year operations will take up to a year to stabilize.
Finance Director Lakita Sutton and City Manager Majid Algaffrey said the city's recently opened ARC is a primary factor in a preliminary FY2026 gap between revenue and expenditures.
Sutton said the originally adopted FY2026 budget carried about a $300,000 surplus but that subsequent amendments to staff and operations tied to the ARC removed that surplus; she said, “When we brought that budget amendment to council, we approved a difference of about 700,000, that would have us a little bit of a deficit there.” Sutton added that no amended ARC revenue has yet been added to FY2026. Majid Algaffrey said new operations typically take about a year to stabilize and listed revenue sources (memberships, programs, rentals). He reported 406 memberships sold and said staff expect another 400—500 sign-ups soon; he emphasized staff will monitor early months before projecting longer-term revenues.
Public questioners pressed whether ARC operating costs could top $3 million per year; staff said cost and revenue projections are still fluid and that final FY26 revenue adjustments will follow reconciliation and further departmental reviews.
