Council adopts FY2026 fourth-quarter budget adjustments including fleet, utilities and a $1.1M fire truck expense

The City Council approved a resolution authorizing fourth-quarter budget adjustments for FY2026 after a staff presentation by Finance Director Daniel Carbajal on June 15. Carbajal outlined multiple adjustments across departments and funds intended to prepare for year-end, including higher fuel and utility costs in Streets and Parks, increased vehicle maintenance across departments, police body camera subscription increases, IT equipment purchases funded by salary savings, and a $75,000 utility adjustment in Community Maintenance for streetlights and stoplights. The package also included a $250,000 increase to the one-half infrastructure fund, a correction to streetlight conversion entries, and a $20,000 cannabis tax budget increase to avoid a potential budget violation. Carbajal also noted a $1.1 million fire truck expense recorded in the adjustments.

On questions about gross receipts tax performance, Carbajal said a clawback received in December tied to a business that had improperly paid taxes on a grant reduced net GRT collections for the year even though underlying receipts were tracking above projections. "A clawback received in December ... reduced the net GRT collections for the year, though underlying receipts had been tracking above projections," the minutes record Carbajal stating. Council approved the resolution unanimously.