Board accepts cost-allocation plan and adopts large FY25 budget augmentation

The board accepted a revised cost-allocation schedule prepared from audited FY2024 numbers and subsequently adopted a resolution to augment and amend the FY25 budget, approving roll‑forwards of project funds and recommending that $5,351,188 be moved to the capital projects fund for the city’s 2026 capital plan.

Finance staff explained the allocation process, which an independent third-party administrator completed using audited 2024 figures. Staff said a correction was needed because Cooperative Extension had moved from the Northgate building (sold in August 2023); that correction reduced a facilities-maintenance allocation to the extension program by about $8,005.99 and brought the FY2026 allocation figure to $59,850.64 in the presented schedule.

On the budget augmentation, staff reported an audited actual fund balance of $30,000,000 versus a beginning 2025 balance of $18,000,000 and described roll-forward needs for projects including the Quill treatment plant, the emergency operations center and the new fire station. The finance presentation included a recommendation to increase contingency and maintain reserves to cover potential legislative changes and unanticipated costs; the board approved Resolution No. 2025-R-1 by unanimous voice vote.

Supervisors said they favored moving excess funds to capital for upcoming needs, including juvenile facility work and deferred maintenance, while noting continued attention to sales-tax revenue trends and potential impacts from state or federal policy changes.