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FY 2025-26 MID-YEAR ADJUSTMENTS
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RECOMMENDATION
It is recommended that the Council Budget/Finance/Economic Development Committee discuss the possible allocation of the remaining $504,925 and make a recommendation that will be brought back to the full City Council.
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Summary
The General Fund balance at the end of Fiscal Year 2024-25 was $57.7 million, of which $54.7 million is assigned to the 16.7% Working Capital Reserve. This left approximately $3 million available for appropriation. Council approved $2.6 million of mid-year General Fund requests at its April 14, 2026, meeting. Staff is requesting authority to appropriate the remaining funds to support critical projects and activities in the current fiscal year. If approved, $504,925 will be appropriated in the General Fund.
DISCUSSION
Background
The FY 2024-25 Q4 Year End Projection indicated an ending General Fund balance of $57,734,990, or $3,014,196 above the amount required for the 16.67% Working Capital Reserve. Departments were asked to submit mid-year requests for FY2025-26 for urgent, one-time needs. Staff reviewed the priorities identified during the February 19, 2026, City Council Planning Workshop, to guide recommendations. At the Workshop, Council members:
Identified key elements of their shared vision for the community, including:
• Being a safe and clean city,
• Economic development that results in a thriving economy, and
• The investment in young people.
Affirmed the following key areas of focus:
• Public Safety
• Economic Development
• Expand Activities for Youth
• Homelessness
• Affordable Housing
• Infrastructure
Identified the following three as the highest priorities for FY 2026-2027, noting the interconnectedness with the six key focus areas listed above:
• Public Safety
• Economic Development
• Infrastructure
Staff also considered the risks and liabilities of noncompliance with legal or other statutory mandates. Staff considered the permissible use of restricted funds to enable the completion of critical projects.
Present Situation
It is recommended that the Committee members discuss the possible allocation of the remaining $504,925 and make a recommendation that will be brought back to the full City Council.
Attachment A - FY2025-26 Mid-Year Request List