Placement: First Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 26-72, Public Hearing, Approving A Budget Amendment for Fiscal Year (FY 2025-26).
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Submitted By: Ivy Ladyko, CGFO, Deputy Budget Director
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Budget amendments are essential to address new funding sources, grants, emergencies, and the carryforward of projects from previous fiscal years. This amendment will modify the operating and capital budgets for each designated department or fund, detailing the sources and uses of funds required to achieve a balanced Fiscal Year 2025-26 budget. These revisions reinforce transparency and accountability, consistent with government fund accounting standards and requirements.
Presentation Information: A brief PowerPoint presentation will be given by Caroline Sturgis, Director, Office of Management & Budget, Procurement.
Staff Recommendation: Move that the Council approve the Fiscal Year 25-26 budget amendment.
Alternate Recommendations:
1. Move that City Council amend the recommendation and approve the Fiscal Year 25-26 budget amendment.
2. Move that the City Council provide staff with direction.
Background: Adjustments to the City’s budget are routine and anticipated throughout the fiscal year to address operational needs. The budget amendment will address several projects that received funding in prior years but were neither encumbered nor expended, resulting in their carryforward into the current fiscal period. The amendment also recognizes new funds and increased project costs. In accordance with the City Charter, budget amendments must be enacted by ordinance, which necessitates two City Council meetings/readings.
Issues/Analysis: Changes to the budget total need to be approved by City Council.
Financial Information: The Adopted Budget for the Fiscal Year 2025-26 is $869.8 million. The proposed amendment adds $132.0 million. One reason for the amendment is because government accounting rules require the City to show funds in two ways: where the money comes from and where the money goes. Because some funds move from one City account to another (like when money is transferred between a dedicated fund into the general fund) the same dollars must be reported in both places, making the total budget amount look larger than it is.
A portion of the amendment is attributed to funding that has been allocated from the City’s reserves. Previously approved projects were deferred in prior years due to project timelines; as a result, if a project wasn’t completed, the unspent funds were placed into reserves for future appropriation. In the current fiscal year, project expenditures are underway, and this amendment facilitates the transfer of reserved funds into various operating accounts.
Major changes within the $132.0 million amendment include:
• $78.0 million dedicated to capital projects from previous years - these projects were funded in previous years, not expended; therefore, the projects are being carried forward, expedited, or revised and added to this fiscal year budget.
• $27.8 million accounts for transfers between funds, resulting in duplicated reporting, as required by governmental accounting standards.
• $11.0 million relates to Southern Grove property sales and infrastructure utility payments, which include FPL and the Fire District.
• $15.1 million is earmarked for renovations at the Western Municipal Complex, funded by building permit fees and not property taxes.
• $100 thousand accounts for smaller adjustments.
Special Consideration: N/A
Location of Project: N/A
Business Impact Statement: N/A
Attachments:
1. Attachment "A" Fiscal Year 2025-26 First Budget Amendment Details
2. Fiscal Year 2025-26 First Budget Amendment Ordinance
3. Fiscal Year 2025-26 First Budget Amendment Power Point Presentation
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 26118-03
Legal Sufficiency Review:
Reviewed by Richard Berrios, City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.