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Oh, I don't know.

And we'll be on the Welcome everyone to our uh work session, June 16, 2026, Mr.

Manager.

Two items this evening, one on the budget and one on materials used uh for public works projects in South Dolphic, and I'll turn it right over to Jonathan Hobbs, our budget director.

All right, thank you, Chris.

Uh good evening, Mayor West, Vice Mayor Ritter, members of City Council.

I'm here this afternoon to present the final amendments and technical corrections for the budget that was adopted by city council on May the twelfth.

So, gonna go quickly through the agenda.

We're gonna talk first about why do we even need uh to perform and request these uh post-adoption amendments.

We call these final amendments, but this year there is a major caveat to the word final, so talk a little bit about that.

Then we're gonna go through the final amendments for the operating budget and the capital improvement program, then we'll switch over to technical corrections for the operating budget and capital improvement program, and then we'll talk a little bit about the timeline, next steps, and uh any closing thoughts.

So, why do we need to come to council and request and recommend final amendments and technical corrections to a budget that was recently adopted?

This is really mostly driven by timing and also the pace of the process.

So I want to get a little more in depth on the timing piece.

So, this graphic here shows you basically the last five months of any given fiscal year.

So there comes a point in the budget process when we're developing the city manager's proposed budget that we really have to have a hard stop in terms of making changes.

Why do we have to have that hard stop?

Well, the money has to stop moving, we have to be able to balance funds, uh, we have to be able to draft and prepare the documents so that we can ultimately bring them to city council.

Uh, but life continues.

Uh things continue to happen in the city.

Uh, we continue to receive grant awards.

Uh, the city manager continues to exercise his authority granted by city council in the budget ordinance.

So, those are the types of things that we have to catch up.

The other thing that we make every effort to do is from the time that the city manager proposes the budget until the time that city council adopts on May twelfth, we really believe that those changes should be council driven.

And instead, this is where we're coming back, and these are staff requested and recommended changes as opposed to those council requested changes to the budget that you see uh when we come on May the twelfth and and amend the city manager's proposed budget, and it's ultimately adopted by city council.

So, talk a little bit about what the difference is.

We categorize them in two groups.

So you may be asking what's the difference between a final amendment and a technical correction.

For both of these, or excuse me, for this one in particular, these are items that would have been included in the city manager's proposed budget, but for the timing of the item.

So for example, and you'll see several of these, we received new information on grant awards.

So, had we known that at the time the manager's budget was proposed, we would have included that information in the manager's budget.

Uh, we need to add additional appropriations to the project prior to the beginning of the fiscal year.

So that's a type of item that would be in final amendments.

Also revised estimates, legislative changes that occur, and then any requests that we do receive from city council subsequent to the adoption are included in final amendments.

These amendments may increase the total budget and may also increase the position complement included in the budget.

And if we did not bring these as part of this package, these items would need to be requested on a future city council agenda.

So on the technical correction side, I mentioned this a moment ago.

A lot of this is carrying forward some of those administrative approvals that were made after the budget was proposed.

So the manager is granted authority by council to do things like reclassify positions, move positions from one program to another, to take a full-time position and break it down into part-time positions, or go the other direction and put together part-time positions and make those full-time positions.

So those are the types of things that we are talking about when we're talking about those administrative changes.

We also identify when we begin to load the budget into the financial system after the May 12th adoption.

We also recognize that sometimes things aren't exactly how we had intended.

So there may be an account that is incorrect, a program that is incorrect.

So this is an opportunity for us to come back and make those corrections prior to the beginning of the fiscal year.

Typically, these changes don't uh increase the total budget or the position complement.

It's really swapping similar amounts or the same amount between, like I said, those programs or those accounts.

But again, these items would need to be placed on a future council agenda if they were not brought as part of this package.

I mentioned the caveat to the final, and this is kind of a big one.

We don't have a state budget adopted yet, unless something happened in the last hour.

So normally this package of technical corrections and amendments would include four agenda items.

This year it only includes three at this point, and the one that is omitted is the schools.

The school's budget is still based on the superintendent's budget, which was adopted by the school board back in February, I believe.

And then once the state budget is finalized, the school board will need to go back and make some final amendments, and I'm gonna touch on that a little more at the very end in terms of the timeline.

But in addition to the schools, there could and will likely be impacts on some city departments, human services, CIBH, public works, and possibly other city departments impacted by the final adopted state budget.

All right, so moving into final amendments to the city operating budget, and this presentation can be a little in the weeds, so I'm gonna do my very best to stay at the top of the weeds, but if you want me to get down into the roots, please just let me know, and and we can certainly discuss any of these in a little more depth if council would like.

So the first several are the appropriation of additional grant funds.

This is for home and CDBG.

The proposed budget and the adopted budget included preliminary estimates for these two grants.

We have received the final numbers, and this amendment is simply to update those grants and appropriate that additional funding that was granted to the city, and this particular amendment will in fact increase the total operating budget.