The Finance Committee convened on January 15, 2026, to conduct a mid-year budget review, examine the monthly revenue and expenditure reports, and discuss reserve fund adjustments. Budget Manager Kim Kaufman presented the findings, highlighting fiscal variances from the FY25 audit, the impact of stalled capital projects, escalating health insurance costs, and the stagnation of sales tax revenue compared to pre-2020 growth rates. Council members expressed strong positions regarding contract fairness for School Resource Officers (SROs), the sustainability of current healthcare cost trajectories, and the need for careful capital management.
General Fund Fiscal Status and Capital Restrictions:
Public Safety Sales Tax (PSST) Fund & SRO Contract:
Health Insurance and Risk Management:
Park and Rec / Room Tax Fund:
Public Transportation / Micro-Transit:
Capital Fund Management:
Norman Forward Fund:
Finance committee meeting of Thursday, January 15th, 2026. Councilmember Heekle is uh out. So he asked me to fill in for that. And we've got two items on the agenda. The first one is a discussion regarding the mid-year budget review. And we have him here. First meeting as current finance director. Place budget manager. Somebody's filling in that role in a semester. So thank you for being here. And um we'll go ahead and get started. Thank you, Mayor. I'm Kim Kaufman, uh budget manager. Uh trying to step in for Anthony uh for the purpose of the finance committee meeting. Um for the mid-year budget review. Um, I have a little packet for everybody. Um the mid-year budget review serves a few different purposes. Um, first it gives council a picture of uh the city's funds after the uh prior year audit has been completed and allows council to uh course correct if need be. And then it also asks council the question of whether or not they want to add funds to the ready day fund or uh take funds from the ready day fund. So we'll jump right in with uh the handout of the city's uh major funds right now looking at the general fund. Um, and stop me at any time if you have any questions. I have some um cells highlighted here that I want to draw your attention to. So on line 16, uh this is looking at uh fiscal year 25 estimated compared to fiscal year 25 actual, which is our our audit audited figures. Um you can see that revenue came in slightly below um estimated for fiscal year 25. Um, but expenses also came in slightly below. We had a lower subsidy to the PSST fund than anticipated, uh, due to um purchase orders that haven't been paid yet, and so all that comes together to um give us an ending fund balance of 11.6 million, which is about 400,000 less than budgeted, and then right below uh that was on line 65. Right below that we see our reserve for encumbrances at 3.5 million. Those are POs that were created in fiscal year 25 and potentially prior that haven't been paid yet. So they're still um they were budgeted for in fiscal year 25, uh, but they're not going to hit fund balance until they're actually paid. So the uh expenditures probably the less than spent less than correct, right? That's that's the main difference between on line 47 where you see the uh transfer PSST fund 2.6 million compared to what we actually transferred to PSST to bring keep them in the black, 212,000. It's because they didn't spend all of their purchase orders, they didn't fully liquidate them. The PSST didn't need as much of a subsidy. Correct. So we didn't spend as much, okay. But the PSST does continue to not generate enough to cover that is correct, yes. Which I know it was never it was always gonna be blended in, but just for discussion's sake, it has obligations and the tax itself doesn't generate enough to cover all of it by itself. That's correct, especially since the additional four SROs were at it. That's right. Okay, those are you mentioned too that there were some purchase orders that haven't been fulfilled. Yes, they've been created, but we haven't been invoiced for them yet, and or the the merchandise hasn't arrived, been delivered. Um roughly how much is that? Sorry if I missed it you saying that earlier. No, you're fine, it's on line uh 67. Okay. So in fiscal year 25 and potentially prior to that, we have outstanding purchase orders that haven't been paid yet. And that's usually like if something's on back order or if we haven't received an invoice yet. So we're reserved for encumbrances that were yes, and that's 3.5. Yes, as of the end of fiscal year 25, it was 3.5. And as we go through the budget development process, we'll review all of those, and if any of those a purchase order was issued, but the project's not gonna happen or the purchase isn't gonna happen.