ADMINISTRATIVE REPORT
MEETING DATE: June 24, 2026 AGENDA CATEGORY: Consent - Miscellaneous TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: June 8, 2026
SUBJECT: Appropriate $2,200,000 Equipment Fund Balance to the Public Works Department’s operating budget within the Equipment Management Fund
RECOMMENDATION:
Staff recommend approval of the appropriation.
BACKGROUND:
An appropriation of $2,200,000 is needed to cover increases in several expenditure line items incurred for the City’s Fleet expenses for the current Fiscal Year (FY). The budget shortfall can be attributed to several factors including increased costs for repair and maintenance, parts, and fuel. As the Fleet Division continues to address the budget shortfall, additional funding is necessary to maintain the quality and impact of our services. Despite efforts to operate within our current budget, the need for additional resources has become essential to support operational objectives through fiscal year-end.
$1,000,000 – Repair & Maintenance and Outside Services: Staffing levels, vacancies, and high turnover continue to affect the Fleet Division's capacity to perform repairs internally, resulting in a greater reliance to utilize outsourced support to meet operational demands. As the Fleet Division fills remaining mechanic vacancies, outsourced repair and maintenance may decreas e slightly. Therefore, there are some offsetting costs between personnel and operations.
$1,200,000 – Fuel and Equipment Parts: An unexpected increase in fuel costs has led to a shortfall for the FY 2025 -26 budget and additional funds are needed in the fuel line item to cover the gap. Fleet continues to see impacts on the cost of parts and mat erials due to supply chain issues and a very competitive industry.
FISCAL IMPACT:
The equipment fund balance has sufficient funding to cover this appropriation.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
None