ADMINISTRATIVE REPORT
MEETING DATE: June 24, 2026 AGENDA CATEGORY: Consent - Miscellaneous TO: Honorable Mayor and City Council
FROM: Virginia Gennaro, City Attorney
DATE: June 10, 2026
SUBJECT: Appropriate $450,000 Fund Balance to the City Attorney’s Office operating budget within the General Fund
RECOMMENDATION:
Staff recommends approval of the Appropriation
BACKGROUND:
An appropriation of $450,000 is needed to cover increases in expenditure line items incurred for legal expenses in the current fiscal year. As explained by the City Attorney during her May 4, 2026, budget presentation to City Council, the City is engaged in over 190 active litigation cases, the most ever. The budget shortfall is due to the substantial rise in litigation cases filed against the City and the reduction to our operating budget requested by the budget team.
In the past, vacancies have been able to cover the shortfall; however, when the salary of the Assistant City Attorney was reduced to zero (to demonstrate that such position would not be filled under the current City Attorney) combined with the reduction to our operating budget, this was inevitable.
Unfortunately, it is expected that we will also be in a shortfall for fiscal years 2026/2027 and beyond as there are 22 cases set for trial for the remainder of 2026, and 33 trials set for 2027.
FISCAL IMPACT:
Use of available fund balance totaling $450,000 from the General Fund.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
None.