Joint Special Council/BFPD
03/17/26 06:00 PM
Finance
Sydnie Harris
Budget
Doc ID: 6290
AGENDA ITEM
AGENDA MATTER:
APPROVAL OF FISCAL YEAR 2025-26 MID-YEAR BUDGET STATUS REPORT & PROPOSED
BUDGET ADJUSTMENTS
EXECUTIVE SUMMARY:
Finance staff initiated meetings with departmental managers to review actual revenues and expenditures through December 2025 to compare budgetary performance with fiscal year 2025-26 budgeted appropriations. Based upon this analysis, the fiscal year 2025-26 mid-year budget review has been prepared together with the attached proposed budget adjustments (Exhibit A), which are presented for the City Council’s consideration and approval.
In conjunction with the mid-year budget review, staff has examined all Capital Improvement Projects (CIP) and capital equipment requests to determine if any appropriation adjustments were necessary, either through budget carry forwards or through new appropriation requests.
Staff continually monitors and reviews budgetary performance and will continue to do so through the end of the current fiscal year and in conjunction with year-end close. Staff brings forward budget adjustments from time-to-time as necessary to ensure the City's spending plan remains current.
DISCUSSION:
BUDGET OVERVIEW
General Fund:
As part of staff's mid-year analysis, finance staff met with department and division managers to review their budgetary performance for each area of responsibility. Based upon that review, the requested budget adjustments, which are included as part of the budget status overview, the General Fund is projected to end the fiscal year with a General Fund combined fund balance of $24,247,573.
General Fund Revenues - Fund 100
The General Fund’s revenue estimates for fiscal year 2025-26, which includes adjustments, if any, approved by City Council from July 2025 through January 2026, were estimated at $28,138,362. This year due to an adjustment in accounting methods for the Intergovernmental Support Agreements (IGSA) there is a budget adjustment that reflects all revenues, pass-through and earned, that stem from the contract activities. This adjustment alone increases the estimated revenues by $30,502,500. This revenue will be offset by its counterpart in the appropriations budget. Based upon the staff's analysis of other General Fund revenue estimates, including updated economic forecasts, staff is projecting that estimated revenues should otherwise remain largely the same at this time but will be continuously monitored for changes in revenue projections throughout the fiscal year. Should adjustments be needed, they will be included as part of the year-end budget clean-up resolution which will be brought back to the City Council for consideration in June 2026.
Joint Special Council/BFPD
03/17/26 06:00 PM
Finance
Sydnie Harris
Budget
Doc ID: 6290
AGENDA ITEM
General Fund Expenditures - Fund 100
The adopted fiscal year 2025-26 General Fund operating budget, plus Council approved budget adjustments from July 2025 to January 2026, total appropriations in the amount of $28,504,194.
Based upon the budget review conducted by finance staff, in coordination with department and division managers from all departments, actual expenditures are tracking slightly higher to projected spending levels. Year-to-date expenditures total $17,642,377, which amounts to approximately 62% of the adopted budget through January 2026. Additional operating appropriations are proposed within the General Fund totaling $2,582,555 as well as an increase to offset the pass through cost from the IGSA’s of $28,621,895 as part of the mid-year budget adjustment and accounting method adjustments. The proposed operating adjustments are necessary primarily due to an increase in labor costs as a result of the negotiated increases for the labor contracts in this fiscal year. Additionally, expenses in preparation for the BNSF BIG project have also increase in this fiscal year. These costs will be primarily reimbursed to the City General Fund throughout the duration of the BIG project, and are recognized when received.
General Fund-Measure Q - Fund 102 & 103 (Fire)
Fiscal Year 2025-26 City Council approved Measure Q fund balance spending for large, one time purchase of capital equipment. These cost as well as an increase in labor cost that impact this fund are estimated to increase appropriations by $705,869.
All Other Funds:
Special Revenues - Measure I Fund 209
An estimated increase to revenue of $837,500 due to some reimbursements received for the No. 1 st Ave Bridge project.
Special Revenues- Grants Reimbursable Fund 217
Reimbursements have also been received in this fund increases revenue by $401,915.
Enterprise Funds - Wastewater Fund 605 & Solid Waste Fund 650 These funds were impact similarly as the General Fund with an increase to labor costs from the negotiated contracts and a change in the accounting method for the IGSA’s with a combined increase of appropriations of $455,295.
FISCAL IMPACT:
The net budgetary adjustments in estimated revenues and appropriations in the General Fund results in an estimated increase in appropriations of $601,950 at mid year on a combined basis.
RECOMMENDED ACTION:
That the City Council / Fire Board approve the budget adjustments and related transfers within the Budget Adjustments contained within the "Exhibit A” as discussed herein.