Title
Discuss and provide direction to staff on the allocation of Fiscal Year 2025 budget surplus funds.
Body
REQUESTOR:
Finance Department
BACKGROUND:
During the September 2, 2025, City Council meeting, staff presented an end-of-year budget surplus of $2.3 million, primarily generated from conservative revenue projections, strong sales tax performance, higher-than-expected interest income, and prudent expenditure management. While $200,000 was set aside for the fitness park project at the September 16, 2025, meeting due to time-sensitive grant requirements, Council is still deciding the final allocation of the full $2.3 million. The fitness park funding was temporarily "parked" in the grant account to demonstrate potential match funding; these funds remain available within the surplus total and will only be formally allocated if Council confirms the funding source for the fitness park, which could also come from non-bond CIP or the Parks fund balance if Council chooses.
Staff presented various allocation options during the September 2 meeting, based on the City Council's feedback, listed in alphabetical order. The direction following this meeting was to hold the funds in the General Fund balance for future allocation.
DISCUSSION:
As outlined in the September 2 City Council meeting discussion, the surplus represents one-time revenues that are generally recommended for one-time expenditure or fund balance enhancement rather than ongoing operational costs. The allocation options previously presented and discussed include:
* Columbarium project ($200,000)
* Economic Development Fund increase
* Equal distribution amongst council districts
* Fitness Park at Justice Center ($200,000)
* Increasing Fund Balance (general fund or targeted reserves)
* Mercer Park enhancements ($1 to $2 million)
* Squire Park improvements (up to $1 million)
Council members expressed varying preferences during the September 2 discussion, with recommendations for infrastructure investme...
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