January 29, 2026 — Finance and Budget Committee

Meeting Summary

Present: Gilman, greasy

This summary was AI-generated to save you time. It may miss or misstate details — verify against the official recording and the transcript.

Staff reported general fund revenues exceeded the budget by approximately $1 million due to interest and grants.
Expenditures remained under budget primarily because of staffing vacancies and benefit assumptions.
Members questioned reserve classifications and the specific usage of Measure C funds for infrastructure.
No formal motion or vote occurred during the discussion of this financial overview.

Staff presented approximately $2 million in budget adjustments affecting the general fund and other departments.
Committee members raised concerns regarding a significant increase requested for the City Attorney department.
Discussion focused on financial controls and bidding processes for professional services amidst transition costs.
The adjustments were noted as pending items for City Council consideration without a formal vote.

Staff provided updates on the Crowe report and the Ida Bailey assessment of finance operations.
The new enterprise resource planning system is active in several modules but remains in testing for purchase orders.
Members requested detailed reporting on timelines and scope to ensure accountability for ongoing projects.
Policy updates and audits for the current fiscal year are currently in progress pending the accountant vacancy.

The committee scheduled the next meeting for May 19 to review the 2026-2027 budget.
Proposed topics include a proportionate recommendation for Measure C spending and a reserve policy review.
Additional future discussion points cover system upgrade updates and a GAN limit evaluation.

The meeting was called to order with a roll call of committee members. A motion was made and seconded to approve the agenda. There were no objections raised. The agenda was approved.

A motion was made to approve the consent calendar, which included the minutes from previous meetings. The motion was seconded. No objections were voiced. The consent calendar was approved.

Staff presented an overview of the fiscal year 2024-2025 unaudited actuals for the period ending June 30, 2025. General fund revenues were approximately $1 million over the originally budgeted amount. Staff noted that positive variances were driven by interest income and one-time grant funding for street maintenance and trolley purchases. Expenditures were under budget, primarily due to vacancies and assumptions regarding benefits. The presentation included a summary of the fund balance and the emergency fund balance related to Measure C.
Committee members asked questions regarding the breakdown of revenue variances, the classification of reserves, and the specific usage of Measure C funds. Discussion included the difference between committed and uncommitted reserves, the intent of Measure C voter language regarding infrastructure and fire hardening, and the potential for future policy recommendations regarding the apportionment of Measure C spending. No formal motion was made or vote taken on this item.

Staff presented midyear budget adjustments and year-to-date revenue and expenditure reports for fiscal year 2025-2026. Revenue data showed timing lags compared to prior years. A list of budget adjustments totaling approximately $2 million was provided, with roughly half of the total amount affecting the general fund. Requests included increases for transient occupancy tax, recruitment expenses, IT software, and the City Attorney department.
Committee members discussed the specific line items, particularly the City Attorney budget request, which represented a significant increase over the originally adopted budget. Concerns were raised regarding the justification for the increase, previous overspending in the department, and the need for financial controls and bidding processes for professional services. Staff explained that the increase included transition costs between firms and specialized legal counsel. The projected impact of these adjustments on the general fund ending balance was reviewed. No formal motion was made or vote taken on these adjustments; they were noted as pending items for City Council consideration.

Staff provided a status update on the Finance Department, including the Crowe report regarding the investigation into the former assistant city manager and the Ida Bailey assessment of finance department operations. The implementation of the new enterprise resource planning (ERP) system (Cirrus/Springbrook) was discussed. While several modules are active, the purchase order module is currently in the testing phase. The electronic timesheet system is pending a new software version release.
Committee members requested more detailed reporting on timelines and project scope to ensure accountability. Discussion included the potential for independent internal audits, adherence to municipal code regarding contract bidding, and the vacancy in the accountant position. Staff noted that policy updates and audits for the current fiscal year are in progress. No formal motion was made or vote taken on this item.

The committee discussed items for future meetings. The next meeting was scheduled for May 19 to review the 2026-2027 budget. Proposed future agenda topics included a proportionate recommendation for Measure C spending, system upgrade updates, a GAN limit evaluation, and a review of the reserve policy. No formal motion was made or vote taken on this item.