Department of Budget and Innovation
Reference: 2026 Budget Amendment
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Kathryn Mortensen, Director of Budget and Innovation
Date Prepared: July 6, 2026
PURPOSE
To amend the 2026 budget to account for expenditures related to grant carry forward, use of lodging tax fund balance, the construction of an ossuary, and for developer reimbursements per signed development agreements.
BACKGROUND
The City Council adopted the 2026 Budget on October 21, 2025, at $279,681,910.
This first amendment to the 2026 budget was approved by City Council in March 2026. This amendment brought the total budget appropriation to $291,608,543.
In April of 2026, the capital carryover process was completed, carrying forward an additional $50,326,050 of budget that was unspent in the previous fiscal year for ongoing, multi-year projects. This brought the total budget appropriation to $341,934,593.
The second amendment to the 2026 budget is necessary to provide for the construction of an ossuary at Elmwood cemetery. The current ossuarium is close to full capacity and the construction of an additional structure allows staff to continue to offer a low-cost burial option. These expenditures are being fully covered by fund balance in the Cemetery Fund.
This amendment also provides for the use of lodging tax fund balance on a drone show to occur at the final outdoor movie offered by the Special Events Team.
The carry forward of a portion of our grant from the Scientific and Cultural Facilities District (SCFD) for 2025. The majority of our grant was spent last year, but we have three years to spend on the installation of a sculpture at a city park, and this portion is being carried forward with this amendment so we can continue work on this grant. This is being funded fully by grant dollars.
Lastly, this amendment provides for budget to cover planned developer reimbursements. Each of these items are due to previously signed and approved development agreements and are being paid out now that developers have reached the agreed upon terms. These expenditures are covered by previously collected development impact fees.
Overall, this is an increase of $2,848,339. This would bring the total budget appropriation to $344,782,932.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
All changes to Fund-level appropriations of the adopted budget must be made by a Supplemental Budget Appropriation.
FINANCIAL IMPACT
There is a budget impact of $2,848,339 for anticipated expenditures.
STAFF RECOMMENDATION
Staff is recommending approval of the attached Amendment to the 2026 Budget Resolution.
OPTIONS FOR COUNCIL CONSIDERATION
Approve, amend, or deny the proposed resolution.
ATTACHMENTS
Proposed Resolution
Presentation