Department of City Manager
Reference: Third Amendment to the 2025 Budget
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Kathryn Mortensen, Budget and Performance Manager
Date Prepared: September 5, 2025
PURPOSE
To amend the 2025 budget to support design for the Lochbuie to Metro Forcemain, Storm Fund developer reimbursements, a water leak repair at Historic City Hall, Utilities at the Municipal Service Center, Increased facilities insurance costs, General Fund personnel market adjustments, citywide software costs, the purchase of buildings for city services, and city vehicle repairs.
BACKGROUND
The City Council adopted the 2025 Budget on October 15, 2024, at $255,284,504. In March, as per the 2025 Budget Resolution, capital carryover was administratively adjusted to reflect final year end amounts, adding an additional $54,144,083 and bringing the City’s total budget to $309,428,587.
The first amendment to the 2025 budget addressed additional lodging tax allocations, transfers to cover storm drainage improvements as part of Parks and Recreation projects, and to transfer interest earnings to cover cemetery maintenance, appropriating an additional $1,437,608 and bringing overall appropriations to $310,866,195.
The Second amendment to the 2025 budget provided an additional $1,306,603 to cover additional grant allocations, an increase to small business grant funds, and an increase in water costs. This brought the total city budget appropriation to $312,172,789.
The third amendment to the 2025 budget supports an unexpected repair for a water leak at Historic City Hall, utilities for the year at the Municipal Service Center, which as a new building did not previously have a budget for utility costs, the increased cost of insurance for our facilities, including the addition of our new Municipal Service Center as well as an increase in rates that we were informed of after budget adoption. There is also additional budget added for personnel market increases to occur this year, and an increase in citywide software costs related to renewals of multi-year contracts that saw increases.
Additionally, this amendment provides for design of the Lochbuie to Metro Forcemain in the Wastewater Fund, which needs to begin this year to allow proper time for construction, as well as for a final reimbursement related to Prairie Center from our Storm Drainage Fund that was unanticipated at the time the budget was adopted.
There is also additional budget provided for the purchase of a new facility, as well as purchasing the water shop from the water utility to support our Police Department operations. These items are anticipated to be funded through borrowing proceeds.
Finally, there has been a change in the process for charging repairs for city vehicles that receive a reimbursement from insurance. This is administrative and will reflect more expenditures where these were previously recorded in a non-expenditure account. This new method follows best practices for accounting. This has an impact on our Fleet Fund, as well as customer funds who provide the revenue for this fund.
Overall, this is an increase of $6,286,000 and brings the total city budget appropriation to $318,458,798.
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 $6,286,000 for anticipated expenditures.
STAFF RECOMMENDATION
Staff is recommending approval of the attached second Amendment to the 2025 Budget Resolution.
OPTIONS FOR COUNCIL CONSIDERATION
Approve, amend, or deny the proposed resolution.
ATTACHMENTS
Proposed Resolution
Presentation