Explanation
Throughout 2026, Council has consistently communicated its alarm about the state of the operating budget. When passing the budget in March, Council voiced concern that the level of public safety overtime funding amounts was not realistic or feasible, which proved prescient as the administration has fallen far short of achieving the savings asserted in order to meet the appropriations. Following the release of the first quarter review, Council convened a public hearing in June to request that the administration provide a clear path forward in order to ensure that the city’s finances stabilize.
In August, the administration released the 2nd Quarter Financial Review (Q2) as well as the Mid-Year Financial & Sustainability Report. The Q2 and the Report are ostensibly the administration’s response to both the current challenging financial circumstances as well as Council’s specific requests for information and a plan of action. However, neither document was responsive to Council’s specific requests for information.
As part of the budget process, the City Auditor annually issues an Estimate of Available Resources (“Estimate”) to define the full capacity for expenditures within the general fund in the upcoming year. This document includes a revised projection for current year general fund revenue (if one is warranted) as well as projections for revenue sources deposited to the general fund in the upcoming year. This Estimate forms the basis for the administration’s budget in that it effectively defines the upper limit for general fund appropriations that the Mayor can propose and that Council is able to consider for passage.
With this ordinance, Council will require that, for the upcoming 2027 budget , the Auditor supplement the Estimate with an additional analysis pertaining to Police and Fire overtime expenses. The Auditor, having purview over city payroll, is best positioned to analyze prior years’ payroll expenses. These figures should inform the 2027 ...
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