TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Transfer of fiscal year (FY) 2026 budget appropriations in the General Fund, Parking Leasehold Fund, City Services Fund, Streetlight Fund, Airport Fund, Emergency Services Fund, and Miscellaneous Federal and State Grants Fund
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Natural Environment Stewardship; Safe and Healthy Community; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community.
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SUMMARY:
summary
Several year end budget authority transfers are needed to maintain compliance with Oregon budget law. Transfer of appropriation is required when actual spending is anticipated to exceed budget authority or when budget authority is needed in another expense category.
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ISSUE:
Shall City Council adopt Resolution No. 2026-32 authorizing a transfer of appropriations within the City’s FY 2026 budget?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2026-32 authorizing a transfer of appropriations within the City’s FY 2026 budget.
body
FACTS AND FINDINGS:
General Fund, Parking Leasehold Fund
FROM: General Fund, Non Departmental, Contingency, 101-60961000-61110, $50,000
TO: General Fund, Non Departmental, Interfund Transfers Out, 101-60961000-62110 $50,000
ADD: Parking Leasehold Fund, Interfund Transfers In, 180-64403000-39110, $50,000
ADD: Parking Leasehold Fund, Borrowed and Lent Expense, 180-64403000-53812, $50,000
Due to unplanned staff time to find new tenants to fill several vacancies in the leased space under the Chemeketa parkade, the Leasehold fund needs additional expenditure appropriation to stay within budget compliance through year end. This transfer from the General Fund is for budget compliance purposes only and no cash will actually be transferred.
General Fund, City Services Fund
FROM: General Fund, Non Departmental, Contingency, 101-6096100-61110, $25,000
TO: General Fund, Non Departmental, Interfund Transfers Out, 101-6096100-62110, $25,000
ADD: City Services Fund, IT Telecom, Interfund Transfers In, 355-59170000-39110, $25,000
ADD: City Services Fund, IT Telecom, Computer Software and Licenses, 355-59170000-52830, $25,000
The IT Telecom division of the City Services Fund experienced higher than budgeted costs for annual software subscriptions and technical support. Because of these higher costs, IT Telecom requires an increase in budget authority to remain within budget compliance through year end. No transfer of cash will occur.
Airport Fund
FROM: Airport, Interfund Transfers In, 160-64131500-39110, $100,000
TO: Airport, Beginning Working Capital, 160-64131500-39910, $100,000
Earlier this fiscal year, transfer authority in the General Fund intended for the Airport Fund was moved into the Materials and Services category. It is a requirement to keep interfund transfer revenue and expense balanced. This action reduces transfer revenue in the Airport Fund to remain in balance.
Streetlight Fund
FROM: PW Streetlight Services, Contingency, 156-58801000-61110, $100,000
TO: PW Streetlight Services, Other Professional Services, 156-58801000-52670, $50,000
TO: PW Streetlight Services, Bad Debt - Write Off, 156-58801000-53770, $50,000
The Streetlight Fund experienced higher costs due to unanticipated pole repairs from vehicle accidents and a higher level of write offs of the streetlight fee than in prior years. Moving budget authority from Contingency to Materials and Services will ensure sufficient budget authority for the fund this fiscal year.
Emergency Services Fund, General Fund
FROM: Emergency Services Fund, Fire EMS Admin Services, Contingency, 320-37401000-61110, $650,000
TO: Emergency Services Fund, Fire EMS Admin Services, Interfund Transfers Out, 320-37401000-62110, $650,000
ADD: General Fund, Emergency Operations Division, 101-37202500-39110, $650,000
Since the City became the primary provider of ambulance service in Salem on July 1, 2025, Fire staff from the General Fund have been working on ambulances to fill vacant shifts and meet minimum staffing requirements. To reimburse the costs for this work, the Emergency Services Fund needs to transfer money to the General Fund. The activity and transfer were not anticipated in the FY 2026 budget.
Miscellaneous Federal and State Grants Fund, General Fund
FROM: Miscellaneous Federal and State Grants Fund, Misc State Grants, Other Special Payments, 404-60981015-54850, $46,030
TO: Miscellaneous Federal and State Grants Fund, Federal Relief, Interfund Transfers Out, 404-60981010-62110, $46,030
ADD: General Fund, Non Departmental, Interfund Transfers In, 101-60961000-39110, $46,030
The Federal Relief cost center in the Miscellaneous Federal and State Grants Fund recorded financial activity for the American Rescue Plan Act (ARPA) funds awarded to the City. A large portion of ARPA funds were used as revenue replacement for services that were negatively impacted during the COVID-19 pandemic. There is a balance remaining in the cost center comprised of interest earnings. This action would allow the remaining fund balance to be transferred to the General Fund as one of the eligible uses of ARPA revenue replacement dollars is for the provision of general government services.
BACKGROUND:
State law allows local governments to approve transfers of appropriations within established limits to address unanticipated changes.
Kali Leinenbach
Budget Manager
Attachments:
1. Resolution No. 2026-32