The City of Deafell Finance Committee approved the mayor’s recommended 2026 budgets for the recreation program and the city center on Sept. 29, while directing staff to flag one $10,000 item for follow-up and to mark depreciation as informational.

Committee members debated whether to include depreciation in the operating budget after staff said that with depreciation included the center’s budget showed a larger deficit. “Currently, we’re standing at a negative $41,035 for our general fund. 41. $41,035,” a finance staff member said during the meeting. The staff member said removing depreciation would change the center’s result: “If you take it out, the take center has a positive balance of 51,824.”

Committee members discussed options for displaying depreciation. One alderperson recommended showing depreciation as a bottom-line informational line with an asterisk so the council would see the noncash amount without treating it as an operating expense; another member asked that the $10,000 the mayor referenced remain on the “parking lot” for further clarification. The committee also discussed the recreation program’s staffing and revenue projections, including a roughly $50,000 amount that staff said the general fund currently pays toward the recreation director’s wages.

Staff explained membership-revenue shifts tied to benefit programs: SilverSneakers reimbursements have largely moved to Optum Fitness, which appears as higher revenue in a different line item. On lifeguard staffing, staff said the city had been out of compliance in the past but believes the department can absorb required changes this year without a large budget increase; the committee heard that pool hours could be modestly shortened if needed.

The motion to approve the recommended budget for the center and recreation, subject to the $10,000 parking-lot item and with depreciation marked by an informational asterisk, was made by Alderperson Smith and seconded by Alderperson Baker. The roll-call vote recorded ayes from Alderperson Smith, Alderperson Baker, Alderperson Liegno, Alderperson Newman and Alderperson Olsen. The motion carried.

The committee placed a separate follow-up item on the parking lot to decide whether recreation wages should remain in the general fund or be moved to a different fund and directed staff to show depreciation as informational on the budget documents going to the council.