Interim Director of Finance Jesse Garcia walked the council through proposed mid‑biennium budget adjustments on Nov. 24, describing adjustments across all funds that staff summarized as roughly $130 million in added revenue and $75 million in added expenditure citywide. Garcia highlighted major items including a $12 million transfer to the economic development fund (land purchase), a $66 million energy‑tax‑credit receipt tied to future liabilities, an estimated $6 million in realized investment income, and a $900,000 increase associated with the recent utility tax change.

Garcia identified expense pressures as well: higher employer medical premiums (estimated at $3 million across funds), increased ambulance contract costs (~$1 million), and declining permitting revenue tied to softer development activity. On the reuse facility fund, staff reported a roughly $42 million revenue increase and $45 million in expense tied to the updated rate model. Garcia said some items reflect bond proceeds and carryovers already budgeted; the net general fund position still shows downward pressure unless reserves or transfers are used.

Council members focused questions on fund balances, the distinction between restricted/assigned/unassigned funds and whether the city would meet minimum reserve (“60 day”) targets. Councilman Peralta asked whether the estimate implied a $10.5 million deficit if current trends hold; Garcia confirmed the net change concept and said the projected ending fund balance for 2026 (after assumed adjustments) was around $15 million. Council asked staff to return with clarified breakout of restricted vs. available balances and implications if transfers from the economic development fund are considered.

No formal action was taken at the workshop; staff will follow up with revised fund‑balance detail and any items needing formal ordinance or resolution to enact transfers or appropriation changes.