The City has experienced unanticipated legal expenses necessitating a transfer of budgeted contingency funds to pay expenses for services provided to date and anticipated through the end of the fiscal year.  Through such matters as the NMB Water surcharge, representation of the City in unit clarification before the state’s Public Employees Relations Commission, and legal defense for claims and litigation, the budget for Legal Professional Services has been exhausted. 

Additionally, prior fiscal years’ legal expenses have been paid from various accounts and departments.  Through the coordinated efforts of Finance, Procurement, HR/Risk, the City Attorney’s Office, and Office of the City Manager, expenses that have been accounted inconsistently across departments are being centralized. 

Administration recommends approval of the resolution ratifying the interdepartmental budget transfer and in doing so the continued representation of the City in various legal matters and efforts to improve financial transparency and sound budgeting and accounting principles.

There is no additional fiscal impact to the City and no increase to the adopted FY 2025–2026 budget. The transfer utilizes existing contingency funds.