In a recent government meeting, the city manager presented a budget proposal reflecting a total departmental request of $56.2 million, with an approved amount of $52.6 million, marking a reduction of $3.5 million for the general operating fund. The approved budget for departmental requests stands at $37.6 million, down from the requested $41.5 million, indicating a cut of $3.8 million.

The budget for the current fiscal year 2023-2024 shows an overall increase of $4.1 million across all funds, with the general operating fund seeing a rise of $1.1 million. Personnel services are allocated $32.7 million, up from $29.7 million in the previous fiscal year, while the general fund appropriations have increased from $24.7 million to $26.1 million.

Key factors contributing to these personnel increases include the restoration of positions previously frozen or eliminated due to the COVID-19 pandemic, negotiated wage and benefit increases, and rising liabilities associated with the California Public Employees' Retirement System (CalPERS). The unfunded actuarial liability (UAL) is projected to exceed $1 million this year, a significant increase from just over $500,000 last year. The city has committed to paying down this liability annually to prevent accumulation, which previously reached $63 million.

In terms of services and supplies, the budget allocates $18.5 million, an increase from $17.4 million, with the general fund portion rising from $10.1 million to $11 million. Capital outlay for fiscal year 2024-2025 is set at $1.3 million, with specific allocations for various departments, including $387,738 for the city manager's department for computer equipment and a dump truck, and $248,919 for three patrol vehicles for the lease department.

The fire department is budgeted $517,271 for essential equipment, including vehicles and emergency response tools, while the public works department will receive $127,917 for various equipment upgrades. Additionally, the community development department is allocated $45,575 for new laptops and a vehicle.

This budget proposal reflects the city's ongoing efforts to manage fiscal responsibilities while addressing essential services and infrastructure needs.