City Council unveils draft budget highlighting $60K surplus for fiscal year 2025-26

The Canyon Lake City Council convened on April 9, 2025, to discuss the proposed budget for the fiscal year 2025-2026, focusing on revenue sources, expenditures, and departmental changes. The meeting highlighted the collaborative efforts of city staff in preparing the budget, with City Manager Aaron emphasizing the importance of timely submissions and the restructuring of departments to enhance efficiency.

The proposed general fund revenues are projected at $8,651,000, reflecting an increase of approximately $231,000 from the previous fiscal year. Conversely, general fund expenditures are estimated at $8,000,005.91, marking a rise of about $324,000. This results in a projected surplus of over $60,000, a significant turnaround from earlier budget forecasts.

Key revenue sources include property taxes, fire structure taxes, and utility user taxes, with property taxes expected to rise by $75,000 due to increased assessed values. The council also discussed the potential use of funds from the Air Quality Management District (AQMD) for various projects, which will be included in the budget proposal for approval in May.

The budget presentation included detailed breakdowns of expenditures across departments. Notably, the city manager's budget saw a decrease of $380,000, primarily due to the elimination of a management analyst position and the reallocation of community development functions. The newly established Community Development Department will oversee city events and IT functions, reflecting a strategic shift in operations.

Public safety remains a significant expenditure, with law enforcement costs rising by $254,000 due to contract changes. The fire department's budget saw minor increases, while other departments, such as planning and building safety, experienced reductions in their budgets.

The council emphasized the importance of maintaining a lean budget, with discussions on potential hybrid positions to optimize staffing and reduce costs. The city manager noted the necessity of careful financial management, especially in light of the city's limited budgetary flexibility.

In conclusion, the meeting underscored the city's commitment to fiscal responsibility and strategic planning as it prepares for the upcoming fiscal year. The council will continue to refine the budget, with further discussions anticipated in the coming weeks as they work towards final approval.