Ripon City Council reviews 2024 budget amid revenue declines from EV sales

During the recent City Council meeting held on June 10, 2025, in Ripon, California, key discussions centered around the city’s budget for the upcoming fiscal year, highlighting significant financial trends and challenges facing the community.

One of the primary concerns raised was a 7% decrease in revenue compared to the previous year, attributed largely to the rise in alternative fuel vehicles, including electric vehicles (EVs), which do not contribute to local tax revenues. This decline poses a potential threat to the city’s general fund, which supports essential services such as public safety and infrastructure maintenance.

The budget for the general fund is projected at just over $17.8 million, with police services accounting for the largest share of expenses. Notably, the legislative budget saw an 11% reduction due to the absence of election-related costs this year, while expenses for building services increased due to new software implementations.

A significant focus of the meeting was on the city’s street and road maintenance strategies. The council discussed the impact of stagnant gas tax revenues, which have not kept pace with rising construction costs since 1994. To address this, the city has implemented policies to allocate a portion of any general fund surplus to a street and road reserve account, aimed at funding necessary road repairs and reconstructions.

The council reported progress in recovering costs associated with Midland Sports Park, with projections indicating that 87% of maintenance expenses will be covered through facility rentals in the upcoming fiscal year. This marks a substantial improvement from previous years, reflecting the city’s efforts to enhance revenue generation from recreational facilities.

Looking ahead, the council is preparing for a new five-year rate study for water, sewer, and garbage services, anticipating increases of 5% for water and sewer, and 15% for garbage collection. These adjustments are driven by new regulatory requirements that have escalated operational costs.

The meeting concluded with a reminder that there would be a public hearing in July for further discussion and approval of the budget. As Ripon navigates these financial challenges, the council's proactive measures aim to ensure the sustainability of city services and infrastructure for its residents.