City manager, finance director present status-quo budget recommendation; council to adopt May 20

Finance Director Stacy Dabbs told the Colton City Council at a budget workshop that staff is recommending a status-quo budget and brought back follow-up items from the first workshop, including one program initiative and several personnel requests. "This slide is meant to support the thoughtful policy discussion," Dabbs said, summarizing costs and five funding options for personnel requests.

The presentation outlined five options: (1) maintain the proposed budget and revisit staffing at midyear; (2) reallocate $525,000 from existing services to add positions; (3) increase the general fund transfer by $550,000; (4) adopt a budget with slightly reduced reserves (14.3%); and (5) use $525,000 from pension/OPEB reserves. Dabbs warned that each option “involves trade offs” between immediate staffing needs and long-term fiscal health.

The City Manager, Bill Smith, asked council to give clear direction at the workshop so staff could incorporate it into the final budget document for the adoption hearing set for May 20, 2025. "I will ensure council direction from the workshops is incorporated into the final budget document," Smith said.

Why this matters: the workshop covered the general fund, enterprise funds (electric, water, wastewater), special revenue and internal service funds, and a capital improvement plan. Staff said the proposed budget keeps core operations funded while limiting new ongoing personnel additions unless council directs otherwise. The Finance and GFT (general fund transfer) committees reviewed the materials; the GFT committee expressed support for the proposed general fund transfer but advised caution about adding new ongoing personnel costs funded by the transfer.

Key details presented by staff included: a projected decline in pooled interest income for the electric utility, the electric utility’s new reserve target (a net reserve target of 25% by 2029 adopted by council the night before the workshop), water fund revenues driven by adopted rate changes, and multi-year carryover for large capital projects such as Well 22 rehabilitation and the Walnut Booster Station design. Dabbs noted that personnel-cost estimates provided to council (one deputy city clerk at $105,000; three firefighter EMTs at $375,000; one part-time community service officer at approximately $45,000) covered salary and benefits only and excluded vehicle, uniform, or equipment costs.

Councilmembers pressed staff on specifics such as the feasibility of reserve targets and the carryover treatment for multi-year capital projects. Dabbs and the city manager said unspent capital balances would carry forward to project completion and that budget adjustments would be handled at midyear as projects and revenues become clearer.

The council did not take a final vote on changes during the workshop. Staff will bring a budget document that incorporates council direction to the regular City Council meeting on May 20, 2025, for formal adoption.