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Council adopts midyear budget adjustments; staff to use reserves to cover recovery accounting
Summary
The City Council adopted Resolution 25‑22 approving midyear fiscal‑year 2024‑25 budget adjustments that reallocate recorded Eaton Fire costs into departmental budgets and use a portion of general‑fund reserves to balance the midyear changes.
The Sierra Madre City Council unanimously adopted Resolution 25‑22 at Tuesday’s meeting, approving midyear adjustments to the fiscal year 2024‑25 budget that incorporate costs associated with the Eaton Fire and the February storm, carry forward permit‑related revenues and adjust internal service accounts.
Finance Director Dustin Rainey presented the midyear package, explaining staff initially recorded Eaton Fire expenses in a dedicated fund and subsequently moved eligible response costs into departmental budgets to prepare for FEMA and PRISM claims. Rainey said the city has roughly $530,000 in recorded personnel and non‑personnel expenditures related to the events and proposed drawing $2,301,000 from the general‑fund unassigned balance to cover midyear adjustments across funds. The director noted the city’s audited comprehensive financial report (ACFR) showed $3,851,119 in general‑fund reserves; after the proposed adjustments staff estimates an unassigned balance would remain.
Major adjustments: The midyear package increases planning/building contract services for plan‑check reviews (to cover higher permit workload), adds public‑works costs for debris removal and infrastructure stabilization, funds an initial phase of a hazard‑mitigation plan, and records interest/earning increases in proprietary funds. The water and sewer funds show modest revenue increases tied to charges for service and interest on invested funds.
Why it matters: Moving event costs into department ledgers keeps accounting aligned for FEMA/Cal OES reimbursement reviews and for insurance claims. Rainey emphasized the city must reconcile departmental records before the April 16 RSA meeting to preserve reimbursement eligibility.
Vote and next steps: The council approved Resolution 25‑22 unanimously. Staff will continue reconciling invoices, pursue PRISM insurance claims, finish the hazard‑mitigation tasks and return any necessary follow‑up reports to council.
