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Escalon staff reports third-quarter budget roughly on target; audit work on prior years delaying final report
Summary
City finance staff told the City Council that third-quarter revenues are slightly below straight-line expectations while expenses are modestly above; staff said one-time revenues and slower audit reconciliation of prior-year figures explain the differences.
Escalon City staff reported on third-quarter budget results and answered council questions about a delayed audit at the council meeting.
Celinda, a city finance staff member, told the council that at quarter three the city had realized about 71% of expected revenues and had expended about 77% of the budget, compared with a straight-line target of roughly 75% for both measures. "At mid year we were looking at about a $50,000 deficit; right now we're at a $44,000," Celinda said, adding the city has spent about $434,000 less year-to-date than at the same point last year.
The staff presentation noted several one-time receipts that increased third-quarter revenues, including investment income that exceeded budgeted expectations and a $183,700 donation from the estate of Mark Reagan. Celinda said the donation is recorded in miscellaneous revenue in the general fund and will remain separate until the council identifies a targeted use.
Why it matters: the numbers affect how staff will propose the fiscal 2025–26 budget and whether the city needs midyear adjustments. Celinda said the city typically receives a disproportionate share of revenues in the last two quarters of the fiscal year and that, on a straight-line basis, the city is on track to reach a balanced budget by June.
Council members asked about the status of the city audit. Celinda said the 2024 audit is taking longer than expected because auditors are reconciling transactions from 2023 prepared by the previous auditor. "They are taking a little more time, pretty much proving out the old numbers," she said. City staff later said the audit is expected to come back to a future meeting (staff suggested the first meeting in May), and that the 2024 transactions themselves are clean.
The presentation included department-level detail: public works had spent a notably smaller share of its budget, while recreation had exceeded its budgeted line and may need adjustments in the next budget cycle. Celinda recommended continuing to monitor actuals, reduce costs where possible, and align enterprise-fund expenses away from the general fund.
The council did not take formal budget action at the meeting; members were briefed and asked questions about outreach and how one-time revenues will be tracked. Staff said it will provide further reports showing where the Mark Reagan donation is ultimately spent.
Ending: Councilmembers expressed confidence in staff's reporting and asked that audit timing and any programmatic uses of one-time funds be tracked back to future council agendas for transparency.
