Finance committee approves $20,000 midyear amendment for Cedar Lane design; hears update on seawall project and reserves

The Belvedere Finance Committee on an undisclosed January date approved a $20,000 midyear capital amendment to cover additional design and engineering for the Cedar Lane project and received a midyear general-fund report showing revenues and expenditures largely tracking to budget.

Helga Kotter, director of administrative services, told the committee that the city began the fiscal year with a $6,530,000 beginning fund balance — an increase of $870,000 above the adopted budget amount of $5,660,000 — and that revenues are at roughly 59% of budget with property taxes on track to meet projections. "Revenues and expenditures are on target for this point in the fiscal year," Kotter said. She also said the city received about $150,000 in positive interest earnings from CalTrust in the first two quarters.

Kotter said capital expenditures are at about 23% of budget and staff requested a $20,000 amendment for lane design and engineering because the current fiscal-year line item of $15,000 is projected to be exceeded by approximately $20,000. Kotter recommended approving the amendment so the design and engineering costs can be covered in the current year.

Committee members also discussed the seawall stabilization project on Beach Road and San Rafael Avenue, which staff have budgeted and estimated in the roughly $2.5 million to $2.8 million range. An unnamed city engineer or consultant told the committee that design, engineering and permitting commonly add roughly 10%–15% to overall project cost and that the city issued an RFP for design and engineering with proposals due March 4 and an assumed start in spring 2026. Kotter said the city had $1,340,000 in its critical-infrastructure reserve at June 30; with recent deposits of about $550,000 the reserve stands at roughly $1,890,000 and staff budgeted an additional $650,000 to be deposited by next June, bringing the projected reserve to about $2,540,000 prior to construction.

Committee members pressed staff on regulatory and design choices for the seawall — including whether rock revetment (riprap) or a concrete cap over sheet piles would be used to address undermining — and on the tradeoffs between raising wall height versus other solutions. Kotter said some alignment decisions were made to reduce regulatory impacts and limit infill of the bay, which community members and regulatory agencies prefer to avoid.

The committee also discussed the city's investment returns in a standalone account (referenced as a Section 115 or similar account). Kotter said total contributions through Dec. 31 were about $2,550,000 and the account's total balance was roughly $2.73 million, representing about a 7% return over three years; staff have scheduled a call with CalPERS to request a quarterly breakdown to better understand a recent negative quarterly return.

Votes at a glance

- Approval of minutes from the Nov. 18 meeting: motion moved and seconded; roll call vote recorded as Chair McCaskill — yes; John Wilton — yes; David Walker — aye; Will Lyon — yes; Patrick Fader — yes. Outcome: approved unanimously.

- Motion to approve a $20,000 increase to the capital expenditures budget for the Cedar Lane design and engineering: motion moved and seconded; roll call vote recorded as Chair McCaskill — yes; David Walker — aye; Will Lyon — approved; Patrick Fader — yes; John Wilton — yes. Outcome: approved unanimously.

Kotter said the city's estimated general-fund reserve balance of about $4,700,000 meets the city's reserve policy goal even when accounting for the proposed $20,000 amendment. She told the committee that capital projects often spend more in the spring and that the city cannot freely reallocate funds between active capital projects because budgeted project allocations roll over to the next fiscal year until projects are complete.

On grant status for the seawall work, Kotter said the city still has a pending FEMA application from the 2021 funding cycle and the federal review has requested documentation such as right-of-entry letters for outboard properties; the city had not received a final decision. Kotter also said a separate state grant window had closed and the city was not aware of an active state grant for the project.

The motion to amend the capital budget for Cedar Lane passed unanimously on roll call. The committee directed staff to bring the midyear report and the proposed amendment to the full city council for final appropriation.