Atherton previews FY 2025–26 general fund; council debates pension paydown vs. capital projects

Finance Director Robert (presentation) told the Town Council and Audit & Finance Committee at a joint April 2 study session that the town’s FY 2025–26 general fund operating budget projects operating revenues of about $24.6 million and operating expenditures of roughly $22.01 million, producing an operating surplus before one‑time items. The presentation also included one‑time Educational Revenue Augmentation Fund (ERAF) receipts the staff budgets at $2.5 million, which bring total available resources reported on the slides to about $27.1 million.

The budget review framed major revenue and expenditure drivers: property taxes remain the largest single revenue source and were described as about 70% of general fund operating revenue; charges for services (building, planning, public works, police) were shown near 17%; franchise and other fees comprised the remainder. The staff report and slides noted an ongoing vulnerability in a property tax in‑lieu line the presentation referred to as “VOF,” describing two recent shortfalls totaling about $1.4 million that the county and other agencies are working with the state to remediate in a later year’s budget.

On expenditures, Robert said the FY 2025–26 budget…