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Cloverdale staff warn of falling reserves; council reviews proposed small capital and program budget amendments
Summary
Finance staff warned that Cloverdale’s unassigned general‑fund reserves are projected to decline over the next two fiscal years and presented proposed budget amendments, largely funded from impact fees and existing grants, for council review.
Finance staff reported that a one‑time surplus in fiscal year 2023–24 left the general fund in healthy position, but budget projections show declines through fiscal 2025–26 that could push unassigned reserves below the municipality’s policy threshold.
The city’s finance director reported the general fund closed 2023–24 with about a $1,000,000 surplus; staff projected a $1,600,000 reduction in unassigned reserves for 2024–25 and an additional $809,000 reduction in 2025–26 if spending and revenue assumptions hold. Staff noted Measure DD sales‑tax revenue could offset declines but formal revenue estimates were not yet available.
City leaders reviewed a set of potential budget amendments and small capital projects, most financed from developer impact fees or existing grant funds rather than the general fund. Proposals included park improvements (dog‑park ADA work, a second‑street gazebo), drinking‑fountain replacement, trail repairs, and $15,000–$25,000 increases for community preparedness and student‑liaison programs. Staff also presented a proposed procurement path for audiovisual upgrades in the Cloverdale Performing Arts Center and council chambers; staff said in‑house consultant KLH would provide initial scope and estimates before a potential RFP.
Council members stressed the need for fiscal discipline. One council member said, “We need to live within our means. Measure DD wasn’t for filling budget shortfalls,” and asked staff to prioritize needs over wants as the city approaches multi‑year reserve declines. Several council members supported advancing several impact‑fee funded park projects and asked staff to return with detailed cost estimates and ordinance‑compliant funding sources before any general‑fund spending.
No budget amendments were adopted at the meeting; staff will return with costed proposals and, where required, formal budget‑amendment items for council action.
