Ripon staff previews $28.7 million proposed 2025–26 budget; CalPERS unfunded liability remains pressure point

City finance staff presented the proposed 2025–26 budget to the Ripon City Council, describing planned expenditures across the general fund, enterprise funds and capital projects and noting there is no final action tonight; a public hearing and council vote are scheduled for July.

Staff said the proposed total city budget for 2025–26 is about $28,650,000, roughly a 7% increase over the current year, with about 89% tied to the general fund and enterprise funds. The finance presentation traced revenue trends, noting sales tax — particularly fuel sales — has declined from its recent highs and that development‑related revenue is variable; general fund revenue was described at just under $18,500,000 in the draft budget.

On operating expenses, staff discussed personnel and benefits as the largest budget components. The presentation noted a continuing rise in CalPERS costs: the city’s unfunded liability is about $7 million and the city has roughly $2 million in a Section 115 trust. Warner (budget presenter) said that CalPERS payments have increased from about $500,000 annually in 2014 to $800,000 recently and projected they could rise to roughly $1,350,000 by 2030–31. Staff described the Section 115 trust as a tool to mitigate some long‑term pressure; the council will review policy options and possible transfers at annual planning sessions.

Staff also outlined staffing changes linked to expanded regional dispatch services: eight dispatch employees were added in prior years and the 2025–26 draft includes reclassifications and a proposed dispatch supervisor position that together carry an estimated fiscal impact just under $170,000.

The presentation included enterprise fund planning: staff said a five‑year water, sewer and refuse rate study is under way with draft increases shown in the budget of 5% for water, 5% for sewer and about 15% for garbage pending the engineering rate study. Staff said final rates will be brought back for council approval following the study.

Capital projects highlighted included ongoing street and road resurfacing and reconstruction plans (Area 1 and an upcoming Area 3 design), a downtown circulation master plan estimated around $11 million (staff said they will pursue grants and phase the work), and the successful financial recovery trends at Midland Sports Park (staff said the park’s maintenance cost recovery rose from about 50% historically to roughly 83–87% in recent years depending on the year reviewed).

Staff emphasized the budget is still a draft and that council direction and the July public hearing could alter recommended actions. No formal council action was taken during the meeting.