Lemoore finance director previews FY 2025-26 draft budget; council hears potential rate studies for refuse and wastewater

Finance Director Jocelyn Valdez presented the citys proposed draft budget for fiscal year 2025-26 at the May 6 council workshop, telling council the packet is a working draft and several estimates could change.

Valdez said, "The city of Lemoore budget is comprised of 73 functioning funds," and walked council through high-level totals: a projected beginning combined balance of about $74.15 million, proposed combined revenues of $49,141,000 and proposed combined expenditures of $60,407,000, leaving a projected ending combined balance of about $62,886,000 under the draft. For the general fund, Valdez reported a beginning balance of $14,154,000, proposed revenues of $15,721,000 and proposed expenditures of $15,456,000 for an estimated ending balance near $14.42 million this year; for FY26 she showed proposed general fund revenues of $17,900,000 and expenditures of $17,300,000 with a projected ending balance of about $14.7 million.

Valdez said personnel costs are projected to increase roughly 12% year over year without adding positions, operating expenditures about 10% and revenues about 10.5%. She noted draft estimates remain subject to change pending updated sales-tax projections from HDL and planned spending of development impact fees.

Valdez reviewed enterprise funds. Highlights in the presentation included a reported healthy water fund (beginning balance $12.5 million; proposed revenues roughly $12.0 million; proposed expenditures $10.6 million) and a wastewater fund that is showing a planned drawdown of fund balance (beginning balance $9.3 million; proposed revenues $4.4 million; proposed expenditures $9.8 million), for which Valdez recommended a rate study to determine whether rates should be adjusted. The refuse fund is roughly balanced in the draft and Valdez said the fleet fund remains negative but moving toward break-even.

Council discussed whether to hire a consultant or increase rates directly. Valdez explained the city typically contracts with a specialist (Dan Bergman with IGS was cited) to produce a defensible multi-year rate plan. The council later approved, on the consent calendar, an agreement with IGS to conduct the 2025 refuse rate study; staff said the cost is $33,000 and is budgeted to be paid from the refuse enterprise fund.

During public comment, Alex Walker, speaking as a private citizen and also representing Rotary at a later point, urged the council to consider a wage study for city employees; Walker said ensuring competitive employee pay has been an ongoing council discussion since 2022. Several council members and the finance director said the draft numbers will be refined in subsequent budget meetings and that the current presentation is to guide further work rather than adopt final policy.

Council did not adopt the budget at the meeting; the presentation served as budget workshop number four and staff said subsequent meetings and updates (including the HDL sales-tax update) will be incorporated into a final proposed budget for council adoption.