Hughson City Council adopts midyear budget adjustments; staff proposes permanent June final-budget schedule

HUGHSON, Calif. — The Hughson City Council on Monday adopted Resolution 2025-25, approving midyear adjustments to the fiscal year 2024–25 operating budget after staff summarized revenue and expense changes and identified several capital and maintenance needs.

Director-level staff presented a condensed midyear report and explained key changes. The presentation said staff had applied the matching principle to reallocate payroll burden and payment processing fees across funds. "We redistributed the bank card fees, and that resulted in a $22,270 reduction in bank charges to the general fund and an $18,007.00 increase of bank charges to the sewer fund and the same amount to the water fund," the Director of Finance said.

Significant budget adjustments discussed included a $70,000 replacement play structure at Montana Park to be funded with the community enhancement development impact fee fund, deferred maintenance and fixed-asset replacements of $85,000 for Well 3 and the Fox Road storage tank from the water fixed-asset replacement fund, and $120,000 for new filters (items listed in the staff presentation). Staff reported estimated increased revenues of $485,110 and expense increases of $234,005.61, yielding a net positive change of $250,005.49 to the city’s bottom line.

Council members asked clarifying questions and acknowledged the staff recommendation. The council then moved to adopt the resolution approving the operating-budget adjustments for FY 2024–25. A motion to adopt the resolution was made and seconded; the roll call recorded unanimous support from the council.

During the discussion, staff also proposed altering the city’s annual calendar so the council would receive a final budget in June (effective July 1) and then conduct a midyear review in January instead of returning for a final budget in September that is backdated to July 1. Staff said the change would reduce duplicate work on a preliminary and a final budget and allow more staff time to focus on strategic priorities such as capital improvement planning and economic development.

Other staff updates referenced grant support for parks and recreation through a county intern program (500 funded hours from StanWorks), and upcoming community events including the state-of-the-city address and opening day for youth baseball.

The council adopted Resolution 2025-25 to incorporate the midyear adjustments as presented. Staff did not propose closing any funds or adopting permanent new taxes; the adjustments reallocations and capital items will be reflected in department budgets and reported to the council in future financial updates.