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Riverbank council approves FY24-25 midyear budget amendments, flags water and gas-tax pressures
Summary
The Riverbank City Council approved midyear budget amendments that adjust revenues and expenditures and highlight future pressures from water and gas-tax declines. Council passed the amendment 5-0 after staff outlined revenue corrections, personnel and capital changes and a persistent structural deficit.
The Riverbank City Council on Tuesday adopted fiscal year 2024–25 midyear budget amendments after receiving a staff review of updated revenue and expenditure projections.
Tammy Alcantor, assistant city manager, presented the midyear review and told the council, "Tonight, as stated, I will be presenting to you our midyear budget review." The council voted 5-0 to approve the amendments.
The amendments increase projected revenues by about $482,000, chiefly from higher property tax receipts, business licensing and plan-check fees, and interest income after the city engaged an investment adviser. Alcantor told the council that overall midyear expenditure increases total about $197,521 and include corrections to personnel costs, engineering costs and expanded recreation program subsidies. The amended general-fund beginning reserve was reported at $8.3 million; amended revenues were $13.6 million and amended expenditures $14.4 million, leaving an estimated June 2025 ending reserve of $7.5 million and a structural deficit of roughly $827,000.
Alcantor also highlighted fund-level changes: a modest reduction of $11,000 in SB 1 gas-tax revenue, higher sewer and water fund maintenance costs (including generator and pump maintenance, diffuser repairs and levee reinforcement) and work to move playground equipment at Pioneer Park because of underground lines. She said the water fund has operated at a deficit and staff will prepare a future rate study; the last water rate increase was in 2019. The report corrected prior staff counts: there are four active cannabis development agreements and operators, not two as earlier reported.
Council members pressed staff on CalPERS liabilities and the city’s approach to investment and reserves. Vice Mayor Fosse asked for clarification on the CalPERS item and on the water fund trend; Alcantor confirmed the investment adviser has been used and that the water reserve decline is a concern that motivates a future rate study. In public comment, residents asked about local projects that affect revenues (one speaker referenced Costco) and sought clarification on cannabis business counts; staff confirmed four active agreements.
The council approved the midyear amendments by roll call: unanimous yes from Council Members Uribe, Pimentel, Kahl, Vice Mayor Fosse and Mayor Hernandez.
Staff said the amendments and the budget analysis will feed the FY25–26 budget preparations and that major future pressures include continued development-driven property-tax changes, CalPERS liabilities, deferred maintenance and declining gas-tax revenue that could increase general-fund subsidies for streets.
