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Council adopts FY24‑25 midyear budget amendment, reallocates CDBG program income to community center project
Summary
The council adopted a midyear budget amendment that increases the General Fund estimated ending balance after updated revenues and approved allocation of Community Development Block Grant (CDBG) program income to the community center rehabilitation project.
The Capitola City Council on Feb. 20 adopted the fiscal year 2024‑25 midyear budget amendment and approved reallocation of Community Development Block Grant (CDBG) program income to support the Community Center rehabilitation project.
Finance staff told the council that actual revenues for the recently closed fiscal year came in about $6,065,000 higher than estimated and expenditures were lower by roughly the same amount, which increased the projected June 30, 2025 General Fund estimated ending balance. The adopted midyear amendment incorporates expected Measure Y district tax revenue for the last quarter (an estimated $277,000) and adjustments related to labor memoranda. With the amendments, staff estimated the General Fund ending balance for 6/30/2025 would increase to just under $805,000 from the prior projected $628,931.
On the CDBG item, staff reported the city received a $3.3 million CDBG grant for the community center rehabilitation project and that program income (loan repayments and revolving fund receipts) requires allocation before drawing down grant funds. The council approved allocating roughly $170,000 of CDBG program income to the community center project and adopted a corresponding budget amendment. Staff said the program income figure had risen slightly from an earlier item because of additional interest and loan repayments since January.
Councilmembers asked for public reporting on how Measure Y revenues will be used; staff said they will provide a clear outline of Measure Y revenue sources and budgeted uses during the upcoming budget development schedule. The council set dates for budget hearings and staff said the proposed FY25‑26 budget will be distributed the first Friday in May with hearings in May and June and final adoption in late June.
