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Glendora Council adopts midyear budget changes, affirms reserves amid lower sales tax receipts
Summary
City finance staff presented a midyear review showing a balanced general fund, reduced sales-tax projections, and continued reliance on Measures E and Z. Council adopted a resolution amending the FY 2024–25 budget 4–0 and discussed long-term capital needs for facilities and water systems.
The Glendora City Council adopted a resolution amending the fiscal year 2024–25 budget after a midyear review that showed lower-than-expected sales-tax receipts but continued compliance with the city’s reserve policy.
Kyle Johnson, finance director and city treasurer, told the council that combined sales-tax revenues and Measure E/Z receipts were down roughly $1.35 million compared with the same quarter in 2023, driven by lower third-quarter sales in autos, fuel, and building and construction sectors. Despite that decline, Johnson said the general fund remains balanced and meets reserve requirements, aided by Measure E and Z transfers and prior fiscal actions.
Johnson presented a multi-year forecast that assumes modest increases in property tax and a small recovery in sales taxes, a 15% projected increase in planning and building user fees tied to an upcoming fee study, and continued transfers from Measures E and Z that will subsidize general fund operations in the near term. He also noted the water fund will add a full-time water conservation officer to comply with water-conservation regulations and that internal service funds will cover planned capital purchases such as IT backup systems and vehicle replacements.
Councilmembers asked for clarity on the city’s reserve targets: Johnson explained the operational reserve policy aims to maintain 30%–45% of prior-year general fund operating expenditures (roughly three to six months of operating reserves at those levels). Councilmembers and staff acknowledged longer-term capital and facility needs—staff estimated more than $50 million in immediate maintenance on existing facilities and tens to hundreds of millions for major new facilities or significant structural alterations—emphasizing the council will need to discuss long-term funding options in upcoming budget planning.
Councilmember Karen moved adoption of the resolution to amend the FY 2024–25 budget and Mendel seconded; the motion passed 4–0.
The council directed staff to continue the city’s two-year budget and strategic-planning process and to return with options for addressing capital-facility needs in the coming months.
