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Atherton staff reports $634,000 midyear surplus; ERAF and VLF items noted
Summary
The town’s midyear budget report projects revenues exceeding the adopted budget by about $817,000 and a net positive change of roughly $634,000, driven by increased property taxes and one‑time revenues including Caltrain mitigation funds; staff flagged VLF backfill and ERAF fluctuations for future budget work.
Town staff presented Atherton’s midyear budget report for fiscal year 2024–25 at the Feb. 5 study session, projecting higher revenues and a positive year‑end fund balance.
Finance staff reported projected total revenues of about $26.3 million, exceeding the adopted budget of $25.5 million by approximately $817,000. Expenditures were projected at about $21.2 million, up roughly $183,900 from the adopted budget primarily for one‑time operations and maintenance items. Staff summarized a net positive variance of approximately $634,000 and a projected year‑end fund balance of about $12.4 million, inclusive of reserves.
Key revenue drivers included higher property‑tax receipts and ERAF (educational revenue augmentation fund) distributions; the report showed property‑tax revenue up to about $16.8 million and ERAF higher than budgeted. Staff noted lingering VLF (vehicle license fee) backfill shortfalls from earlier years that remain under discussion with the county and state consortia, and that some revenues — such as Caltrain electrification mitigation funds — are one‑time receipts.
On the expenditure side, staff identified midyear increases in several departments: building department revenue adjustments; a document imaging project in administration; police overtime, training and an alarm monitoring upgrade; and temporary staffing in public works for park event management. The report said city staff would include recommended midyear budget adjustments on the Feb. 19 consent agenda.
Councilors asked clarifying questions about the property‑tax projections and the planning‑permit slowdown, and staff said the town will revisit ERAF and other assumptions during upcoming budget planning.
The council received the midyear report; staff will return with a formal midyear budget resolution for the Feb. 19 meeting consent calendar.
