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BK Development Corporation adopts FY2025–26 budget; board reviews revenue assumptions, shared staff costs and major project placeholders
Summary
The BK Development Corporation unanimously adopted the FY2025–26 budget, with staff presenting audited FY2024 figures, a projected $11.3 million beginning fund balance, conservative sales tax assumptions, and line items for advertising, professional services and capital project placeholders.
The BK Development Corporation voted unanimously to adopt Resolution 2025‑09, approving the fiscal year 2025–26 budget.
Staff summarized audited fiscal year 2024 results and said the corporation expects to end FY2025 with about $11,300,000 in fund balance to begin FY2026. Sales tax revenue for the budget is projected at $2,625,000; staff said current collections are running about 4–5% above last year but kept the FY2026 budget conservative. Interest income was budgeted at $425,000.
Staff described how several city positions and services are shared between the corporation and the city, and that salary allocations shown in the budget represent estimated percentages of staff time devoted to economic development functions. Staff said Chelsea’s position is now split 50/50 with planning and development and that some salary lines should be lower next year due to vacancies and revised allocations.
The budget includes a ceiling for advertising and promotion of $262,500, which staff said represents the 10% statutory ceiling on promotional spending. Staff also explained line items for legal notices, conference attendance (TMLI and TEDC), membership fees, special events and several professional services subscriptions and data tools (examples mentioned: GSI, Resimplify and consideration of Placer AI). Staff noted removal of a Blue Dot subscription from the current budget after review of overlapping tools.
The budget continues to include a placeholder for a remaining portion of a $3.8 million development agreement related to the Willie Way extension; staff said $200,000 of the remaining obligations may be spent this year (including a $150,000 payment related to vacating a parking easement and $50,000 for an easement) and the budget includes a $2,000,000 placeholder for future construction obligations though full spending is not guaranteed. Staff also described $300,000 budgeted for construction of water‑quality ponds (landscaped, not wet ponds, per staff).
Board members asked questions about how salary and IT charges are estimated and how professional services and capital projects will be brought forward; staff replied that project‑specific professional services contracts would return to the board and city council as resolutions when they are ready. Staff said the budget includes capacity for professional services and data subscriptions to support strategic‑plan implementation and business outreach.
A motion to approve Resolution 2025‑09 carried unanimously.
