Brawley adopts $65 million FY2025–26 budget; finance director projects modest general‑fund surplus and reserves

The Brawley City Council on July 1 adopted the fiscal year 2025–26 citywide operating and capital improvement budget after a multi‑month process of study sessions and staff review.

Finance Director Sylvia Luna presented the final figures. The citywide budget as adopted totals $65,000,000 across 50 funds and 34 capital improvement projects, according to Luna’s presentation. The general fund represents approximately 41% of the total budget. Luna reported proposed general fund revenues of $26.8 million and proposed general fund expenditures of about $26.7 million, leaving a projected surplus of roughly $70,529 for the fiscal year and an estimated total fund balance (reserves) at year‑end of about $12 million; the unassigned portion of reserves was estimated at $8.7 million.

Luna outlined drivers of revenue and expense. Sales and use taxes were projected conservatively because of localized reallocations of point‑of‑sale receipts (including declines at fuel/service stations and a recent closure of a sugar plant), but voter‑approved Measure J (a 1% sales tax approved in November 2024) is included in FY25‑26 projections and was described by staff as an important source of revenue. The finance director noted a drop in certain one‑time grant receipts from the previous year and said the budget does not assume increases from a pending city fee study; staff plans to bring fee changes back for council consideration in September once the draft is finalized.

Key expense drivers include personnel additions and benefit costs. The adopted general fund budget incorporated five new full‑time positions and one part‑time position added across departments and six new vehicle leases; the recurring personnel cost of the new positions was estimated near $493,000. The budget also reflects higher liability and workers’ compensation costs (CJPIA allocation), a 5% increase in pension obligation bond payments and anticipated medical insurance increases (estimated 10–12% starting January 2026). Luna said departments also included capital requests (eight CIP items tied to the general fund) and that the city will produce quarterly budget performance updates after adoption.

Luna summarized capital improvement funding across funds and noted that $20.5 million of CIP work is on the schedule for FY25‑26. She said roughly 44% of that CIP funding in the adopted plan comes from grants or one‑time sources (federal, state, IID and other grants). She stressed that the five‑year CIP schedule is required for many grant programs and is needed to remain eligible for state and federal funding.

Councilmembers commended staff for the presentation and asked clarifying questions about portions of the enterprise and airport funds. The council approved the budget by voice vote; no roll‑call tallies were recorded in the public transcript.