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Belmont presents FY2025–26 budget proposal; $1.4M general fund gap tied to vehicle license fee uncertainty

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Summary

City staff introduced the proposed FY2025–26 budget, showing an $80.8 million combined operating budget and a $13.5 million CIP; staff warned of a $1.4 million general fund gap tied to uncertain state VLF reimbursement.

Finance staff on Tuesday presented the City of Belmont’s proposed fiscal year 2025–26 operating and capital budgets and a 5‑year forecast that highlights an emerging gap tied to a state vehicle license fee (VLF) reimbursement issue.

Grace Castaneda, the city’s finance director, said the proposed city and Belmont Fire Protection District operating budgets total about $80.8 million with a combined proposed capital improvement (CIP) budget of $13.5 million for FY2025–26. Castaneda told the council that general fund revenues are projected at about $32.9 million while expenditures are proposed at about $34.3 million, "giving us a gap of $1,400,000, which means that this is requiring a draw on general fund reserves to fill that gap and balance the…

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