Claremont finance director reports revenues exceed expenditures at midyear; council approves midyear budget amendment

Finance Director Scott Board reported to the City of Claremont City Council that at the 50% point of fiscal year 2025 the city had received $85,600,000 of $134,500,000 budgeted revenues and spent $63,300,000 of $137,200,000 in budgeted expenses, leaving revenues running ahead of expenses by about $16 million.

Board told the council the quarterly report (through March 31) is available on the city website and breaks the finances into three major fund types: general fund (day-to-day governmental operations), enterprise funds (water, sewer, trash, stormwater) and special revenue funds (including cemetery and impact fee funds). He said citywide revenues received were about 64% of budget year to date and expenditures about 46%.

The finance director noted two revenue categories staff will monitor closely: franchise fees (about 42% received year to date) and certain state-shared intergovernmental sales tax receipts (local half-cent tax, about 43% received). He said both historically trend up in the second half of the fiscal year and that seasonality or conservative budgeting likely explain the lag.

After the presentation and a public hearing with no speakers, the council voted to adopt Budget Amendment No. 4 (Resolution 2025-014R), described by staff as a midyear reconciliation. Finance Director Board told the council the amendment recognizes nearly $3.9 million in additional revenues (including interest income and FEMA and capital grants) and records an early completion of the wastewater treatment plant project, which moved anticipated capital spending into the current fiscal year. Council made the approval by motion and second with no public opposition recorded.

Board said personnel rate changes that took effect April 1 were included in the current year totals and that anticipated increases for police and fire had been factored into the adopted budget. He also said staff will keep monitoring permit and fee categories and will work with Development Services where needed.

The council did not request additional hearings on the amendment; staff and council members indicated detailed backup is available in the packet and via the city website.

Ending — Staff said the finance department will continue to update the council at quarterly intervals and will present any further corrective recommendations during the regular budget process if revenues do not follow historical seasonality.