Seaside officials review $48.3 million draft budget; unassigned fund balance projected $1.7 million shortfall

Seaside City Council on Tuesday, June 10, received a detailed presentation of the city's draft fiscal year 2025—26 operating and capital budget and discussed options to address a projected unassigned fund balance shortfall of about $1.7 million. The council did not take final action; staff will return with refined options at the next study session on June 12 and will present a revised compliant budget for consideration on June 24.

The draft general fund operating plan projects $48.3 million in revenues and $48.2 million in operating expenditures, producing an operating surplus of roughly $60,000. When nonoperating uses are included the proposal relies on $2.6 million of unassigned fund balance to support $625,000 in general-fund capital spending and $2.0 million set aside for street maintenance. Finance staff said that use of reserves would leave the city about $1.7 million short of the 30% reserve target in the city's municipal code.

City Manager (name not provided) framed the budget as a fiscal-reset conversation: "The annual budget is one of the most important tools in municipal governance," he told the council, noting slower revenue growth, elevated inflation, and rising personnel and pension costs. Finance Director Jessica Riley outlined the numbers and the trade-offs staff used to bring the package close to…