Ridgecrest presents balanced FY 2025–26 budget; Measure V, gas tax shortfalls tracked for FY27
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Summary
City staff presented a balanced fiscal year 2025–26 general fund budget and outlined steps to address shortfalls in Measure V and the gas tax fund, while preserving department staffing and deferring major new projects.
Ridgecrest city staff presented a balanced proposed budget for fiscal year 2025–26, saying the plan aligns lower anticipated revenues with reduced spending and includes steps to resolve shortfalls in Measure V and the city’s gas tax fund.
City Manager Ron Strand said the general fund projection shows $22.3 million in revenue and $20.9 million in expenditures for FY26, and estimated the general fund balance at about $15.8 million. “It is a balanced budget,” Strand said as staff introduced the plan.
The presentation outlined the city’s major revenue mix: sales tax streams (including local measures), property tax, transient occupancy tax and franchise fees. Strand and Finance staff told the council that sales tax receipts have been lower recently and the budget reflects those adjustments.
Measure V and the city’s gas tax fund (fund 102) carry shortfalls the budget aims to close during FY26 so both funds start FY27 balanced. Staff said the Measure V imbalance was approximately $1.8 million and the gas tax fund shortfall about $780,000; planned transfers and spending adjustments will bring those accounts back to balance during FY26.
Staff emphasized a focus on maintenance and a limited set of capital starts for FY26. The city manager said major new projects were mostly deferred to FY27; department presentations focus on repairs, pool work and ongoing road projects rather than new large programs.
The budget document allocates personnel and department shares of the general fund: police services account for roughly 45 percent of general-fund spending; parks and recreation about 15 percent; finance and IT combined about 9 percent; community development 9 percent; and public works about 3 percent.
Staff also reviewed staffing and pension figures: the FY26 budget contains funding for roughly 148.4 full-time-equivalent positions across funds and about $16 million in salaries and benefits. Department heads will present departmental budgets and priorities at council briefings as the review proceeds.
The council was asked to return the budget for formal action on June 4. Strand told council the budget is a “living document” that can be adjusted later if priorities or revenue projections change.
Ending: The document presented to council allocates limited resources toward operations and maintenance while maintaining contingency reserves; staff recommended council review department-level presentations and return for adoption at a later meeting.
