Loomis presents biennial budget with modest surpluses; staff asks council to shift $55,000 into operating reserve

Ted, the town finance director, presented a draft biennial budget for fiscal years 2025–26 and 2026–27 and told the Loomis Town Council the general fund is balanced in both years with modest surpluses and planned capital spending.

The budget shows a $103,000 surplus in 2025–26 and a $54,000 surplus in 2026–27, Ted said. He asked the council for feedback on increasing the operating reserve by $55,000 — moving that amount from the unassigned general fund balance — to meet the Government Finance Officers Association (GFOA) “best practices” guideline of maintaining two months of expenses, or 16.7 percent, in operating reserves.

The operating-reserve question drew brief discussion but no vote; Ted said there was no item before the council to adopt the change that night and that staff will return with a resolution for the June meeting to set specific dollar amounts for each year. “According to the GFOA … the recommended minimum operating reserve balance is equivalent to 2 months of expenses or 16.7%,” Ted said. He noted the town’s current operating reserve equals about 15.9 percent and that $55,000 would bring it to the recommended level.

Nut graf: The biennial budget frames Loomis’ priorities for two years and includes staff additions, a planned upgrade to the town’s finance system and a capital improvement program (CIP) that will draw on accumulated reserves. Council members questioned timing and scope for library accessibility work and expressed concern about the scale of capital spending drawn from reserves.

Most of the presentation focused on the general fund, which Ted said accounts for roughly 80 percent of the town’s expenses. Major revenue drivers in the general fund are sales and use taxes (31 percent) and property tax (27 percent); property tax in lieu of vehicle license fees represents an additional 16 percent. Together, sales/transactions taxes and property-related revenues make up about 87 percent of general fund receipts, the presentation showed.

Staffing and operations: The budget adds three positions — a community development director, a senior engineer and an administrative assistant — bringing budgeted staff from 18 to 21 positions. Personnel costs are about 38 percent of the general fund. Ted said consultant spending is reduced overall by about $80,000 compared with recent practice because the new hires will absorb some functions; the budget does include consultant funding for the planned finance system selection and implementation and for a fee-study.

Public safety and contracts: Safety services, dominated by the sheriff contract, are budgeted at roughly 32 percent of the general fund for 2025–26. Ted noted 2025–26 is the third year of a three-year contract; staff built a non-flat estimate for 2026–27 because the next contract has not been negotiated.

Capital and reserves: Council members pressed staff on CIP timing and the effect of spending on fund balances. Ted said two CIP projects were completed in 2024–25, 11 are in process and seven are planned to begin in 2025–26; 14 projects were deferred or removed for various administrative or cost reasons. The draft shows the town’s total general fund balance at about $2,260,000, with the operating reserve at roughly $1,211,000.

Library ADA and facility projects: Council members sought clarity on library accessibility work. Ted said the budgeted exterior parking-lot project for the library is $225,000 and that staff expect Placer County to reimburse roughly half (about $100,000) under a maintenance agreement; the interior improvements are not yet fully programmed. Councilmembers and staff discussed combining interior and exterior work to save costs and minimize patron disruption; Ted said an ADA project tied to the library is listed in the CIP for 2026–27 and that the project amount in the CIP is $185,000, so staff will ensure the budget and CIP align.

Other funds and fees: Ted reviewed other town funds, including street and transportation funds (roughly $1 million annual throughput, funded by state gas tax and PCTPA transfers), tree and maintenance district funds and a supplemental law-enforcement fund. He confirmed a longstanding development fee of $750 per unit (charged on subdivisions) is still in place; councilmembers discussed a separate, more recent inclusionary-fee proposal from a prior meeting.

Finance system timeline: Ted said staff are negotiating with a consultant to assist with vendor selection and implementation and expected to onboard a consultant in July; industry-standard implementations run nine to 12 months, and Ted said he hopes Loomis’ smaller financial complexity will allow six to nine months.

Council direction and next steps: Councilmembers generally supported increasing the operating reserve to meet the GFOA benchmark and asked staff to return with a resolution and the corrected final numbers when the actual COLA is known. Ted said the budget will come back next month for adoption with adjustments for the final COLA figure and other corrections.

Ending: Staff did not seek additional direction after public comment closed. Ted and staff will return with the finalized budget and accompanying resolutions at the June meeting; implementation of the finance system is expected to begin after consultant selection, with staff estimating phased implementation in the 6–12 month range.