Wasco presents conservative-but-optimistic 2025-26 preliminary budget, highlights reserves, water projects and CIP priorities

Wasco City presented a preliminary 2025-26 budget Wednesday that city finance staff described as “conservative but optimistic,” saying projected revenues of about $17.2 million would cover $17.1 million in operating costs and preserve a sizable reserve balance. Finance Director Perez Hernandez told the council the plan keeps essential services funded while maintaining capacity to pursue capital projects and grant opportunities.

Perez Hernandez summarized the document as a balanced budget that preserves service levels and maintains a strong unassigned general fund balance. He said staff projects an unassigned general fund balance of about $27 million (roughly 161 percent of operating costs) at June 30, 2026, well above the city’s 35 percent policy target. “We are conservative. We don’t want to be optimistic and then have to come back to the council,” Perez Hernandez said.

The presentation emphasized five council priorities carried from earlier goal-setting: support for a sports complex, water-management expansion, community engagement, public safety enhancements and economic development. Staff also outlined 55 CIP projects (13 new), with 8 completed, 15 more than 50 percent complete and many awaiting grant opportunities or later construction steps.

City Manager Israel joined staff in answering council questions about implementation and…