Rolling Hills Estates council receives updated FY 2025-26 budget projections

The Rolling Hills Estates City Council on Wednesday reviewed updated projections for the fiscal year 2025-26 general fund and voted to receive and file the report from staff and the finance committee.

City finance staff presented revised revenue figures and line-by-line changes to proposed expenditures, saying property tax growth assumptions were lowered to 4 percent and interest income expectations were increased slightly. "I have lowered our projections for next year," the presenter said, noting an updated projection that the city will collect about $1,000,004.43 by the end of the current fiscal year and that using a 4 percent growth assumption produces the projection shown in the packet.

The finance presentation focused largely on the expenditure schedule. Staff said some nondiscretionary adjustments (for example, cost-of-living adjustments per the city's MOU and health benefits) were included in the status-quo baseline and that a number of line items were refined based on closer review. Notable changes cited by staff included a $25,000 reduction in the city administrator's account because a project manager's time will be charged to the CIP fund; an increase in audit budget from $35,000 to $44,000; a $15,007.50 increase in the general fund's share of law enforcement contract costs to reflect a 4.39 percent contract increase; a $10,000 reduction in wildlife management after the contractor went out of business; and an insurance increase of about $15,000 plus a 10 percent contingency.

Staff summarized the overall positions in the packet: revenues projected at approximately $2,679,000, operating expenditures about $2,619,376 (presented in discussion as "operating expenditures of 2,000,006" but shown in the packet detail), and an expected operating surplus of roughly $59,624 under the current assumptions. The finance committee flagged calculation errors in group insurance projections that staff corrected prior to the council meeting.

Council members asked clarifying questions about specific line items and the finance committee's review. After discussion, a council member moved to receive and file the budget presentation so the council and public could continue review; the motion passed on a voice vote. The council did not adopt the budget at this meeting and staff noted adoption remains scheduled for the June meeting cycle.

The council and staff agreed to continue detailed review of attachment C (expenditures) and the finance committee's recommendations before final adoption. Staff said the packet contains department-level line items and that adjustments will be refined if revenues materially change before adoption.

Council members and staff emphasized that the presentation corrected previously misstated figures and that the numbers in the packet should be used for further questions and any motions related to adoption.