Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Budget topic
No spam. Unsubscribe anytime.
Perris presents draft FY 2025–26 and 2026–27 budgets; staff projects small surpluses and flags insurance, revenue risks
Summary
Finance Director Matthew Schenk presented a conservative two‑year draft budget for FY 2025–26 and FY 2026–27 showing modest projected surpluses (about $86,000 per year) and highlighted revenue volatility tied to insurance markets, dwindling ARPA funds and softening cannabis receipts.
Finance Director Matthew Schenk presented the draft city budget for fiscal years 2025–26 and 2026–27 and asked the council to review and provide direction. Schenk described a conservative two‑year plan that projects modest surpluses (approximately $86,000 per year for each of the next two fiscal years) while flagging several revenue and expenditure risks.
Key figures presented by Schenk included projected general fund revenue drivers: sales and use tax (~$29.1 million), property tax (~$15.7 million), vehicle license fee in lieu (~$12.4 million), and an estimated cannabis tax near $3.2 million (down from prior peaks). Schenk warned that American Rescue Plan Act (ARPA) funds are winding down and that the insurance market and construction costs remain volatile. The city maintains a policy minimum reserve equal to 35% of general fund revenue; Schenk said final reserve figures for year ending 2023–24 will be presented to council June 10.
Schenk highlighted department allocations and changes: in‑house engineering is near break‑even after expanding capacity, and a new Public Services structure split some functions (digital media separated from IT). He noted one‑time and capital items in the draft (catch basin clean‑outs and storm drain work, tree maintenance contract funds and ongoing contract increases such as the fire services contract). Schenk said the budget timeline includes a Ways & Means review on May 30 and a planned return to council for adoption on June 10.
Council discussion touched on insurance and risk, the potential to consider ballot measures for revenue (Mayor Pro Tem Rapp suggested exploring square‑footage warehouse tax measures and possibly preparing for a fiscal emergency resolution), and the need for continued conservative monitoring as national and state fiscal conditions change.
Next steps: the council will review the draft, provide recommendations to staff, the Ways & Means committee will consider the draft May 30, and staff will return to council for final adoption on June 10 with any requested adjustments.
