Beaumont third-quarter budget shows $15.6 million projected general-fund surplus; wastewater and transit also project surpluses

City finance staff presented the fiscal year 2024'25 third-quarter budget-to-actual report (through March 31, 2025) and recommended several budget adjustments. Jennifer Stachian, finance staff, said the city has collected about 68% of its general fund budgeted revenues to date, with 75% of budgeted taxes recorded and miscellaneous revenues showing 205% of budget because some interest earnings have not yet been reallocated to the correct funds.

Stachian noted a one-time $6,200,000 sales-tax audit correction that boosted current-year revenues. On the expenditure side, general fund spending was 49.4% of budget at quarter three; personnel comprises 56% of actuals, operating 39% and capital 3%. Based on projected trends, staff estimated a general-fund surplus of approximately $15,600,000 for the fiscal year. Committee members asked about departments more than 10% off the 75% benchmark and staff explained some timing and seasonal invoice issues (for example, fire invoices are delayed and will post later).

Wastewater: staff reported wastewater revenues at 76% of budget with four of six bimonthly billings completed and estimated revenues roughly $1,200,000 above budget. Wastewater expenses stood at 58% of budget with a projected $867,000 savings, resulting in an estimated $2,100,000 surplus. Staff noted that wastewater typically transfers approximately $1,500,000 to the general fund annually; that transfer is reflected only partially in the current quarter's posting. Discussion covered scheduled capital improvement projects, a solar project not contemplated during the rate study, and examples of consumable replacements: Trojan UV bulbs purchased this year and RO membrane modules expected on a 10'to'15-year replacement cycle. Staff also flagged brine-lining invoices from San Bernardino Valley that arrive slowly (about $30,000/month) and a golf-course emergency that will consume contingency funds.

Transit: transit revenues are at 77.2% of budget, driven by RCTC reimbursements and lease revenues that were not in the original budget; personnel accounts for 83% of transit actual expenditures. Staff projected the transit fund to end the year under budget.

Recommended budget adjustments include an increase to the K-9 budget to cover approximately $7,000 in unplanned dental work; a Building & Safety increase for plan-check fees with an offsetting revenue; a $50,000 increase for the self-insurance fund to cover settlement costs; and additional PEG-fund equipment/supplies funding. The committee voted to receive and file the third-quarter budget report and requested that staff return with final costs on outstanding emergency items (for example, the golf-course work) to determine whether additional adjustments are needed.