Council hears midyear budget update: Andy Heath outlines $1M‑plus general fund surplus, policy options to protect reserves

At a workshop‑style presentation, financial consultant Andy Heath told the El Centro City Council that the city’s four major funds — general fund, Measure P (local sales tax), water and wastewater — are projected to end fiscal 2024–25 in stable positions but face medium‑term pressures tied to pension (CalPERS) costs, insurance and planned capital carryovers.

Heath said midyear estimates show roughly $2.25 million more in general‑fund revenue than the revised budget and about $1.28 million more in expenditures, resulting in a roughly $1.0–1.2 million surplus for the current fiscal year. He highlighted three revenue/expenditure drivers: higher property‑tax receipts (first secured roll payment received), steady sales‑tax collections, and a roughly $1.5 million increase in “other revenues” tied to reimbursements (for example, school resource officer and strike‑team reimbursements). On the expenditure side Heath noted realized vacancy savings, higher overtime costs for public safety, increased insurance…