Universal City council approves midyear budget amendments including water-rights purchase

The Universal City Council approved midyear budget amendments on April 15, 2025, recognizing changes to several funds, increasing the use of fund balance for PEG and court technology accounts and acknowledging an $815,000 line-item increase tied to water-rights acquisition in the utility fund.

City finance staff told the council that at March 31 the city had completed about half of the fiscal year and the general fund revenues exceeded expenditures by roughly $4,800,000, driven largely by ad valorem tax receipts. Staff said the PEG (public-access television) channel and court technology funds are new this fiscal year and recommended using fund balance to cover PEG channel expenses and court technology needs. The PEG fund and court technology fund transfers were increased by $130,000 each, and court technology services and equipment budgets were increased by $25,000 and $40,000 respectively, with $90,000 of fund balance applied to those items.

Finance staff also reported the utility fund would increase budget line items by approximately $815,000 to record a water-rights purchase. Staff explained this is a one-time expenditure to acquire water rights (not a lease) and that the utility fund’s balance is sufficient to support the purchase while still meeting the city’s fund-balance policy. Council asked whether the general fund would be responsible; staff replied the utility fund will cover the purchase and that fund-balance policy targets will remain met.

The council noted the golf-course equipment financing approved previously is being recognized in the budget (loan proceeds for golf carts and beverage cart), and that paying off a prior loan will leave the city with a single outstanding loan for the course’s equipment. Council questions focused on whether the utility fund would remain within policy after the water-rights purchase and whether PEG funds could be used for personnel; staff said PEG expenditures were appropriate for equipment and facilities and that the fund’s use complied with policy.

A motion to approve the midyear budget amendments was made and the council carried the motion. The council also directed staff to provide ongoing investment reports and confirmed remaining venue-tax transfers (approximately $675,000 budgeted to transfer if needed) would be addressed at year end if necessary.

The council’s action formalizes these midyear adjustments and recognizes the city’s approach to opportunistic water-right purchases and new fund needs.