Finance committee receives FY 2024–25 budget; directs use of Section 115 trust for CalPERS payment, trims council travel fund

Rolling Hills Estates finance committee members reviewed the city’s proposed fiscal year 2024–25 general fund expenditure budget and directed staff to use Section 115 trust monies to make the annual CalPERS unfunded actuarial liability payment, removing a projected shortfall from the operating budget.

The committee was presented with a packet of line-by-line account descriptions and an updated revenue forecast showing a projected deficit of about $46,000. Christian, a staff member, said the shortfall “may go away organically or naturally in the next couple months as revenues … start to more revenue information comes through,” and recommended the committee consider using the city’s Section 115 trust to pay the roughly $62,000 annual CalPERS UAL payment so it would not appear as a general-fund expenditure.

Committee members agreed to two directions for staff: reduce the city council travel/education allotment from $7,500 back to $5,000 and use Section 115 trust funds to make the annual CalPERS UAL payment. The committee then received and filed the budget report and asked staff to incorporate the committee’s feedback into the version being forwarded to the full council.

Budget drivers and staff explanations

Staff told the committee that the proposed budget increases by about $144,000 from the current baseline, driven largely by law-enforcement costs, expanded wildlife and pest-control work (including coyote management), and the recurring CalPERS UAL payment. The packet excluded labor costs from the line-item handout so members could focus on non-salary expenditures and account descriptions.

Presenters discussed permit-related revenues and the city’s relationship with Willdan, a private planning/permit services provider. Staff said fees for Willdan’s services have increased but those costs are reimbursed dollar‑for‑dollar through permit fees; overall permitting revenue is decreasing because work routed through Los Angeles County has declined, which offsets any increased Willdan activity.

Reserves, one-time funds and capital priorities

Committee members and staff reviewed reserves and one-time funds. Staff stated the city’s emergency reserves were in the range the committee had discussed previously (roughly in the neighborhood of $800,000–$900,000 for the emergency reserve and approximately $3.5 million in combined reserves), and that a separate $250,000 set‑aside for a generator remains after accounting for an expected $28,000 payment. Members discussed other capital priorities including septic vs. sewer decisions, parking-lot repaving with possible permeable surfacing, and potential use of Measure M and other grant funds for pedestrian or parking improvements.

Code enforcement and staffing

Members questioned whether the city’s 12‑hour‑per‑week contract for code enforcement is sufficient to close cases proactively. Staff reported the contractor spends substantial time responding to complaint-driven inspections and follow-up and that some proactive work (dead vegetation/tree checks) occurs but is limited by available hours. Noah, identified in discussion as the contract code-enforcement officer, was described as handling primarily complaint-based responses and some proactive inspections; the committee requested staff continue monitoring open cases and follow-up timeliness.

Limits on council travel spending

Members debated reinstating a lower per‑council travel allocation and tighter reporting when a member’s expenses approach the limit. The committee agreed to restore the council travel/education allotment to $5,000 and discussed returning to the committee for approval when planned travel or education spending would exceed that amount.

Next steps

Staff will incorporate the committee’s feedback into the budget materials to be forwarded to the City Council for consideration on the scheduled council agenda (staff referenced a council meeting one week later). Committee members asked staff to revisit the budget in June after additional revenue (property tax) information arrives.

Votes at a glance

- Motion to approve the consent calendar: approved (no roll-call votes recorded in the transcript excerpt). - Receive and file the FY 2024–25 general fund expenditure report and forward staff recommendations to council; directions included: 1) reduce council travel/education allotment from $7,500 to $5,000; 2) use Section 115 trust monies to pay the CalPERS UAL payment: committee received and filed the report and approved the two directions.

(Statements in this article are drawn from the committee presentation and discussion; direct quotations are attributed to speakers identified in the meeting transcript.)