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Grass Valley council accepts midyear budget adjustments as sales tax forecasts decline
Summary
At its March 25 meeting the Grass Valley City Council accepted midyear budget adjustments after staff warned sales-tax revenue forecasts have softened, pointing to projected shortfalls and rising insurance and pension costs.
Grass Valley — The City Council on March 25 accepted midyear adjustments to the fiscal 2024–25 budget after staff warned that sales-tax receipts are weakening and certain costs are rising.
Deputy Finance Director Jennifer Strychinski told the council that sales-tax forecasts show a statewide leveling and local decline, and that the city currently projects about $534,000 less in general-fund sales tax this fiscal year and roughly $340,000 less in the Measure E fund. She said those declines are the principal driver of the midyear adjustments and advised caution as staff and consultants continue to refine monthly receipts and quarterly forecasts.
Strychinski said the city is offsetting some of the revenue shortfall with salary savings and grants that reimburse specific positions, while noting increases in workers’ compensation, liability insurance and other costs. “We have seen the forecast and this is statewide — sales tax is starting to level out or has been trending downward,” she said.
Council members asked for additional context on CalPERS and other long-term liabilities; Strychinski said the city is updating a multi‑year model and will present more details in budget development for FY 2025–26. She also said Measure B revenue estimates were not included in the midyear because the city had just received final sales-tax numbers and staff will present Measure B projections to the Measure B committee and council within weeks.
Public commenters urged fiscal prudence. Resident Bob Branstrom asked about a roughly $500,000 discrepancy he saw in projected reserves; Strychinski explained part of the change reflected board-authorized transfers (including corporation-yard and other designated reserves) and that audited 2023–24 results were still being finalized.
After questions and public comment, the council voted on a motion to accept the proposed midyear budget changes. The motion passed on a 5–0 roll call: Jan Arbuckle, Haven Bonomolo, Erica Ivy, Vice Mayor Haven Caravelli and Mayor Hodge voted yes.
Council direction and next steps include staff preparing the Measure B budget proposal for committee review, continuing to update the seven‑year forecast, and monitoring insurance and pension cost estimates as budget development begins for FY 2025–26.
The council’s action does not enact new taxes or appropriations beyond the adjustments presented; staff said any later program additions or new spending would return to council for separate approval.
