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Lake Forest council adopts mid‑year budget adjustments, staff says city remains financially strong
Summary
City staff recommended modest adjustments to revenue and other‑fund appropriations in the fiscal 2024–25 mid‑year budget review. Council adopted the revisions by voice vote; staff said the general fund remains balanced and reserves fully funded.
City finance staff presented a mid‑year budget update to the Lake Forest City Council on Tuesday and recommended a set of revenue and appropriation adjustments across several funds.
Director of Finance Kevin Shireh told the council staff expects general fund revenue to increase by about $236,000 and recommended other funds revenue be reduced by about $1.6 million while other fund appropriations rise by approximately $4.3 million. The proposed changes reflect updated estimates through February and projections through June and did not propose increased estimated costs in the general fund.
Key changes cited by staff - Sales and use tax: recommended decrease of $1.2 million based on recent data. - Building and safety revenue: down about $435,000 because of slower development activity. - Property tax: slight increase to $26.6 million (property tax remains the city’s largest revenue source). - Investment income: expected to increase by about $1.45 million due to higher returns. - The $4.35 million increase in other funds appropriations reflects the affordable housing loan approved earlier in the meeting.
Council action and comments Council adopted staff’s recommendations — including a resolution to amend the FY 2024–25 budget — on a unanimous voice vote. Several council members and the mayor emphasized that the city has strong reserves, has completed rigorous audits, and remains in solid fiscal condition despite adjustments. A resident speaker, Andrew O’Connor, criticized spending levels and warned of future budget pressures; council members and the city manager responded by pointing to reserves and prudent oversight.
What this means With the adjustments, staff reported the general fund estimate at roughly $66.7 million in revenues and $66.0 million in expenditures for the year, and stated the city maintains fully funded reserves. Council did not approve layoffs or program eliminations at the meeting; the mid‑year action updates projections and authorizes budget transfers and appropriations.
