Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Escondido posts modest FY 2024‑25 general fund surplus, council approves $3.8M in budget adjustments including Measure I allocations
Summary
Finance director reported an $819,940 operating surplus for FY2024‑25, noted higher overtime and unbudgeted operating costs in several departments, and the council approved staff’s recommended budget adjustments and Measure I operating budget items by a 5‑0 vote.
Finance Director Christina Holmes presented the City of Escondido’s fiscal year 2024‑25 financial status report Oct. 15 and asked the council to approve a set of budget adjustments for the current fiscal year.
Holmes reported that the general fund closed FY 2024‑25 with an operating revenue surplus of $819,940. Revenue increases included $1.1 million more in base sales tax (driven by auto sales and county pool receipts), $4.3 million higher property‑tax receipts compared with the prior year, and permit and license revenues up roughly $2.9 million, partly reflecting a full‑cost recovery fee model adopted during the year. Investment income declined compared with the pandemic period as one‑time American Rescue Plan Act balances were drawn down.
Holmes said operating expenses exceeded the adopted budget by about $2.9 million. The largest variances were overtime in the fire department (partially offset by mutual aid reimbursements recorded to date), police operating and maintenance costs, and public works unplanned expenses (including utility and contracted services). The city’s section 115 pension trust balance stood at about $37.2 million and the general reserve balance was roughly $17.4 million (policy target 25% of revenues would be about $33.2 million).
Measure I and budget adjustments
Measure I (local district sales tax) went into effect April 1. First‑quarter receipts received in July totaled about $8.2 million; staff used two consultant forecasts and adopted a conservative midpoint for the FY 2025‑26 budget. Holmes said HDL will perform compliance audits and refine forecasts once additional state data are available.
Council approved staff’s recommended budget adjustments, which totaled approximately $3,815,375 (excluding one development services personnel funding item proposed to be covered from Measure I). Adjustments included carryovers for prior contracts and purchase orders; additional fire department vehicle sales‑tax shortfall coverage ($341,000); new vehicles and equipment to support three new park rangers and two development services inspectors; $218,040 to complete and outfit the new command vehicle; library window replacements not covered by grant dollars; funds for CPR device replacement; Lexipol policy work for police; and software and program support requests for city clerk and economic development. Staff recommended using available general fund balances and Measure I where appropriate.
Council action
Council voted 5‑0 to receive and file the FY 2024‑25 general fund financial status report and to approve the listed budget adjustments and Measure I operating budget changes. Council also approved funding the development services director position from Measure I for the remainder of the fiscal year.
Ending
Holmes said staff will continue to refine Measure I forecasts and return with any follow‑on items tied to compliance audits, grant opportunities and administrative changes.
