California City council directs use of one‑time reserves to balance FY 2025‑26 budget; rejects $300,000 airport AC in proposed budget

City staff presented a proposed fiscal year 2025–26 general fund budget on June 10 and the City Council gave staff direction to use one‑time reserves to balance the budget while approving several staffing priorities and removing a high‑cost airport repair from the proposed spending plan.

City Manager Kenny Lopez told the council that the proposed general fund revenue was about $9.9 million while expenditures were about $11.1 million, leaving a projected gap of roughly $1.2 million. Based on audited statements through FY 2023–24, Lopez said the city’s unassigned general fund balance was about $13.1 million and staff proposed using one‑time fund balance to cover the shortfall for FY 2025–26.

Council direction and votes

After discussion and public comment the council directed staff to use fund balance to balance the FY 2025–26 budget. The manager reported the direction passed by a 3–2 tally. The council also directed…