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Wasco council adopts $109,448 midyear operating budget adjustment, staff outlines reserves and revenue outlook
Summary
Council unanimously adopted a midyear adjustment increasing appropriations by $109,448; staff discussed revenue projections, investment strategy, reserve levels, and fund-specific issues including water, wastewater and sanitation.
The Wasco City Council unanimously adopted a midyear operating budget adjustment of $109,448 after a presentation by city finance staff detailing current revenues, expenditures and reserve positions across the general fund and enterprise funds.
Finance staff summarized the adjustment as a net increase that reflects revenue variances and necessary appropriations in several areas. Staff said projected sales tax revenue was expected to be flat for the fiscal year, occupancy tax projections were trimmed modestly, and some previously budgeted amounts (for example, certain animal-shelter expenditures) were not expected to be fully spent. On the expenditure side, staff requested additional appropriations to cover police fuel costs, professional services for the police department, and body-worn camera purchases; staff described several of those costs as tied to reimbursements that would later offset the budget impact.
During discussion council members asked for clarification about the city’s investment strategy and interest earnings. Staff explained the city had “laddered” investments across CDs, corporate bonds, treasuries and a pooled product (CaliforniaCLASS) and that some large reimbursements (notably a High Speed Rail reimbursement related to demolition of an old labor camp) had been placed into interest-bearing investments; staff said the reimbursements reduced a previously earmarked $9.3 million liability and moved those funds back into the city’s unassigned pool.
Council members also questioned water-fund trends. Staff said the water fund shows a relative reduction in reserves driven in part by a council-authorized rate buy-down and planned capital work; staff reiterated that any future rate changes would follow the city’s Proposition 218 (rate-setting) process and would not be automatic within the current rate cycle.
On enterprise funds: staff reported wastewater and sanitation funds remain healthy relative to the city’s 35% reserve policy (wastewater at roughly 56% of operating costs; water and sanitation likewise reported as stable though staff flagged future capital needs such as well replacement and a water tank that could be costly). The presentation included two scenarios for sanitation reserves depending on whether planned capital projects were executed within the current fiscal year.
After review and questions, Council Member Reina moved to adopt the resolution approving the midyear adjustments; Mayor Pro Tem Saldana seconded the motion. The vote was unanimous.
The action increases appropriations in the current fiscal year to reflect the described adjustments; staff said they will continue monthly monitoring and return with further budget workshops and June adoption of the operating and capital improvement budgets.
Key numbers cited in the meeting: midyear net adjustment $109,448; staff reserve policy target 35% of operating costs; wastewater reserves reported at about 56%; water and sanitation reserve percentages reported as healthy but variable depending on capital timing. Staff also noted the city’s investment income has grown due to a laddered strategy and placement of certain reimbursed funds into interest-bearing instruments.
