Crescent City Council adopts midyear budget adjustments, projects $4.4 million year-end fund balance

At a regular meeting of the Crescent City Council, members voted unanimously to adopt Resolution 2025-5, amending the fiscal year 2024–25 budget to reflect midyear actuals and projections.

Finance Director Linda Lieber told the council staff had updated the city’s July 1 starting fund balances based on the final audit and had prepared actuals for July–December plus projections for the rest of the fiscal year. "The total revenue change is just over $500,000," Lieber said, citing a one-time large building permit, higher transient occupancy tax receipts and stronger interest earnings.

The update also reflects lower wage and benefit spending tied to vacancies. Citywide, staff recommended a roughly 5% decrease in wages and benefits for the year to date; general fund expense decreases are roughly $450,000. Lieber said the city is returning most of a $220,000 placeholder for a contract building inspector that was not needed this year.

After accounting for the revenue increases and expense decreases and the audited July 1 starting balances, staff projected an ending general fund balance of about $4,400,000 for June 30. Of that, a 25% operating reserve requirement was calculated at roughly $2,500,000, leaving an unallocated reserve of about $1,400,000. Lieber cautioned that much of the projected increase is from one-time events and vacancies and that future pressures remain, including a dispatch agreement that is expected to escalate, an upcoming compensation study, and capital-improvement needs.

Lieber summarized other funds: a projected roughly $375,000 ending balance for the housing authority fund (project-based vouchers delayed into next year); working capital of about $560,000 in the RV park fund ahead of a planned grant project of more than $800,000 next year; modest net gains of about $30,000 in the sewer fund driven by increased connections and some grant revenue; and similar modest gains for water. She also asked the council to approve several equipment and building-maintenance requests detailed in the packet.

Councilmembers asked for clarifications about vehicle replacement costs and the city’s assumptions about rising electricity prices; Lieber said staff would build higher electricity-cost assumptions into future budgets. After questions, the council approved the resolution to amend the FY 2024–25 budget by roll call (Dooley: yes; Greenough: yes; Tinkler: yes; Wright: yes; Altman: yes).

The resolution authorizes staff to adjust budgets as presented and to proceed with items described in the agenda packet. Staff told the council the Measure S oversight committee and a budget workshop in May will inform next year’s budget decisions.

Staff and council emphasized the update is intended to provide a clearer picture at midyear, not to finalize long-term policy changes. The council did not adopt any new ongoing programs as part of the midyear amendment; changes reflect updated revenue timing, vacancy savings and limited reallocation of previously approved funds.