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El Cajon adopts $285.6 million FY 2025–26 budget, uses reserves to close gap
Summary
Council unanimously adopted a $285.6 million budget that reduces authorized FTEs, uses reserves to close a structural gap and trims non-personnel spending and capital funds.
The El Cajon City Council on June 24 adopted the fiscal year 2025–26 budget, approving a total proposed budget of $285.6 million and several related resolutions, including the annual appropriation limit and designation of general fund balances.
Finance Director Clay Shane and Principal Fiscal Analyst Autumn Reburger presented the budget, which the staff described as carrying a structural deficit that is partly addressed with $1.9 million of general fund reserves and a series of cuts and frozen positions. Shane said authorized full-time equivalents drop from 422 in FY 2025 to 409 in FY 2026; staff said most reductions came from not filling positions and by reclassifying or consolidating vacancies.
Shane presented the primary budget numbers: an estimated beginning general fund balance of $60.6 million; proposed general fund revenues of $101.4 million; proposed expenditures of $103.4 million; and an estimated ending general fund balance of $58.7 million. Salaries, benefits and pension obligation bond payments account for about 79% of general fund expenditures, according to staff.
The presentation included proposed cuts to non-personnel costs and to some events and programs; staff highlighted the elimination of the fire reserve program and the suspension or limitation of some capital and vehicle replacement funding. Autumn Reburger reviewed enterprise, special revenue, debt service and internal service funds and described the capital projects program, noting 49 active projects and six proposed new projects totaling $8.8 million in FY 2025–26.
Councilmembers asked about wastewater capital balances, vehicle replacement and the pension obligation bond payment. Shane said the wastewater fund’s larger capital expenditures reflect carryover and planned projects; he said the city has prioritized using reserves to avoid immediate layoffs while preparing for long-term structural adjustments.
Council unanimously adopted three council resolutions to: adopt the FY 2025–26 budget, adopt the annual appropriation limit, and approve designation of general fund balances. Members also voted as the housing authority and successor agency to adopt those agencies’ budgets.
