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Salinas council accepts FY24 midyear budget review; staff urges early start on Measure G renewal
Summary
City staff presented a FY24 midyear financial review, recommended roughly $727,000 in limited midyear appropriations and warned the council that, without extension of local revenue measure G by 2030–31, the city faces a significant multi‑year shortfall. Council approved the midyear adjustments.
The Salinas City Council received the fiscal year 2024 midyear budget review and approved a set of limited midyear appropriations and budget adjustments recommended by finance staff.
Finance Director Selena Andrews and Acting Assistant Finance Director A. Pedroza presented the report. Staff said operating revenues and expenditures are tracking near expectations through the first half of the fiscal year but highlighted that a multi‑year forecast shows a sizeable structural shortfall if Measure G is not extended beyond fiscal year 2030–31. The staff forecast incorporated conservative assumptions and included projected Amazon‑related revenues beginning in 2026–27; staff and the city’s financial advisor urged the council to begin work this year on timing and strategy for renewing or extending Measure G.
Recommended midyear appropriations to the General Fund totaled roughly $727,000 and included the fully loaded cost for a partial‑year forensics specialist in the police department, replacement furniture and technology in fire administration tied to a City Hall wing remodel, added capacity for fire plan checks and hydrant repairs, vehicle maintenance related to a temporary Fire Station 1 closure, compost procurement to comply with SB 1383, professional services for a Republic Services audit, and increased urban forestry contract funds. Staff described $178,000 of the request as supplementing contingency for urgent program needs.
Councilmembers asked multiple questions about revenue sources, online sales tax shares, cannabis revenue shortfalls and options for revenue enhancement (transient‑occupancy tax, public facilities districts and others). Staff said they will return with further analysis and recommended thresholds for a Measure G renewal campaign if council directs. The midyear adjustments were approved on a roll‑call vote.
Why it matters: the report frames an early timeline for a potential renewal of Measure G, identifies limited near‑term budget requests tied to operational needs and highlights areas (cannabis and other revenues) where receipts are under budgeted expectations.
Implementation: staff will return with additional revenue‑enhancement options, follow‑up details for the SB 1383 compost cost allocation and proposed next steps on Measure G timing and outreach.
