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Salinas council receives mid‑year budget review; staff urges early start on renewing Measure G
Summary
Finance staff presented a mid‑year budget review showing general‑fund revenues tracking near projections but forecasting a large long‑term shortfall if Measure G is not extended. Council approved limited mid‑year appropriations totaling roughly $727,000 in the general fund and other adjustments.
City finance staff presented the fiscal‑year 2024–25 mid‑year budget review on Feb. 25 and asked the council to authorize a set of limited supplemental appropriations.
Acting Assistant Finance Director Abe Pedroza said general‑fund revenues were tracking on pace with projections at the halfway point of the fiscal year, with roughly 53% of projected revenues received. Expenditures were tracking near budgeted levels. Staff presented a financial forecast that illustrated a projected multi‑year gap if the city does not extend Measure G beyond the 2030–31 horizon; the presentation said a roughly $45 million shortfall would appear in the long‑term forecast if Measure G is not renewed.
Council approved requested supplemental appropriations to the general fund of about $727,000. The additions included a fraction‑year (one quarter) fully loaded cost for a forensics specialist in the Police Department, replacement furniture and technology costs tied to a Fire Department office remodel, funding for fire plan checks and hydrant repairs, anticipated vehicle maintenance related to the temporary closure of Fire Station 1, procurement of compost material to comply with state organics requirements (SB 1383), funds for a Republic Services audit and an increase in the urban forestry contract, plus a contingency supplement for urgent program needs.
Why it matters: The mid‑year review is part of normal budget oversight; staff used the forecast to press the importance of early community and council discussion about renewing Measure G so the city can plan over multiple years rather than making near‑term cuts later.
Details and next steps: Staff said they will return with recommendations on revenue‑enhancement opportunities (examples cited included transient occupancy tax, property transfer tax, utility user tax and community facilities districts) and that work on a Measure G renewal should begin well before any 2026 election deadline. The council voted to approve the recommended mid‑year adjustments and supplemental appropriations.
Fiscal note: Staff presented preliminary unaudited results suggesting a minor increase in FY24 unassigned fund balance, which could be used in the FY25–26 budget. Staff also noted that some revenue categories—cannabis receipts, for example—are trending below prior projections and will be monitored.
