Council hears FY 2025–26 budget workshop; staff warns of structural deficit and pushes for grant pursuit

City staff presented a detailed overview of the proposed fiscal year 2025–26 major fund budget during the June 10 council meeting. The presentation covered the general fund and major enterprise funds and highlighted a structurally‑balanced picture that will require council attention if current trends continue.

Key figures and trends - Staff projected the general fund beginning reserves (July 2025) and estimated an ending reserve of roughly $7.5 million but noted an ongoing structural deficit of about $2.2 million for the coming year. Staff repeated earlier warnings about rising CalPERS liabilities and said the city will pay roughly $881,000 this year toward CalPERS unfunded liabilities, with nearly half coming from the general fund. - The budget assumes modest increases in sales and property tax revenue (3–5% range) but also anticipates higher insurance and…