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Council approves midyear budget adjustments, general fund projected to grow by about $693,600
Summary
Council approved midyear fiscal adjustments for FY 2024'25 that staff said would increase the general fund balance by approximately $693,577, and applied adjustments across several restricted funds. Council voted 5-0 to approve the midyear changes.
The Solvang City Council unanimously approved midyear budget adjustments for fiscal year 2024'25 at its Feb. 11 meeting.
Finance staff presented revisions that staff said "true up" revenue and expense estimates from July through December and that projected the general fund balance to increase by roughly $693,577 if current trends continue. Staff noted changes across restricted funds: a Measure U fund decrease of about $116,000 for Solvang Park adjustments, a water fund decrease of about $138,821, a wastewater increase of about $32,000, and a transit increase of about $5,500. Staff also said the packet includes a budget adjustment to cover legal fees for South Coast Properties totaling $160,000.
The council discussed merchant credit-card fees and a pending fee study to consider recapturing processing costs. After public comment (none on the item) and discussion, Councilmember moved to approve the adjustments as presented; the motion passed by roll call vote 5-0 (Infante yes; Mayor Pro Tem Claudia Arona yes; Councilmember Smith yes; Councilmember Elizabeth Arona yes; Mayor Brown yes).
Why it matters: Midyear adjustments are the city's standard mechanism to align projected revenues and expenditures and to ensure funds do not overspend. The projected general fund increase gives the council more flexibility to consider priorities in the coming budget cycle, while restricted funds reflect program-specific changes.
What happens next: Staff will implement the adjustments, continue monitoring revenues and expenses and prepare budget-to-actual reporting for the year-end cycle and the FY 2025'26 budget process.
