Riedell posts unaudited FY 2024-25 results; general fund roughly balanced, water projects delayed

The Riedell City Council received the city's unaudited fiscal year 2024-25 financial report at its Nov. 4 meeting. The finance director said the report, prepared from unaudited records as of June 30, 2025, will be followed by a formal audit expected in early 2026.

According to the presentation, the city ended the fiscal year with total fund balances of about $9.7 million and expenses that slightly exceeded revenues by about $104,000. The finance director attributed the variance primarily to a $725,000 reduction in special-revenue funds related to required drawdowns of Community Development Block Grant (CDBG) program income and American Rescue Plan Act (ARPA) funds that must be spent by December 2026.

The director said the city has three principal fund groups: the general fund, enterprise funds (water and sewer), and special funds. General fund revenues came in about 1% above budget, supported by property tax and vehicle-license fee collections; general fund expenditures were 25% under budget mainly because several capital projects were not completed and police staffing positions remained unfilled.

The water enterprise fund showed a large variance: actual revenues exceeded the budget by about 47%, primarily because of funds received from Cal OES tied to projects related to the Dec. 2022 earthquake, but related capital work was delayed and expenditures were about 19% less than planned. The finance director said most water-project revenues and expenditures will occur in the current fiscal year as projects proceed. The sewer fund reported revenues 12% above budget and expenditures about 10% below budget, increasing its fund balance by nearly $235,000.

Other details disclosed: the city earned interest by investing excess cash in the Local Agency Investment Fund (LAIF); major revenues for FY24-25 included property taxes, vehicle-license fees and retail sales tax (combined approximately $1.41 million), and cannabis tax receipts of about $261,000. The building fund received an annual transfer from the general fund to cover shortfalls, and the CDBG program-income funds are under contract with the county to provide loans to applicants affected by the 2022 earthquake.

Council members asked about the components of the budget variance; the finance director cited higher-than-budgeted legal fees and increased water and sewer costs the city covers for certain service providers as contributors. The council did not take fiscal action at the meeting; the report was presented for review and questions.