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Crescent City council adopts midyear budget adjustments after staff reports a $500,000 one‑time revenue gain
Summary
The Crescent City Council adopted a midyear amendment to the 2024–25 budget after Finance Director Linda Lever reported roughly $500,000 in net positive changes driven by a one‑time building permit, higher lodging taxes and interest, offset in part by wage vacancy savings.
The Crescent City Council on Monday adopted a midyear amendment to its 2024–25 budget after Finance Director Linda Lever told the council staff’s July–December review showed a positive shift driven largely by one‑time revenues.
Lever told the council that a delayed large building permit produced about $330,000 in one‑time revenue, and that transient occupancy taxes and interest earnings have come in stronger than budgeted. “So the total revenue change is just over $500,000,” Lever said, summarizing staff’s midyear projections.
The city is also projecting lower personnel costs so far this year because of vacancies; staff recommended reducing the wages-and-benefits line to reflect those unfilled positions. Lever said staff is recommending the council keep a substantial unallocated reserve to cover forthcoming capital needs, a near‑term compensation study and rising service costs. With the recommended changes and audited starting balances, staff projects an ending fund balance near $4.4 million, of which roughly $2.5 million is the required 25% operating reserve.
Lever walked the council through fund‑level impacts: a projected housing fund balance of about $375,000 at June 30; a sewer working capital forecast improved by about $30,000; and the RV‑park fund remaining on pace but with a planned $800,000 GRAMA project next year that will draw on working capital. She also noted staff had not yet needed a $65,000 placeholder cash‑flow loan used for large grants, and recommended keeping contingency where reasonable.
Council members asked clarifying questions about equipment purchases, anticipated electricity and dispatch cost increases, and whether the city should hold money back for grant‑reimbursement timing. Lever said $180,000 in budgeted inspector contract dollars had been largely freed up by project delays and staff recommended returning most of that to the general fund while retaining $40,000 in case outside help is needed.
After discussion, a motion to adopt Resolution No. 2025‑5, amending the fiscal‑year 2024–25 budget, passed unanimously.
The council will review the Measure S oversight committee’s annual audit and consider any suggested allocations at upcoming budget workshops as staff prepares the next fiscal‑year proposal.
The council also approved consent agenda items and will reconvene at its next regular meeting Tuesday, March 17, at 6 p.m. at the Flint Center.
