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Council approves midyear budget, transfers unclaimed checks and directs Measure U spending priorities
Summary
At its Feb. 18 meeting the Placentia City Council approved a $99.2 million midyear budget adjustment (Resolution R2025‑06), authorized moving about $25,000 in unclaimed payroll/AP checks into the general fund (Resolution 2025‑05), and instructed staff to apply 50% of Measure U to infrastructure — earmarking funds for the Golden Avenue bridge while deferring immediate work on the city fuel tank.
Placentia’s City Council on Feb. 18 approved two budget resolutions and gave staff direction on Measure U infrastructure priorities.
The council voted unanimously (5–0) to adopt the city’s midyear budget adjustment, recorded as Resolution R2025‑06. City staff said the all‑funds budget adopted in June was $99.2 million supported by $95.3 million in revenue and that midyear adjustments reflect revenue pressures including lower sales tax trends and the forthcoming loss of property tax from a hospital sale. Staff projected a projected general fund decrease of about $4.6 million and an ending fund balance of roughly $10.5 million, or about 18.9% of operating reserves, down from the 25% policy threshold. The resolution passed 5‑yes.
Council also approved Resolution 2025‑05 to move approximately $25,000 in unclaimed payroll and accounts‑payable checks from a liability account into the general fund after staff published notice in the Orange County Register and attempted contact with claimants. Staff said most employees identified were contacted and were reissued checks; remaining unclaimed funds were grouped for transfer under the recommended action. The resolution passed 5‑yes.
On the Capital Improvement Program (CIP) study session, the council gave staff direction on Measure U funds. Staff identified two critical projects for possible Measure U funding: a Golden Avenue bridge replacement (estimated construction cost $5.5 million, including a $2.2 million federal earmark that must be authorized for construction by fall) and replacement or removal of aging underground storage tanks at the city maintenance yard (estimated between $350,000 for removal and $1.1 million to replace with double‑walled tanks to comply with state law). After discussion, the council directed staff, by unanimous vote, to allocate 50% of Measure U funds toward infrastructure, confirm pursuing the Golden Avenue bridge funding, hold off on committing Measure U for the fuel tank pending further study, and ask staff and consultants to re‑prioritize street projects to increase residential street delivery.
Next steps: staff will return with refined CIP recommendations and design/encumbrance plans; the city’s budget adoption for FY 2025–26 is tentatively scheduled for June.
