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Council adopts midyear budget adjustments; approves $2 million transfer to OPEB trust
Summary
City leaders approved midyear budget modifications and a $2 million transfer to the city's Other Post-Employment Benefits (OPEB) trust, bringing the trust to $15.3 million against a $39.7 million liability (about 38% funded). Council voted 5-0 to adopt the recommended midyear adjustments and staff will return with further budget planning.
Fountain Valley’s City Council on Feb. 4 approved midyear budget adjustments for the 2024–25 fiscal year and a $2 million transfer to the city’s OPEB trust aimed at improving long-term retiree-health funding.
Finance staff reported operating revenues of approximately $81.7 million and operating expenses of about $79.8 million before midyear adjustments. Finance Manager Robin Harnish and Finance Director Ryan Smith outlined proposed changes across departments and enterprise funds and described an internal transfer to the OPEB trust of $2,000,000 (accounted as an expense in the general fund and a revenue in the OPEB fund under accounting rules).
Smith said the city’s OPEB valuation showed liabilities of about $39.7 million and that the trust held $15.3 million as of December 2024, leaving the funded status at roughly 38 percent. Staff told the council that continuing transfers into the trust will, over time, reduce actuarial liabilities and improve the city’s funded position.
Council members probed projected call-volume increases for the fire department, sales-tax trends, and the use of Measure HH funds; staff said January had been an unusually busy month for emergency calls and that Measure HH resources would be used for the OPEB transfer. The council moved, seconded and approved the midyear package; the clerk recorded Item 8 as passing 5-0.
Staff said next steps include a March study session on a biennial budget approach and return of the proposed budget in June.
