Clearlake council adopts structurally balanced FY 2024–25 budget, taps settlement funds for road projects
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Summary
Clearlake adopted a structurally balanced fiscal 2024–25 budget that uses restricted settlement funds and some fund balance for capital projects while keeping the general fund structurally balanced; the council also approved related appropriations limits and the annual fee schedule.
Clearlake adopted its FY 2024–25 budget on June 20, approving a plan staff described as structurally balanced while using restricted settlement and special funds for capital projects.
Director Wells presented the budget during a pre‑meeting workshop and again at the public hearing, saying projected revenues of $43.2 million and budgeted expenses of $65.6 million rely on a planned use of fund balance ($22.4 million) and include $5.6 million in PG&E settlement funds earmarked for capital work such as a portion of Airport Road and other public works projects. “The budget is structurally balanced,” Wells said, noting the city is avoiding one‑time funds to pay ongoing costs and is prioritizing cost reductions where possible to cover salary increases.
The council voted unanimously to adopt the budget. The approved plan includes modest revenue assumptions (staff noted a small projected $25,000 decline in some revenue lines offset by anticipated property‑tax increases), staffing adjustments to reduce contracted consultant costs, and targeted capital investments driven by grant awards and settlement funding.
Why it matters: the budget funds near‑term capital work and positions the city to continue core services while addressing inflation and salary pressures. The council also adopted a companion resolution setting the city’s appropriations limit for FY 2024–25 in compliance with Proposition 4 (the Gann appropriation limit) and approved the annual fee schedule, which adds two pass‑through CEQA fees and freezes most other fees for the year.
What’s next: staff will implement the adopted spending plan, proceed with capital designs that were called out in the presentation (including Lakeshore Drive and Airport Road work), and report back to council on project timelines and grant‑funding realizations. The budget and a searchable online budget book are available on the Clearlake finance department web page for public review.
