Riverbank council reviews major-fund budget showing $850,000 shortfall; final adoption set for June 25

Assistant City Manager Tammy Alcantor told the Riverbank City Council on June 11 that the city’s major funds—general, gas tax, sewer, water and public benefit—face tighter revenues in fiscal year 2024–25 and that staff will return June 25 with a final budget for adoption.

Alcantor said the city projects a beginning reserve of $7,000,000 and estimated revenues of about $13.2 million for FY 2024–25, with ongoing expenditures approaching $14 million. "The proposed budget does show a deficit of 850,000," Alcantor said, and she told the council the projection does not incorporate potential costs tied to outstanding litigation.

The presentation emphasized a change in how the city allocates personnel costs across funds. Alcantor said the city previously charged full personnel costs to the general fund and then showed transfers in from enterprise funds; under the proposed approach, salaries would be split directly across the funds that employ the staff. She said that accounting change accounts for a large portion of apparent revenue decreases when transfers are removed from the general-fund totals.

Alcantor outlined major revenue sources—sales tax, property tax and property tax in lieu of vehicle license fee—and said those items make up roughly three-quarters of general-fund receipts. She noted a projected 11% sales-tax increase tied to incoming retail and a conservative 2% property-tax CPI increase authorized by the State Board of Equalization.

On the expenditure side, staffing for FY 2024–25 is projected near $4 million after reallocations; the budget includes negotiated cost-of-living adjustments and one new facility-maintenance position. Law-enforcement contract costs were forecast to increase "about 8.3%," and dispatch costs were singled out as a primary driver of personnel-related increases.

Alcantor also listed one-time capital purchases under consideration, including a $41,000 compact Kubota tractor for parks, $7,000 in gym equipment for the police department, roughly $8,000 for IT switches and an approximately $38,000 citywide Office 365 upgrade. Staff noted an estimate of about $132,300 to install uplighting in the downtown core; that project was not included in the proposed budget unless the council directs otherwise.

During questions, council members pressed staff for more detail on the downtown lighting schematic (lumens and coverage) and asked about electric-vehicle charging. Alcantor said the city installed infrastructure for two charging stations at the community center and is working on a grant application through the air pollution control board. A resident asked whether public charging exists in Riverbank; staff said not yet.

Council discussion touched on establishing a Section 115 trust to begin earning investment income for future retiree liabilities. Alcantor said staff recently issued an RFP for investment-advisory services to support starting the trust. No formal adoption occurred; the council will consider the final budget at its June 25 meeting.