Atascadero accepts clean FY24‑25 audit, approves $1.28M in one‑time budget adjustments including drone program and zoo rebranding

The Atascadero City Council received a clean independent audit for fiscal year 2024–25 and unanimously approved $1,280,000 in one‑time general fund budget adjustments to finance priority items, staff reported.

Administrative Services Director Jerry Rangel and auditor representatives from Moss, Levy & Hartzheim told the council the independent auditors issued an unqualified (clean) opinion on the city’s financial statements. Rangel said major general fund revenue sources for FY24‑25 included property tax (about $13.4 million), a Bradley Burns base sales tax of roughly $4.9 million and Measure D sales tax revenue of about $6.6 million; total general fund revenues excluding Measure F14 were approximately $37.6 million.

Rangel said the city’s general fund reserves were roughly $19 million excluding Measure F14, and that about $4.6 million in capital projects budgeted in 24‑25 would roll forward into the current year. He also reported that the city’s proportionate net pension liability was about $36.8 million and had decreased by roughly $934,000 from the prior year.

Following the audit presentation, staff proposed using FY24‑25 performance to fund $1,280,000 in one‑time items: $564,000 toward a Type 1 fire engine (the council separately authorized the contract for $1,277,000), $135,000 for downtown infrastructure enhancements, $87,000 for employee separation costs, $100,000 to repair a sewer line at Lake Park, $30,000 for ranger house improvements, $26,000 to start a police drone program (training and equipment soft costs), $30,000 for zoo rebranding and $60,000 added to contingency.

Council members pressed for clear policy before drones are deployed. "...never for routine patrol or generalized surveillance," Council Member Peake said when discussing the drone program's limits. The police representative on the record confirmed that the policy will come to council before operations begin and emphasized privacy protections and evidence‑retention schedules. The chief said the level of drones being considered "don't necessarily have any type of AI capability" and that recorded video would be handled under existing evidentiary and public‑records rules.

Staff said drone policy language will address retention, sharing with other jurisdictions and use cases; council members requested the policy explicitly note whether and how any AI tools would be used.

Council Member Funk moved approval of the $1.28 million package; Council Member Newsom seconded. Roll call was unanimous.

The council received the audit and approved the budget adjustments; staff will return with detailed drone policies and any outstanding procurement or contract details for the funded items.