Council receives budget-to-actual report showing reserve maintained; Measure S balance about $420,000

The Crescent City Council on Feb. 3 received and filed the city’s budget-to-actual operating results for fiscal year 2024–25 after a presentation by Finance Director Linda Lever.

Lever reviewed five major funds — general fund, housing authority, RV park, sewer and water — and explained variances driven mainly by timing of grant reimbursements and staffing vacancies. She said wages increased only about 1% year-over-year after accounting for vacancies, while benefits rose approximately 8% driven by health insurance, workers’ compensation and pension costs. "We came in about $1,200,000 under budget," Lever said, attributing roughly one-third of that to grant-funded staff time carrying into future years and about two-thirds to vacancies and unused benefits.

Lever reported the audited general-fund balance at about $4.5 million and a Measure S fund balance of roughly $420,000. She said the city uses a 25% operating-reserve policy and that, taking conservative assumptions into account, staff projects an estimated year-end balance near $3.2 million with required reserves deducted, leaving roughly $300,000 unallocated.

Lever noted several capital and grant projects rolled forward into FY 2025–26, including an $835,000 RV-park grant project and a planning grant tied to the wastewater treatment plant that moved work into the current fiscal year. Working capital in the sewer and water funds remains sizable (roughly $4.3 million each) but could decline as capital projects advance; staff is completing sewer and water rate studies with drafts expected for council review in March.

Mayor Wright moved to receive and file the report; Council members voted unanimously to approve. Staff said a midyear budget update will come to council in March and that the Measure S oversight committee will meet Feb. 10 to review spending plans.