Calimesa council adopts midyear budget adjustments, projects modest ongoing surplus
Summary
Calimesa approved Resolution No. 2026‑62 to amend the FY25‑26 budget for midyear adjustments, citing a $467,000 FY25 net operating surplus, proposed one‑time and ongoing revenue adjustments, and an anticipated ongoing surplus of about $162,000; motion passed 5‑0.
The Calimesa City Council on Feb. 2 adopted Resolution No. 2026‑62, amending the fiscal year 2025‑26 budget to incorporate recommended midyear adjustments shown in attachments A–E.
Finance Director Celeste Reed presented the midyear report, reviewing fiscal year 2024‑25 actuals and the proposed adjustments for 2025‑26. Reed said revenue projections and actuals for the year ending June 30, 2025 were closely aligned — roughly $10.5 million — producing a net operating surplus of about $467,000 after expenditures and transfers. She said $314,000 of unspent items rolled over into FY25‑26.
For the current year, Reed proposed revenue adjustments that include higher interest income and increases in charges for services and administrative fees tied to OpenGov implementation and permit processing. She described $518,000 associated with one‑time development agreements and recommended classifying some receipts as one‑time rather than recurring to avoid building them into ongoing expenditures.
On the expenditure side, Reed recommended an increase for legal fees ($300,000) and professional services ($100,000) largely tied to development activity and one‑time items; other requests included $120,000 for insurance professional services and $30,000 for vehicle outfitting. Reed projected an ongoing operating surplus of approximately $162,000 and an ending general fund balance near $7.1 million after the proposed adjustments.
Councilmember Cundiff moved to approve the resolution amending the FY25‑26 budget as presented; the motion was seconded and passed unanimously, 5‑0. Reed noted that staff will hold a public budget workshop on April 27, 2026 (5–7 p.m.) and is planning to present a proposed FY26‑27 budget for final consideration and adoption on June 1, 2026.
The adopted adjustments reflect a mix of one‑time and ongoing revenue and spending changes; staff told council they will continue monitoring risk factors such as insurance and step increases that could affect future budgets.
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