Clear Lake council approves midyear budget adjustments, citing conservative revenue forecasts

Clear Lake — The City Council unanimously approved a midyear amendment to the fiscal-year 2025–26 budget after a staff presentation that recommended modest revenue increases and targeted expense adjustments.

Philip Samuels, introduced as the city’s finance manager, outlined statewide economic developments and local revenue projections, saying the governor’s office revised state revenue forecasts upward while also projecting multiyear deficits for fiscal years 2028–2030. Staff presented conservative estimates for local revenue sources, including sales and transaction tax, property tax and vehicle-license fees, and said HDL projections show modest growth over the next three fiscal years.

Samuels told the council the recommended adjustments would increase some expenditures—contract services and a part-time staff line tied to a rental-registration program—while relying on conservative revenue assumptions to close the structural gap. In response to council questions, staff said actuals from last year were just above $2,067,000 for the sales/transaction tax line and that sales-tax forecasts were within a few percentage points of HDL’s model.

The council considered resolution 20 26 dash o7, described in staff materials as the first amendment to the 2025–26 budget for midyear adjustments. Councilmember (speaker 6) moved to adopt the resolution; the motion was seconded and the clerk announced the motion passed with the council’s unanimous vote.

Council members were brief in debate and asked primarily for clarifications on inflation assumptions, revenue conservatism, and timing of property-tax receipts. The council’s action adopts staff’s recommended adjustments; staff said they will continue to monitor receipts and contingency options.

The resolution was approved as presented; staff said any follow-up will be reported in regular financial updates to the council.