Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Budget topic
No spam. Unsubscribe anytime.
Murrieta Council adopts two‑year operating budget and CIP after staff shore up reserves and add fleet plan
Summary
The City Council unanimously adopted the fiscal year 2025–26 and 2026–27 operating budgets and the Capital Improvement Plan, including updated fleet replacement charges, reserve increases and planned pension trust contributions; staff will return with a third‑quarter update and fire district hearing.
The Murrieta City Council voted unanimously on June 3 to adopt the City’s two‑year operating budget for fiscal years 2025–26 and 2026–27 and the associated Capital Improvement Plan (CIP).
Director of Finance Javier Carcamo and finance staff summarized changes since the May 6 budget workshop: a modest downward revision to sales tax estimates (about $2.2 million cumulatively across general fund and Measure T), and the addition of internal fleet replacement charges (approximately $1.9 million in revenue offset by corresponding capital outlay). The city will transfer planned contributions to operating reserves to reach a 30% target and set aside sustainability reserves for pension stabilization, facility repairs and the fleet replacement program. Staff also proposed contributing up to $6 million into a pension trust over the biannual budget period to reduce long‑term CalPERS exposure.
Carcamo and staff emphasized that, combined, the general fund and Measure T show a modest positive contribution to unassigned fund balance for the budget years, though the FY27 operating budget does not yet assume outcomes from public safety labor negotiations. Council asked for follow‑up items including a third‑quarter budget update and a separate public hearing on the Marietta Fire District budget on June 17.
Council and staff noted specific near‑term decisions: the fleet replacement program schedule is finalized and will require capital outlay in FY26, which staff intends to fund in part from sustainability reserves; staff said the city is evaluating drone program options and will return with a proposal in a future budget update. The city’s unfunded pension liability was presented (approx. $70.3 million as of FY24) and staff explained that investment performance and CalPERS actuarial changes drive long‑term obligations.
The motion to adopt the budgets passed unanimously. Staff stated the city will continue quarterly reporting and will refine fund balance estimates as FY24‑25 financials close.
