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Murrieta reviews Q1 finances, seeds $7M vehicle-replacement fund and approves budget adjustments
Summary
Finance staff reported $22M in Q1 revenues and proposed adjustments including a lump-sum transfer (~$7M) to establish a vehicle-replacement fund and approximately $644,000 in operating increases; council approved the first-quarter report and associated budget amendments unanimously.
Murrieta — City finance staff presented the fiscal-year 2025–26 first-quarter budget update on Dec. 2 and the council approved proposed budget adjustments, including a one-time transfer to create a vehicle-replacement fund.
Finance Director Javier Carcamo told the council the city collected just over $22 million in revenues through Sept. 30, with license and permit fees trending higher than anticipated (about $900,000, driven by multifamily-permit activity). Carcamo said development impact fees and grants accounted for a large share of early collections.
A major procedural decision was to seed a vehicle-replacement fund with a lump-sum transfer (approximately $7 million) taken from sustainability reserves to generate investment earnings earmarked for future vehicle acquisitions. Carcamo said the lump-sum approach allows the program to begin accruing investment returns immediately.
Finance Manager Jennifer Terry reviewed unassigned fund balances and explained proposed position adjustments and minor revenue and expenditure changes. The city’s estimated unassigned fund balance at year-end was presented at roughly $48.9 million after planned reserves and transfers.
Council action: After questions from Councilmember Lisa DeForest and others, the council voted to accept the report and approve the proposed budget adjustments and position-schedule updates. The motion carried unanimously, 5–0.
What happens next: Staff will implement the approved transfers, finalize position changes and report back on midyear budget updates in March and the year-end audited figures in January.
