Riverside LAFCO midyear budget shows modest surplus amid lower revenues and office relocation costs

Gary Thompson, Riverside LAFCO’s executive officer, summarized the commission’s midyear budget on Feb. 26, saying revenues are tracking below budget and expenditures are also below projections but, after internal adjustments, the commission still expects a modest surplus. "We're probably going to finish the year under budget," Thompson said, adding revenues are estimated to end the year about 5.3% below budget while expenditures — including reserve allocations — are tracking about 6% under.

Thompson said a primary adjustment reduced the consultant line to $25,000 from $100,000 this fiscal year because the commission will not need the full amount this year for the Water/Wastewater MSR start. He also said office relocation will add roughly $50,000 in expenditures this fiscal year for tenant improvements and moving costs. "The adjustments to the expenditures... we're looking at about $50,000 in additional expenditures for all of that," he said.

Despite those increases, Thompson projected about a $12,000 surplus for the year after adjustments and reiterated that reserve funding targets remain intact. He noted the commission expects about $900,000 in the pension/OPEB reserve at year-end.

Commissioners asked for clarifications and some requested a hard-copy policy manual; staff agreed to provide printed copies on request and to post the revised manual to the commission website. Staff also gave a brief update on the office move: tenant improvements are underway, ceiling work is nearly complete, paint colors are chosen and carpeting is next; staff will schedule a tour when work is finished.

The commission did not change budget policies at the meeting; staff will fold these midyear adjustments into next steps for the FY 2026 budget process.