Stockton council accepts third-quarter budget report and authorizes $12.2 million in carryovers

The Stockton City Council unanimously accepted the fiscal-year 2024-25 second- and third-quarter financial status update and authorized carryover appropriations for identified projects.

Brandon Sepulveda, interim budget officer, reported that general fund revenues through March 31 were $206.1 million (64% of the $319.8 million budget) and the year-end projection was $332.5 million, about $12.7 million over budget. Year-to-date general fund expenditures were $223.5 million (50% of the $390 million budget) with a projected year-end of $379.6 million, roughly $11.0 million under budget. Sepulveda said timing and receipt delays (notably sales and property tax distributions from the county) affect third-quarter percentages and that numbers will be clearer at year-end.

Council authorized the continuation of up to $12,233,179 in FY24-25 budget appropriations for projects that were started or encumbered and need completion in FY25-26. Staff said these are funds already obligated to projects and that carrying them forward allows departments to complete work without re-authorization. The council approved the staff recommendations and budget amendments by a 7-0 vote.

Council members pressed staff on the carryover process and asked for visibility into where funds will be used; staff said the carryovers are tied to already-approved projects and would not return to council for separate appropriation. The city manager noted tools such as hiring freezes are available if further fiscal tightening becomes necessary.

The council——————— directed staff to finalize year-end accounting and bring the fourth-quarter report in January.