Ceres finance director warns of $2.4 million shortfall as pension and fire costs rise

Vanessa Portillo, the city’s finance director, told the City of Ceres’ special meeting on April 20 that the fiscal year 2027 proposed budget faces a structural shortfall driven primarily by rising pension obligations and an increased fire‑services contract with the City of Modesto.

“This workshop is intended to provide a high level overview with a specific focus on the general fund,” Portillo said, then summarized citywide totals: projected revenues of about $86.6 million and expenditures near $84.9 million, and a general‑fund status‑quo gap of roughly $5.6 million. After applying staff balancing strategies of about $3.2 million — one‑time solutions, ongoing reductions and technical allocation adjustments — the recommended budget shows a remaining $2.4 million deficit.

Portillo highlighted pension liabilities as a major pressure. Total pension costs have risen from just over $5 million in FY22 to more than $8 million in the FY27 budget proposal; the general fund’s share increased from about $3.3 million to roughly $5.7 million. She said safety‑employee pension liabilities are especially heavy, with a growing portion of…