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Wasco council adopts $406,224 midyear budget adjustment after finance review
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Summary
After a midyear presentation showing a projected $25.6 million general-fund balance and unusually large reserves, the Wasco City Council approved a $406,224 midyear operating adjustment that adds $86,000 of expenses and recognizes roughly $493,000 in additional revenues; council members sought clarifications about a budget transposition error and external economic risks.
The Wasco City Council voted to adopt a midyear operating budget adjustment totaling $406,224 after a detailed presentation by finance staff on the city’s fiscal position.
Finance presenter Miss Blakemore told the council she had run numbers through March 31, 2026, and said the city projects a year-end general fund balance of about $25.6 million. That reserve level represents about 147% of operating expenditures, she said, well above the city’s 35% reserve policy. Blakemore proposed midyear adjustments that recognize approximately $493,000 in additional revenues—primarily from sales tax and Measure X receipts per HDL—and $86,000 in additional expenditures tied to council-approved changes, including a previously approved Motorola Solutions expansion.
Council members pressed staff for details. One member asked about a transposition discrepancy in the adopted budget that produced a small variance in the starting balance; Blakemore said she reconciled the figures by “tick and tie” to audited fiscal-year 2024 statements and corrected the error in the presented materials. Council members also asked whether interest earnings and grant timing had been fully booked; staff said interest is being caught up in the accounting system and that some grant-funded water projects are reimbursement-based, meaning the city will spend first and be reimbursed later.
During discussion, a council member raised broader economic concerns, warning that global oil-market disruptions could trigger a recession and reduce projected revenues. City Manager Scott and Blakemore responded that the midyear adjustment is a modest, short-term correction covering less than a three-month window and that projected revenue increases exceed proposed expense increases by more than four times. The staff recommended monitoring economic conditions as part of an upcoming strategic-planning session.
The council moved to adopt the resolution authorizing the midyear adjustments. The motion passed by roll call with four ayes; Mayor Saldana was absent.
The council also discussed next steps for the fiscal year, including strategic planning sessions scheduled ahead of the FY2026–27 budget workshops.
