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Lemoore staff warns FY27 costs will rise as $4.3 million ESG project drives higher allocations
Summary
City staff told the council a $4.3 million ESG facilities project and related overhead allocations will push FY26-27 expenditures higher, leaving the general fund about $645,000 over the original budget and prompting proposed staffing and capital requests.
Miss Valdez, the city's finance/staff presenter, told the Lemoore City Council on March 17 that the general fund is projected to be over its original budget "to the tune of 645,000" largely because of a recently approved $4.3 million ESG facilities project.
The presentation combined operating expenditures and personnel for FY25-26 and proposed FY26-27 items, including a website and agenda-management contract (Civic Plus), AMI water meters and solar at 40 G Street, VFD installations at sewer lift stations, and upgrades to SCADA and headworks. Valdez said the ESG project is the single largest driver of higher costs and that, "had we not done the ESG project this year, we would have been significantly under budget."
Valdez walked the council through departmental variances: water operating expenses are expected to rise from $10.3 million to $11.6 million this year (an enterprise overage tied to the ESG project), refuse will increase after approval of new refuse vehicles, and sewer capital projects will roll into FY27. She said personnel changes planned for FY27 include adding one payroll technician, restructuring two HR positions, converting a groundskeeper to a lead role and moving certain recreation part-timers onto payroll to comply with wage-and-hour rules. Proposed new positions discussed included one business service specialist, one dispatcher and four police officers to staff a potential fourth beat.
Council members and members of the public pressed staff on the unfunded pension liability. A resident asked whether the city could "estimate that in the budget," and Valdez and another staff member explained that CalPERS provides an actuarial unfunded-liability amount that is finalized after July 1. A council member summarized the constraints: "We know what the employer contribution is, but it's separate than the unfunded liability," and staff confirmed the budget uses CalPERS's estimate until the final bill is issued.
The presentation also listed recommended capital improvement projects for FY27: completing the ESG items ($4,300,000), council chambers roof ($55,000), a maintenance mower ($30,000), a patrol vehicle ($95,000), traffic signal work and sidewalk projects (including a $739,000 sidewalk segment near the sports complex) and a $3.5 million utility extension tied to an AHSC grant. Valdez said the sewer fund includes a multi-year TTHM design and work that will extend into FY28 and noted various well-rehabilitation and lift-station projects.
The council set a follow-up schedule: staff will present revenue details at the next workshop and a draft budget the following month before returning with recommended changes for final adoption.
