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Visalia council receives mid‑year budget; amends surplus policy and appropriates $2.717 million for capital projects
Summary
Finance staff projected the general fund up about $9.5 million and recommended $2.717 million in capital appropriations. Council amended the surplus policy, agreed to set $1.8 million aside for the Civic Center fund pending plans, and requested return of homeless prevention program recommendations; motion passed 4–0.
The Visalia City Council received a fiscal‑year 2025–26 mid‑year financial report and voted to amend the general fund surplus policy and appropriate roughly $2.717 million for capital projects.
Finance and Technology Director Renee Nagle told council the mid‑year projection shows general fund revenues higher than budget by approximately $9.5 million—driven chiefly by sales and property tax—and operating expenditures up about $3.9 million, largely because negotiated memoranda of understanding (MOUs) and wage increases were finalized after the budget was prepared. After staff’s recommended capital appropriations ($2.7 million) and estimated interest earnings, staff projected a remaining general fund surplus of about $1.8 million.
Nagle summarized assumptions behind the forecast: staff modeled no recession, full staffing (despite current vacancies), no additional PERS increases and no new state or federal mandates. She cautioned the final audited figures will not be available until months after fiscal year end due to closings and journal entries.
Council members questioned specific items including vehicle and equipment replacements, transfers out (about $3.2 million) to subsidize other funds and repay debt, and the city’s reserve policy. Police Chief Jason Sells explained a ballistic vehicle (Bearcat) damaged during an operation would not be fully covered by insurance and that the county offered a partial reimbursement of roughly $3,000 but staff recommended replacing deteriorated components given the vehicle’s age.
During deliberations councilmembers discussed uses for the $1.8 million remainder: placing it in a Civic Center/Public Safety building fund, prefunding convention center seating, or directing portions toward homeless prevention and youth/arts grants. One councilmember moved to receive the mid‑year update, amend the surplus policy as staff recommended, appropriate $2,717,101 for capital improvement projects as outlined, and task staff to return with homeless prevention program proposals. The motion was seconded and passed 4–0 with Councilmember Nelson absent.
Staff will return with more detailed recommendations and a refined five‑year forecast as additional data and year‑end adjustments become available.
