Nevada City council adopts balanced $18.8 million budget, approves CIP and related measures

Nevada City officials on Wednesday adopted the city's fiscal year 2025'1, operating budget and a five-year capital improvement program, approving a set of related resolutions by unanimous vote.

City Manager Sean Grayson and finance staff told the council the citywide revenue estimate is about $19.1 million against budgeted expenses of about $18.8 million. General fund revenues and expenses are each estimated at roughly $7.44 million, leaving a small positive delta of about $5,800. Staff presented a capital program of roughly $5.9 million for the year, with about $3.8 million earmarked for streets, roads and sidewalks.

"We're estimating revenues citywide at approximately $19.1 million with total budgeted expenses of approximately $18.8 million," City Manager Sean Grayson said during the public hearing. He also highlighted internal promotions, noting that the finance supervisor position will be replaced by a finance manager role and that Britney will assume that role July 1 after completing a bachelor's degree.

Why it matters: the adopted budget keeps the city under the voter-approved appropriations (Gann) limit staff cited, preserves reserves and advances several infrastructure projects staff and council framed as "shovel-ready." The CIP lists projects ranging from Miners Foundry upgrades to pedestrian- and streetscape work.

Key figures and policies in the adopted budget include a projected 7.6% increase in transient occupancy (room) tax revenue (~$570,000), a roughly 2% increase in property tax (~$35,000), an estimated 1.6% sales-tax gain (~$23,500) and a built-in 10% cost-of-living adjustment for employees effective July 1. Staff also noted a 15.2% increase in the CalPERS unfunded actuarial liability payment, which the city can reduce by roughly 5% through prepayment.

Council members asked for clarifications during the hearing. Staff explained a decrease shown in a "miscellaneous" general-fund revenue line was due to an accounting reclassification of administrative charges tied to Proposition 64 from the general fund into the Prop 64 fund. On enterprise funds, staff said water revenues were conservatively flatlined for now and suggested a midyear true-up if conditions change.

Votes at a glance: the council voted 5'0'0to''0 to approve the block of budget resolutions (listed in the staff report) after a motion from Council member Fernandez and a second from Council member Cece.

What happens next: staff said it will return in August with a five-year revenue/expenditure forecast and the annual investment report and will bring more detailed rate and fee updates (including a potential Prop 218 process for certain connection fees) to council in the coming months.

Council members commended staff for preparing the budget and for building the capital program; the council adopted the budget resolutions by unanimous roll call vote.