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Grand Terrace delays formal adoption of FY 2024–25 budget after workshop; council keeps conservative approach
Summary
City staff presented a conservative, balanced proposed FY 2024–25 budget projecting $8.2 million in revenues and expenditures, a general fund reserve near $5 million and a projected $13.2 million fund balance; council voted to continue adoption to June 25 so the public can review details.
City officials in Grand Terrace introduced a proposed fiscal year 2024–25 budget on June 11 and unanimously voted to continue formal adoption to the council's June 25 meeting to allow public review.
Finance Director Christine Clayton presented revenue projections showing $8.2 million in total revenues and an equivalent $8.2 million in proposed expenditures for 2024–25, with an estimated general fund surplus of about $38,000. Clayton said property tax and sales tax are the main revenue drivers; HDL, the city’s consultant, provided the sales- and property-tax trend data used in the projections.
Clayton and city staff showed multi-year actuals and projections, including a projected property-tax intake of roughly $4.9 million for 2024–25 and sales-tax projections that the city expects to increase modestly. Staff displayed a fund-balance projection of about $13.2 million as of June 30, 2024, and noted the city’s overall financial position has strengthened in recent years.
City Manager Conrad Bovich described the administration’s approach as intentionally conservative: "we're being very very conservative on our revenue side," he said, adding that conservative assumptions avoid an unrealistic budget that could later force cuts. Bovich highlighted planned capital and service investments funded from projected and midyear savings, including pavement and sidewalk repairs, park and field resurfacing, tree planting (budgeted at $20,000), parking-lot improvements, a new phone-answering position for customer service, and limited technology and safety projects funded from prior-year savings.
Council members pressed staff on downside risks. Staff acknowledged that more than half of the city's sales-tax revenue currently comes from two businesses and said that concentration presents a near-term risk; diversification of the sales-tax base is a stated priority. Staff also said the city expects a one-time sales-tax receipt of approximately $2 million tied to the Condor project; officials said they will treat that amount as one-time revenue rather than ongoing operating funds.
On reserves, staff reported general-fund reserves of roughly $5 million (about one-third of the annual budget) and noted the city retains other restricted and special funds that increase total available funds. Unfunded actuarial liabilities were discussed; staff estimated an unfunded liability in the neighborhood of $6 million.
Councilmember Henderson moved—and a colleague seconded—to continue formal adoption to the June 25 meeting so residents can review packet details and offer public comment. The motion passed unanimously.
The council will revisit the budget at its June 25 meeting, at which the public will be allowed to comment before the council considers adoption.
