Atwater City finance director previews $68.1M draft FY27 budget; council advances routine items

Atwater City finance staff presented a condensed version of the proposed fiscal year 2026–27 budget at a council finance committee meeting, outlining draft all‑funds revenues of $68.1 million and expenses/transfers out of $74.6 million. The finance director said the draft includes capital projects and that the final budget will be presented to the full council in June.

The presentation framed the budget as both the city’s spending plan and a communication tool for residents and stakeholders. The finance director said, “We are at the tail end of putting together the fiscal year 26‑27 budget,” noting the city began preliminary work in January, held two public workshops (Feb. 21 and Mar. 28), and will finalize numbers and the capital improvement program (CIP) before council adoption.

The draft general fund figures show transfers in of about $21.43 million and transfers out of roughly $21.33 million, producing a projected general‑fund balance of $17.98 million at the end of FY27. The finance director told the committee the draft meets the city’s reserve requirements and the 2026–2030 strategic‑plan goal of a 25 percent reserve; she cited Resolution 3068‑9, which requires a 10 percent operating reserve.

The director reviewed interest‑earning trends and recent volatility, noting general‑fund interest income rose from roughly $31,000 in FY19–20 to about $538,000 in FY24–25. She also summarized enterprise funds: the water fund is shown with draft revenues near $8.7 million and expenses near $6.5 million; sewer revenues were presented at about $12.6 million and expenses at $12.7 million (the director noted existing wastewater bond debt‑service requirements); sanitation revenues and expenses were presented at roughly $5.223 million and $5.09 million, respectively.

A committee member asked about an apparent $2 million difference in the water fund and whether residents might be overcharged. The finance director responded that the draft numbers do not yet include the full CIP and that capital projects likely account for the variance; she said final figures will appear in the full budget submission.

Staff also previewed other items that will accompany the June budget package: an annual miscellaneous fee schedule that will apply a 3.518 percent CPI increase for fees that may be adjusted, the Gann appropriations limit calculation, and an updated investment policy that would add language allowing participation in local government investment pools (ELGIPs), such as CalTrust, CalIt and CAMP, if the council later chooses to invest in those vehicles.

The finance director reported that the FY25 audit is complete and that the city is meeting debt‑service coverage on its wastewater bonds; finance staff confirmed interim fieldwork for the FY26 audit is scheduled for a week in July. She closed the report and invited follow‑up questions.

No members of the public spoke during the open comment period. Vice Chair Rochester had no items; Treasurer Borba indicated the same vote. Committee member Ambry thanked staff for their work and the presentation. The committee adjourned at 5:17 p.m.