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Murrieta releases FY2025–26 third-quarter financial report; modest budget adjustments approved
Summary
Finance Director presented the city's Q3 figures (through March 31), proposing modest budget amendments including transfers to vehicle replacement funds, reallocation of interest income to Measure T, and small increases for fuel, bank fees and playground repairs. Council accepted the report and approved adjustments unanimously.
City finance staff presented the fiscal year 2025–26 third-quarter update on June 2, reporting revenues and proposed modest adjustments and transfers across the General Fund and Measure T.
Finance Director Javier Caramo and analyst Tanner Benson said the city has received about 55% of the General Fund's amended budget revenues through March 31 and described a small net proposed amendment: an overall reduction to the citywide amended budget of roughly $72,000 and targeted revenue adjustments (property-tax reforecasting and reallocation of interest earnings from the General Fund to Measure T). Measure T revenues were increased by moving interest-income budget lines to that fund.
On the expenditure side staff recommended a modest $241,000 increase to the General Fund amended budget for items like personnel reallocations to the new Municipal Services Department, bank admin fees, additional vehicle fuel costs for police and fire, and an increase in vehicle replacement fund allocations. Measure T saw a small increase for operations and vehicle-replacement allocations and Measure T capital expenditures remain high due to CIP activity.
Staff estimated unassigned fund balances (pre-audit) of about $30.7 million in the General Fund and $18.6 million in Measure T and noted that year-end audited balances will be reconciled in the fourth-quarter report. The council voted unanimously to accept the report and implement the recommended budget adjustments.
Council members questioned the timing, accounting treatment for GASB 31 adjustments to market value on investments, and the increases to fuel and bank fees. Staff highlighted that GASB 31 is an unrealized market-value adjustment that will reverse next fiscal year and that many revenues (sales, franchise, TOT) are received with delays by county remittance schedules. Council asked staff to continue monitoring charges-for-service revenues that are trailing expectations and to return with updates as year-end numbers settle.
