Riverbank budget workshop flags a projected $2.7M structural deficit and a large sales‑tax reimbursement

Riverbank — Assistant City Manager Tamil Caner presented the City of Riverbank’s proposed FY2026–27 major‑fund budget at Tuesday’s council meeting and warned of a structural deficit and declining reserves if current spending and obligations continue.

Caner said the city projects $16 million in general‑fund revenues and $15.2 million in ongoing expenditures for the coming fiscal year, with one‑time projects and transfers leaving a projected ending reserve of approximately 17.15%. "When you take out those other obligated funds, the stabilization and the park project…we're projected to be at 17.15%," she told the council, warning that reserves are trending down from the year's starting point.

Council members pressed for further detail on several large items. Staff identified an estimated $1.2 million sales‑tax reimbursement this year tied to the Crossroads West commercial development; the underlying developer reimbursement agreement was explained as capped at roughly $3.8–3.9 million and paid from project area sales tax until the cap is reached. Caner said the budget shows the $1.2 million in the council transfer‑outs line but that the total obligation and timing are part of a multi‑year reimbursement schedule.

Councilmembers also asked staff to return with: a specific breakdown of the city council transfer‑out line (which includes the Crossroads West payment and other subsidies such as Sierra House), a clearer resident vs. non‑resident analysis of the bike/ebike calls for service tied to enforcement costs, and details on deferred capital and operating requests (including addition of a patrol deputy and a deputy city clerk). Several councilmembers expressed interest in restoring the deputy city clerk and adding a patrol deputy if fiscal analysis supports it.

On utilities and enterprise funds, staff noted the water fund is projected to run a deficit in the upcoming year and the sewer fund transfers include debt service and capital obligations; councilmembers urged inclusion of wastewater sludge removal as a funded item. Public commenters and one frequent budget speaker warned that without revenue increases or expenditure reductions, reserves could be exhausted within a few years.

Next steps: staff will return to council with the requested breakdowns, more detail on the Crossroads West sales‑tax sharing timeline, and updated staffing/capital options ahead of the June 23 budget adoption date.