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Council reviews draft budget showing $418,000 general-fund gap and $1M water fund shortfall
Summary
City staff presented a draft budget overview showing $33 million in projected revenues and expenditures, a $418,000 general-fund deficit and a roughly $1,000,000 deficit in the water and sewer fund (primarily bond-related); staff suggested options including reallocating bonds or issuing short-term notes for capital needs.
City finance staff presented a preliminary budget overview based on department requests and last year’s revenue numbers, highlighting two points of concern: a projected $418,000 deficit in the general fund and a water and sewer fund shortfall of a little over $1,000,000.
Sandra Garcia (introduced to the council as Sandra Garcia) told the council she used department-submitted numbers and that certified property values, due on the 25th, will produce firmer revenue estimates. She said the water-fund deficit is largely driven by bond payments and suggested possible approaches such as reallocating bond obligations, issuing short-term notes for capital projects, or restructuring debt service timing. Garcia said the draft does not include capital projects beyond routine paving and noted transfers between funds (for example, a transfer from the harbor fund to the aquatic center to cover recurring shortfalls).
Councilmembers asked about debt capacity and timing; staff refrained from providing a firm borrowing limit until certified property values are available and recommended structuring any near-term debt to manage payments while the city’s debt burden declines over the next two fiscal years.
Staff described the presentation as a draft; the council requested updated figures after property values are certified and said it will continue to review capital requests before finalizing the budget.
