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Midyear update: Dixon faces $2.1M shortfall in FY24‑25; council approves midyear adjustments
Summary
City finance staff told the council the current fiscal year projects $29.6M in revenues and $31.7M in expenditures, a $2.1M deficit; council approved a set of midyear budget adjustments covering personnel, overtime and capital needs and heard staff outline revenue timing issues with the county tax rolls.
City finance staff presented a midyear budget update on March 4 showing a projected deficit for FY24‑25 and proposed targeted amendments to limit long‑term impacts.
"We have a total of 29,600,000 in revenues and 31,700,000 in expenditures," finance staff said, and added: "This current year does have a projected deficit of 2,100,000 for the year." Staff noted the city began the year with reserves around 59% and, under current projections, would end the year near 45%. The presentation also cited timing and collection issues at the county assessor's office, including "86 parcels missing from the tax rolls," which delay property tax revenue and can create year‑to‑year swings in collections.
Council heard specific departmental requests: an additional $51,000 in finance personnel charges to reclassify a position; a $280,000 increase in fire overtime (offset in part by salary savings, producing a net personnel savings of about $70,000 in the current projection); a $20,000 capital request for a public works ATV sprayer; increases to recreation and senior center equipment budgets (roughly $6,000 and $5,000 respectively); consultant and contract increases totaling roughly $79,800 in various departments; and a proposed $42,000 transfer to maintain traffic signal operations that staff recommended moving from a fee fund to the general fund.
Staff noted revenue smoothing related to a sales tax measure expected to take effect in April and forecast a modest positive projection for the next fiscal year (about $86,000), but cautioned that bargaining group negotiations and county billing issues introduce uncertainty. After discussion the council moved, seconded and approved the requested midyear budget modifications by roll call.
Councilmembers questioned the county's handling of property tax parcel recording and asked staff to pursue additional briefings; staff said legal and administrative options are limited and that the county remits the revenue and is responsible for collections when parcels are placed on the rolls.
