Spencer Morrison, city finance director, details the overall Fiscal Year 2024-25 Operating Budget figures passed at the June 18 meeting.

YUBA CITY, CA (MPG) - Yuba City City Council adopted the 2024-25 Fiscal Year Operating Budget totaling more than $61 million.

To be exact, the budget is $61,775,000, according to Yuba City Finance Director Spencer Morrison, who gave a “high-level overview of the Fiscal Year 2024-25 Operating Budget" on June 18 for general and enterprise funds.

"My team starts around January, and after this budget is adopted, we still have the publishing of the remaining budget, so it is quite a lengthy process," Morrison said.

The finance director noted the capital budget presentation. 

"This is not an operating surplus per se but rather unused reserves transferred into the General Fund in July of 2023, so those reserves will go on to help close budget deficits in the future," Morrison said.

Before presenting final figures, Morrison said that "like every other household, city, and government across the country," rising costs, including energy, gas, insurance, and labor, keep money tight.

"As we get into this budget, we will be drawing on recommended reserves," Morrison said of the $5.5 million set aside in a stabilization fund.

"Adequate reserves" total $30 million, according to Morrison, who said $8 million is set aside in a Health City reserve 2023-24 account, equaling the 15% required per policy.

Diona Pope, city accounting manager, presented a graph of General Fund revenues before she listed the most significant changes for this Fiscal Year 2024-25, then the same for the expenditures. Expenditure budget changes include $2.5 million in safety and non-safety payroll, $785,000 in materials, supplies and services, $452,000 in liability insurance, $245,000 in gas and electric costs, and $210,000 in animal services.

After noting total expenditure changes of $4,373,000, Pope pointed to pension rates that Pope said would be updated upon receiving the latest actuarial reports in July or August. As for water revenues, expenses, and debt coverage, Pope said, "Rising costs are outpacing revenue, producing a declining debt coverage ratio."

The budget also includes capital requests, including replacing police canines and purchasing a new utility dump trailer. Additional vehicles for various departments, including water treatment, maintenance, and fire, are also included in the figures.

"This is a bare-bones budget," Councilmember Mike Pasquale, who was on the budget ad hoc committee, said. "I will go to task with anyone that we are not bare bones."

Councilmember Marc Boomgaarden said he "labored hard on this one." While he said he was "in no way in conflict with the work of the ad hoc committee" or the city staff, he cannot support this budget.

"As we embark on this journey of asking our residents to consider taxing themselves, it is imperative to me that we spend wisely," Boomgaarden said.

While not wanting to imply that the city does not spend wisely, Boomgaarden said, "There are some things contained in this budget that I would not spend money on personally, nor would I have spent that money on any business I had the opportunity or privilege of running."

"I need to be true to myself," Boomgaarden said, noting some items are "highly, highly questionable."

Councilmember Dave Shaw said the city's hard work on the budget over the last five years is evident compared to area regions.

"If you look at Sutter County, it is upside down; the city of Sacramento is upside down," Shaw said. 

All councilmembers, except for Boomgaarden, approved the budget.