Brawley City Council approves 2024-2025 budget
BRAWLEY — The Brawley City Council took only 15 minutes to approve Tuesday its $57.9 million budget for Fiscal Year 2024-2025.
The city expects to expend $64.4 million for a $6.5 million deficit.
Brawley interim Finance Director Silvia Luna recalled the city held budget study sessions on March 19, May 21, and June 4. In each session council members were provided updates on the overall budget and changes since the previous sessions.
“The budget represents six months of hard work, dedication to plan, organize, estimate, and decide the course of the whole next fiscal year,” interim Director Luna told the council, adding the process began in February. “This year staff conducted seven public meetings, with two meetings dedicated for budget planning and long-term strategic planning.”
Based on feedback and input provided during those study sessions, interim Director Luna proposed the city’s Fiscal Year Citywide Operating and Capital Improvement Budget.
The 150-page budget workbook included all city funds, extensive notes developed during the budget process, reserve, and fund balance analysis, as well as line-item details for all anticipated revenues and expenses, a personnel summary, and a glossary and acronyms section.
According to the interim director, the budget provides detailed numbers of funds of all departments, graphics for the public can understand more easily how their money is spent, while educating about the impact of implementing the operating plan. The budget workbook was expected to be available online starting Wednesday.
Luna reported some funds are utilizing prior year savings for multiyear capital improvement projects.
The citywide budget, that includes an operating budget and Capital Improvement Projects include 49 funds, pays for 157 full-time employees and covers 37 capital improvement projects like street repairs, efficiencies, and benefits, of which 11 are new.
The interim director also reported the General Fund has a deficit of $237,433 with anticipated revenues of $22.9 million and expenses of $23.1 million.
According to Luna, the current fiscal year General Fund has a $189,301 deficit, and next fiscal year’s budget includes adjusted grant activity and the November election.
The interim director explained revenues and expenses show a 3 percent increase for 20242025 compared to the current fiscal year.
At the same time, next year’s budget includes a new reserve fund for parks and recreation.
Luna said next will be Brawley’s second year the city council passes a budget with a deficit. However, in her report the interim director said projected revenues and expenditures presented for adoption in FY24/25 are aligned to the projected deficits estimated in the 10-year financial projections.
“It is not our goal to pass a budget with a deficit,” Luna said. “We are lucky to consider the city has enough reserves to take over the deficit.”
The interim director said the budget shows the city’s priorities and fulfills staff and public demands by ensuring the continuity of services and day to day operations.
The city’s budget, Luna said, dictates Brawley’s plans and communicates its goals and priorities.
“You’ve done a great job in the last few months,” Brawley Mayor Ramon Castro said.
No other comments from council members or the public were made.
The motion to approve the city’s next year budget carried 5-0.
The city’s budget ought to be adopted by June 30.
Interim Director Luna’s report reads continuing appropriations, which remain unspent and were authorized by the city council in Fiscal Year 2023-2024 are approved in Fiscal Year 2024-2025. Those funds include $848,850 for the General Fund and $17.1 million for all other funds.
“While the budgeted expenses exceed the budgeted revenues, the budget reflects the community’s priority of sound fiscal management while maintaining adequate service levels,” City Manager Tyler Salcido wrote to the council. “To gather community input, promote transparency, increase communication, and access to information; the proposed budget was presented at three public meetings prior to adoption. Resources have been allocated based on regulatory requirements, community priorities, and necessary capital improvements.”
According to the city manager, the CIP budget includes 28 water, wastewater, road, and pedestrian improvement projects, as well as heavy equipment purchases, to ensure the delivery of essential utility services and enhancing transportation and public right of ways throughout the city.
“The City continues to support a long-term vision with sound financial management,” Salcido added in his report.
According to the city manager, the General Fund reserves are estimated to be $4.9 million as of June 30, 2024, and are projected to decrease to $4.4 million next fiscal year. However, the target of 15 percent of annually budgeted expenses which equals $3.4 million.
“The City shall continue to monitor and strive towards this target by increasing collaboration with external agencies, implementing economies of scale, ensuring revenues are collected, and efficiencies are identified within processes,” Salcido continued.
The city estimated its carryover at $18 million, of which half come from the Capital Projects Streets Fund, $2.7 million from the Wastewater Enterprise Fund, and $3.3 million from the American Rescue Plan Act Fund.
The budget proposal shows the city expects its revenue decline by $944,853 mainly thanks to a reduction of grant funds, transfers in, and interest, miscellaneous and reimbursements.
The city also expects $530,626 more in taxes and $1.1 million more in fees and charges.
City Council expenses are expected to go up from the current fiscal year of $85,671 to $93,119, mainly due to a $6,000 spending in software subscriptions, $1,000 in additional expenses for communications, $1,000 more for special events, $5,000 more in travel and training, and $4,000 for office furniture, while deleting $10,200 for technical services.
Other departments that will see an increase in expenditures include the City Manager, City Attorney, Fire Services, Public Works, and Parks, while Library Services, Recreation and Lions Center, Senior Citizen Center, Police, Planning, Finance, and Personnel will see a decline.