Brawley City Manager clarifies budget issue
BRAWLEY — Brawley City Manager Tyler Salcido provided a clarification regarding this week’s story published by the Imperial Valley Press.
The city manager wrote in an email although budget records show several departments will see an increase in expenditures and others a decline, Library Services, Recreation, the Lions Center, the Senior Citizen Center, Police Department, and Planning Department will have no cuts.
“Perceived reductions are mere accounting technical changes that are designed to isolate grant-funded activities in a separate bucket, reflect projects completed in FY 2023-24 or consider savings from the prior fiscal year,” Salcido wrote.
The city manager assured that funding for all departments increased in the newly adopted budget.
Salcido added that decreases in budgets for Library Services, Recreation, Lions Center and Senior Center are related to Capital Improvement Projects (CIP) that were completed or are proposed as “carryover” projects in FY 2024-25. Said departments do not include new CIP projects for FY 2024-25.
The Police decrease is related to an accounting technical change in which five police officers were transferred out of the general fund to a special revenue fund for grant tracking purposes, Salcido explained.
“We were able to cut expenses in Finance and Personnel as a result of operational efficiencies in FY 2023-24 that generated savings in supplies and professional services,” the city manager wrote.
Also, although the negative difference of $6.5 million between revenue and expenses, the actual operating deficit for next fiscal year will be $237,433.
“The other spending that exceeds revenues are capital expenditures from our capital reserves and that spending is a choice to bring forward some critical infrastructure projects that we have long anticipated,” Salcido wrote.
“It is true that we have an operating deficit, in part because we are fully funding all departments as noted in item 1, and that operating deficit is a concern, in that we see it growing in coming years.”
Based on those figures, the City is considering a 1 percent sales tax for voter approval in the upcoming election, Salcido added.
A press release issued by the city on Tuesday reads, “The citywide budget establishes a budget of $64.4 million in expenditures, funded by $57.9 million in expected revenue.”
According to the press release, the City’s primary budgets are the General Fund Operating Budget and the Capital Improvement Program (CIP). The General Fund anticipates $22,916,670 in revenues against $23,154,103 of expenditures, resulting in a deficit of $(237,433).
“This budget supports public safety, recreational programs and parks, community facilities and city services,” the press release reads.
The press release also reads the CIP budget includes 37 projects for water, wastewater, road and pedestrian improvements as well as heavy equipment purchases, totaling $27,753,694. These projects aim to ensure the delivery of essential utility services and enhance transportation and public right of way throughout the City.
“While using City reserve funds to close the budget gap, the
City will still maintain a General Fund reserve of $4,479,157. This level exceeds the City Council’s adopted priority to maintain a 15% budget reserve to ensure “rainy day” funds remain available,” the press release reads. “The $6.5M spending that exceeds revenues in the citywide budget are capital expenditures from the City’s capital reserves, a choice made to make progress on critical infrastructure projects for the community.”
Also, the city manager wrote that although on Tuesday’s meeting the budget issue was discussed and approved in 15 minutes, city officials spent hours and hours of preparation and presentation that get to the vote this week.
“City budgets can be quite complicated based on the various accounting rules and government fund accounting methodologies,” Salcido wrote. “We are committed to being transparent and accurate in the information we provide to the community.”
“This budget makes significant investments in our public safety services and infrastructure like streets but requires us to enter budget deficit territory to close the funding gaps,” Brawley Mayor Ramon Castro is quoted in the press release. “The City knows we have major investments to make in people and infrastructure to continue to improve our quality of life, and as we look to the future, we recognize that additional revenues through a tax measure will be critical to our long-term fiscal planning.”
Mayor Castro added, “While we are always fiscally prudent, if we choose between cutting services or investing in the people of Brawley — I choose to invest. I will always bet on the future of this community.”