The Yuba City budget is broken down from highest to lowest allocations for the Fiscal Year 2024-25.

YUBA CITY, CA (MPG) - The proposed Fiscal Year Budget for the 2024-25 General Fund introduced on June 4 is $61.8 million.

“The balanced budget emphasizes growing expenditures and flattening revenues,” Finance Director and City Treasurer Spencer Morrison said of the proposal at the June 4 council meeting. “The General Fund’s largest revenues, sales tax and property tax; continue to make up 90% of all tax collected and about 63% of total revenues.”

 The Yuba City budget is based on five factors, as seen in the graph presented with the Fiscal 2024-25 figures on June 4 at the City Council meeting.

The budget has five factors: quality of life, public safety, infrastructure, business-friendliness and fiscal responsibility. After breaking down deficits and surpluses and the rising cost of goods, Morrison explained that the budget process entails six factors, beginning with city department needs and final adoption.

Within the budget process lies the Budget Ad Hoc Committee, which adds a "policymakers’ perspective" to the budget, according to Mayor Shon Harris, one of the ad hoc members. Two recommendations by the committee include $249,000 for technology and $527 for vehicle replacement.

 Councilmembers Marc Boomgarden, on the left, and Dave Shaw discuss sales tax and return on investment concerns regarding the upcoming budget adoption.

"Due to previous budgets, we ran the rack so dry that it didn't leave us with a whole lot of options," Harris said. "We had to make some choices."

The mayor said department heads “came to the table with realistic demands rather than the typical old school tactic of shooting for the moon” and accepting less.

"We had some good frank conversations and had to make some tough decisions," Harris said.

Councilmember Michael Pasquale, who also served on the Ad Hoc Committee, agreed and said the line-by-line budgeting process detailing all revenues and expenditures was "spot on."

 Mayor Shon Harris and the Yuba City Council hold a Fiscal Year 2024-25 Budget workshop to discuss the final figures adopted on June 16.

The most significant expenditure changes in the budget, including payroll changes, animal services and liability insurance, amount to more than $4.3 million.

As with any city, public safety consumes the most, with law enforcement at 35% and fire personnel at 27%, followed by public works at 12%. The other single-digit percentages include developmental services, human resources, and other city departments.

According to Morrison, Yuba City's budget stabilization reserve, not adopted by other California regions, "can be used in a couple of different ways," including pensions, which could offset some pressure on the General Fund.

The majority of General Fund revenues are based on property and sales tax, which Councilmember Wade Kirchner addressed, noting that the positive housing market continues to help Yuba pay its bills.

Councilmember Dave Shaw said he is concerned with the sales tax projections.

"We kind of projected them going up in the last several years," Shaw said, adding that has not been the case. "The only thing that keeps sales tax propped up is inflation, which is out of control."

Councilmember Marc Boomgarden has concerns over what is "possibly being funded that is not conducive to central services, especially in tough budget times."

"It is even heightened when we are planning on going out to the constituency for a revenue measure," Boomgarden said.

Boomgarden brought up the Return on Investments (ROI) for the League of California Cities and the Sacramento Area Council of Governments (SACOG). While Boomgarden noted a return on investment with the Sacramento Area Council of Governments, including bridge and street improvements, the league has not given back.

"By their own admission over the last eight years, we have provided them with $217 000’ worth of Yuba City tax revenue to date," Boomgarden said, adding that paying $27,000 this year seems unacceptable. "We have given them eight chances so far. How many more chances do you want to give them?"

City Council is expected to adopt the budget at the June 16 meeting.

“The City Council is having ongoing discussions with staff to address rising costs with revenue-focused innovations, development and technology improvements,” Morrison said.