Elk Grove city budget for 2025 unveiled, total budget grows to $373 million
During the Wednesday, May 22, Elk Grove City Council meeting, the city manager gave what he described as a macro view of the proposed budget for the fiscal year 2025, which starts on July 1.
Among the highlights Behrmann provided from the 322-page document were some of the general summaries. The total budget is $373 million, representing an increase of $24 million.
Of that, $92.4 million is for the general fund, most of which is labor costs. The balance is for capital improvement projects, some of which are carry-ver from the current fiscal year, which ends on June 30.
Calling the document a "good news budget," Berhmann stressed that the budget is balanced and that a projected surplus is available for the next five years.
"Seventy percent of our general fund goes to the police department," Behrmann said.
While Behrmann painted a favorable income and revenue picture, he acknowledged risks to the city's projected revenue growth over the next five years are not incorporated into the budget. Specifically, he said the five-year budget does not include scenarios for a recession, which could negatively affect significant revenue sources like auto sales tax revenues.
"We don't have built into here any kind of significant recession, that certainly possible, right? The economy is cyclical, and there are ups and downs, so that is certainly possible," he said. "The good thing is we do have very healthy reserves, which allows us to make adjustments, so if something were to happen during the middle of the fiscal year, if we need to make adjustments, we can always come back to you."
Berhmann also noted Measure E, the city budget's crown jewel, which imposed a one percent consumer sales tax. That new revenue source is expected to generate $30 million for fiscal year 2025, with 30 percent directed toward the Cosumnes Community Services District.
During their almost one-hour deliberation, the city council had a meandering discussion about several budget items. The items ranged from the city's CALPERS employee funding obligations to improving the city's growing traffic congestion problems to providing free bus rides for senior citizens.
A more thorough budget presentation will be made during the June 12 meeting, where it is expected to be approved. State law dictates it must be approved by June 30.
There was one public comment from Elk Grove resident Lynn Wheat. In her remarks, Wheat noted the state's role in municipal budgetary matters.
"I want to say by state law, we are required to have a balanced budget," Wheat said. "That is an expectation under the law."
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Political silly season is upon us, so once again the budget will be politicized by the City Council members/Mayor running for reelection. Despite a state law requiring cities to have a balanced budget, I expect to see at least two incumbent's campaign flyers bragging that they balanced the budget. Just don't ask them about the nuts and bolts of the budget!
Speaking of flyers, I would also expect to see their campaign flyers adorned with pictures of zoo animals, smiling ethnically diverse residents strolling along in tow with their favorite candidate, and let's not forget about the tired old promises of greater transparency and reduced traffic congestion!
I can hardly wait until November has passed!
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