Executive Summary

The FY 2023-2024 budget maintains the status quo in anticipation of slowing revenues and increasing expenses. Several issues are on the horizon and will require strategic attention as the City continues to grow and pursue its goals while ensuring fiscal stability. An ongoing challenge affecting all jurisdictions is continued escalation of PERS costs (pension liability). The City is about to embark on labor negotiations with bargaining units and talks with CAL Fire on a new contract, which will increase costs in next year’s budget. It is also possible that the City will have to contribute more significantly to completing the General Plan if additional funding sources are not forthcoming. Past fiscal discipline and wise stewardship have made it possible for the City to take a balanced approach as it strategically plans for the future. The budgeted expenditures of slightly over $44 million represent this balanced approach.