Document Highlights
Continued Refinement to Improve Accessibility & Understandability Transparency is Better Governance
18 fewer pages (or a 4% reduction in budget speak)
Incorporate feedback from other budget pros
Using charts & graphs to tell the story
PDF number and Page number now match
Glossary includes abbreviations and acronyms
Government Finance Officer Association National Distinguished Budget Award (10th Year Running)
California Society of Municipal Finance Officers Excellence Budget Award (8th Year Running)
Acknowledgements
Overall Themes
Prudent use of one-time resources to focus on facility repairs, equipment replacement and capital projects
Leverage outside resources where available
Performance Measures
Full deployment of available funding for road rehabilitation CalPERS Pension Contributions
Retention of Qualified Staff
Importance of building operating reserves when possible Inflation Impacts
Builds on Strategic Capital Planning Workshop February 2025 City Fund Overview
Section 19, page 339
44 Active Operating & Capital Funds
Specific or restricted use, tracking, transparency
o Number of Funds principle
o Close out of Funds 029 Public, Educational and Governmental Channels, 078 CASp Certification and Training, and 080 City Use of Redevelopment Bonds
o Established Fund 008 Camacho Park State Grant Fund
Overview of City Departments and their associated funding sources
Types of Funds:
Unrestricted (General Fund) Fiduciary Trust
Enterprise Special Revenue
RDA Successor Agency Capital
Internal Service Funds
Proposed Budget Highlights
Budget in accordance with Reedley’s Balanced Budget Policy All obligations fully funded, debt, labor agreements, & existing contracts 1 New Position Reclassification: FT Fire Department Staff Assistant 1 New Position Addition: Police Officer (SRO, 72% funded by KCUSD) Add $570k to the Reserve + $180k anticipated interest earnings Significant CalPERS increase primarily due to investment losses $7.4M in planned Capital Projects ($1.8M in General Fund) Sales tax performance
Inflationary Increases Addressed
Interest earnings provide budgetary relief ~ $1.5M by June 30th and $1.1M assumed in FY 2025-26
No Reduction in Services or Programs
Proposed Budget Highlights
Central San Joaquin Valley Risk Management Authority
$2,779,947 total coverage cost, 19% increase ($442k)
Workers’ Compensation rates up 11%
Liability coverage increasing 21%
Property coverage is increasing 29%
Continuing overall ‘hardening’ of the insurance market - ongoing number and severity of natural disasters
Premium of $661,520 insures property valuations of $163.5M Auto Physical Damage increasing 25%
Premium of $120,969 insures 117 vehicles with a combined replacement value of $11.7M
Proposed Budget Highlights
Total Proposed Budget for All Active Funds = $57,211,555 $19,872,077 Personnel & Benefit Costs
$29,897,599 Maintenance & Operations
$7,441,879 Capital Expenditures
2025-26 General Fund = $22,073,123
$12,049,024 Personnel & Benefit Costs
$8,184,299 Maintenance & Operations
$1,839,800 Capital Expenditures
Current Year Amended Budget = $24,667,249
2025-26 Public Safety Sales Tax Proposed Budget = $2,310,607 $1,193,359 Personnel & Benefit Costs
$ 596,248 Maintenance & Operations
$ 521,000 Capital Expenditures
Interfund Transfers
Commonly used accounting and budget tool to facilitate financial activity between governmental funds and achieve various objectives Examples: Set aside $$$ for reserves, capital planning, cost allocation, internal service funds, and subsidies to other funds
$11.2M for FY 2025-26, Schedule on page 366
Increase from $9.9M this year, primarily due to change in CalPERS accounting
Included in overall budget of $57.2M, as transfers out of one fund to another fund are reflected as an appropriation
Ex. Internal Service Funds & General Fund Reserve
Equipment Shop $1.3M
Human Resources $3.6M
GF Reserve $570K
General Fund Health
$ 5,491,599 Actual Carryover From 2023-24
$ 21,013,351 Add: Total Projected 2024-25 Revenue
($ 24,667,249) Less: Total Projected 2024-25 Expenditures $ 1,837,701 Est. Fund Balance June 30, 2025
$20,341,515 Total Projected 2025-26 Revenue
($22,073,123) Less: Total Proposed 2025-26 Expenses
$ 106,093 Est. Fund Balance June 30, 2026
One-time Capital Projects = $1,839,800
General Fund Reserve Status
Reserve Policy = 90 Days Operating Expenditures
$3,966,224 Ending Fund 002 Balance 6/30/2024
+ 70,000 FY 2024-25 Budgeted contribution
+ 260,000 Estimated Interest Earnings
$4,296,224 Estimated Fund 002 Balance 6/30/2025
$4,437,140 Current 90-Day Policy Minimum
+ 570,000 Contribution for 2025-26
+ 180,000 Estimated Interest Earnings
$5,046,224 Estimated Fund 002 Balance 6/30/2026
$4,743,830 Projected minimum target based upon FY 2024-25 $ 15,791 Estimated Fund 006 Capital Set Aside Balance 6/30/2026 Property Tax
Secured Property Tax
o FYE Estimate 1.2% above budget, or $18,393
o Next year assumes 2% growth
o 2025-26 Estimated Revenue $1,524,900
Property Tax in Lieu of Vehicle License Fee
o FYE Estimate 4.3% above budget, or $120,065
o Next year assumes 4.7% growth which increases annually in proportion with overall assessed valuation
o 2025-26 Estimated Revenue is $3,077,676
Sales Tax
Bradley Burns Sales Tax – General Fund
FYE Estimate on track to meet Budgeted Revenue
Next year assumes 2% growth
2025-26 Estimated Revenue $2,267,217
Measure B Add On – General Fund
FYE Estimate on track to meet Budgeted Revenue
Next year assumes 2% growth
2025-26 Estimated Revenue $2,638,529
Measure G Add On Public Safety (Restricted Use) – Fund 003 FYE Estimate on track to meet Budgeted Revenue
Next year assumes 2% growth
2025-26 Estimated Revenue $1,750,795
Community Facilities District
Established November 2005 applying to all new development Property Tax Roll Assessments – Restricted Use
Partial offset for Police, Fire and Parks Maintenance costs within CFD boundary
3
rd largest revenue in General Fund after Property and Sales Taxes, and ahead of Franchise Fees
CPI Increase of 2.76% for 2025-26 Tax Year
o No CPI Increases to rates 2018-2023 (5 years), 3.67% for 2024-25 FYE Estimates on target, no gain or deficit
Next year assumes 11.7% growth, mix of CPI adjustment and new development
2025-26 Estimated Revenue $1,473,503
Franchise Fees
Franchise Agreements
Pacific Gas & Electric
Gas Company
Comcast Cable
Mid Valley Disposal
o 4
th largest revenue stream in General Fund
o FYE Estimate 2.0% below budget, $30,000 deficit
o Next year assumes 2% growth for PG&E & Gas, 0% growth for Cable and 2% growth for Mid Valley Disposal
o 2025-26 Estimated Revenue $1,332,529
Debt Discussion
No new debt is proposed
All capital purchases planned with available fund balances All existing Debt Service Obligations are Fully Funded o Section 22 / page 374
Future debt consideration for New City Hall & PD HQ Expansion Capital Improvement Program
Valuable tool for Council, Staff and Community
Next year 56 projects, $7,441,879, page 25
Criteria Used & Process to Identify Projects, page 204 Summary of CIP by Category, page 222
Summary of CIP by Funding Source, page 232
o General Fund Capital, $1,839,800 uses Measure B Sales Tax Add On Unfunded projects, page 268
o Important planning exercise, develops over time
o Grant opportunities and one-time resources
o Currently $81.4M over 5-year planning horizon
ADA Improvements ,
$74,400 , 1.0%
Downtown Improvements ,
$12,000 , 0.2%
Equipment Acquisition ,
$1,923,200 , 25.8%
Facilities New , $350,000 ,
4.7%
Facilities Rehabilitation ,
$1,428,768 , 19.2%
Other , $400,000 , 5.4%
Parks & Recreation
Facilities , $1,020,771 ,
13.7%
Road Rehabilitation ,
$891,740 , 12.0%
Software, 651,000, 9.3%
Water or Sewer System
Rehabilitation or Upgrades , …
2025-26 CAPITAL IMPROVEMENT PROGRAM BY
CATEGORY
Notable FY 2025-26 Projects
Animal Shelter FAITH (Furry Animals in Transitional Housing) Fire Dept Storage Facility at Cricket Hollow
Fire Station Remodel Projects
Community Parkway Improvements (lighting)
New City Hall Design & Construction Documents
Camacho Park Rehabilitation
911 System Upgrade
General Plan Update
Manning Avenue Adaptive Signal Control Technology
WWTP Centrifuge Project
Personnel & Benefits
MOU with the RPOA ends June 30, 2026
3.0% COLA July 1, 2024
3.0% COLA July 1, 2025
MOU with the GSU ends June 30, 2026
3.0% COLA July 1, 2024
1.0% Stipend July 1, 2024
3.0% COLA July 1, 2025
Unrepresented Employees
3.0% COLA July 1, 2025 (Proposed)
Personnel & Benefits
Retiree Medical Benefit (Other Post Employment Benefits) Established by Council Resolution
Fully Funds estimated OPEB medical premiums, $333,683 Now included with Fund 068 Human Resources ISF
Continued Pre-Funding to the CalPERS California Employers’ Retiree Benefit Trust (CERBT)
Pre-funding is 25% of budgeted premiums
FY 2025-26 = $83,420 Contribution
Represents 11th Year of Pre-Funding
Plan is 8% Funded as of March 2025
$860,522 in CERBT as of March 31, 2025 Account Summary Personnel & Benefits
Part-Time Hourly Increases
Inflation and labor force availability
Impacts Community Services Programs
Adjustments to part-time pay ranges
8% Medical Premium Increase Assumed
Plans will be put out to the marketplace late Summer
2025 and taken before the Council in the Fall
8% increase for 2025 plan year
4.79% average increase over last six years
Pension Contributions
Unfunded Accrued Liability (UAL)
o Minimum payment next year is $1,785,172 on a $20.1M liability o 14% or $220,093 more than this year
o For FY 2025-26, UAL for all plans is now an M & O expenditure, charged to funds based on percentage of full-time salaries
o Staff intent to pay UAL up front in July to save 3.4% Additional Discretionary Payment
o Pension & Other Post-Employment Benefits Policy Adopted by Council Resolution o 25% of UAL = $446,293
o Similar pre-funding strategy as Retiree medical
o ADP Payment is applied proportionately to all CalPERS plans based upon UAL amounts
o Expense is now part of the payroll process and included in the CalPERS employer rate methodology
- Fire Classic
Concerns
Local Control, Jurisdictional Land Use Authority
Staff recruitment and retention
o Law enforcement
o Specialized knowledge (i.e. water, wastewater, land use) Persistent Inflation
o City dollars don’t go as far
CalPERS investment losses
Measure “C” Renewal
o Current Pavement Condition Index = 52
Strategic Capital Planning
o Many City facilities were built decades ago and reaching capacity limits
City Budget Delivers…
Maintains essential services to the community
Meets all financial policies
Continues to position the City to weather a downturn
Addresses critical deferred maintenance items, emphasis on public health and safety
Deploys all available funding to streets maintenance projects Bolsters staffing in critical areas
Council & Staff committed to accountability and transparency Next Steps…
May 13, 2025
Budget Rollout
Administration
Administrative Services
Community Development
Community Services
May 27, 2025 6:00PM
Public Works
Engineering
Fire
Police
June 10, 2025 7:00PM
Tentative: Budget
Adoption
Dinner @ 5:30pm May 27th
ADMINISTRATIVE
SERVICES
DEPARTMENT
2025-26 Budget Presentation
ASD Responsibilities
Finance Reporting
Budget & MFS
Single Audit Reporting
Accounts Payable
Utility Billing & Collections
Utility SB998 Compliance
A/R Billing & Collections
Business Licensing
Payroll & Benefits
Human Resources
Risk Management
Grant Management
Information Technology
Contracts & Purchasing
Invest & Debt Management
CFD Annex. & Admin
Recognition
“Unmodified” Audit Report for the Fiscal Year
Ended June 30, 2024
National Distinguished Budget Presentation Award
GFOA for FY 2024-25
California Budget Excellence Award CSMFO for
FY 2024-25
Completed the annual review and update of fees in
the Citywide Master Fee Schedule
Submitted $61K in additional claims as provided for
under SB90 bringing the total receivable to $570,142
Managed City’s idle cash investments in compliance
with Investment Policy ~ $1.4M in earnings
Finance, Accounting &
Budgeting
Human Resources
Conducted 44 recruitments, hired 82 new employees
Coordinated and hosted multiple training events
Completed annual review of personnel policies
Closely managed worker’s compensation claims
Maintained the deferred compensation matching plan
Expanded the Wellness Program
New Payroll & Timekeeping System (underway)
Community Facilities District
• Completed annexation #22 for properties entering CFD
• Set annual CFD rates for the 2025-26 tax year
• Published the annual DIF report as required by AB1600 Information Technology
• Converted quarterly printed newsletter to a costeffective monthly e-newsletter • Upgraded City email protection software
• Systematically replaced end of life computers
• Implementation of a replacement phone system
(underway)
Risk Management
Handled 11 Public Liability Claims, Qtrly claims review Pursued 14 property damage claims filed with third
parties of which 11 were successfully recovered
Hosted Risk and Insurance Training to cover risk
management, control, transfer and endorsements
Reviewed construction contracts for compliance with
insurance and bond requirements
Led the Citywide Safety Committee in ongoing
administration of Injury & Illness Prevention Program
Implemented a new Subrogation Recovery Service
2025-26 Goals
Submit the 2025-26 adopted budget excellence
awards to CSMFO and GFOA
Continue cross training staff in various functions
Manage debt obligations and annual disclosures
Finance, Accounting & Budget
Risk Management
Host risk transfer trainings with insurance experts
Handle claims against the City in a timely manner
and conduct quarterly review meetings with AIMS
Maximum recovery of property damage claims
2025-26 Goals
Continue to schedule Reedley “U” training seminars
Offer activities that support employee wellness
including mental health awareness
Continue to update job descriptions
HR, Payroll & Benefits
Other Projects
Complete replacement of City phone system
Set up payment kiosks at City Hall and Community
Center for customer convenience
New City Hall Design & Financing process
2025-26 Budget Specifics
All City Debt Obligations are fully funded
Funding in place for CalPERS Unfunded Accrued
Liability (UAL) and Additional Discretionary Payment
Appropriations in place for Other Post-Employment
Benefits (OPEB) Policy $333,683 + 83,420
CalPERS UAL Prepayment will save $57k-$60k next year
$2,779,947 budgeted for City’s Pooled Liability, Auto & Employment liability, Worker’s Compensation and
Property Programs – overall 19% increase
2025-26 Budget Specifics
Changes to Human Resources Internal Service Fund
HR, Benefits Administration & Payroll Function for the City Certain organization-wide costs are collected and paid
from this fund:
CalPERS Unfunded Accrued Liability $1,785,172
Additional Discretionary Payment $446,293
Retiree Medical $333,683
Retiree Medical Prefunding $83,420
Dental coverage $123,072
Deferred Compensation Matching Benefit $215,000
2025-26 Budget Specifics
Retirement of Accounting Manager
Promotion of Accountant to Senior Accountant
$40K for payment kiosks @ City Hall & Comm Center
$32K budgeted for accounting support services
(cost neutral)
Shared Governmental Items (001-4290)
Website Maintenance $11,880
Zoom public meetings $ 780
Electronic Newsletters $ 324
Property Data Service $ 6,245
Fireworks Program $10,000
EV Purchase (net cost) $15,000
Replacement Admin car $35,000
Amazon Prime Business $ 851
No new positions next year
2025-26 ASD Appropriations
$12,815,068 Total Expenditures
Category FY 2025-26 Budget
Personnel $ 1,480,748
Maintenance & Operation (M&O) $ 8,646,089
Debt Service $ 2,618,231
Capital Outlay $ 70,000
Personnel represents costs for 11 full-time positions M&Os expenditures are mostly citywide costs for areas managed by ASD including but not limited to Utility
services, Information Technology, Risk Management
and transfers to Internal Service Funds 060 and 068
Debt Service & Capital (EV Purchase) are also citywide expenditures – ASD is identified for management
Unmet Needs &
Challenges
Complexity of public
sector finance and
human resources
environment
Document institutional
knowledge, polices,
and procedures
Ever increasing
reporting
requirements
Limited staff
workspace to meet
the needs of growing
population
Thank You
City of Reedley
Community Development Department
Prepared for the Reedley City Council
May 13, 2025
o
o
o
o
o
o
Building
o Plan Check
o Permitting
o Building Inspection
o Sub-Standard Housing
o 2 full-time staff
1 – Staff Assistant; supporting both divisions
Willow Grove
Century Communities
Surf-Thru
76 Gas Station and
Convenience Store
Family Healthcare Network
Reedley Gateway
Shopping Center
BEFORE AFTER BEFORE AFTER
• Provide continued level of
support for the Arts in
Public Places Program
• Provide continued services
within planning and
building
• Begin the update to the
2030 Reedley General
Plan Update
• Update the General Plan
Photo Credit: Mid-Valley Times Planned Land Use Map
PROPOSED 2025-26 BUDGET
The Community Services Department encompasses a variety of divisions and responsibilities with the primary goal of serving the entire community from children to seniors.
CSD staffing
levels;
11 full time
6 part time
110 seasonal
100
volunteers
Performance
Measures
Actual
2023
Actual
2024
Target
2025
Increase the number of Social Media
Followers by 5%
6,959 7,715 8,101
Increase the number of Recreation
Program Participation by 5%
14,264 14,438 15,159
Increase the Park and Facility Rentals by
5%
534 337 360
Department Performance Measures
Recreation and Senior Division
2024-25 ACCOMPLISHMENTS:
Hosted Senior Health Fair at the Reedley Community Center Evening Senior Bingo Event at Reedley Opera House
New Futsal Camps
Expanding Youth Cheer Program
Utilizing the Reedley Opera House more frequently
2025-26 GOALS:
Utilize the Reedley Opera House more frequently for community events Implement electronic Senior Newsletter as of July 1
Offer enrichment tiny tot classes year-round in Preschool Room Partner with RCX Sports to host NFL Flag Football League Expanded Learning Program (ELP)
FY 2025-26
$2,278,050
2024-25 ACCOMPLISHMENTS:
New Instructor Class BMX
New Instructor Class Tumbling
Incorporated district spring sport with ELP support
2025-26 GOALS:
Continue seeking new instructor courses, experiences and field trips
Offer winter session January 5-7, 2026
Continued priority for training ELP staff
Building Maintenance
2024-25 ACCOMPLISHMENTS:
Remodel Restrooms at Community Center
Complete Ceiling Tile and Lighting Project at PD
Replace Patio Roof and Skylights at Opera House
Strategically spending $150,000 on Faith House
Improvements
2025-26 GOALS:
Complete outstanding Maintenance Projects
Roof Repairs at Community Center
Fire Department Lobby and Chief Office Remodel
Upgrade AV Equipment in Redwood Room
Reedley Opera House
2024-25 ACCOMPLISHMENTS:
Replace Patio Roof and Skylights at Opera House
Renegotiated Agreement with River City Theatre Company Submitted T-Mobile Grant for Stage Rehabilitation
Replaced Grease Trap
Trained staff on Lights and Sounds System
2025-26 GOALS:
Replace Broken Ice Machine
Replace Damaged Floor in Upstairs Area
Determine Best Solution for Termites
Reedley Municipal Airport
2024-25 ACCOMPLISHMENTS:
Completed joint restroom project with Reedley College Priority on security and safety
Updated Hangar and Tie Down Agreement
Renegotiated Land Lease Agreement with Airtime BMX
2025-26 GOALS:
Start the two design projects; Runway End Lights
and Above Ground Fuel Farm
Second Phase FBO Roof Project
General Fund Expenditures
Expanded Learning
$2,043,837
CSD Administration
$353,470
Opera House
$53,548
Adult Sports
$20,693
Early Enrichments
$38,774
Enrichments
$161,238
Youth Sports
$109,788
Maintenance
$759,279
Aquatics
$161,016
Seasonal Parks
$22,975
Senior Citizens
$148,839
CSD Administration Adult Sports Early Enrichments
Enrichments Youth Sports Maintenance
Senior Citizen Sesonal Parks Aquatics
Expanded Learning Opera House
$3,873,457
General Fund Revenues
Program Fees Rentals Opera House Expanded Learning Contracts Expanded Learning Contracts
$2,234,195
Opera House
$7,800
Rentals
$23,000
Program Fees
$229,926
$2,528,421
Thank you!