Budget Workshop
FY25/26
MAY 13, 2025 CITY COUNCIL MEETING
Budget Units Structure
GENERAL FUND SPECIAL REVENUES
• Administration - 201 Gas Tax - 503
• Public Works - 501 TDA - 504
• Police - 301
• Fire - 401
ENTERPRISE FUNDS GRANT FUNDING
• IMM - 204 COPS - 303
• WATER - 601 Long Range Planning
• CEMETERY - 701 Infrastructure
Revenue Sources - Overview
General Fund Special Revenues
• Property Tax COPS (Federal Funded)
• Sales Tax Gas Tax (State Funded)
• Tourist Occupancy Tax TDA (State Funded)
• Rent & Franchise Fees
• Fees For Services Provided
Enterprise Funds Grant Funds
• Integrated Waste (Rate Payer) Infrastructure
• Water (Rate Payer Funded) Long Range Planning
• Cemetery (Plot Sales)
General Fund Revenue Sources –
• Property Tax
• Sales Tax (9.50% TRINIDAD Tax Rate)
• California State Retail Sales Tax Rate: 7.25%
• Humboldt County Measure Z add-on: (Safety) .50%
• Humboldt County Measure O add-on: (Roads) 1.0%
• Trinidad District Tax Rate (Add-On): 0.75%
• In November 2024, Trinidad voters approved renewal of the .75% sales tax continuation for 4-years, beginning April 01, 2025.
HUMBOLDT COUNTY-CITY TAX RATES as of APRIL 01, 2025
Eureka (10.25%) Blue Lake (9.75%) Rio Dell (9.50%)
Arcata (10.25%) Ferndale (9.50%) Fortuna (8.75%)
GENERAL FUND
FY2026 GENERAL FUND BUDGET
REVENUE VS. EXPENDITURES
• General Fund Revenue $913,975 (%.78)
• FY25/26 Revenue Projection: $967,723 (5%)
• Operating Expenses: $960,710 (<1%)
• Difference: $7,013
GENERAL FUND RESERVES
AS OF JUNE 30, 2023
• Emergency Reserve (75% Target) $692,592
• Budget Stabilization (75% Target) $692,592
• Capital, Special Projects (50% Target) $461,728
• Self-Insured Reserve $15,000
• Fire Dept Capital Reserve $50,700
• Public Works Capital Reserve $10,000
• Town Hall Capital Reserve $4,181
• Unassigned Fund Balances $319,120
• Total Fund Balances (est.) $2,241,732
GENERAL FUND DIVISIONS
ADMINISTRATION - 201
• Covers a majority portion of the City Manager, Clerk, Administrative Support salaries.
• Costs include those that “keep the lights on”; public building utilities, office supplies, Municipal Code revisions, website hosting, etc. • Budget Increase of $21,041 (3.6%)
• Wages, Health Insurance Benefits and General Insurances - $12,829 (5%) • Contracted Services - $10,000 (Grant Writer assistance if needed) POLICE - 301, and COPS - 303
• Funds a portion of the City Manager salary who oversees Public Safety operations. • Includes Animal Control contract with the County Sheriff Dept. • Budget Increase $4,818 to $134,744 (3.7%)
• Pacific Coast Security requested 4 additional hours per week (24 hours = $11,232) • Budget covered by COPS Grant
GENERAL FUND DIVISIONS
FIRE - 401
• Cover honorarium for volunteer Chief and Assistant Chief. • Status quo budget
PUBLIC WORKS - 501
• Covers the majority portion of public works staff salaries. • Funds street lighting, trail, and public building maintenance costs. • Flat budget -Staff costs, lab fees, and grant fund reduction • ½ time PW staff to FT split between Water and PW
FY2026 ORGANIZATIONAL CHART
ADMINISTRATIVE
• City Manager .75 FTE (Full-Time Equivalent)
• City Clerk/ACM 1.0 FTE Adams
• Grant Administrator 1.0 FTE Cather
• Asst to the CM 1.0 FTE Vacant
• Clerk Assistant 1.0 FTE Souza
Total Admin: 4.75 FTE(5.5 FY2025)
PUBLIC WORKS
• Maintenance Supervisor .80 FTE Shipman
• Maintenance 1 .50 FTE Shadle
• Maintenance 2 .50 FTE Brown
Total TPW: 1.80 FTE (2.0 FY2025)
FY2026 ORGANIZATIONAL CHART
WATER
• Chief Plant Operator* Consultant $4,000/month
• T-3 CPO In-Training .50 FTE Anderson
• T-2 Operator .20 FTE Shipman (New)
• T-2 Operator In-Training .50 FTE Shadle
• T-2 Operator In-Training .50 FTE Brown
Total Water: 1.70 FTE (FY2025 = 3.0 FTE)
Proposed Staff for FY25/26: 8.18FTE (8 Employees) (FY2025 = 9.25 FTE (13) Estimated payroll projection: $759,335 (1.1% , 751,317) • Approximately $69,763 covered by grants
• Leaving $689,571 to be paid for with General, Enterprise, and Special Revenue Funds
WATER FUND
WATER OPERATING FUND
• Revenues - $483,903 (28%)
• Expenses - $499,899 (4%)
• Restructured staffing (.25) 2.75 FTE
• Small contribution to reserve fund +- $140,000
WATER FUND RESERVES
Forecasting Year Ending June 30, 2026
ANNUAL NET PROFIT/LOSS per fiscal year:
2019: - $ 40,971
2020: - $ 36,598
2021: - $235,228Reserve balance FYE2021 est. = $1,170,000 2022: - $346,427
2023: - $523,584
2024: - $291,712 *currently under FY Audit
2025: +$140,000 *thanks to the $300k General Fund gift
• As of June 30, 2023, the Water Fund Reserve was $270,000. • As of June 30, 2024, the Water Fund reserve was depleted as predicted and ended the year with a cash loss of ($21,712), without calculating depreciation of assets which is generally an additional $56,000.
• Staff forecasts that nearly half of the $300,000 General Fund gift will be carried forward into FY25/26 ($140K+-).
FY2026 WATER FUND BUDGET
GOALS & HIGHLIGHTS
• Interim T-3 Licensed Treatment Plant Operator as per State Law. • Continued focus on in house T3 for FY 25/26.
• Continue training and retaining in house, licensed water operators. • Analyze and adjust for adopted rates.
• Measure Z Funds $40,000
GRANTS IN PROGRESS FY25/26
Total funding for
multi-year grants Grant Payroll
Fund
Current Grant Projects Grant work end date
Total Grant
Payroll
Under/(over)
budget
FYs 21-22; 22-
23; 23-24
FY 24-25 FY 25-26 FY 26-27 FY 27-28
215 LCP Update Grant 3 Coastal Commission 12/31/2025 $ 200,000 $ 45,000 $ - $ 8,965 $ 17,963 $ 18,072 218 CalRecycle SB 1393 Assistance grant 2 4/1/2026 $ 75,000 $ 38,935 $ 0 $ 1,000 $ 13,674 $ 24,261 201 Total General Fund Administration Grants
532 HSIP Street Improvements 3/31/2024 $ 799,600 $ 25,400 $ 0 $ 15,500 $ 9,900 533 OGALS Per Capita - no set grant payroll budget so could be increased 1/1/2028 $ 177,000 $ 20,000 $ 0 $ 9,736 $ 6,138 3500 626 534 STIP Trinity Road Rehabilitation 6/30/2025 $ 272,000 $ 3,821 $ (2,268) $ 3,475 $ 2,614 535 STIP Patricks Point and Scenic Drive $ 800,000 $ 7,860 $ 0 $ 2,812 $ 3,930 $ 1,118 501 Total Public Works Grants
606 SCDRP Tank & Pipelines 6/30/2025 $ 5,079,090 $ 54,640 $ 0 $ 43,490 $ 11,150 607 MBDRP Intertie 3/31/2026 $ 2,000,000 $ 111,400 $ 0 $ 47,643 $ 43,757 20000 601 Total Water System Grants
Total Secured Grant Funding and Grant Payroll $ 9,402,690 $ 307,056 $ 129,809 $ 108,006 $ 69,763 $ 1,744 $ - Projected/Pending Grant Applications Deadline
501 TBA OPC SB 1 - Axel Lindgren Memorial Trail Project June 21, 2025 3 year grant $ 3,000,000 $ 160,000 $ 53,000 201 TBA LCP Update Grant 4 Coastal Commission No date available 3 year grant $ 150,000 $ 30,000 $ 10,000 Secured and projected grant payroll $ 64,744
FY2026 GENERAL FUND BUDGET
GOALS & HIGHLIGHTS
• Continue staff development, implement classification and comp study. • Continued website updates and improvements to enhance public engagement and access to documents, resources, and services. • Continued Support of Library, Museum, Chamber, Land Trust. • Maintain Critical & General Services – Public Safety and Admin • Continued progress on the General Plan and Local Coastal Plan Update.
FY2026 PUBLIC WORKS BUDGET
GOALS & HIGHLIGHTS
- CAPITAL PROJECTS -
• Fund additional Full-Time employee, split with Water. • Reintegrate the Water and Public Works teams
• New Windows, Front Entry Floor Covering
Spring/Summer 2025
• Exterior paint Town Hall - $70K ( Fall 2025 or Spring 26) • Grant opportunities –Sports court, Boardwalk, ALMT
NEXT STEPS
• Staff to review April 30 Financial Statements (just prepared by bookkeeper in late May) that include many significant revenue receipts and determine how the City performed in 2025.
• Receive Council input with priorities for discretionary spending. • Staff prepare a Final Draft of all funds revenues/expenditures with summary provided at the June 10, 2025.
• Adopt FY2026 Budget by Resolution at the June 10 Council Meeting.