- Elizabeth Larson
- Posted On
Lakeport City Council adopts $21.5 million budget, plans numerous projects
The Lakeport City Council approved the 2021-22 budget during a brief discussion at its June 15 meeting.
By that point, Councilman Michael Froio said he thought the council had gone over the budget document “pretty thoroughly.”
In a budget workshop held during the council’s June 1 meeting, city Finance Director Nick Walker gave a detailed update on the budget.
He said the budget process last year had felt less collaborative — another apparent impact of COVID-19 — and that it was good to get back to a more normal process.
Walker said the city is getting back to a focus on project completion with a continued emphasis on operational efficiencies.
The budget for the new fiscal year, which begins July 1, calls for spending that totals $21.5 million and $17.4 million in revenues, Walker said.
That $4.1 million difference in revenue and expenditures, Walker explained, is project related, with the city having received the revenue for the projects in previous years.
Those projects that make up that difference include $1,199,500 for a major water and sewer expansion project now underway and $1,150,000 for the 2017 storm repairs.
There also are projects in various city funds: general fund, $658,644; sewer fund, $547,799; water fund, $468,137; and the storm drain fund, $129,000.
Among the city’s main areas of spending are $7.2 million for capital improvement projects; $6.3 million for operations, which Walker said include materials, supplies and professional services; $6.1 million for personnel; and $1.9 million for debt service.
Regarding planned projects in this new fiscal year, Walker said, “There’s a lot going on.”
The list includes the waterfront promenade, upgrades to City Hall and the Silveira Community Center, the south Lakeport loop water main, new restrooms at First and Third streets, sidewalk improvements, new sewer pump stations, road work, engineering and drainage studies, new police and public works equipment, updating city rules and regulations, and numerous studies for facilities, retention, safety and master plans, among other items.
Walker also shared analysis that indicates the city will continue to have more unfunded accrued liabilities for pensions over the next 30 years due to the California Public Employees’ Retirement System, or CalPERS.
He also presented a forecast showing that over the next 12 years the city expects to see operating expenditures outstripping revenue, which could cause the city’s reserves to plummet.
The economy is doing well but there are certain things about it that “are very scary,” said Walker, noting that the city has sales tax gaps to fill.
This was the first budget process for Kevin Ingram as city manager, who thanked Walker for helping him through it and putting together the budget.
“We're really proud of this document,” and really proud to get back to some more regular budgeting, Ingram said.
Ingram said the year 2020 was definitely strange and caused the city to put a lot of things on hold.
In the case of city finances, “We did not see the worst case scenario play out,” he said.
“We’re going to continue to be very conservative moving forward,” Ingram said, explaining that they are still in unpredictable waters.
He said the city has a good path going forward, and while staff didn’t want to scare people with future projections, he wanted the council to be aware of what staff is looking for on a very regular basis.
If staff sees things are getting out of control they will come back to the council, he said.
Ingram said they’re excited to get back to doing projects, which were put on hold last year, and said the city will continue to be aggressive in pursuing grants.
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