Red Bluff approves recommended budget

Items concerning the upcoming fiscal year were on the Red Bluff City Council agenda for Tuesday evening, including the adoption of the recommended 2026/27 budget. The city will end the next fiscal cycle with a general fund balance of about $693,000, based on projections, but Finance Director Paul Young explained Red Bluff has "consistently lost money for the last three years."

Young said the budget committee would meet again in September, after actual revenues for the ending fiscal year were in and more accurate expenditure amounts were available.

"The budget committee will review all options in order to maintain the 15% reserve," Young told the council. He explained the city's policy is to reserve 15% of general fund expenditures as contingency for uncertainties, but with the current expected budget, the general fund is not projected to meet the reserve.

Young shared an overview presentation of the budget.

The largest share of revenue comes from sales tax, which accounts for about 48% of the city's revenue. Then, property taxes, motor vehicle license fees and occupancy fees come next, with the smallest percentage of revenue coming from franchise, business and license, and public benefit fees. Sales tax, property tax, motor vehicle license fees and occupancy fees make up about 90% of revenue for the city.

Young noted, "Some people might not know that when they spend $1 sales tax or they pay their property tax, we do not get all of that. For example, we get about 16% of sales tax and 17% of property tax."

General fund revenues are the ones discussed most, Young explained, because they typically pay for "general government," including the fire and police departments and parks and recreation. Young shared that the police department accounts for about 50% of total city expenditure, with the fire department at about 25%, resulting in about 75% of total expenditure toward public safety.

Personnel services expenditures increased by about 1%, despite increased salaries, due to savings in workers' compensation. Material supplies and financing increased by about 4%, mainly due to inflation, Young said. Capital outlay increased 25%.

"This is due to Parks and Rec outbuilding restoration plan that we have, wood fiber for playgrounds, and an increased cost in police vehicles," Young said.

Young said the budgeted ending fund balance, once all calculations are completed, is projected at $693,244. Young said the city historically spends less than budgeted and tends to take a conservative approach to budgeting revenues, so revenues are often higher than budgeted.

Even so, he said the city has lost money over the past three years. Young said the city is coordinating with department heads to continue controlling spending and will monitor actual results as they become available.

Councilmember Kris Deiters, a member of the budget committee alongside fellow Councilmember Pat Hurton, said the budget process is always interesting, especially without exact numbers finalized.

"It's always hard to get your head around that you're just making decisions based on projections of revenues," Deiters said. "I think I can fairly say that we don't always have a lot of room to reduce our expenditures in this city; our problem is revenue."

One of the things Deiters said could help is coming together to find ways to consistently increase revenue.

In a later agenda item on councilmember compensation, Hurton proposed dropping the councilmember pay to $1, as it was from 2009 to 2014. Hurton said he realized the salaries provided to councilmembers represent a "drop in the bucket" all combined, but due to potential upcoming "drastic measures" with the budget, he said the reduction could still be a concrete way to spend less.

Currently, councilmembers are afforded a salary of $950 a month, and insurance, either of which they can waive if they choose.

Deiters said she felt the choice should be up to individual councilmembers, especially in light of the upcoming fall election, which could result in up to three new people on the council. Deiters said the decision should be left up to them.

Due to the lack of a second to Hurton's motion to reduce the compensation, the item did not move forward.

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