With about $2 million less in revenue to accommodate the city’s spending plan, the Ceres City Council is expected next Monday to approve the 2025-26 Fiscal Year budget.
To cover the large budget deficit, the city plans once again to dip into its reserves, sometimes called a rainy day fund.
City of Ceres Finance Director Shannon Esenwein provided a budget recap at its meeting held last week.
The city’s General Fund is expected to receive $27.5 million in revenue but spend $29.5 million, resulting in a $2 million deficit. To cover the shortfall, Esenwein said the city plans to use $2 million in reserves. That leaves the city with a “rainy day” fund of $4.8 million, which is 16.3 percent of the General Fund and below the 18 percent minimum established by prior councils. Esenwein said that at fiscal year’s end, Ceres’ reserves will be a bit lower than the recommended 17 percent from the Government Finance Officers Association (GFOA).
Esenwein said the city expects modest increases in sales tax, property, tax, business license tax, and transit occupancy tax.
She detailed how the city has increased some salaries to “attract and retain and qualified personnel.”
“Some tough decisions were made and 14 positions are unfunded,” Esenwein reported to the council, “including roles in public safety, maintenance and administration.”
The city cannot fund replacement of fleet vehicles which she said may drive up future maintenance costs.
“Our approach this year reflects fiscal caution and transparency while we are protecting the services our community relies on every day.”
She sought council direction on some previously discussed ideas to firm up the final budget numbers.
At the council’s June 2 budget workshop Councilwoman Cerina Otero suggested moving the council’s training budget, medical insurance and professional development to police training. Her idea received the support of Councilman James Casey but was rejected by Mayor Javier Lopez, Vice Mayor Daniel Martinez and Councilwoman Rosalinda Vierra who each take city-paid medical benefits.
The council was supportive of exploring ways to either pare down on the expense of the contract for animal control services with the Stanislaus Animal Services Agency (SASA). Presently the costs of the contract are based on the number of stray dogs rounded up in Ceres and taken to the shelter at the Thomas Mayfield Regional Animal Services Center on Cornucopia Way.
One idea expected to be reviewed is Ceres forming its own animal control unit.
