Cal City re-adopts 2021-22 budget

CALIFORNIA CITY — The City Council, on Tuesday, agreed to adopt the 20212022 budget as the current year’s preliminary budget, providing continued spending authority as preparation of the 2022-2023 budget continues.

As preparations have been delayed, the city has been operating under a series of extensions of the prior year’s budget since the current fiscal year began, on July 1. This has continued funding for services at the same levels.

The most recent extension is set to expire, on Jan. 31, leaving the city without spending authority if no extension is made, interim city manager Jim Hart said.

Under the extension, the city’s revenue exceeds budgeted expenses, based on the revenue information from a few weeks ago, he said.

With a staffing shortage in the Finance Department, including a lack of a finance director, the city hired an outside firm to prepare the budget in October.

ClearGov Inc. presented a draft budget, on Dec. 8, but a decision was made at that time to hold off on approving anything new until the new City Council was seated and additional information was provided.

Hart said he expects to call a special meeting to present the revised budget, on Feb. 8 or 9.

At that time, if further changes are requested by the Council, his recommendation is to continue the extension through the remainder of the fiscal year, to June 30, as it will encroach on the time needed to develop the 2023-2024 budget and have it ready for approval.

Asked about the prospect of having the 2023-2024 budget ready in time, Hart said the process will be easier this year, as much of the ground work has already been prepared.

Accountant Kenny Cooper has built a solid foundation in working on the 2022-2023 budget preparation, which will help in developing next year’s budget, Hart said.

“We already have done a lot of the work,” he said.

The budget extension passed on a 4-1 vote, with Mayor Pro Tem Ron Smith dissenting.