Clear Lake council adopts FY2023-24 budget and salary schedule

The Clear Lake City Council voted unanimously on June 27 to adopt the fiscal-year 2023-24 budget (Resolution 2023-27), the salary schedule and related fiscal resolutions.

Finance staff presented a full overview at a 5:00 p.m. budget workshop: the proposed budget is structurally balanced, with ongoing revenues projected to cover ongoing expenses and one-time revenues budgeted for one-time items. Staff noted the general fund forecast lists revenues of about $8.73 million and expenses slightly over $9.0 million with approximately $300,000 in planned use of reserves.

Councilors asked for clarification on revenue assumptions, including property tax, sales tax, transient-occupancy tax (TOT) and special funds such as ARPA, Measure P and Measure B. Staff reported combined revenues across all funds of roughly $34.4 million and explained the city's strategy for capital projects and costs associated with personnel and pension liabilities.

Following the workshop, councilors returned to regular session and adopted the budget resolution, then approved the Proposition 4 appropriations limit for FY23-24 (set at $10,294,448) and the updated fee schedule (Resolution 2023-29). The council also approved a one-year memorandum of understanding with the Clear Lake Middle Management Association covering 07/01/2023 to 06/30/2024 that includes a 3% cost-of-living adjustment and a 2.8% market adjustment for sergeants.

Finance director (Speaker 4) and city staff emphasized that staff believe the budget position is manageable but noted ongoing risks such as state-level grant clawbacks and volatility in pension costs. The council recorded unanimous votes on the budget and associated fiscal items.

The adopted budget and accompanying documents (salary schedule and fee updates) will be included in the city's official files and guide operations through the 2023-24 fiscal year.