Eureka council adopts midyear budget amendment after presentation on sales tax drop and land purchase

EUREKA — The Eureka City Council on Tuesday adopted a resolution amending the fiscal year 2023–24 budget after a midyear review by Director Millar that outlined revenue revisions, department requests and a planned land purchase.

Director Millar told the council the city’s Bradley‑Burns sales tax projection was downgraded by about $400,000 and that the city appropriated “about $1,400,000 to purchase a piece of land adjacent to the Ocean View Cemetery.” Millar said that land acquisition, when added to the budget, would present an approximate $2,000,000 deficit in the general fund, though he expected that number to shrink by June due to salary savings and other adjustments.

The presentation walked council through revenue categories and fund‑level changes. Millar said sales tax makes up about 65% of general‑fund revenue and that a mix of declines and increases across specific sales‑tax streams produced the net adjustment. He also noted one‑time reimbursements from grants that improved intergovernmental receipts and a $62,000 ARPA‑funded contract for a local theater project.

On expenditures, Millar described roughly $600,000 in department requests across 33 line items, increases in workers’ compensation and liability insurance, and an unexpected debt service payment tied to a leased ladder truck. He said water‑fund costs rose because of efforts to replace delayed water meters and stressed that water revenues are restricted to water activities.

Council members questioned several line items. Council member Castellano asked about an additional $30,000 in IT cell‑phone charges; Millar said the category is hard to estimate and that the city has been issuing more phones, including outfitting police officers. A second staff member added that this is the first full year issuing phones to each officer and that monthly charges were probably underestimated.

Public commenters raised related transparency questions. Eileen Barch asked why engineering fees tied to the Ocean View Cemetery purchase did not appear on the budget schedule; staff offered to follow up.

After discussion, Council member Fernandez moved to adopt the resolution amending the FY 2023–24 budget; the motion was seconded and passed by a unanimous yes vote.

The council also approved the consent calendar earlier in the meeting by unanimous vote. The budget amendment will appear in the city’s June budget review when staff expect to return more precise year‑end projections.