Jurupa Valley presents balanced FY2024–25 budget, proposes new capital savings policy

City staff presented a balanced proposed budget for fiscal year 2024–25 that trims restricted development dollars out of the general fund, budgets a small surplus and recommends a new capital‑savings rule for future surpluses.

June Overholt, who led the presentation, told the City Council the budget document separates development agreement funds from the general fund so that the city’s operating balance reflects only unrestricted resources. “For this budget, we pulled it out because it's restricted in nature,” she said, explaining that removing roughly $14 million in development‑agreement funds reduces the general‑fund beginning balance to about $18 million.

Overholt outlined revenue and cost drivers in the general fund: property taxes are projected to grow, sales‑tax growth is flat in the near term, and interest income has risen after a new investment strategy. She also said the budget includes a 3% cost‑of‑living adjustment for employees and a $150 increase per employee in the cafeteria plan. Staffing changes in the package include a net increase of four positions: finance (−1), community development (+2) and public works (+3); public‑safety contract levels were adjusted for sheriff and fire services.

A new reserve and capital recommendation is notable: Overholt recommended that, after meeting the proposed 25% reserve policy and completing the annual audit, the city adopt a policy to place 50% of any remaining surplus into the capital fund. She said that would preserve discretionary money for large projects not restricted by state, federal or special‑revenue rules.

The budget includes roughly $22 million in capital projects funded from development impact fees and street maintenance project funds; staff said many of those projects will be advanced through grant applications and the city’s capital improvement program. Overholt also told council the finance software is at end‑of‑life and staff will return with a procurement request for a system upgrade to modernize accounting and front‑counter transactions.

City Manager Rod Butler told the council the improved fiscal position allows modest program and staffing additions while still increasing reserves. He said staff plans to return on June 6 for formal adoption, with the budget effective July 1.

Next steps: staff will bring the final adoption agenda on June 6, including any refinements prompted by council direction.