Adelanto reports midyear budget improvement; cannabis taxes and permitting revenue beat projections

The city’s senior finance presenter said midyear revenues exceeded the projections the council set last summer, improving the city's projected fund balance for fiscal year 2020–21.

Senior accountant Derek (speaker 11) told the council the revenue increase reflected multiple sources: “1,365,000 in cannabis taxes and fees,” about $730,000 in elevated permitting fees tied to construction activity, $249,000 in vehicle license fee (VLF) backfill, and an amount recorded in the transcript as “253” from the Federal CARES Act; an additional $347,000 came from the sale of a cell‑tower easement. He said those gains, along with lower‑than‑budgeted department spending, produced an estimated general‑fund balance of about $1,600,000 at June 30, 2021, an improvement from an earlier projected deficit of roughly $6–7 million.

Derek also summarized prior borrowings the city used earlier in the fiscal year: transfers from traffic impact, park development and drainage impact funds and the final principal payment on a wastewater purchase loan. He reported net borrowings for fiscal year 2020–21 of about $5,100,000; those borrowings are reflected in the fund‑balance transfers noted in the staff materials.

After public comment calling for more accessible in‑person meetings and fiscal oversight, the council moved, seconded and adopted the staff recommendations as presented in agenda materials, including language in the staff text to receive and file the midyear report and to adopt the associated budget adjustments (the staff text references Resolution No. 21‑15 and a separate resolution text labeled in the record as "21‑02"). Roll call votes recorded approvals from the council members present.