Needles council reviews FY 2024–25 budget, senior-center repair and housing authority shortfalls

Needles City staff presented the proposed fiscal year 2024–25 budget at a June 11 workshop, telling the council general fund reserves are about 10.8%, slightly above the city's 10% policy, and outlining changes across departments, capital projects and special-revenue funds.

Interim Finance Director Barbara Dilo summarized the budget and said cannabis-related revenue is expected to rise because of agreements with local businesses, and that a one-time transfer from the prior year reduces current-year revenue by roughly $9,986,000. She also flagged increases and decreases across departments, including a higher golf subsidy and a near-$700,000 grant to modernize irrigation at the golf course.

The budget options list includes a $100,000 estimate to repair termite damage at the senior center. "If we include that in the budget our reserves would be close to the 10% target," Dilo said, asking the council to provide direction on whether to fund the repair now.

The presentation noted a $1,285,000 rollover for Duke Watkins Park and described capital-improvement priorities and special-revenue grants. Transit-related grant timing reduced budgeted revenues for FY25 because buses budgeted in FY24 will not be purchased this year.

Staff also reviewed the newly in-house Housing Authority budget, which was described in the presentation as roughly $1.2 million after a correction. Dilo said the housing authority has incurred deferred maintenance and higher repair costs inherited from a prior entity and that improved HUD reporting is needed to secure additional reimbursements. The city announced a planned veterans voucher program; staff said the financial effects of that program are not yet known.

City Manager and staff repeatedly urged fiscal caution. "We have one more year to get ourselves into compliance," the manager said about the housing authority, adding that the city is using reserves to address years of deferred maintenance and that the Housing Authority budget is separate from the general fund.

Staff asked the council for guidance on these priorities and urged a mid-year review to revisit staffing and capital decisions. The council approved the consent agenda, which included unrelated items and a sale of a RightWay parcel, but asked staff to return with mid-year options on the sheriff request and senior-center repairs.

The council requested the budget and associated contract schedule be updated and brought back for further review at mid year.