Antioch council to hold special budget development session Monday, Jan. 27

For Fiscal Years 2025-27
By Allen D. Payton
On Monday, Jan. 27, the Antioch City Council will hold a special meeting for a Budget Session to discuss development of the Fiscal Year 2025-27 budget. They will hear from the city manager and staff then provide feedback and direction.
According to the City staff report on the item, “The purpose of this discussion is to understand where we are in closing out the current budget cycle for FY25 and does not include policy discussions as we embark on the next two-year budget cycle which will revise the FY25 budget and adopt the FY26 and FY27 budgets. As a kickoff to this budget cycle, a preliminary review of the projected revised FY25 General Fund budget is being provided this evening as well as items to consider as we move forward building the proposed budgets for the next two fiscal years.”
As previously reported last October, the City is facing double-digit deficits for each of the next three fiscal years. According to the General Fund Projections for 2023-2028 presented to the city council on June 11, 2024, the General Fund was projected to run the following deficits: $12,995,259 in FY 2025-26; $13,561,074 in FY 2026-27; and $14,855,649 in FY 2027-28.
The first two are expected to be covered by transfers from the Budget Stabilization Fund, but it will only cover $1,253,902 in the third year of what could be Hernandez-Thorpe’s second term as mayor if he’s re-elected because that Fund will be depleted in FY 2028. That would result in a projected net deficit for the City of $13,601,748 by June 30, 2028, which would be covered by the General Fund reserve leaving it with an Ending Balance of just $17.4 million or 17.06% in reserves versus over 31% and 32% for the previous fiscal years.
The City staff report also shares, “As a refresher for the public and the governing body, the General Fund is the main operating fund of the City and accounts for the majority of essential services provided, other than water. The General Fund is divided into separate cost centers depending on the purpose served which are referred to as departments with sub-groupings of divisions within each department. The departments supported by the General Fund are:
• Legislative & Administrative (City Council, City Clerk, City Attorney, Human Resources, City Manager, Economic Development)
• Finance
• Non-departmental (this category is for general revenues to be spent on City services and accounts for expenses not specific to a department or division)
• Public Works (other than water/sewer)
• Police (includes Animal Shelter subsidy)
• Community Development
• Public Safety and Community Resources (other than Community Development Block Grant, Housing Successor and Environmental Services which are accounted for in individual Special Revenue Funds)
• Recreation Services (subsidy to Recreation Fund)
“While there are fees, charges and permits that fund a portion of departments directly within the General Fund, the majority of revenues that the General Fund receives are general purpose and offset the remaining cost of operations not covered by targeted revenues. These general revenues include property taxes, sales taxes, business license taxes and franchise fees.
“A budget should be balanced, meaning that the expenditures in any given fiscal year should not exceed revenues. In 2018, the City established a Budget Stabilization Fund When established, the purpose of this fund was to provide a means of handling unexpected General Fund budget variances, unanticipated projects and/or expenses, and unfunded liabilities.”
The staff report further includes the following:
Reserve Policy
“The City has an adopted reserve policy that the General Fund unassigned (not committed for other purposes) fund balance will be a minimum of 20% of General Fund operating revenues. The percentage for the revised fiscal year 2025 budget is shown at the bottom of Chart A.

General Fund Budget Summary
“Chart A provides revised FY25 General Fund budget figures as compared to the current udget based on projections and estimates by departments. The numbers may change as we proceed through this budget process. Chart B and B1 immediately following breaks down the General Fund projected FY25 revenues by category and Charts C, C1 and C2 outline the expenditures by department and category.
“The budget in Chart A reflects three commitments of fund balance:
- Compensated absences – The purpose of this reserve is to fund the City’s mandated liability for unused vacation and/or vested sick leave benefits paid upon employee separation. The reserve level is set at 5% of the total compensated
absences liability for General Fund employees. It was established to meet accounting best practices. - Litigation Reserve – The purpose of this reserve is to ensure the General Fund has money on hand for unanticipated litigation and other insurance deductible costs not covered by the City insurance. The reserve level is set at ten times the City’s self-insured liability retention, which is $50,000, representing a $500,000 reserve.
- Community Development fees – This represents the accumulation of General Plan maintenance fees and Technology fees collected which can only be spent for these purposes. It is adjusted annually for fees collected and/or spent.
“The deficit of $5,358,842 listed above after the Budget Stabilization transfer is due to FY24 encumbrances (purchase orders) and project budgets that were unspent and rolled over and budgeted into FY25 for spending. The true deficit is anticipated to be $1,418,515, in the Budget Stabilization Transfer row above, after accounting for the budget rollover.
“The transfer from the Budget Stabilization Fund is being reduced $3,198,628 from the budget of $4,617,143 due to the inflow of ARPA funds in the current fiscal year reducing the need from the Budget Stabilization Fund to balance the budget.
“The General Fund will meet the reserve unassigned fund balance policy in FY25…projected overall ending General Fund balance of $37,899,927. The projected balance of the Budget Stabilization Fund at June 30, 2025 is $38,512,955.
“It is important to note that some one-time monies are included in Chart A in the Transfers In and Revenue from Other Agencies rows…which will leave a lower starting base to evaluate FY26 and FY27 revenues.”
For more details from the staff report on the budget see the meeting agenda.
Meeting Details
The council meeting begins at 6:00 p.m. in the Council Chambers inside City Hall at 200 H Street in historic, downtown Rivertown. The meeting can also be viewed via livestream on the City’s website.
the attachments to this post:
2024-25 GENERAL FUND BUDGET SUMMARY
2025 Revenues, Taxes & Expenditures Charts