Selma City Council reviews proposed $62.8M budget amid projected $61K deficit

The Selma City Council took significant steps towards fiscal responsibility during their meeting on June 17, 2025, by approving the proposed budget for the 2025-2026 fiscal year, which totals $62.8 million. This budget includes a General Fund allocation of $20.5 million, but it also reveals a projected deficit of $61,367, prompting the city to utilize reserves to balance the budget.

Director Moreno presented the budget, highlighting that adjustments were made following a special meeting on May 28, where the council requested additional funding for senior center activities, recreation events, and contributions to the business improvement district. The budget also reflects changes in special revenue and enterprise funds, with a total of $20.6 million allocated for special revenue and $10.7 million for enterprise funds.

Concerns were raised about the city's reserve levels, which currently stand at 20%, with discussions on potentially increasing this amount to better prepare for economic uncertainties. Council members expressed the need for a thorough review of the budget, especially in light of the shift from a surplus to a deficit.

Several council members proposed cuts to specific budget items, including the elimination of a part-time grants management position and a review of the animal services director role, which they deemed redundant. The council also discussed the significant increase in the human resources budget, which rose from $370,000 to $626,079, attributing this to new hires and increased health benefits costs.

The council emphasized the importance of transparency and fiscal prudence, with plans to revisit the budget in a special meeting before the June 30 deadline for adoption. Public comments reflected a shared concern over the budget's increases and the need for strategic cuts to ensure the city's financial health.

As the council prepares for further discussions, the focus remains on balancing the budget while addressing community needs and maintaining essential services. The next steps will involve a careful examination of proposed cuts and adjustments to ensure a sustainable financial future for Selma.