by Andrew Alonzo | aalonzo@claremont-courier.com

Claremont got some good news at Tuesday’s City Council meeting: a projected near $4 million in surplus general fund revenues for the 2024-25 fiscal year.

“At the close of 2024-25, a projected General Fund surplus of $3,879,060 was realized from General Fund operations for the fiscal year,” according to a staff report.

“Based on revenues of $41,938,778 and current year expenditures of $38,059,718, an excess of revenues over expenditures (surplus) exists at the close of 2024-25,” according to a staff report.

The council voted unanimously to allocate the surplus funds as follows:

• $500,000 will be transferred to the city’s operating and environmental emergency reserve, bringing that account balance to $11,613,060, roughly 30% of its general fund operating budget for fiscal year 2026-27.

Council member Sal Medina questioned the move. “If the budget is going to increase year after year, our policy indicates that we should have a 30% [operating and environmental emergency] reserve,” he said. “Shouldn’t that item be moved over to a line item as opposed to using surplus funds to allocate those funds to the reserve?”

“We have in the past also budgeted in a way that our general fund revenues exceeded expenditures by an amount significant enough to supplement reserves to keep us at the threshold established by the policy,” City Manager Adam Pirrie responded. “But we do need council action in order to functionally move that money from unassigned fund balance into that reserve, which is which is why we’re here today.”

• $1.5 million for employee benefits, including $1 million to the California Public Employees’ Retirement System, or CalPERS, to pay down unfunded liability on the city’s employee pension plans, and $500,000 to the city’s Section 115 pension trust, according to the staff report.

• $1,879,060, and/or any future remaining surplus funds, to the city’s equipment and facility revolving reserve for maintenance not factored into its annual operating budget.

According to finance director Jeremy Starkey, Claremont’s surplus was fueled by strong growth across nearly all categories of general fund revenues for fiscal year 2024-25.

“There was growth in both ongoing revenue such as property and sales taxes and one-time revenues such as licenses and permits,” he said. “Expenditures were in line with the budgetary estimates and the full year revenues over expenditures resulted in a general fund surplus of approximately $3.9 million.”

General fund revenues cited Tuesday included property taxes, sales taxes, utility user taxes, franchise taxes, transient occupancy taxes, licenses and permits, use of money and property, business license taxes, fines and forfeitures, and other categories.

The numbers provided by Starkey in his report were preliminary, as the city is currently undergoing its annual audit. The figures will be settled when Claremont submits its final audit to the Government Finance Officers Associationby the end of December.

The next Claremont City Council meeting is set for 6:30 p.m. Wednesday, November 12 at council chambers, 225 W. Second St.