Dear Citrus Heights Community,
After unanimous approval by City Council, we are embarking on our next two-year budget cycle. I am pleased to present the Biennial Budget for Fiscal Years 2023-2025 and share with you how we have approached this important planning work as well as what you can expect to see from and for your city over the next two years.
First and foremost, this budget reflects Citrus Heights commitment to fiscal prudence. Despite continued increases in maintenance and operating costs, the City has continued its efforts to create cost-effective expenditures to offset rising costs. This balanced budget carefully examined historical expenditure trends, as well as current and foreseeable operating needs. Lean budget principles were utilized to create even more efficiencies to ensure dollars were maximized in areas of greatest need. The approved budget achieves a new level of city fiscal health by increasing reserve levels from the minimum policy standard of 17% to a more fiscally prudent target minimum of 25%. This ensures funds are available in times of economic uncertainty, address necessary operational needs, and to position the City to take advantage of strategic infrastructure grant opportunities that have matching requirements, thereby maximizing return on city funds.
In addition to the guiding principle of fiscal prudence, this budget is aligned with our strategic focus areas: community image, addressing blight and homelessness, economic development, community connection, and infrastructure improvements. This budget provides significant General Fund expenditures for street repairs for the first time in the City's history, starting with $2,000,000 in FY 23/24 and increasing to $4,000,000 in FY 24/25. These funds augment and enhance other funding sources that have been used for street repair and roadway resurfacing projects.
While this is a new level of progress, the poor roadway conditions throughout the City are a continuing challenge. To improve all Citrus Heights roads to a satisfactory pavement industry-standard citywide would cost more than $90,000,000. Additionally, there would be ongoing significant annual maintenance costs in excess of $13M annually for adequate maintenance, with spikes in certain years to address larger roadway conditions. The City does not have a current revenue stream to fully address these pavement challenges. However, we have implemented strategic pavement management strategies that give the most return on investment. Critical to project planning, the adopted budget also reallocates needed staffing to General Services Department to build capacity for increased infrastructure investment and delivery of projects. As capacity grows, the City Council may allocate additional General Fund reserve monies toward infrastructure improvements. Significant roadway projects in the pipeline will help make visible progress on this important issue in the next few years.
This Biennial Budget for FY 2023-2025 builds on our foundation of aggressive strategic goals and continues the forward progress the City of Citrus Heights has made post-pandemic, highlights of which include:
- Fully funding and staffing Citrus Heights Police Department after previous cutbacks
- Obtained over $23,000,000 in grant funding awards in FY22/23, a city record!
- Launched the Beautification Crew to combat blight and beautify our community
- Restarted and increased city-produced event offerings for community connection
- Investments in necessary Police Department fleet vehicle replacement and critical upgrades to the Communications Center
- Creation of a $1,000,000 Business Attraction Incentive Program to attract new restaurants, breweries, and entertainment
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Advanced Sunrise Tomorrow Specific Plan efforts through the development of infrastructure studies and financing strategies, which were funded through competitive grants
- Began construction of the Arcade Cripple Creek Trail
And more!
Numerous other accomplishments are highlighted in the budget book, which can be found at www.citrusheights.net/budgetbook. City staff continues to advance strategic objectives, consistent with the adopted City Council Three-Year Goals and the Focus Area Work Plan , that strive to improve the quality of life for our residents and businesses. Forward progress on quality of life and community vibrancy is top of mind for our team as we serve the Citrus Heights community. Rooted in the dream and vision for a better future that were established by city founders more than 25 years ago, I am honored to serve with our team to focus on delivering on the promise of tomorrow as we forge an exciting next chapter for Citrus Heights.
I want to acknowledge our team whose dedication and care created these successes, and who worked extremely hard to create a pragmatic, community-facing budget that will achieve even more in the next two years.
In Your Service,
