Budget and Fiscal Stability
The Concord City Council voted unanimously to approve the City’s two-year (FYs 2019-20 and 2020-21) operating budget on June 11. The balanced budget preserves funding for vital community services and maintains current service levels. However, as part of the City’s effort to reduce expenses, two permanent but vacant, full-time positions were eliminated.
The budget is balanced by relying on Concord’s voter-approved local revenue source, Measure Q, as well as a portion of the General Fund reserves -- $3.8 million in year one, and $1.3 million in year two.
By the end of Year 2, the City’s reserve is projected to be 23% of its budget. The City Council has established achieving a 30% reserve as its goal.
During the City’s budget workshop presented at the May 14 City Council meeting, Finance Department staff explained that the City’s most significant budget challenges are:
- Unfunded maintenance and infrastructure needs for roads, parks, facilities and equipment replacement, and
- Rising state-mandated CalPERS pension costs
Roadway maintenance continues to be Concord’s most costly challenge as the city and its streets are older than many neighboring communities. While significant resources have been directed toward roadway improvements over recent years, the city’s pavement condition continues to fall while construction costs are rising at an alarming rate.
Coupled with growing state-mandated CalPERS contributions, it is clear that expenses are outpacing revenue growth.
Over the next several months, City staff and councilmembers will be reaching out to the community to better inform residents about the City’s fiscal challenges and to solicit feedback on community priorities.
There will be several opportunities to engage in this dialogue online and in person. If you’d like to receive a direct e-mail notification on these opportunities, please sign up for e-alerts.
Residents can submit comments, suggestions and service priorities any time through this Community Feedback form.
June 11 at 6:30 p.m. - Adoption of the 2019-2021 Budget
May 14 at 6:30 p.m. - Budget Workshop
April 23 at 6:30 p.m. - Master Fee Schedule
February 26 at 6:00 p.m. - Mid-Year Budget Review