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FY 2025/26 Quarterly Budget Update
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Requested Action(s)
recommendation
Review and approve the revised FY 2025/2026 budget, as presented.
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Financial Impact:
Background Information:
Attached is a spreadsheet providing a summary of third quarter revenues and expenditures as of March 23, 2026.
Income
The FY 2025/2026 budget utilizes the following revenue sources and is expected to result in a contingency of $163,854.83 (15.17%):
- Interest (440300) income is relative to federal interest rates. The third quarter interest apportionment has not yet been posted.
- Gate Fees (461001), which are budgeted based on a flat monthly fee of $70,000 per month for FY 2025/2026, represent eight months of gate fee revenues.
- Hazardous Waste Fees (461005) represent HHW business fees, donations made to the used oil collection facility (ABOPS) and Ag Oil Facility. The second quarter PaintCare reimbursement for our REAP paint reuse program was received in February.
- Miscellaneous Revenue (471120) includes grazing lease fees, and other small amounts of revenue.
- Interfund Revenue (461070) is reimbursed labor costs for grant-related work.
- Fund Balance Available (301900) income utilizes available funds from previous fiscal years as a funding source.
Expenses
Expenses are projected as described below.
- Salary/Wages (510100), PERS (510200), OASDI (510210), Group Insurance (510300), and Unemployment Insurance (510310) take into consideration normal step increases at anniversary dates and recruitment of replacement employees.
- Pay in Lieu/Misc Payouts (51015) includes payment for accrued vacation or Personal Time Off.
- PERS Unfunded Liability and ADP Misc PERS Unfunded are the Agency’s portion of the PERS unfunded liability, currently at $48,469.14 for FY 2025/26, and an additional discretionary payment to pay down the unfunded PERS loan balance faster.
- Workers Compensation (510400) rates are expected to decrease slightly.
- Property, Crime, Liability, and Pollution Insurance (531500) includes payment of crime, liability and pollution coverage.
- Maintenance of Equipment (53170) includes typical maintenance of equipment and setting up a new computer workstation.
- Maintenance of Structures-Improvement of Grounds (53180) takes into consideration the cost of maintaining the fire suppression systems at the Agency’s Household Hazardous Waste facility.
- Membership and Dues (53200) includes membership to the Rural Counties’ Environmental Services Joint Powers Authority, California Product Stewardship Council, Red Bluff-Tehama County Chamber of Commerce, and Corning Chamber of Commerce.
- Misc Expense (53210) is budgeted at $16,000. This expense account is utilized for Board per diem compensation for meeting attendance.
- Office Expense includes typical office supplies. The Agency no longer pays a monthly lease payment for a multifunction copier, and this expense category will be reduced for next fiscal year.
- Professional/Special Services (53230) is budgeted for $90,246. Expenses to be funded through current year gate fees include attorney fees, independent audit costs, use of personnel at the Tehama County Auditor-Controller’s office for various accounting services, an administrative fee pursuant to the agreement between the Agency and the County, Lawrence and Associates assistance with closing the Corning HHW Facility, testing of the Corning Hazardous Waste lockers by Guzi-West, and janitorial services. Below is an itemized breakout of budgeted expenses:
|
|
FY 25/26 |
As of 3/23/26 |
|
Attorney Fees |
$15,000 |
$5,165.70 |
|
Accounting Services Agreement |
$10,000 |
$3,322.47 |
|
Administration Fees |
$24,246 |
$17,259.75 |
|
Audit |
$23,000 |
$12,000.00 |
|
Lawrence & Associates |
$4,000 |
$0.00 |
|
Miscellaneous |
$2,000 |
$0.00 |
|
Janitorial Services |
$6,000 |
$3,325.00 |
|
Guzi-West |
$6,000 |
$5,775.00 |
|
Total |
$90,246 |
$46,847.92 |
- Employee Travel/Training (53290) and Transportation (53291) includes typical travel, training, and fuel costs.
- Utilities (53300) reflect anticipated costs for PG&E, Hue & Cry, and fire alarm maintenance, monitoring and testing.
- Hazardous Waste Disposal (558007) is budgeted at $160,000. This is not expected to change even with the proposed price increase requested by ACTenviro detailed in a later agenda item.
- Litter Abatement/Illegal Dumping funds illegal dumping on public roads outside of Baker and Plymire and supports AB 109 illegal dumping clean-up costs in the community.
As of March 23, 2026, revenues exceed expenditures by $307,298.74. Income is 68.46% of projected revenue for the year. Expenditures are 41.17% of projected expenditures for the year. As of March 4, 2026, the Agency has a retained earnings balance of $3,801,280.29.
Respectfully submitted,
Paul Freund