Posted:06/15/2023
The Elk Grove City Council unanimously adopted a balanced $349 million budget and capital improvement plan for the 2023-24 fiscal year that takes effect July 1. The spending plan, approved at the June 14 City Council meeting, leverages new Measure E and casino mitigation funds to expand core services and invest in community priorities.
The FY 2023-24 budget includes an operating budget for day-to-day city programs and services, and a capital improvement program—a long-range plan that funds public construction projects and infrastructure. The City’s General Fund Budget is $88.9 million for FY 2023-24, which is about $2.9 million (3.4%) more than last fiscal year. The long-term financial outlook shows a balanced General Fund budget (revenues are more than expenditures) annually over the next five years.
“We’ve crafted a budget that reflects the Council’s and community’s priorities,” said Elk Grove City Manager Jason Behrmann. “With new funding sources now online, we have the opportunity to enhance and expand local services.”
On November 8, 2022, Elk Grove voters approved Measure E, a one-cent local sales tax to help address services the community identified as important. The local sales tax rate increased from 7.75% to 8.75% on April 1, 2023. The new tax is estimated to produce approximately $22.5 million annually. Additionally, through the agreement with Wilton Rancheria Tribe, the City will receive $4 million in FY 2023-24 for police and code enforcement costs, roadway maintenance needs, and payments in lieu of City taxes. These amounts will also grow over time per the agreement.
Budget Highlights include:
- 42 new positions including 19 funded from Measure E and 14 conversions from contractors to City staff positions.
- Enhanced Policing Efforts including a Youth Services Team, Mental Health Clinicians, more patrol, and a Community Prosecutor
- Funding to address homelessness:
- Interim Shelter Options
- Additional Homeless Navigators
- Mental Health Access Improvements
- Homelessness Prevention
- Case Management & Life Skills Training
- Affordable Housing at two City-owned sites
- Continued work on economic development projects and programs
- Elk Grove Library construction project
- Laguna Creek Inter-Regional Trail Improvements
- Traffic Congestion Management Plan Project
- Storm Drain Master Plan Improvements
Because even the nation’s top economists are finding it hard to predict our fiscal future, the City will maintain a 25% Reserve, or ‘rainy day fund,’ to assist with navigating future economic uncertainty and cash flow needs. The City Council also continues to fund the City’s Opportunity Reserve that adds flexible funding for projects, acquisitions, unforeseen events, or other needs of the community. The Opportunity Reserve is also fully funded at 5% of adjusted appropriations.
“This budget is smart and moves us forward into a future that provides our residents with the programs and services they need and want for Elk Grove,” said Elk Grove Mayor, Bobbie Singh-Allen. “I’m excited by what’s planned for the future and I appreciate the continued confidence and support our community has shown for Measure E.”
Details of the City’s budget can be found online at elkgrovecity.org/budget. For more information, contact the Budget Manager, Shay Narayan at 916-478-2232 or snarayan@elkgrovecity.org.
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