The Vista City Council voted unanimously on Nov. 12 to receive and file the city's fourth-quarter financial report and to reallocate part of a $9.7 million year-end general fund balance into new reserve accounts.

Finance Director Mike Silvia told the council the fiscal year 2024-25 results produced a $9,700,000 year-end fund balance driven by revenues coming in over budget and expenditures under budget. Silvia said charges for services contributed about $2.3 million over budget, led by fire ($1.2 million) and engineering ($700,000), and that the city received $5.2 million in cannabis revenue for the year.

At the meeting Mayor moved to set aside funds for a law-enforcement personnel reserve. After a friendly amendment from Councilmember O'Donnell, the council agreed to allocate $500,000 to a law-enforcement personnel reserve, $200,000 to start a public-works maintenance reserve and reduce the traffic-calming account by $500,000. The motion was seconded and passed unanimously.

Mayor said the reserve would provide flexibility to meet identified and as-yet-unidentified public-safety needs while protecting the city's ability to respond to future budget uncertainty. "This would help us to be able to add a position that's needed," the mayor said, noting that any future use of the reserve would require council approval.

Several council members emphasized protecting the city's extracurricular scholarship program. Councilmember Contreras said she would not support taking money from the scholarship program, noting its popularity and role in preventing youth disengagement.

Staff recommended using portions of cannabis revenue in accordance with the city's policy (65% to general fund; 15% to scholarships/extracurriculars; 20% for council-designated one-time projects). Silvia noted that for FY24-25 the cannabis total was $5.2 million, down from about $6.5 million the prior year, and recommended allocating $575,000 of previously unallocated cannabis funds to the extracurricular scholarship program because it is undersubscribed relative to demand.

Deputy Mayor Melendez moved to receive and file the report and to adopt the budget amendments; Councilmember Fox seconded the motion, which passed unanimously.

What happens next: the reserve accounts will be recorded in the general fund fund balance and any subsequent allocations from those reserves will require separate council budget approvals.