ITEM NO. 9
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CITY COUNCIL STAFF REPORT |
| TO: |
Honorable Mayor and Members of the City Council |
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| FROM: |
Arron Brown, City Manager |
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| BY: |
Arron Brown, City Manager |
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| DATE: |
11/12/2025 |
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| SUBJECT: | Adopt a Resolution Approving Budget Adjustments for the City’s Rental Fund
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Recommendation:
Adopt Resolution No. 2025-46 approving budget adjustments for the City’s Rental Fund.
Background/Analysis:
The City purchased a commercial property located at 31542 Railroad Canyon Road on March 30, 2020. The activity is recorded in the Rental Fund which is an enterprise fund. The City leases out portions of the building to various tenants and is responsible for the costs to maintain the building including repairs and maintenance. The activities of this property were included in the City’s Adopted 2025-26 Budget on May 14, 2025.
The City purchased a commercial property located at 31600 Railroad Canyon Road on April 30, 2025. The activity is recorded in the Rental Fund which is an enterprise fund. The building had several tenants from the date of purchase through July 2025. As of August 1, 2025, the building is leased to one tenant. The activities of this property were not included in the City’s Adopted 2025-26 Budget, as the date of the purchase did not allow enough time to be included in the FY 2025-26 Budget adopted on May 14, 2025.
For the building located at 31542 Railroad Canyon Road the budget needs to be amended to include additional repair and maintenance costs for $15,000 due to unforeseen necessary repairs. In addition, the initial budget included payments for principal and interest on the Interfund Loan which included costs for the building located at 31520 Railroad Canyon Road, which was converted to City use during FY 2024-25. The loan was amended by the City Council at the June 11, 2025, City Council meeting.
For the building located at 31600 Railroad Canyon Road the adjustments include rental income and all expenses associated with the building as detailed in the proposed resolution attached hereto.
The City purchased a commercial property located at 31600 Railroad Canyon Road on April 30, 2025. The activity is recorded in the Rental Fund which is an enterprise fund. The building had several tenants from the date of purchase through July 2025. As of August 1, 2025, the building is leased to one tenant. The activities of this property were not included in the City’s Adopted 2025-26 Budget, as the date of the purchase did not allow enough time to be included in the FY 2025-26 Budget adopted on May 14, 2025.
For the building located at 31542 Railroad Canyon Road the budget needs to be amended to include additional repair and maintenance costs for $15,000 due to unforeseen necessary repairs. In addition, the initial budget included payments for principal and interest on the Interfund Loan which included costs for the building located at 31520 Railroad Canyon Road, which was converted to City use during FY 2024-25. The loan was amended by the City Council at the June 11, 2025, City Council meeting.
For the building located at 31600 Railroad Canyon Road the adjustments include rental income and all expenses associated with the building as detailed in the proposed resolution attached hereto.
- Fiscal Impact Yes/No:
- Yes
Additional Fiscal Information:
For 31542 Railroad Canyon Road there is a reduction in total expenses of $7,137 as detailed in the budget summary for Department 560. For 31600 Railroad Canyon Road the proposed rental income is $102,000 and proposed expenses are $101,674 for revenues over expenses of $326, as detailed in the budget summary for Department 580.