20 Mar Pittsburg Adjusts Budget, Cuts Project Funding to Boost Reserves

The Pittsburg City Council on Monday approved changes to the city’s budget. (Screenshot captured by Samantha Kennedy / The CC Pulse)

By Samantha Kennedy

The city of Pittsburg is taking steps to address a projected budget deficit by redirecting hundreds of thousands of dollars in project funding to bolster its reserves.

The Pittsburg City Council on Monday approved changes to the 2024-25 fiscal year budget to move closer to removing a projected $689,000 deficit due to lesser than expected revenues. Funding for the skate plaza and pump track, security fencing, and Pittsburg Arts and Community Foundation is also expected to be redirected to balance the budget.

“I think moving forward we have to be very careful in how we spend money, in how we balance things out. There’s a difference between wants and needs,” said council member Angelica Lopez. “It would be a disservice to the community if we just started spending and not being conservative about our spending.”

The budget changes mean a $4.4 million decrease in projected revenue for the 2024-25 fiscal year, which ends June 30, and is a reflection of the “continuation of the fiscally responsible and conservative approach” by council members, according to a staff report. 

Projected revenue from sales tax, property tax and other fees was less than expected, according to the city’s director of finance, Paul Rodrigues. 

City Manager Garrett Evans said $192,400 meant for public art could also be redirected but recommended that council members hold off redirecting those funds. 

If council members were to redirect all funding from the proposed projects, redirected funds would exceed the amount needed to address the projected deficit, according to city projections. 

“I definitely would encourage us to look at those items that you’ve proposed to bring that deficit as close to zero as possible,” said council member Juan Banales. 

The redirection of those funds could officially be done at a later meeting, according to Evans. 

More Funding for ‘Dream Courts’ Project

The Pittsburg City Council dipped into its long-term project reserves to add $4 million more to the Sports Tourism Project, which includes the planned 45,000-square-foot “Dream Courts.”

The increased cost now totals $13.79 million and is to ensure the city is in compliance with the agreement between Pittsburg and the Contra Costa Trades Council. 

“Staff anticipates that, following allocation of the requested funds, construction of the Dream Courts will restart within 6 weeks,” said Director of Community and Economic Development Jordan Davis in the staff report. 

The project broke ground in September 2023 and will feature five basketball and multipurpose courts, two bathrooms and two offices. 

The allocation from the Pittsburg Power Company reduces its capital cash reserve balance to $850,100.