and Established Budget Goals

In June 2022, the City Council adopted a two-year budget for the period of July 1, 2022 through June 30, 2023, and July 1, 2023 through June 30, 2024. The two-year budget consisting of two one-year budgets is referred to collectively as the Fiscal Year (FY) 2022-24 Budget. This is the first time in recent history that the City has developed and adopted a two-year budget.

The Goal of a two-year budget process is as follows:

• Save time and Effort – Two-Year budgets make strategic use of City Council and staff time
• Reinforce long term fiscal health – Broadening the time horizon for the City’s finances from 12 months to 24 months.

The adopted budget includes:

• $18.7 Million in operating revenue and $18.5 million in operating expenses in fy 2022-23
• $18.1 Million in operating revenue and $17.8 million in operating expense in fy 2023-24.
The budget is expected to fund all City operations, projects, and programs over the two-year cycle and provide a plan for revenues and expenditures.

Budget Goals

The City Council establishes budget goals and strategies to assist with prioritizing operational activities, capital projects, plans and program activities. This enables the City to fund necessary and planned expenditures based on realistic revenue estimates while maintaining minimum required reserve balances in each of the fund accounts contained within the budget. The City’s reserve policy requires maintenance of a 25% fund balance in the general fund and enterprise funds.

The FY 2022-24 Budget goals adopted by the City Council are as follows:

• Drought Response – Promote water conservation and water development projects that enhance and support our local water supply. Continue developing response to the on-going drought conditions by pursuing federal and state funding.
• Revenue Enhancement (economic development) – Explore and Implement Progressive Strategies to enhance fiscal responsibility and raise municipal revenue to fund vital public services and projects that enhance Cloverdale’s quality of life.
• Housing and Homelessness – Address the City’s housing needs with a primary focus on completing the update of the General Plan Housing Element. Complete, adopt and begin implementing the homelessness strategic plan that provides permanent housing options and addresses the fundamental causes of homelessness.
• Infrastructure – Invest in the completion of key infrastructure (streets, parks, water/wastewater and city facilities) projects.
• Technology – Invest in technology improvements that enhance cyber security and protect the City’s
IT Infrastructure.
• Planning & Sustainability – Implement planning initiatives that reduce costs and improve resiliency while meeting sustainability targets and environmental goals.
• Emergency Preparedness – Continue to support investments that enhance emergency preparedness
and response.

What about Capital Projects?

Budget outlays for capital projects and one-time initiatives are a significant part of their budgeting process. In 2021, the City Council adopted a five-year capital improvement plan (CIP) that includes all the potential capital projects identified as necessary. CIP projects are categorized by their role and function including, Water, Wastewater, Streets, Airport, Public (civic) Facilities, Storm Drainage and