BIGGS, CA (MPG) - The City of Biggs is moving through the second half of the fiscal year in a solid financial position, with mid-year figures showing higher revenues, lower spending and reserves well above the required level.

City Administrator Nicolas Gauthier presented the mid‑year financial review to the City Council on April 14, covering activity through Feb. 28 and outlining the city’s position heading into the final months of the 2025‑26 fiscal year.

Through eight months, the General Fund generated $627,652 in revenue and is projected to reach about $1.16 million by June 30, slightly exceeding the adopted budget. Expenditures are expected to total $886,512, coming in below budget and leaving an estimated operating surplus of nearly $280,000. That performance is projected to push the city’s ending General Fund balance to roughly $1.47 million, well above its reserve target, Gauthier said.

Council members asked for clarity on how the city’s new reporting format compares to the line‑item budgets used in prior years. Gauthier and financial consultant Joseph Arch explained that the city previously operated more than 120 separate funds, many of them inactive or outdated. Those accounts have now been consolidated to about a dozen, a change they said will make the city’s finances easier to track and less prone to error. Arch said the transition year means some mid‑year reports appear more summarized, but future budgets will include clearer departmental breakdowns.

As part of that transition, Gauthier said staff are reviewing older rate policies, capital needs and department requests to prepare for the next budget cycle. Departments have been asked to identify both required needs and long‑term improvements, including maintenance issues and equipment replacement, so the council can evaluate priorities when the full budget process begins.

While the General Fund remains solid, the enterprise funds showed operating deficits at midyear, including a projected end-of-year deficit of about $53,000 in the water fund, nearly $107,000 in the sewer fund and roughly $378,000 in the electric fund. Arch said the funds remain above reserve targets but will require long-term planning, including potential rate increases, to keep pace with system maintenance and capital replacement needs.

Before the mid‑year update, the council reviewed the draft audit for fiscal year 2024‑25. Arch reported that the city’s net position reached approximately $26.7 million at the close of the prior fiscal year.

“It’s an improving picture,” he told the council, noting increases of about $1.2 million in governmental activities and $244,000 in business‑type operations.

The audit is expected to be returned to the council for formal acceptance at a future meeting.