City of Weed
December 17, 2025

The City of Weed has recently received questions about its budget, including references to figures such as “$10 million” and how City funds are used. We appreciate public interest in these topics and want to provide a clear, plain-language explanation.

The latest City budget can be found at the following link:

2025-2026 Budget

First, it is essential to understand that the City does not operate from a single pot of money. Like all California cities, Weed uses fund accounting, which means City finances are organized into separate funds, each with legal restrictions on how money can be used.

The General Fund is the closest thing to an operating account. It supports core services, including city administration, streets, public facilities, fire, police, and planning. For Fiscal Year 2025–26, the General Fund is approximately $5.588 million.

Other major funds — including the Water Fund and the Wastewater (Sewer) Fund — are fee-driven and subject to legal restrictions. Utility revenues can only be used to operate, maintain, and improve those systems and cannot be redirected to pay for general government services.

When residents see a figure of roughly $10 million in City budget documents, that number reflects the total adopted budget across all City funds combined. This includes utility operations, grant-funded infrastructure projects, and restricted capital accounts. It does not represent discretionary cash available for general operations.

The City’s adopted budget for FY 2025–26 is balanced, as required by law. However, a balanced budget does not mean the City has excess or unused cash. Cash availability varies by fund, and a significant portion of the City’s money is restricted or committed for specific purposes, such as utilities, grants, capital projects, and debt service.

The City continues to operate in a tight fiscal environment. Core operating costs (including personnel, insurance, utilities, and maintenance) have increased over time, requiring careful planning and disciplined spending. In some years, the City has relied on reserves to manage operating gaps, which is a common but finite approach.

The City of Weed can and does pursue loans and financing when appropriate, particularly for infrastructure projects. These include state and federal financing programs, which are carefully evaluated based on repayment capacity and long-term sustainability. Loans are tools, not solutions, and are often paired with grants or supported by rate studies.

Transparency and public understanding matter. The City is committed to continually improving the communication of financial information, enabling residents to understand better how City finances operate and how decisions are made.

We appreciate constructive questions and community engagement, and we will continue to work on managing City resources responsibly while maintaining essential services and infrastructure.

If you have any questions or you would like more information on how the City budget works, please don't hesitate to reach out to us.

Respectfully,

Dustin Stambaugh, City Manager