AGENDA
SPECIAL MEETING OF THE CITY COUNCIL
FINANCE SUBCOMMITTEE
Agoura Hills City Hall - City Manager's Conference Room 30001 Ladyface Court, Agoura Hills, California 91301
Monday, October 13, 2025
4:00 PM
Please silence all cell phones and other electronic devices during the meeting.
NOTE: The Subcommittee and City staff will be participating in this meeting in-person in the City Manager's Conference Room. Members of the public have the opportunity to participate in-person in the conference room.
For public participation on items listed on this Agenda, refer to "Public Comments" below.
PUBLIC PARTICIPATION (PUBLIC COMMENT)
Option A: To provide public comments in-person at the meeting Members of the public have an opportunity to attend the meeting in-person and speak or submit a written comment on any item listed on this Agenda. Public testimony is limited to three (3) minutes per speaker; a speaker’s time may not be transferred to another speaker. Written public comments submitted at the meeting are not read aloud by staff.
To request to speak in-person at the meeting. The Subcommittee will open the floor for public comment and any in-person attendee who raises their hand will have the opportunity to speak. Public testimony is limited to three (3) minutes per speaker; a speaker's time may no be transferred to another speaker.
Option B: To submit written public comments by e-mail (prior to the meeting) Members of the public have an opportunity to submit email correspondence on any item listed on the Agenda by sending an email to: [email protected]. All public correspondence received by 3:00 p.m. on the meeting date will be provided to the Subcommittee prior to the meeting. Public comments are not read into the record. Any public comments received after 3:00 p.m. on the meeting day will not be considered as part of the Subcommittee’s deliberations or entered into the official record, but will be provided to the Subcommittee the next day.
CALL TO ORDER
ROLL CALL
Mayor Penny Sylvester
Councilmember Chris Anstead
APPROVAL OF AGENDA
PUBLIC COMMENTS
(This section is reserved for persons wishing to address items not listed on the Agenda that are under the subject matter jurisdiction of the City Council. Please refer to “Public Participation” above for full details on how to speak or submit written public comments under this category.)
DISCUSSION ITEMS
1. Adopt Amendments to the City of Agoura Hills Fiscal Year 2024-25 Budget
SUBCOMMITTEE OR STAFF COMMENTS
ADJOURNMENT
Date Posted: October 9, 2025
REPORT TO FINANCE SUBCOMMITTEE
DATE: OCTOBER 13, 2025
TO: HONORABLE MEMBERS OF THE FINANCE SUBCOMMITTEE
FROM: NATHAN HAMBURGER, CITY MANAGER
BY: DIEGO IBANEZ, DIRECTOR OF FINANCE
LEAH PALMER, FINANCE MANAGER
SUBJECT: ADOPT AMENDMENTS TO THE CITY OF AGOURA HILLS FISCAL YEAR 2024-25 BUDGET Finance Staff is presenting the City of Agoura Hills Finance Subcommittee the year-end financial balance for the fiscal year 2024-25.
Unaudited Net Operational General Fund revenues for the FY 2024-25 include adjustments for recognizing updated revenue in License and Services for building permits of $75,000, Building Check Plan of $220,000 in Building, and $35,000 in Building Plan Check Fee; this year end also has a one-time transfer in Journal Entry regarding the Successor Agency for $2.5M to account for an accounting adjustment; this is a non-cash transaction:
General Fund
Revenues
Amended
Budget
Unaudited
Actual
Total Revenues $20,903,645 $22,871,439
Fiscal Year 2024-25 amended the General Fund budget for expenditures and transfers is shown as follows:
General Fund Expenditures
Amended
Budget
Unaudited
Actuals
Total Expenditures & Transfers $20,796,801 $20,836,873
Net Income (Deficit) $106,843 $2,034,566
In Fiscal Year 2024–25, the City of Agoura Hills, faced fiscal challenges that reflected not just local issues, but broader national and global economic uncertainties. While the City’s budget was planned with a focus on cityspecific revenues and expenditures, these sources remained deeply vulnerable to macroeconomic conditions.
Shifts in interest rates, inflation trends, labor market disruptions, and sector-specific downturns affected consumer behavior, business activity, and tax collections during the fiscal year.
Finance Staff monitors budget changes on a monthly, quarterly, and mid-year level, and strives to keep the budget withing City Council approved expenditure guidelines. The City’s expenditures for Fiscal Year 2024-25 continued to grow, but with careful planning and review, staff managed to keep expenditures within budgeted parameters.
During Mid-Year review of FY 2024-25, if Departments needed additional funds, they reviewed their department for possible budget adjustments in their departmental budget to continue to maintain operations.
Staff has highlighted some of the Fiscal Year’s activities below and a justification of request for adjustments.
Taxes and Assessments
During this fiscal year, several macro events affected the City’s revenue sources. Economic policies like high interest rates, imposed by the Federal Reserve, to combat inflation reduced consumer and business spending, particularly on big-ticket items that generate local sales tax. Persistent inflation weakened household purchasing power, early conversations in the 1st Quarter of 2025 related to global tariffs also impacted consumer behavior, with people unsure when to buy items because of the implementation of tariffs. This affected seasonal spending related to back-to-school and holiday trends.
Sales Taxes and some assessments were lower than expected due to shifting consumer behavior. Many consumers were more conscious of spending as nationwide gas prices increased, food prices soared, and inflation affected disposable income. Sales tax was down 11% from forecast and the City had several business closures during Fiscal Year 2024-25.
Property Taxes remained flat at a 2% increase from previous years due to high interest rates and uncertain economic environment. The County Assessor did recognize the increase property values in the City of Agoura Hills, but with limited homes being sold it was difficult to calculate new property valuations and increase tax collection.
TOT/Short-Term Rental showed a huge increase, but this revenue stream is more unpredictable than the others and could have been affected by displaced residents of the Palisades Fire at the beginning of the calendar year.
Business License
Staff adjusted Business Licensing by $75,000 to recognize activity from that department, building plan checks were also adjusted, as well as the business technician fee; these revenue streams were updated to keep an accurate check of the progress of a development project in the City.
Investment Income
The City continued to receive more than the forecasted amount of Investment Income due to high interest rates in the City’s investment portfolio. The City received 117% more than anticipated and staff is aware of a possible decrease due to recent interest rate cuts by the federal reserve.
Recognized Obligation Payment Schedule (ROPS)
This fiscal year, Finance Staff had to make a one-time internal accounting adjustment to its Recognized Obligation Payment Schedule (ROPS); the ROPS is a required report that former Redevelopment Agencies (RDAs) in California must submit each year to the state (via their local Successor Agency). It lists debts and obligations (like loans or bonds) that still need to be paid after the RDA was dissolved.
The City filed its Last and Final ROPS and it was approved by the California Department of Finance. Some of the benefits of submitting a Last and Final ROPS are: no longer having to submit a yearly ROPS to the County Oversight Board, ability to finalize and pay off debts, inclusion of any City administrative costs, and it allows the City to standardize all payments on a fixed 4% interest rate.
Finance Staff initiated a Journal Entry to restate the ROPS balance as of 06/30/2025 at the 4% interest rate. Staff spoke with Chavon and Associates, the City’s current auditor to explain the entry. The Journal Entry that was approved and posted to the General Ledger; is listed as Exhibit “A” and attached to this staff report.
There is no new money in this Journal Entry, the City and the Successor Agency are just updating the ledger to reflect the current ROPS schedule in term of what the City receives and what is expected to be paid out.
As we move into the mid-year review of the 2025-26 budget cycle, staff will review and continue to take a more conservative approach to financial planning and update the financial assumptions for the current Fiscal Year.
The recommended Budget is balanced and in compliance with the Balanced Budget Policy. This means operating revenues cover operating expenditures, including debt service, and the ending fund balance is compliant with the minimum Policy level as defined by City Council resolution.
The City utilizes a departmental budget process, breaking out various functions of operations to allow for a transparent budget for the community to see and understand. Various departments within the General Fund exceeded budgeted appropriations, as explained in Exhibit ‘B’. These costs were offset by savings in other departments. The major departmental increases are summarized below, and adjustments this year are requested at the personnel and operations level.
In order to keep the Finance Subcommittee informed of transactions throughout the fiscal year, Finance staff is highlighting some of the expenses that took place over the fiscal year. Some of the budget variance from budget to actuals can be attributed to increased costs, timing of projects, or reclassification of salaries from Special Funds to the General Fund. This section highlights the budget variance of some of the departments covered under the General Fund and will make for better budget planning during the Mid-Cycle 2026-27 process. All of these expenses are included in the overall year-end expenses listed above.
City Clerk
The budget adjustment for the City Clerk is a reduction in Contract Services due to postponing of an internal scanning project. The request is a reduction of $48,709.
Automated Services
The reduction in Automated Services of $35,868 is due to project timing issues related to an IT upgrade.
City Attorney
The budget adjustment for the City Attorney Budget is an additional request of $270,858 due to unanticipated litigation costs.
Finance
Staff is requesting an increase of $99,127 in overall salaries and contract services for the Department. Some of the salaries dedicated to projects in Special Funds did not happen due to timing of projects.
Public Facilities
Staff is requesting an increase in the Public Facilities department due to the rising costs of utilities and park maintenance. The request is an increase of $94,826 dollars.
Emergency Incident
During the Fiscal Year there was an unexpected special supply expense related to the department that was not budgeted, this adjustment request of $14,037 seeks to make an appropriation in this account.
Community Development
The department also had a reduction of $253,881 of Full time Salaries and Contract Services due to the timing of a development project.
Building and Safety
The Building and Safety Department has a reduction of $91,028 in contract services.
Recreation
Staff is requesting a reduction of $89,076 in Part-Time Salaries in various program salaries.
Reyes Adobe
There is a $30,000 budget reduction in the Reyes Adobe Other Improvements budget line item.
Recreation Center
The recommended adjustment to the Recreation Budget is due to salary increase and increases to Utilities and Maintenance/Building Grounds. The request is $66,518. The recreation Center also has a decrease of $33,701.
Parks Maintenance
The Parks Maintenance budget needs an additional $92,504 for expenses related to grounds maintenance and an increase in utility expenses. This department also has reduction of $35,762 in Special Supplies.
Public Works
The Personnel budget on the Public Works Department needs an adjustment of $298,647 for salaries due to the timing of projects in the Department.
Special Funds
Staff has also reviewed budget adjustments for the FY 2024-25 Budget adjustments for the City’s Special Funds.
The Special Funds have been adjusted for salary, work performed and other expenditures. Some of these funds might be in a deficit, but it is due to project timing or pending reimbursements. Staff has provided the proposed changes to the Special Funds in Exhibit C.
FISCAL IMPACT
The City has a Balanced Budget Policy, which states that the General Fund operating revenues must fully cover operating expenditures, including debt service. Under this Policy it is allowable for total expenditures to exceed revenues in a given year: however, in this situation beginning fund balance can only be used to fund capital improvement planned projects, or other “one-time”, nonrecurring expenditures. Furthermore, the fund balance must meet the minimum Policy levels of 40%, as defined by the City Council.
As highlighted at the beginning of the report, the City has an unaudited actual net income of . The surplus is a noncash recording of an advance to the Successor Agency due to a journal entry.
There are big macro events still taking place such as, world-wide unrest, determination of interest rate cuts, mixed messages of inflation and unemployment that can influence future project plans and the mid-cycle budget process.
Staff does recommend the following transfers:
Transfers
011 Capital Projects Fund ($96,000) 015 To Recreation Center Capital Project ($104,000) 030 CAL PERS SET ASIDE FUND ($95,850) 305 Agoura Hills Improvement Authority Bond ($1,271,613) 620 Housing Successor Agency ($178,010) Total Transfers of ($1,745,473) Staff recommends no additional transfers at this time.
RECOMMENDATION
Staff respectfully recommends the Finance Subcommittee approve:
1. The proposed transfers from the General Fund listed in this staff report
2. The proposed journal entry related to the Successor Agency Shown in Exhibit ‘A’ affecting Revenues.
3. The proposed amendments to the General Fund Fiscal Year 2024-25 Budget for the amounts shown in Exhibit ‘B’.
4. The proposed amendments to the Special Funds Fiscal Year 2024-25 Budget for the amounts shown in Exhibit ‘C’.
Attachments
Exhibit A - Successor Agency Journal Entry.pdf
Exhibit B - Budget Adjustments.pdf
Exhibit C - Budget Adjustments Special Funds.pdf
06/30/25 ,Restated Balance @ 4%:
Principal Outstanding: $ 11,405,550
Interest Outstanding: $ 16,141,057 (ROPS 23-24B covers Jan-Jun 2024) Net Amount due as
restated - 6/30/24: $ 27,546,607
Journal Entry to Correct FY 2024-25 Ending Balance in ACFR (Page 57) - Post as of June 30, 2025 Note: there is no amount that is "uncollectible" with the restatement of interest rate @ 4%, which balances to the Last and Final ROPS schedule.
General Fund:
DR: Advances to Successor Agency $ 2,558,038
CR: Prior Period Adjustment $ 2,558,038
Successor Agency Fund:
DR: Prior Period Adjustment $ 2,558,038
CR: Advance from City of AH $ 2,558,038
Entry to Post activity from FY 2024-25 - Post as of June 30, 2025.
General Fund:
DR: Cash $ 469,430
CR: Advances to Successor Agency $ 469,430
Successor Agency Fund:
DR: Advance from City of AH $ 469,430
CR: Cash $ 469,430
City of Agoura Hills
Fiscal Year 2024-25 Budget Amendments
Exhibit "A"