Item No. 4
Town of Atherton
CITY COUNCIL STAFF REPORT – CONSENT AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: ROBERT BARRON III, ASSISTANT CITY MANAGER/FINANCE
DIRECTOR
DATE: OCTOBER 15, 2025
SUBJECT: ADOPT THE ATTACHED BUDGET AMENDMENT RESOLUTION FOR THE FY 2024/25 BUDGET YEAR END CLEANUP
RECOMMENDATION
Adopt the attached Resolution authorizing a Budget Amendment for the FY 2024/25 Budget Year End Cleanup.
BACKGROUND
Staff are presenting an update to FY 2024/25- budgeted expenditures for the Town Operating Budget. As part of our budget adoption every year the City Council adopts a budget resolution for the operating and capital improvement budget. The resolution establishes the expenditure control budget for the fiscal year. The budget encompasses the General Funds and other funds as well as department level. The budget resolution authorizes the City Manager to make budget transfers within the same department. Transfers between departments or funds shall require the approval of the City Council. Expenditures are budgeted at and may not legally exceed, the department level for General Fund and fund level for Special Revenue and Capital Projects Funds.
On June 19, 2024, the City Council adopted the FY 2024/25 Operations and Capital budget expenditures of $31,651,152. The budgeted amounts were as follows:
FY 2024/25 Budgeted Expenditures
General Fund $20,774,676
Special Revenue Funds $879,402
CIP $7,755,000
Internal Service Funds $2,242,074
Total Budget Expenditures $31,651,152
After the initial adopted General Fund budget of $20.77m, the Council added an additional $5,000 for Earth Day and accepted donations of $240k for Police Department health wellness program Year End Budget Cleanup Staff Report
October 15, 2025
and perishable skills training to an increase in adopted budget of $21.01m. Staff also provided a Mid-Year budget to the Council that discussed revenue and expenditure summaries across all departments and the status of the Town’s fiscal condition at the halfway point in the fiscal year.
During the mid-year budget report, projected General Fund expenditures increased $183,900 to $21.20m for FY 2024/25.
This year end budget report provides an update on the appropriations to the budget for FY ending 2024/25. There are minor incurred expenditures in excess of their budgets on the department level.
Staff are requesting an adjustment to the budgets to comply with the expenditure control budget for FY 2024/25.
FINDINGS | ANALYSIS
Some expenditures in excess of the budget amounts occurred for year ending June 30, 2025. Any revisions that alter the total expenditure of any department must be approved by the City Council.
These are one-time operational expenditures that exceeded the budget at the department level.
The adjustments needed require an increase in appropriations of $51,891. As a result, these identified one-time expenditures are related to specific staffing for the General Fund, and government dues/audit expenses for special revenue funds. The expenditures below incurred are more than their budgets on the department level for year ending June 30, 2025
FUND NAME AMOUNT
GENERAL FUND
FINANCE ($26,075)
NONMAJOR SPECIAL REVENUE FUNDS
COUNTY MEASURE A
PUBLIC WORKS ($16,642)
GAS TAX
PUBLIC WORKS ($7,139)
COUNTY MEASURE W
PUBLIC WORKS ($2,035)
TOTAL ADDITIONAL AMOUNT REQUESTED ($51,891)
These are adjustments that staff advise necessitate an increase in department expenses budget for the FY 2024/25. The Finance Department incurred one-time operational expenditures on additional contract services for temporary employee hire to help to assist with personnel on family leave and department special projects. The $26K increases the total Finance department budget to $908,838 for FY 2024/25. The non-major special revenue excess of budgets at the department level is due to yearly C/CAG dues and audit expenses for these funds. Staff will ensure that these yearly amounts are budgeted within the Town operations and capital improvement yearly budget adoption. The above increase of $51,891 appropriations request will increase the total FY 2024/25 operating budget expenditure to $32.13million.
Year End Budget Cleanup Staff Report
October 15, 2025
In addition to the appropriations above, staff are including the $3 million Additional Discretionary Payment (ADP) amount that council approved during annual budget discussions. The Town contributed this ADP towards CalPERS Classic Public Safety plan on June 23, 2025 to reduce the operational Unfunded Actuarial Liability (UAL) payments beginning with FY 2025/26 contributions and the long-term amortization of the Public Safety pension liability. This also included an allocation transfer of $800k from the Employee Benefits Fund to the General Fund to reduce the General Fund funded portion to $2.2 million. This coincides with a budget adjustment of ($3million) to Police department Unfunded PERS liability expense and ($800k) one time allocation transfer expense from Employee Benefit Fund.
POLICY FOCUS
The Year End Budget Cleanup Report is an opportunity to make adjustments to the expenditure control budget and operations corrections based on unanticipated changes and the goals and priorities of the City Council. The Report encompasses all changes to the budget for the 2024/25 Fiscal Year. Staff is presenting a Budget Amendment Resolution for adoption to reflect the noted adjustments.
FISCAL IMPACT
The overall fiscal impact on the General Fund due to these adjustments is a General Fund Net budget expenditure increase of $26,075 and Special Revenue funds Net Budget expenditure increase of $25,816. There was a $3million ADP approved allocation expense and $800K transfer into the General Fund from Employee benefit fund. The ADP allocation produces 5-year savings of $1.24m in UAL payment reductions, and over full amortization estimated savings of $5.35m.
GOAL ALIGNMENT
Goal A- Maintain Fiscal Responsibility
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders – to include, but be not limited to, media outlets, school districts, Menlo Park Fire District, service provides (water, power, and sewer), and regional elected officials.
ATTACHMENT
Resolution of the City Council of the Town of Atherton Approving Year End FY 2024/25 Budget Clean Up Adjustment