Joint Special Meeting
CC/BFPD/Odesa/Harvey House
04/7/25 05:00 PM
Finance
Sydnie Harris
Budget
Doc ID: 5951
AGENDA ITEM
AGENDA MATTER:
FISCAL YEAR 2024-25 MID-YEAR BUDGET STATUS REPORT & PROPOSED BUDGET
ADJUSTMENTS
EXECUTIVE SUMMARY:
Finance staff initiated meetings with departmental managers to review actual revenues and expenditures through December 2024 to compare budgetary performance with fiscal year 2024-25 budgeted appropriations. Based upon this analysis, the fiscal year 2024-25 mid-year budget review has been prepared together with the attached proposed budget adjustments (Exhibit A), which are presented for the City Council’s consideration and approval.
In conjunction with the mid-year budget review, staff has examined all Capital Improvement Projects (CIP) and capital equipment requests to determine if any appropriation adjustments were necessary, either through budget carry forwards or through new appropriation requests.
Staff continually monitors and reviews budgetary performance and will continue to do so through the end of the current fiscal year and in conjunction with year-end close. Staff brings forward budget adjustments from time-to-time as necessary to ensure the City's spending plan remains current.
DISCUSSION:
BUDGET OVERVIEW
General Fund:
As part of staff's mid-year analysis, finance staff met with department and division managers to review their budgetary performance for each area of responsibility. Based upon that review, the requested budget adjustments, which are included as part of the budget status overview, the General Fund is projected to end the fiscal year with a General Fund fund balance of $4,532,400.
General Fund Revenues - Fund 100
The General Fund’s revenue estimates for fiscal year 2024-25, which includes adjustments, if any, approved by City Council from July 2024 through January 2025, were estimated at $24,372,882. Based upon the staff's analysis of the revenue estimates, including updated economic forecasts, staff is projecting that estimated revenues should decrease by $49,505 in total. Due to decreases in fuel sales in the first quarters of the fiscal year, sales tax is projected to decrease by $644,905. This decrease is offset by forecasted increases to several fines and fees revenues within the general fund including but not limited to, rental inspection fees $55,000, Harvey House leases $40,000, and cannabis fees for initial applications and renewal fees, $185,000. Further changes in revenue projections, if needed, will be included as part of the yearend budget clean-up resolution which will be brought back to the City Council for consideration in June 2024.
Joint Special Meeting
CC/BFPD/Odesa/Harvey House
04/7/25 05:00 PM
Finance
Sydnie Harris
Budget
Doc ID: 5951
AGENDA ITEM
General Fund Expenditures - Fund 100
The adopted fiscal year 2024-25 General Fund operating budget, plus Council approved budget adjustments from July 2024 to January 2025, amounts total appropriations in the amount of $26,108,978. Based upon the budget review conducted by finance staff, in coordination with department and division managers from all departments, actual expenditures are tracking fairly well to projected spending levels. Year-to-date expenditures total $13,639,236, which amounts to approximately 53% of the adopted budget through January 2025; however, additional appropriations are proposed within the General Fund totaling $842,352 as part of the mid-year budget adjustment. These proposed adjustments are necessary primarily due to an increase in contract service costs for in preparation for the BNSF BIG project. These costs will be primarily reimbursed to the City General Fund throughout the duration of the BIG project, and are recognized when received.
General Fund-Measure Q - Fund 102 & 103 (Fire)
Fiscal Year 2024-25 Measure Q sales tax revenue estimates are proposed to decrease by $700,000 due to the decrease in sales over the course of the last 3 quarters. Additionally, a large one time purchase of capital equipment will impact fund balance in this fund this fiscal year, decreasing fund balance by $2.2 million dollars.
Barstow Fire Protection District (BFPD) - Fund 225
Barstow Fire Protection District Revenues - Fund 225
The BFPD’s current fiscal year budget projects revenues of $6,386,100, with actual revenues received of $4,302,326 through January 2025. Due to the devastation of the Line Fire, and the contribution of the BFPD men and women during this event, the strike team is slated to receive an additional $300,000 to offset their time this fiscal year. Property tax revenues collections are expected to maintain the original estimate at $4,100,000 this year with $2,364,949 received through January 2025.
FISCAL IMPACT:
The net budgetary adjustments in estimated revenues and appropriations in the General Fund results in an estimated increase in appropriations of $891,857 at year end on a combined basis.
RECOMMENDED ACTION:
Staff recommends that the City Council / Fire Board approve the budget adjustments and related transfers within the Budget Adjustments contained within the "Exhibit A” as discussed herein.