FISCAL YEAR 2024-25 BUDGET
MID-YEAR REVIEW
City Council Meeting
February 11, 2025
2 EXECUTIVE SUMMARY
FINANCIAL RESULTS
FISCAL SUSTAINABILITY
FINANCIAL OUTLOOK
RECOMMENDATION
EXECUTIVE SUMMARY
2/11/2024 FY 2024-25 Mid-Year Budget 3
State takeaway of key revenue source
Sales tax growth trending downward
Slowdown in pipeline development
Need to maintain City services and infrastructure
Council resolutions requested
FINANCIAL RESULTS
4 GENERAL FUND
OVERVIEW
2/11/2024 FY 2024-25 Mid-Year Budget 5
Fund Balance
As of Dec. 31, the
balance is up $4.1M
from last fiscal year
Revenues
Year-end estimates are
6% over budget, mainly
due to $1.1M VLF
reimbursement
Expenditures
Year-end estimates are
1.3% under budget,
pending labor
negotiations
Local Economy
Indicators mixed but
trending lower than
expected
FINANCIAL RESULTS BY FUND
IN MILLIONS
2/11/2024 FY 2024-25 Mid-Year Budget 6
Fund Revenues Expenditures
Ending
Balance
(Dec. 31)
General Fund (Excludes Measure I) 101 $15.3 $15.2* $31.1* Belmont Fire Protection District 223 9.9 10.2 25.6
Development Services 210 3.7 3.2 2.5
Recreation 205 0.9 2.0 (0.7)
Street Maintenance 231 0.8 1.2 1.0
Storm Drain 525 0.6 0.8 1.2
*Includes 50% of budgeted operating transfers anticipated at year-end $-
$2
$4
$6
$8
$10
$12
$14
$16
Actuals
Budget
Estimate
PROPERTY TAX REVENUE
2/11/2024 FY 2024-25 Mid-Year Budget 7
IN MILLIONS
Final Dissolution of
Successor Agency
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
Actuals
Budget
Estimate
SALES TAX REVENUE
(1% BRADLEY BURNS)*
IN MILLIONS
2/11/2024 FY 2024-25 Mid-Year Budget 8
*Excludes Measure I (½-Cent) Tax
$-
$0.5
$1.0
$1.5
$2.0
$2.5
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Actuals
Budget
Estimate
SALES TAX REVENUE
(MEASURE I)
IN MILLIONS
2/11/2024 FY 2024-25 Mid-Year Budget 9
Measure I
takes effect
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
Actuals
Budget
Estimate
HOTEL ROOM TAX REVENUE
2/11/2024 FY 2024-25 Mid-Year Budget 10
IN MILLIONS
TOT increase
from 12% to 14%
GENERAL FUND
EXPENDITURES
IN MILLIONS
2/11/2024 FY 2024-25 Mid-Year Budget 11
FY 2024-25
Adjusted
Budget
Expenditures
as of Dec. 31 % of Budget
Personnel $18.8 $8.9 47%
Services &
Supplies $3.4 $1.6 48%
Admin &
Other $4.4 $2.2 50%
Major Est. Transfers
• Recreation
$1.8M
• Development Services
$1.0M
• Street Maintenance
$1.5M
• Other
• $0.7M
CAPITAL IMPROVEMENT
PLAN (CIP) UPDATE
2/11/2024 FY 2024-25 Mid-Year Budget 12
• CIP Projects Completed
• Manor Roof Replacement Project
• 2024 Slurry Seal Pavement Project
• San Juan Boulevard
Sewer Capacity Improvements
• Sewer Treatment
• Ongoing contributions
to SVCW for RESCU program
Sewer
64%
Streets
30%
FY 2024-25 Budgeted CIPs
Sewer Streets
Facilities Parks & Open Space
Technology
FISCAL
SUSTAINABILITY
13 STATE TAKEAWAY
2/11/2024 FY 2024-25 Mid-Year Budget 14
• Property tax in lieu of VLF continues to be underfunded, with the State excluding its payment obligations in the proposed budget
• Future revenue shortfalls are projected
• FY 2023-24: $1.7M shortfall
(40% of Belmont’s Local 1% Sales Tax revenue)
• FY 2024-25: ~$1.8M shortfall
• FY 2025-26 and beyond: $2-6 million shortfall annually • City Manager group continues to work in conjunction
with the County
MAJOR PROJECTS IN
DEVELOPMENT PIPELINE
2/11/2024 FY 2024-25 Mid-Year Budget 15
• Biotech projects
× 601 Harbor
(Applications paused)
× 400 Island Parkway
(Applications paused)
1301 Shoreway
(EIR review)
425 Harbor
(In review process - HIA)
• Housing projects
× 608 Harbor
(Entitled)
580 Masonic Ave
(In review process)
800 Belmont Ave
(100% Affordable, in
Construction)
Hill St & El Camino
(100% Affordable
Construction Apr 25)
FINANCIAL OUTLOOK
16 PROJECTED GENERAL FUND
BALANCE (WITH VLF)
IN MILLIONS
2/11/2024 FY 2024-25 Mid-Year Budget 17
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
Actuals/Estimates
33% Target
PROJECTED GENERAL FUND
BALANCE (WITHOUT VLF)
2/11/2024 FY 2024-25 Mid-Year Budget 18
$(10)
$(5)
$-
$5
$10
$15
$20
$25
$30
$35
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 Actuals/Estimates
33% Target
2033-34 2034-35
IN MILLIONS
Fund balance projected to
drop below reserve target
by FY 2031-32 (7 years)
GENERAL FUND BALANCE
COMPARISON
2/11/2024 FY 2024-25 Mid-Year Budget 19
IN MILLIONS
$35
$57
$118
$63
$106
$59
$35
$-
$20
$40
$60
$80
$100
$120
Burlingame San Mateo* Foster City* Belmont** Redwood
City*
San Carlos Menlo Park*
Measure I
General Fund
*June 30, 2024 data not currently available, the amounts shown are as of June 30, 2023 **Belmont’s General Fund balance as of June 30, 2024 was $31M; Measure I Fund balance was $4.5M $7,047
$4,135
$4,809
$2,875
$5,372
$5,967 $6,222
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Burlingame San Mateo Foster City Belmont Redwood
City
San Carlos Menlo Park
Local Transaction Tax/Measure I
Miscellaneous
Service Charges
Transient Occupancy Tax
Sales & Use Taxes
Property Tax
GENERAL FUND REVENUE
PER HOUSEHOLD
COMPARISON
2/11/2024 FY 2024-25 Mid-Year Budget 20
7-city average
of $5,204
*“Miscellaneous" includes Licensing Fees, Real Estate Transfer Tax, Licenses and Permits, Intergovernmental Sources, Fines and Forfeitures, Interest and Rent Income, and other.
RECOMMENDATION
21 NEXT STEPS
2/11/2024 FY 2024-25 Mid-Year Budget 22
Continue
community
engagement to
identify service
priorities
Explore targeted,
locally-controlled
revenue sources
Continued focus on
Financial
Sustainability
Strategic Focus
Area
RESOLUTIONS
2/11/2024 FY 2024-25 Mid-Year Budget 23
Revisions to capital improvement budgets
• Reflects updated project estimates/timelines
• Transfers revenues to CIP Project expenditure funds
Address actions previously approved by Council;
variances based on year-to-date estimates
Amend the FY 2024-25 Budgets:
• The City of Belmont
• Belmont Fire Protection District