1 STAFF REPORT
DATE: August 27, 2024
TO: Justin Hess, City Manager
FROM: Jennifer Becker, Financial Services Director
VIA: Leana Mkrtchyan, Deputy Financial Services Director By: Joy Escalante, Budget Manager
Susan Langford, Revenue Manager
Nathan Lightell, Senior Administrative Analyst
SUBJECT: Adoption of Resolutions Continuing Appropriations from Fiscal Year 2023- 24 to Fiscal Year 2024-25
RECOMMENDATION
1. Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING THE FISCAL YEAR 2024- 2025 BUDGET FOR THE PURPOSE OF CONTINUING APPROPRIATIONS FROM FISCAL YEAR 2023-2024 (Attachment 1).
2. Adopt A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF BURBANK AMENDING THE FISCAL YEAR 2024- 2025 BUDGET FOR THE PURPOSE OF CONTINUING APPROPRIATIONS FROM THE FISCAL YEAR 2023- 2024 (Attachment 2).
3. Adopt A RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF BURBANK AMENDING THE FISCAL YEAR 2024- 2025 BUDGET FOR THE PURPOSE OF CONTINUING APPROPRIATIONS FROM THE FISCAL YEAR 2023- 2024 (Attachment 3).
BACKGROUND
At the end of each Fiscal Year (FY), departments review their budget line items to identify appropriations that have not been expended or encumbered and need to be continued into the next fiscal year. There are various reasons for departments to request continuing appropriations, also known as carryovers. The most common reasons are for ongoing or
FINANCIAL
SERVICES
2 multi-year projects, delayed program implementation, or program operations that cross fiscal years such as housing assistance, summer recreation programs, and contractual services. Grants, federal and state program funding, donations, and Council-directed set- asides or holding accounts are restricted for a specific purpose and also must be continued into the next fiscal year until fully expended.
DISCUSSION
The Summary of Continuing Appropriations by Fund (Attachment 4 ) provides the total amount of requested carryovers for each fund. Continuing Appropriations by Account Number (Attachment 5) provides details for each request by fund type, including account number and name, amount requested, and a justification. It is important to note that the stated amounts are subject to change as financial activities in these accounts may continue until the fiscal year is officially closed. T hese continuing appropriations do not impact the FY 2024- 25 adopted budget or financial forecast because they are not new appropriations.
Citywide carryover requests total $76 million. Similar to last year, all multi- year infrastructure projects within the City’s approved Capital Improvement Program (CIP) were carried over as part of the Budget adoption process that took place on June 4, 2024.
General Fund requested carryovers are $16.6 million, which equates to 7.15% of the total FY 2023-24 Adopted General Fund budget. Of the total $ 16.6 million General Fund carryover requests, just under $8 million is comprised of restricted funding that includes grants, donations, and various contractual obligations. The most significant General Fund carryover amounts relate to restricted items, such as the Permanent Local Housing Allocation (PLHA), homeless plan implementation, Homeless Incentive Program, library donations, and Urban Area Security Initiative (UASI) grants for Fire and Police.
General Fund Year-End Financial Update
FY 2024-25 is well underway, and while FY 2023-24 has not been officially closed, staff estimates year-end General Fund budget savings of approximately $7.1 million, assuming the approval of the proposed carryover appropriations included in this report . This is roughly $2.7 million more than what was projected in the General Fund Forecast at the time of budget adoption, which is largely attributable to staffing vacancies in various positions across City departments . These figures are subject to change until the fiscal year has officially been closed and the City’s annual external audit process is completed.
FY 2023-24 revenues are still being collected at this time, with final numbers anticipated to be available in September. Based on staff’s early analysis of June 2024 receipts, it is anticipated that the General Fund is on target to meet or exceed the revised revenue projections presented to the City Council during the FY 2023-24 M id-Year Financial Report. W ith the strong revenue returns and City Council’s prior actions, such as the implementation of cost -saving initiatives and additional pension liability payments , 3 Burbank’s General Fund remains in a positive cash position well into the future years of our financial forecast. Staff will continue to monitor the state of the economy and return to the City Council with the FY 2024-25 First Quarter Update in late fall.
ENVIRONMENTAL REVIEW
This activity has no potential for resulting in either a direct or a reasonably foreseeable indirect physical change in the environment. As such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT
Should the Council adopt the resolutions and approve the continuing appropriations as proposed, the FY 2024-25 Budget will be amended for citywide continuing appropriations of approximately $76 million, which includes $1 6.6 million for the General Fund, $ 1.9 million for the Housing Authority , and $163,113 for the Parking Authority. As previously mentioned, the totals for continuing appropriations are preliminary and the amounts may be adjusted slightly as financial activities continue until the fiscal year is officially closed.
These continuing appropriations do not impact the recurring balance of the FY 2024- 25 adopted budget or the financial forecast as they are not new appropriations. At year-end, any unencumbered appropriations, not requested or approved as a continuing appropriation, return to the available balance of the applicable fund, and can be appropriated for other purposes by the City Council.
CONCLUSION
By approving the requested continuing appropriations, the City Council will be providing staff with the funding required to complete and/or continue with various Council-supported projects, grants, programs, and services. S taff recommends that Council adopt the proposed resolutions approving the requested continuing appropriations from FY 2023- 24 to FY 2024-25 for the City, the Housing Authority, and the Parking Authority.
ATTACHMENTS
Attachment 1: Resolution
Attachment 2: Housing Authority Resolution
Attachment 3: Parking Authority Resolution
Attachment 4: Summary of Continuing Appropriations by Fund Attachment 5: Continuing Appropriations by Account Number