CITY of BURBANK
General Fund FY 2024-25
First Quarter Financial Status
FINANCIAL
SERVICES
City Council Study Session
November 19, 2024
First Quarter Report Overview
FY 2023-24 Year End Results (unaudited)
FY 2024-25 Q1 Results
Revenues: Highlights & Trends
Expenditures: Spending to Date
FY 2024-25 Year End Forecast
Revised Recurring Budget Balance
Projected General Fund Spendable Balance
CalPERS Update
General Fund 5 Year Financial Forecast
2 FY 2023-24 Year End Results
Spendable General Fund balance as of June 30, 2024 is $43.6 million
$17.8 million higher than the balance projected during the FY 2024-25 budget process
• Year-end budget savings 0.8% higher than projected
• Recurring revenues 7% over revised projections
• Receipt of some one-time revenues
After fully funding reserves, July 1, 2024 starting balance is $36.2 million
Independent Financial Audit still in process
Will return to the City Council with the Annual Comprehensive Financial Report (ACFR) in January
3 Q1 Actual Revenue to Revised Forecast
(numbers shown in $1,000’s)
4 Sales Tax 63,522$ 64,412$ 64,412$ 5,086$ 7.9% Property Tax 76,196 74,956 78,626 3,670 124 0.2% Utility User's Tax 18,687 19,639 19,639 3,825 19.5% Service Charges 27,324 25,559 27,959 2,400 4,433 15.9% Transient Occupancy Tax 13,184 13,853 13,853 1,317 9.5% Transient Parking Tax 4,564 4,401 4,701 300 3 0.1% Interest/Use of Money 5,027 4,318 4,818 500 552 11.5% All Other Revenue 41,221 40,298 41,048 750 9,206 22.4% TOTALS 249,725$ 247,436$ 255,056$ 7,620$ 24,546$ 9.6% Change
from
Adopted
2024-25
Actual
Received
RECURRING REVENUE
CATEGORY 2023-24
Actual
2024-25
Adopted
2024-25
Revised
% Of
Revenue
Received
Q1 General Fund Revenue Adjustments
Citywide Assessed Value increased by $1.6 billion, 4.9% from the prior year
Reassessments from large developments
Transfers in ownerships
Unsecured property, which includes aircraft at Hollywood Burbank Airport and large equipment
Median single-family home sale price in Burbank for 3rd quarter, 2024 (July through September) remained stable at $1.3 million FY 2023-24 revenue from residual distributions increased by $2.5 million over prior year
Payoff of loan from Burbank’s General Fund
Reduction in Successor Agency bond principal payments 5 Property Tax (+$3.7 million)
Q1 General Fund Revenue Adjustments
True-up from 2023-24 FYE results for various fees
Construction and Development related activity for CDD, Public Works, and Fire
Emergency Medical Services (EMS)
Parks & Recreation Fees
Filming Services
6 Services Charges (+$2.4 million)
Building Permits/License Fees (+$750,000)
Construction of major projects expected to
continue in FY 2024-25
Q1 General Fund Revenue Adjustments
Interest earnings on cash held by
Treasurer surpassed revised forecast
in FY 2023-24
Federal Reserve continued to raise
interest rates
Larger-than-anticipated General Fund
balance
Forecasted flat or slight decline in FY
2024-25 due to rate cuts
-0.5 points in September 2024
-0.25 in November 2024
More expected? 7
Interest/Use of Money (+$500,000)
Transient Parking Tax (TPT) (+300,000)
TPT revenue increasing with rise in tourism and travel at Hollywood Burbank Airport
Hollywood Burbank Airport Passenger Counts
8 Q1 General Fund Revenue Adjustments
500,000
1,500,000
2,500,000
3,500,000
4,500,000
5,500,000
6,500,000
2019 2020 2021 2022 2023 2024
(to date)
Transient Occupancy Tax (TOT)
Cambria Hotel opening in January 2024 added 150 rooms to City’s inventory
9 Burbank Hotel Occupancy Rates
Q1 General Fund Revenue
$0
$50
$100
$150
$200
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
2019 2020 2021 2022 2023 2024
(to date)
Occupancy Rate ADR
Q1 General Fund Revenue
FY 2023-24 year-end results +0.7% above revised projections Second quarter (April-June) 2024 receipts +11.8% due to significant taxpayer restatement from prior year
Actual sales down (2.3%) after adjustment for one-time payment Auto sales (23.3%) hampered by tight credit market, insurance costs Business and Industry (11.1%) experiencing lingering effects from Writers Guild of America and SAG-AFTRA strikes
General Consumer Goods (2.9%) as consumers remain cautious 10 Sales Tax
Q1 General Fund Expenditure Results
11 *Appropriations include all carryovers as well as any additional General Fund budget amendments approved by Council since the adoption of the FY 2024-25 Budget. The original General Fund adopted budget totals $258,693,806.
EXPENDITURE APPROPRIATIONS EXPENDITURES PERCENT
CATEGORY FY 2024-25 as of 9-30-2024 EXPENDED
Police 78,493,931 18,627,495 23.7%
Fire 53,378,284 15,329,160 28.7%
Parks and Recreation 39,536,998 8,809,524 22.3%
Library Services 10,862,489 2,610,912 24.0%
Community Development 26,302,619 4,235,715 16.1%
Public Works 21,471,542 4,918,333 22.9%
Administrative Services 31,955,325 6,297,945 19.7%
Non-Departmental 23,594,239 13,696,702 58.1%
TOTALS 285,595,427 74,525,786 26.1%
2024 CalPERS Update
12 FY 2022-23 net investment returns of 5.8%
Slightly below CalPERS discount rate of 6.8%
Increased the City’s overall funded status from 73.9% to 77.1% Citywide Unfunded Actuarial Liability (UAL) is at $439 million across the City’s three plans
FY 2023-24 net investment returns of 9.3%
Should lower UAL and increase the City’s funded status for FY 2026-27
Employer normal cost continues to decline annually due to growing PEPRA employee population
CalPERS Pension Costs
13 *Amounts shown are the total employer contribution amounts required for FY 2024-25. For FY 2024-25, the City Council approved the prepayment of the liability payments to CalPERS which will result in a net savings of $1,547,461 citywide.
Classification
Actual
FY 2024-25*
Actual
FY 2025-26
Projected
FY 2026-27
Projected
FY 2027-28
Police 3% @ 50 Rate 23.20% 22.80% 22.30% 21.80%
Police Liability Payment $7,997,927 $8,314,615 $9,314,000 $9,906,000 Fire 3% @ 55 Rate 18.42% 18.32% 17.90% 17.50%
Fire Liability Payment $5,066,096 $5,818,144 $6,579,000 $7,014,000 Misc. 2.5% @ 55 Rate 10.96% 10.76% 10.60% 10.40%
Misc. Liability Payment $20,417,782 $21,711,502 $24,828,000 $26,482,000 CalPERS Investment Return History
10.80%
-7.10%
-6.00%
3.90%
16.70%
12.60%
12.30%
19.10%
-4.90%
-23.40%
11.60%
20.90%
0.10%
13.20%
18.40%
2.40% 0.60%
11.20%
8.60%
6.70%
4.70%
21.30%
-6.10%
5.80%
12.50%
-25.00%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 14 9.30%
CalPERS Pension Funding Plan
Burbank made ADP of $9 million for FY 2024-25
Resulted in $1.5 million in recurring savings ($1 million General Fund) Scheduled ADP of $4.5 million in FY 2025-26
15 Burbank UAL Savings FY 2025 -26
Classification
Original
FY 2025-26
Payment
NEW
FY 2025-26
Payment SAVINGS
Miscellaneous Plan $22,768,244 $21,711,502 $1,056,742
Police Plan $8,591,440 $8,314,615 $276,825
Fire Plan $6,032,038 $5,818,144 $213,894
Citywide Total $37,391,722 $35,844,261 $1,547,461
Estimated General Fund Savings: $1,019,090
Projected FY 2024-25 General Fund Balance
Adopted FY 2024-25 Recurring Revenues $246,836,128 1st Quarter Revenue Adjustments 7,620,000
Less: Recurring Appropriations (245,652,164) TOTAL RECURRING BALANCE $8,803,964
16 Projected FY 2024-25 General Fund Balance
Projected Spendable Fund Balance 6/30/24 $43,577,330 Less: Formal & Compensated Absence Reserve Adjustments (7,366,111) Projected Beginning Spendable Balance 7/1/24 $36,211,219 Other Non-Recurring Revenue/Use of Resources 484,765 Estimated Budget Savings FY 2024-25 4,913,043 Less: Adopted One-Time Budget Items (7,213,242) Less: Adopted Contribution to CalPERS (5,828,400) Less: Deposit to 115 Trust (6,357,177) TOTAL NON-RECURRING BALANCE $22,210,208 17 Projected FY 2024-25 General Fund Balance
Total Recurring Balance $ 8,803,964
Total Non-Recurring Balance 22,210,208
PROJECTED GENERAL FUND
SPENDABLE BALANCE 6/30/25: $31,014,172
18 General Fund 5-Year Forecast (in millions)
Ending GF
Balance: $31.0 $21.4
19 $254.5
$264.0
$273.7
$283.7
$294.2
$245.7
$262.8
$276.1
$286.5
$298.1
$200
$210
$220
$230
$240
$250
$260
$270
$280
$290
$300
2024-25 2025-26 2026-27 2027-28 2028-29
Revenue Expenses
Balance/
(Deficit): $8.8 $1.2 ($2.4) ($2.8) ($4.0) Financial Forecast Risks & Rewards
- Tax revenue from continued development
- Forecasted interest rate reductions
- Tourism, entertainment, and restaurant growth
- Pension savings from additional UAL payments
- General Fund cash position
- Cooling of retail and auto sectors
- Slow bounce back of entertainment industry
- Competitive labor market
- Political / geopolitical instability
- CalPERS investment losses/assumption changes
20 Unrestricted General Fund
One-Time Resources
21 Projected General Fund Balance 6/30/25: $31,014,172
RESERVES AND SPECIAL ACCOUNTS
15% Working Capital $36,847,825
5% Emergency Contingency 12,282,608
Up to 5% Budget Stabilization 12,282,608
Compensated Absences 3,948,842
Section 115 Pension Trust 32,748,192
Total Available One -Time Resources $129,124,247
Conclusion
Current (FY 2024-25) projected General Fund recurring budget balance of $8.8 million
Anticipated spendable balance of $31 million at the end of FY 2024-25
General Fund deficit expected in year 3 of the forecast Strong cash position allows Burbank opportunity to invest one- time funds in order to generate recurring savings
Staff will continue to monitor economic conditions and legislative actions and provide updates to City Council 22 January 28 – FY 2023-24 Annual Comprehensive Financial Report February 25 – Mid-Year Financial Report
May – Distribution and Presentation of Proposed FY 2025-26 Budget June 3 - Public Hearing and Adoption of FY 2025-26 Budget 23 Future Financial Reports
Recommendation
Note and File
Staff is available to answer questions
24 Contact
Jennifer Becker
Financial Services Director
[email protected]
(818) 238-5500
https:/ /www.burbankca.gov/web/financial-services
25