Mid-Year
Financial Report
FY 2024-25
City Council
February 25, 2025
FINANCIAL
SERVICES
Mid-Year Report Overview
Economic Outlook
Fiscal Year (FY) 2024-25 Mid-Year Results
Revenues
Expenditures
Mid-Year Appropriation Requests
General Fund Year-End Projection and
Five-Year Forecast
Preview of FY 2025-26 Budget Process
2 Economic Outlook
GDP growth remains strong and is expected
to continue despite political uncertainty
Inflation is easing
December CPI for LA at 3.4% (USA at 2.9%)
Federal Reserve interest rate cuts delayed
but still expected in 2025
Unemployment up slightly but still stable
Impact of Federal Government actions on
consumer confidence
3 FY 2025-26 State Budget Proposal
4 $322 billion Proposed Budget
$229 billion in General Fund spending proposed
Includes set-aside of $4.5 billion in the Special Fund for Economic Uncertainties (SFEU).
No shortfall projected for FY 2025-26
Revenue forecast revised due to stronger than anticipated economy, stock market, and cash receipts
Assumes withdrawal of $7.1 billion from the Budget
Stabilization Account (BSA) in FY 2025-26
Relies on $23 billion in various budget solutions as well as short term savings
Mid-Year General Fund Revenues
5 Sales Tax 63,522$ 64,412$ 64,412$ 21,846$ 33.9% Property Tax 76,196 74,956 3,670 78,626 18,900 24.0% Utility Users Tax 18,687 19,639 19,639 8,271 42.1% Services Charges 27,324 25,459 2,400 27,859 11,146 40.0% Transient Occupancy Tax 13,184 13,853 13,853 5,000 36.1% Transient Parking Tax 4,564 4,401 300 4,701 1,408 30.0% Interest/Use of Money 5,027 4,318 500 4,818 2,592 53.8% All Other Revenue 41,221 39,798 750 40,548 17,281 42.6% TOTALS 249,725$ 246,836$ 7,620$ $254,456 86,444$ 34.0% Adopted
FY 2024-25
RECURRING REVENUE
CATEGORY
Actual
FY 2023-24
Revised
FY 2024-25
Change
1st
Quarter
YTD
Actual
12/31/24
% Of
Revised
Recv'd
Mid-Year Revenues
Sales Tax
Burbank 3rd quarter 2024 (Jul-Sept) taxable
sales down -2.5% on an adjusted basis
Restaurants & Hotels -11.2%
• One time adjustment in 3Q23 affecting results
Autos & Transportation -9.6%
• High prices and costly borrowing
General Consumer Goods -7.8%
Business & Industry -1.2%
• Lagging recovery from 2023 labor disputes
Measure P Transactions & Use Tax (TUT) down -0.5%
6 Mid-Year Revenues
7 Property Tax
Burbank’s Assessed Value increased 4.9%, or $1.6 billion for 2024 Attributable to commercial development, transfers of ownership, and unsecured property
Median sales price for the 4th quarter of 2024 was $1.3 million 1.6% increase from Q3 and 15.9% increase year over year Negative supplementals from wildfire impacts will be apportioned to all LA County Agencies
Mid-Year Revenues
Transient Occupancy Tax (TOT)
2024 hotel occupancy rate was 74%, down from 75% in 2023 Cambria Hotel added 150 rooms to inventory
Average Daily Rate (ADR) $187, a 1% decline from prior year 8 Burbank Hotel Occupancy and Daily Rates
$0
$50
$100
$150
$200
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
2020 2021 2022 2023 2024
Occupancy Rate ADR
Mid-Year General Fund Expenditures
9 EXPENDITURE APPROPRIATIONS EXPENDITURES PERCENT
CATEGORY FY 2024-25 as of 12/31/2024 EXPENDED
Administrative Depts $ 32,144,776 $ 12,929,620 40.2%
Community Development 26,534,895 9,049,473 34.1%
Fire 53,849,559 29,580,177 54.9%
Library Services 10,882,536 5,022,382 46.2%
Non-Departmental 24,416,711 14,755,812 60.4%
Parks and Recreation 40,321,201 17,192,595 42.6%
Police 78,793,872 38,179,898 48.5%
Public Works 21,471,542 9,957,474 46.4%
TOTALS $ 288,415,093 $ 136,667,430 47.4%
Mid-Year Budget Requests
10 Appropriations Revenues Net Impact
Total General Fund Appropriation Requests: $ 2,072,424 $ 1,093,446 $ 978,978 Non-General Funds
Section 8 Voucher Program (Fund 117) 2,633,000 2,620,000 13,000 Community Development Block Grant (Fund 122) - 43,933 (43,933) General City Capital Projects Fund (Fund 370) 652,612 135,195 517,417 Electric Fund (Fund 496) 5,960,086 - 5,960,086
Water Fund (Fund 497) 620,000 - 620,000 Refuse Collection and Disposal Fund (Fund 498) 66,599 106,599 (40,000) Office Equipment Replacement (Fund 533) 55,000 - 55,000 Municipal Infrastructure Fund (Fund 534) 344,812 - 344,812 Communication Equipment Replacement (Fund 535) 100,000 - 100,000 Information Technology Fund (Fund 537) 951,000 - 951,000 Non-General Fund Appropriation Requests: $ 11,383,109 $ 2,905,727 $ 8,477,382 Grand Total All Funds Appropriation Requests $ 13,455,533 $ 3,999,173 $ 9,456,360 General Fund Appropriation Requests
11 Parks and Recreation – Funding for emergency repairs and program cost overages at DeBell Golf Course
Community Development – Appropriating Permanent Local Housing Allocation (PLHA) and National Opioid Settlement funds
Fire Department – Brush clearance for four new parcels of land and preparations for upcoming Fire Academy
Non-General Fund Appropriation Requests
12 Municipal Infrastructure Fund - emergency tree
work and repairs due to recent windstorm
Housing Authority – Additional Housing Assistance
Payments and Emergency Housing Vouchers
Information Technology Fund – Microsoft Windows
upgrade and computer replacements
Burbank Water & Power Funds
Burbank Bridge Infrastructure Rebuild
Protective relay network for critical infrastructure
Training center rehabilitation and expansion
Projected FY 2024-25 General Fund Balance
13 Total Recurring Balance $ 8,803,963
Total Non-Recurring Balance 19,861,300
Projected General Fund
Spendable Balance 6/30/24: $ 28,665,263
14 General Fund 5-Year Forecast
(in millions)
$254.5
$263.3
$273.3
$284.1
$295.4
$245.7
$261.4
$274.7
$285.1
$296.7
$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 $1.8 ($1.4) ($1.0) ($1.3) Ending GF
Balance: $28.7M $16.6M
Financial Forecast Risks & Rewards
- Favorable economic conditions
- Tax revenue from continued development
- Tourism and restaurant growth
- Pension savings from additional UAL payments
- General Fund cash position
- Cooling of retail and auto sectors
- Slow recovery of entertainment industry
- Political uncertainty/volatility
- Indirect impact of local disasters
- CalPERS investment losses/assumption changes
15 Unrestricted General Fund
One-time Resources
16 Projected General Fund Balance 6/30/25 $28,665,263
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 31,681,716
Total Available One -Time Resources $125,708,862
Projected FY 2025-26 General Fund recurring
balance of approximately $1.8 million
Represents less than 1% of recurring budget
Before any new budget requests or revised MOU impacts Becomes a $1.4 million deficit in FY 2026-27
$28.7 million projected one-time General Fund
Balance
FY 2025-26 Budget Development Process
17 May 1 – Proposed Budget Distribution
May 6 – Dedicated City Council Budget Meeting
May 20 – Continuation of Budget Presentation
June 3 - Public Hearing and Adoption of FY 2025-26 Budget FY 2025-26 Budget Timeline
18 Recommendation
Approve resolution amending the
FY 2024-25 Budget for the purpose
of Mid-Year adjustments.
19 Jennifer Becker
Financial Services Director
(818) 238-5500
[email protected]
Questions?
20 Projected FY 2024-25 General Fund Balance
22 Adopted FY 2024-25 Recurring Revenues $246,836,127 1st Quarter Revenue Adjustments 7,620,000
2nd Quarter Revenue Adjustments 0 Less: Recurring Appropriations (245,652,164) TOTAL RECURRING BALANCE $8,803,963
Projected FY 2024-25 General Fund Balance
23 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 Estimated Budget Savings FY 2024-25 5,397,808
Less: Items Added Post Budget Adoption (1,369,930) 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) Less: Mid -Year Requests (net of revenue) (978,978)
TOTAL NON-RECURRING BALANCE $19,861,300