Camarillo City Council and
Camarillo Sanitary District
AGENDA REPORT
Date: March 13, 2024
To: Honorable Mayor and City Councilmembers
Chairman and Directors of the Camarillo Sanitary District From: Greg Ramirez, City Manager
Submitted by: Mark Uribe, Finance Director
Subject: Fiscal Year 2024/25 Preliminary Budget Review
BACKGROUND
Staff will present an overview of the preliminary draft budget for Fiscal Year 2024/25.
Directions to staff may be given during this budget review; and any action to implement such direction will be made when the proposed budget is presented for discussion which is scheduled for May 18, 2024.
DISCUSSION
The purpose of the Preliminary Budget Review Session will be a high-level overview of the General Fund revenues. This meeting will assist staff in finalizing the proposed Budget to be presented in greater detail at the May 18th Budget Workshop.
The FY 2024/25 budget reflects a slow revenue growth due to the economic conditions including geopolitical events and declining inflation and housing market. The City will continue monitoring economic risks as they relate to consumer confidence which impacts City revenues related to property tax, sales tax, transient occupancy tax, and investment earnings.
During the budget development process, the City analyzes data trends to formulate revenue projections across all City funds. To assist in this effort, two of the City’s major funds, Water and CSD are in the process of being reviewed as part of the Water & Sewer Rate Study update. This refresh evaluates and updates the trends and assumptions that were incorporated into the FY2022/23 Water and Sewer Rate Study that became the basis for the FY2023/24 adopted budget. Current water usage trends suggest that wet weather conditions coupled with continued conservation will likely result in water sales
Fiscal Year 2024/25 Preliminary Budget Review
March 13, 2024
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below what was initially projected in the Study for both the current year and future years.
Sewer base rate charges on the other hand are fixed and therefore more predictable in nature and less impacted by variability in weather patterns and human behavior. Both enterprises’ revenue and expense projections will be reviewed with the Utilities Committee over the coming months before final budget is presented to City Council and CSD Board at the May Budget Workshop.
FISCAL IMPACT
There is no budget impact as a result of this action.
RECOMMENDATION
Provide feedback to staff and receive and file the report.
ATTACHMENTS
None
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None