Quarterly
Budget Update
Quarter 1
FY 2025
November 6, 2024
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 Overview
Budget Adjustments &
Revenue Estimates
City Management is pleased to present this
quarterly update summarizing the City’s overall
budget activity through Quarter 1 (September 30,
2024) for Fiscal Year (FY) 2025. The City’s fiscal
year is July 1st through June 30th. For audited
information, or to find greater detail, please refer
to the City’s annual financial statement, which is
released by December 31st following the end of
the fiscal year.
The revenue projections and budget expenditures
presented in this update include budget
adjustments approved by the City Council,
continuing appropriations, and prior year
encumbrances.
General Fund Financial Condition
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 The City’s General Fund is the primary source of discretionary resources that funds many of the services provided to the citizens of the City of Corona. The General Fund is made up of the General Fund, Measure X Fund, Historic Civic Center Fund, and the Pension Stabilization Trust Fund.
The General Fund inflows (revenue and transfers in) for FY 2025 are currently estimated at $227.0 million. This represents an increase of $0.2 million over the adopted inflows of $226.8 million.
They City has received or recorded 9.7% of the estimated General Fund inflows, through the end of Quarter 1 (at the time this information was prepared). Overall, inflows are down by 23.6% when compared to the same quarter of FY 2024. The primary reason for the decrease is due to how the City must report the unrealized gains/losses from investments. It is value on paper and not actual cash.
As of Quarter 1 of FY 2025, the General Fund has expended 15.1% of its cumulative budget. The current savings is primarily due to capital improvement projects which will take multiple years to complete. Comparing Quarter 1 of FY 2025 to FY 2024, expenditures are up by 19.5%, or $6.8 million.
Emergency
Contingency
1 Equal to 3 months of
operating expenditures
Adjusted at the end of
each fiscal year
2 3 4
$50,316,648
Been in place for
20-years
Since FY 2022, we no
longer add new money
into this reserve at the
end of the fiscal year
Budget
Balancing
$3,922,049
Reserve for pension
related expenditures –
debt service payments
for the Pension
Obligation Bonds or
the City’s CalPERS
unfunded accrued
liability (UAL)
contributions.
Pension
Stabilization
Measure X
Reserves
$46,483,830 $33,218,829
Unspent Measure X
funds that don’t roll
into next FY will go
into the reserve
Reserve amount
discussed with Council
each year through the
budget cycle
General Fund Reserves
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 The General Fund has
multiple reserves in fund
balance for various purposes.
For the full list, please
reference the City’s financial
statements, Note 15 (for Fiscal
Year Ending June 30, 2023,
page 119). This quarterly
update highlights four of
those reserves. Noted are the
unaudited FY 2024 amounts,
which total $133.9 million. The
final amounts may be
adjusted once the FY 2024
financial statements are
issued.
General Fund Inflows
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 Top Five Revenues
The City’s top five General Fund revenue categories
account for approximately 90.8% of the total
estimated General Fund inflows for FY 2025. Focusing
on these sources can provide a useful understanding
of the City’s income position.
The bar graph to the right illustrates the performance
of the top five revenues as compared to the same
quarter of the prior two fiscal years.
General Fund Revenues
Top 5 Revenues Compared
Quarter 1
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Millions
FY 2023
FY 2024
FY 2025
At the end of Quarter 1, Sales Tax is the largest General Fund revenue category. This category includes the City’s portion of sales tax, Measure X, Prop. 172 sales tax, and allowance for sales tax agreements. As of Quarter 1, the total received is $8.7 million. At the time this information was prepared, the revenues are up by 6.2%, or $0.5 million as compared to the prior year.
Sales Tax 01
The second largest General Fund revenue category at the end of Quarter 1 is Other Revenues. Activity in this revenue group includes Rental/Lease Income, Telecommunication Site Rentals, Sales of Surplus Property, and Billboard Revenues. At the end of Quarter 1, the total received is $2.7 million. Overall, the Other Revenues category is up by 11.5%, or $279,335 as compared to the same quarter in FY 2024.
Other Revenues 02
The Current Services category is the third largest category at the end of Quarter 1. Activity in this revenue group include plan check fees, engineering and inspection fees, recreation revenues, and the Emergency Medical Services Program. At the end of Quarter 1, the total received is $2.5 million. Overall, the Current Services category is down by 41.0%, or $1.7 million, as compared to the same quarter in FY 2024. When comparing to the prior fiscal year, the decrease is primarily due to Fire Service Agreements and the EMS Program.
Current Services 03
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 At the end of Quarter 1, a total of $2.3 million has been received in the Other Taxes category. Items in this revenue group include Franchise Fees, Transient Occupancy Taxes (TOT), Business License Taxes, and Cannabis Taxes. Other Taxes are down 0.8%, or $17,362 as compared to Quarter 1 of FY 2024. When comparing to the prior fiscal year, there is an increase in Transient Occupancy Taxes, Business License Taxes, and Cannabis Taxes. Simultaneously, there is a decrease in Franchises.
Other Taxes 04
At the end of Quarter 1, Property Tax is the fifth largest General Fund revenue category. The total for property tax is $2.0 million, an increase of $143,910, or 7.7%, over the prior fiscal year. The increase is primarily in secured property taxes. The majority of property tax revenues are recorded as revenue and booked as a receivable, once the annual report is received from the County of Riverside (generally November/December). Year-end adjustments “true-up” the amounts to the actual cash received.
Property Tax 05
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 General Fund Inflows
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 General Fund Inflows
Revenue + Transfers In
Quarter 1, FY 2024 to FY 2025
General Fund Inflows
Revenue + Transfers In
FY 2025, Budget to Quarter 1 Actuals
General Fund Through Q1 Through Q1 $ %
Revenue Category FY 2024 FY 2025 Change Change
Sales Tax $ 4,781,698 $ 5,357,348 575,650 12.0%
Measure X 3,411,311 3,344,523 (66,788) -2.0%
Property Tax 1,868,705 2,012,615 143,910 7.7%
Other Revenue 2,423,426 2,702,761 279,335 11.5%
Current Services 4,249,382 2,507,945 (1,741,437) -41.0% Other Taxes 2,293,961 2,276,599 (17,362) -0.8%
Payments in Lieu of Services 1,530,335 1,890,565 360,231 23.5% Intergovernmental Revenues 504,748 549,084 44,336 8.8%
Licenses, Fees & Permits 607,031 625,158 18,127 3.0%
Utility Service Charges 3,208 1,031 (2,177) -67.9%
Fines, Penalties & Forfeitures 197,472 199,850 2,378 1.2% Investment Earnings 2,493,080 3,301,124 808,044 32.4%
GASB31 Gain/Loss on Investment 4,572,524 (2,877,532) (7,450,056) -162.9% Total Revenues $ 28,936,882 $ 21,891,073 $ (7,045,809) -24.3% Transfers In - 206,063 206,063 N/A
Total Inflows $ 28,936,882 $ 22,097,137 $ (6,839,745) -23.6% Total Inflows (w/o GASB31) $ 24,364,358 $ 24,974,669 $ 610,310 2.5% General Fund Cumulative Budget Through Q1 %
Revenue Category FY 2025 FY 2025 Received
Sales Tax $ 58,314,466 $ 5,357,348 9.2%
Measure X 42,298,372 3,344,523 7.9%
Property Tax 65,623,930 2,012,615 3.1%
Other Revenue 11,067,362 2,702,761 24.4%
Current Services 12,849,409 2,507,945 19.5%
Other Taxes 14,789,698 2,276,599 15.4%
Payments in Lieu of Services 7,874,038 1,890,565 24.0%
Intergovernmental Revenues 2,217,584 549,084 24.8%
Licenses, Fees & Permits 2,091,186 625,158 29.9%
Utility Service Charges 8,000 1,031 12.9%
Special Assessments 779,667 - 0.0%
Fines, Penalties & Forfeitures 1,290,195 199,850 15.5%
Investment Earnings 6,484,027 3,301,124 50.9%
GASB31 Gain/Loss on Investment (2,877,532) N/A
Total Revenues $ 225,687,934 $ 21,891,073 9.7%
Transfers In 1,305,451 206,063 15.8%
Total Inflows $ 226,993,385 $ 22,097,137 9.7%
Total Inflows (w/o GASB31) $ 226,993,385 $ 24,974,669 11.0% The FY 2025 budget was adopted with $221.7 million in General Fund expenditures. With continuing appropriations of $28.5 million, and encumbrances (committed purchase orders) of $18.9 million, the beginning outflow budget was $269.2 million. Through Council Actions and other authorized adjustments, total outflows are currently $275.9 million.
Through Quarter 1, the City has spent $41.6 million, or 15.1% of the cumulative budget. At this point in the fiscal year, expenditures should be approximately 25% of budget. When comparing the same quarter in FY 2024, outflows are up by 19.5%, or $6.8 million. The largest expenditure category for the General Fund is Personnel Services.
Personnel Services has an increase of $4.6 million as compared to the same quarter last fiscal year. The changes are primarily based on current Memorandum of Understanding (MOU) contracts that are good through December 2024, as well as new positions approved through the annual budget process.
Materials and Supplies is up by $2.5 million when compared to Quarter 1 of FY 2024. There are multiple increases and decreases in this category. The primary drivers for change are one-time vehicle purchases in the prior fiscal year and property acquisitions in the current fiscal year.
General Fund Expenditures Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 General Fund Outflows
Expenditures + Transfers Out
Quarter 1, FY 2024 to FY 2025
General Fund Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 1, FY 2025
General Fund Cumulative Budget Through Q1 %
Expenditures By Department FY 2025 FY 2025 Spent
CIP / O&M Projects $ 59,194,154 $ 3,718,812 6.3%
City Manager's Office 13,901,180 855,277 6.2%
Community Services 20,155,378 3,485,259 17.3%
Debt Service 23,357,926 1,068,936 4.6%
Economic Development 1,692,601 167,701 9.9%
Elected Officials 175,230 27,045 15.4%
Finance 4,818,826 944,210 19.6%
Fire 37,017,746 9,185,266 24.8%
General Government 34,285,890 5,773,653 16.8%
Human Resources 3,092,679 636,684 20.6%
Information Technology 1,121,713 137,079 12.2%
Legal & Risk Management 2,099,380 448,610 21.4%
Planning & Development 9,289,771 1,531,025 16.5%
Police 60,584,343 12,807,634 21.1%
Public Works 5,116,166 778,498 15.2%
Total Expenditures $ 275,902,985 $ 41,565,689 15.1%
Transfers Out - - N/A
Total Outflows $ 275,902,985 $ 41,565,689 15.1%
General Fund Through Q1 Through Q1 %
Expenditures By Category 2024 2025 Change
Contractual 2,598,989 2,336,133 -10.1%
Materials and Supplies 6,043,030 8,566,527 41.8%
Personnel Services 24,861,796 29,456,128 18.5%
Utilities 1,273,695 1,206,902 -5.2%
Total Expenditures $ 34,777,510 $ 41,565,689 19.5%
Transfers Out - - N/A
Total Outflows $ 34,777,510 $ 41,565,689 19.5%
General Fund Expenditures By Department
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 This budget does not follow the normal trends as these
are multi-year projects. Any unspent encumbrances
(purchase orders) or remaining balance carries forward to the next fiscal year to continue the project activities.
CIP / O&M Projects (6.3%)
Current savings are primarily due to contractual services in the Homeless Solutions Program.
City Manager’s Office (6.2%)
Current savings is due to personnel services, materials and supplies, and contractual services.
Economic Development (9.9%)
Through September 30, 2024, approximately 25% of the fiscal year is complete. Departments with a variance of 10% or more are explained in the following section.
Quarter 1 is trending low due to the timing of debt
service payments based on approved payment cycles.
Debt Service (4.6%)
Information Technology (12.2%)
Current savings are primarily due to contractual
services, specifically, Fire Dispatch Services with the City of Ontario.
Enterprise Funds
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 Utilities Inflows
The City operates three utility services through
the Utilities Department: electric, water, and
sewer. Through the collection of fees and
charges, these funds should collect revenues
sufficient to finance the costs associated with
administration, operations, capital improvement
projects (CIP), and debt service.
Enterprise Funds - Utilities
Revenues Compared, Quarter 1
FY 2023 – FY 2024 – FY 2025
Emergency
Contingency
1 2 3
GOAL
$4,901,402
Electric
Utility
$234,438
Water
Utility
Sewer
Utility
$3,103,828 $1,151,962
Utilities Funds Reserves
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 The Utilities Funds target reserve amount for each of the operating funds shall be set at ninety (90) days. To build the target reserve amount, the Utilities Department shall annually contribute ten percent (10%) of the difference between actual operating revenues and actual operating
expenses for each of the Utilities Department Operating Funds at the beginning of each fiscal year until the target reserve is met. Depending on the fund, it will take time to hit the target reserve amount. If the reserve amount
exceeds the target reserve amount, the additional funds shall remain in reserves. The reserve process occurs
annually, once the audit and financials are finalized.
GOAL
$23,726,374
GOAL
$12,817,081
Water Sewer
Utilities Funds Inflows
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 Comparing Quarter 1 FY 2025 revenues to FY 2024,
there is a decrease of $515,509, or 10.2%. There were
increases in categories: Current Services, Fines,
Penalties & Forfeitures, Fees & Permits, and Other
Revenue. There were decreases in categories:
Intergovernmental Revenues, Investment Earnings, and
Utility Services Charges. The change in the Investment
Earnings category is due to how the City must report
the unrealized gains/losses from investments. These
are book entries and not actual cash.
Utilities Revenues - Through Quarter 1 FY 2025, revenues received have decreased 21.4%, or $6.9 million, as compared to the same quarter in Fiscal Year 2024.
Through the first quarter of FY 2025, there is a
decrease of 25.2%, or $4.8 million, as compared to FY
2024. Investment Earnings has a decrease of $1.1
million, due to the unrealized gains/losses from
investments which are book entries. There is a
decrease of $3.5 million in Intergovernmental
Revenues. This is due to how revenue is recorded for
grants. It is spread over several years and is
recognized in the period in which it is earned.
Through Quarter 1, there is a decrease of 19.5%, or $1.7 million, when compared to FY 2024. There were
increases in categories: Current Services, Licenses,
Fees & Permits, and Other Revenue. There were
decreases in categories: Fees & Permits, Fines,
Penalties, & Forfeitures, Investment Earnings, and Utility Services Charges. The change in the Investment
Earnings category is due to how the City must report
the unrealized gains/losses from investments. These
are book entries and not actual cash.
Electric
Utilities Funds Inflows
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 Utilities Funds Inflows
Revenue + Transfers In
Quarter 1, FY 2024 to FY 2025
Utilities Funds Inflows
Revenue + Transfers In
FY 2025, Budget to Quarter 1 Actuals
Enterprise Funds Cumulative Budget Through Q1 %
Fund Type FY 2025 FY 2025 Received
Electric $ 20,952,895 $ 4,147,615 19.8%
GASB31 Gain/Loss on Investment - 377,580 N/A
Water 72,422,998 13,413,061 18.5%
GASB31 Gain/Loss on Investment - 717,136 N/A
Sewer 36,672,674 5,726,654 15.6%
GASB31 Gain/Loss on Investment - 1,076,209 N/A
Total Revenues $ 130,048,567 $ 25,458,256 19.6%
Transfers In - Electric - - N/A
Transfers In - Water - - N/A
Transfers In - Sewer - - N/A
Total Inflows $ 130,048,567 $ 25,458,256 19.6%
Total Inflows (w/o GASB31) $ 130,048,567 $ 23,287,330 17.9% Enterprise Funds Through Q1 Through Q1 %
Fund Type FY 2024 FY 2025 Change
Electric $ 4,340,900 $ 4,147,615 -4.5%
GASB31 Gain/Loss on Investment 699,804 377,580 -46.0%
Water 17,131,434 13,413,061 -21.7%
GASB31 Gain/Loss on Investment 1,770,324 717,136 -59.5% Sewer 5,882,969 5,726,654 -2.7%
GASB31 Gain/Loss on Investment 2,567,959 1,076,209 -58.1% Total Revenues $ 32,393,389 $ 25,458,256 -21.4%
Transfers In - Electric - - N/A
Transfers In - Water - - N/A
Transfers In - Sewer - - N/A
Total Inflows $ 32,393,389 $ 25,458,256 -21.4%
Total Inflows (w/o GASB31) $ 27,355,303 $ 23,287,330 -14.9% Water Sewer
Utilities Funds Outflows
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 Overall, the Electric utility expenditures through
Quarter 1 are down by 33.3%, or $1.3 million, when
compared to last fiscal year during the same period.
There are increases in contractual, materials and
supplies, and personnel services, but there is a decease in the utilities category.
At Quarter 1, the operating budget expenditures total
11.5% of the current FY 2025 budget.
When comparing the total of utility outflows, Quarter 1 of FY 2025 to FY 2024, outflows are higher by 10.1%, or $2.3 million.
Overall, the Water utility expenditures are up by 25.2% or $3.1 million when compared to Quarter 1 in FY 2024.
Like the Electric fund, there are increases in
contractual, materials and supplies, and personnel
services, but there is a decease in the utilities
category.
Through Quarter 1, projected expenditures are at 11.2%
of the current expenditure budget. The operating
budget transactions total 45.9% of the current FY 2025
budget.
The Sewer utility expenditures are up by 8.6%, or $0.6
million, when compared to Quarter 1 of FY 2024. Like
both the Electric and Water funds, there are increases
in contractual, materials and supplies, and personnel
services, but there is a decease in the utilities category.
At the end of Quarter 1, projected expenditures total
8.0% of the cumulative budget. The operating budget
expenditures total 37.2% of the current FY 2025
budget.
Electric
Utilities Funds Outflows
Quarterly Budget Update | Quarter 1, FY 2025 | November 6, 2024 Utilities Funds Outflows
Expenditures + Transfers Out
Quarter 1, FY 2024 to FY 2025
Utilities Funds Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 1, FY 2025
Enterprise Funds Cumulative Budget Through Q1 %
Expenditures By Department FY 2025 FY 2025 Spent
Electric
CIP / O&M Projects $ 2,217,695 $ 27,101 1.2%
Debt Service 83,692 (13,753) -16.4%
Planning & Development 192 192 100.0%
Public Works 167,565 14,254 8.5%
Utilities Department 21,017,636 2,670,579 12.7%
Electric Total 23,486,780 2,698,373 11.5%
Water
CIP / O&M Projects $ 74,343,206 $ 2,197,377 3.0%
Debt Service 375,320 (59,953) -16.0%
Planning & Development 54,853 11,076 20.2%
Public Works 914,593 166,115 18.2%
Utilities Department 61,667,550 13,087,642 21.2%
Water Total 137,355,522 15,402,256 11.2%
Sewer
CIP / O&M Projects $ 58,222,029 $ 1,730,786 3.0%
City Manager's Office 3,814 970 25.4%
Debt Service 209,914 (34,496) -16.4%
Planning & Development 34,916 8,377 24.0%
Public Works 600,659 108,233 18.0%
Utilities Department 33,694,606 5,640,861 16.7%
Sewer Total 92,765,938 7,454,731 8.0%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer - - N/A
Grand Total $ 253,608,240 $ 25,555,360 10.1%
Enterprise Funds Through Q1 Through Q1 %
Expenditures By Category FY 2024 FY 2025 Change
Electric
Contractual $ 55,629 $ 88,176 58.5%
Materials and Supplies 387,292 500,981 29.4%
Personnel Services 80,665 104,925 30.1%
Utilities 3,519,039 2,004,291 -43.0%
Electric Total 4,042,626 2,698,373 -33.3%
Water
Contractual $ 1,000,916 $ 2,193,734 119.2%
Materials and Supplies 7,558,116 9,580,689 26.8%
Personnel Services 1,798,693 1,986,619 10.4%
Utilities 1,944,955 1,641,214 -15.6%
Water Total 12,302,680 15,402,256 25.2%
Sewer
Contractual $ 888,236 $ 1,414,061 59.2%
Materials and Supplies 3,853,174 3,914,563 1.6%
Personnel Services 1,412,630 1,483,029 5.0%
Utilities 711,392 643,078 -9.6%
Sewer Total 6,865,432 7,454,731 8.6%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer - - N/A
Grand Total $ 23,210,737 $ 25,555,360 10.1%
What do you think?
We value your opinion.
Is there anything additional you’d like to see in
future reports? This will be an evolving process to
capture the areas that are of most interest to the
City Council and the community. Please let us know.
We appreciate the feedback! Please share your
ideas at [email protected], or contact
budget staff at (951) 279-3500.
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