Agenda #: 7.1
Meeting Date: March 4, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: FISCAL YEAR 2024/25 MID-YEAR BUDGET REVIEW.
STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:
A. Adopt Resolution No. 2025-05 amending the Fiscal Year 2024/25 Municipal Budget revenue estimates and appropriations; and,
B. Adopt Resolution No. 2025-06 amending the City’s Fiscal Year 2024/25 Compensation Plan.
FINANCIAL IMPACT:
The Fiscal Year (FY) 2024/25 Mid-Year budget review proposes a total decrease in estimated resources of $69,682 and a total increase in appropriations of $345,276 for all funds (see table below). The impact for the General Fund is an estimated reduction to the General Fund’s fund balance in the amount of $228,800.
Proposed revisions to resources and appropriations, including estimated fund balances at the end of the current FY 2024/25 are included in the attached Exhibit A (Attachment 2) and are discussed throughout the report as summarized below:
FY 2024/25 Recommended Mid-Year Adjustments
Fund Revenues Expenditures
Change in Fund
Balance
Increase/(Decrease) Increase/(Decrease) Increase/(Decrease) General Fund $ (143,900) $ 84,900 $ (228,800)
Other Governmental Funds
Law Enforcement Reserve (102) - 10,000 (10,000)
Prop A Fund (206) - 25,000 (25,000)
Prop C Fund (207) - 200,000 (200,000)
Integrated Waste Management Fund (250) 73,600 13,797 59,803 Beverage Container Recycling Grant Fund (254) 618 5,579 (4,961) Internal Service Funds -
Vehicle Maintenance Fund (502) - 6,000 (6,000)
Total $ (69,682) $ 345,276 $ (414,958)
BACKGROUND:
The City Council adopted Resolution No. 2024-18 on June 4, 2024 approving the FY 2024/25 Adopted Budget. The City Council has since approved additional appropriations as they have occurred throughout the year, as well as carry-over requests from FY 2023/24. It is City policy for staff and the City Council to periodically review the annual budget and make any additional adjustments as deemed necessary.
Staff has conducted the mid-year review of the FY 2024/25 Adopted Budget, evaluated current revenue and expenditure trends, and confirmed the status of capital improvement projects. Based on this review, a Resolution amending the FY 2024/25 Adopted Budget is proposed for City Council consideration (Attachment 1).
ANALYSIS:
The City’s current Revised General Fund Budget for FY 2024/25 estimates anticipated resources to be $32,725,050. It is recommended that these resource estimates be reduced by $143,900 to $32,581,150. The current Revised General Fund Budget for FY 2024/25 includes appropriations totaling $35,296,949 (Adopted Budget plus City Council amendments and carryovers). It is recommended that this budget be increased by $84,900 to $35,381,849. As a result of these actions, the General Fund’s fund balance reserves will decrease by $228,800. The recommended changes in estimated resources and uses are expected to leave the General Fund with an unassigned fund balance of $20,946,271 and a 25% contingency reserve balance of $8,217,405 at the end of the fiscal year, which reflects a decrease of $2.8 million in unassigned fund balance from the prior year ending June 30, 2024. The utilization of unassigned fund balance will fund carryover appropriations for ongoing initiatives and projects from the prior year, including the transfer-out of funds to the CIP Fund for approved capital projects.
FY 2024/25 Changes to the General Fund Budget
FY 24/25 Council Budget Recommended Total
Adopted Approved Carryovers Mid-Year Revised
GENERAL FUND Budget Amendments (from FY23/24) Adjustment Budget Resources
Revenues & Transfers-In $ 32,725,050 $ - $ - $ (143,900) $ 32,581,150 Uses
Expenditures & Transfers-Out 32,869,618 111,580 2,315,751 84,900 35,381,849 Fund Balance Impact
Increase/(Decrease) (144,568) (111,580) (2,315,751) (228,800) (2,800,699) Est. Ending Fund Balance
(As of June 30, 2025) 23,602,402 23,490,822 21,175,071 20,946,271 25% Contingency Reserve Balance 8,217,405 8,217,405 8,217,405 8,217,405 Total Fund Balance
(As of June 30, 2025) $ 31,819,807 $ 31,708,227 $ 29,392,476 $ 29,163,676 General Fund Revenues:
In preparation for the mid-year budget review, staff examined the City’s revenue sources to ensure valid revenue estimates based on current trends and activities. The below table includes a summary of proposed changes to the General Fund revenue estimates. Included within the revised estimates is a decrease in Sales Tax revenues consistent with current trends, a decrease in Construction Permit and Plan Check fee revenues reflecting current trends, increases to Cost Reimbursement revenues for onetime projects, and increases to Franchise and Waste Hauler fees to reflect current activities. All other revenue sources are currently trending as anticipated in the Adopted Budget.
FY 2024/25 Mid-Year General Fund Revenue Adjustments
Resource Amount Description
Cost Reimb. $ 20,000 City Attorney Fees
Cost Reimb. 224,300 City Hall Roof/Solar Panel Rplmt.
Sale Tax (220,000) Reduction in Est. Revenues
Construction Permit Fees (100,000) Reduction in Est. Revenues Plan Check Fees (100,000) Reduction in Est. Revenues
Franchise Fees 30,000 Increase for Hauler Franchise Fees Waste Hauler Fees 1,800 Contracted Hauler Fee Increase for Street Sweeping TOTAL $ (143,900) Net Reduction
GENERAL FUND REVENUES
General Fund Expenditures:
The recommended adjustments to General Fund expenditures are listed in the table below.
FY 2024/25 Mid-Year General Fund Expenditure Adjustments Department Amount Description
City Clerk $ (54,000) Reduce Elections Budget to Reflect Savings HR/Risk 50,000 Prof. Services/Labor Relations
CMO--Animal Control 25,000 Cont. Svcs - Animal Control
CMO-City Attorney 56,500 Special Legal Svcs - Code Enf. (inc. in activity) CMO-City Attorney 95,000 General Legal Svcs (inc. in activity) Public Works (87,600) Savings for City Hall Roof/Solar CIP TOTAL $ 84,900 Net Increase
GENERAL FUND EXPENDITURES
Departmental Reorganizations – The City Council Strategic Plan prioritizes the development of a high-performing organization with a positive, value-based culture that attracts and retains talent. The Employer of Choice and Human Capital Investment Programs were developed to meet these City Council goals, leading to extensive organizational analysis of long-term departmental structural needs, employee development opportunities, and necessary succession planning efforts, all in an effort to provide the most positive and effective local government customer service experience possible.
To develop the most appropriate departmental succession planning structures, recognize increased responsibilities, and to invest in retaining high-performing employees, it is recommended that following positions be reclassified as indicated below.
Department/Division
Current
Classification
Proposed
Reclassification
Number
of Staff
Salary
Range
Finance Accountant Senior Accountant 1 28E
Human Resources Human
Resources
Technician
Senior Human
Resources
Technician
1 21NE
There is no cost to the remainder of the FY 2024/25 budget to implement two (2) reclassifications due to personnel vacancy savings. The proposed changes to the FY 2024/25 Compensation Plan are included in the attached Exhibit A (Attachment 4).
Other Governmental Funds and Internal Service Funds:
The following table summarizes the proposed changes in revenue and expenditures for various other Governmental Funds and Internal Service Funds.
FY 2024/25 Mid-Year Adjustments
Special Funds, Special Revenue Funds and Internal Service Funds Revenue Expense Description
Special Funds:
Law Enforcement Reserve Fund (102) $ 8,000 Flock Camera System Vandalism Repair 2,000 Small Tools & Equip
Special Revenue Funds:
Prop. A Fund (206) 25,000 Dial-A-Cab Services - Ridership Increase Prop. C Fund (207) 200,000 Increase for Traffic Project Mgmt Integrated Waste Mgmt. Fund (250) $ 73,600 AB 939 Revenues Increase due to Volume 4,000 Operating Supplies - Earth Day
3,000 Comm. Education for Waste Hauler Transition
6,797 Contract Svcs. - Comm. Mulch/Compost Progs
Bev. Container Recycling Grant Fund (254) 618 Recognize Additional Grant Cycle Revenues 5,579 Carryover Prev. Grant for Small Tools & Equip.
Internal Service Funds:
Vehicle Maintenance Fund (502) 6,000 Additional Fleet Maintenance TOTAL $ 74,218 $ 260,376
OTHER GOVERNMENTAL FUNDS
PREPARED BY:
REVIEWED BY:
Attachments:
1. 7.1.a Resolution No. 2025-05 Amending FY 2024-25 Budget
2. 7.1.b Exhibit A - FY 2024-25 Mid-Year Resources Uses and Fund Balances
3. 7.1.c Resolution No. 2025-06 FY 2024-25 Compensation Plan
4. 7.1.d Exhibit A - Revisions to FY 2024-25 Compensation Plan March 4 2025