DATE:
April 16, 2024
TO:
Paul Buddenhagen, City Manager
FROM:
Lawrence Chiu, Finance Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Amending The Budget For Fiscal Year 2024
RECOMMENDATION
Staff recommends that the City Council review the Fiscal Year 2024 Mid-Year Budget and approve the resolution amending the Fiscal Year 2024 Budget.
BACKGROUND
The City Council approved the Fiscal Year (FY) 2024 Budget on June 6, 2023 and has made various amendments during the current fiscal year. At mid-year, all departments reviewed their budgets to make budget adjustments for the remainder of the year. This involved a detailed review and analysis of all City revenues and expenses during the fiscal year.
Based upon this review of revenues received and expenditures incurred during the first half of the fiscal year as well as additional information currently available, it is recommended that the budget be amended to reflect updated anticipated fiscal activity through the end of the current fiscal year.
DISCUSSION
General Fund
The General Fund is the main operating fund of the City. For FY 2024, the General Fund budget included revenue appropriations of $50.7 million and expenditure appropriations of $55.9 million with the difference of $5.2 million funded from unassigned General Fund reserves. As of December 31, 2023, General Fund revenues totaled $20.8 million or 41% of the budgeted amount, and General Fund expenditures totaled $31.7 million, or 57.0 percent of the annual budget.
It is recommended that General Fund revenue appropriations be decreased by $4.6 million from $50.7 million to $46.1 million. This is largely a result of lower-than-expected revenues from sales tax, business license tax on card rooms, property transfer tax (both residential and commercial), building, plan check and inspection fees. High interest rates and a slowdown in construction activities have negatively impacted permit issuance for large development projects and transfer taxes.
Expenditure appropriations are projected to increase by $3.0 million from $55.9 million to $58.9 million. The increase is mainly due to $2.2 million payment to the IRS as a result of the executed closing agreement, and an $0.8 million increase in new labor contracts.
Non-General Funds
Non-General Funds include the Capital Improvement Program, Debt Services Fund, Enterprise Fund, Internal Service Fund, and the Successor Agency to the Former Redevelopment Agency Fund. The Non-General Funds represent restricted revenues and expenditures for special purposes.
Non-General Fund revenues are projected to increase by $3.5 million due largely to higher than anticipated investment returns, and expenditures are projected to increase by $1.5 million due to capital projects.
ADVISORY BODY REVIEW
The Budget and Governance Committee and Budget Advisory Committee reviewed the FY 2024 Mid-Year Budget on March 19th and 28th respectively. Both committees considered all the changes and accepted the staff’s recommendation.
Fiscal Impact
Please refer to Exhibit A for FY 2024 mid-year budget adjustments.
PREPARED BY: Lawrence Chiu, Finance Director
Approved and Forwarded to the
City Council of the City of Emeryville:
Paul Buddenhagen, City Manager
Attachments
Draft Resolution
Exhibit A - Fiscal Year 2024 Mid-Year Budget Adjustments City Council Meeting | April 16, 2024
FY 2024 Mid-Year Budget Review and Resolution Amending FY 2024 Budget
MEMORANDUM