DATE:
April 1, 2025
TO:
LaTanya Bellow, City Manager
FROM:
Lilybell Nakamura, Acting Finance Director
Brian Moura, Regional Government Services (Finance Consultant) SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Amending The Fiscal Year 2024-25 Budget, Amending City Financial Policies, And Transferring Funds And Assigning Funds
RECOMMENDATION
Staff recommends that the City Council review and discuss the proposed Detailed Mid-Year Budget Adjustments and act on this item.
BACKGROUND
The City of Emeryville has a 2-Year Budget process that includes the City’s Operating Budget which covers day-to-day City operations. The 2-Year Budget is updated midway through the 2-year period. It is made up of General Fund and Non-General Fund revenues.
On June 6, 2023, the City Council approved the 2 Year City Budget covering the 2023-24 fiscal year (ending June 30, 2024) and the 2024-25 fiscal year (that will end on June 30, 2025). The General Fund portion of each of these budgets included a projected deficit where expenditures exceeded revenues.
On March 4, 2025, the City Council reviewed the General Fund portion of the 2024-25 City Budget. At that meeting, the Council approved several budget amendments to bring the General Fund into balance for the current fiscal year.
The Finance Department has prepared Detailed Mid-Year Budget Adjustments for the General Fund, which reflects the amendments approved in March. They have also prepared additional amendments for the General Fund portion of the City Budget and the Other Funds in the City Budget. These are now being submitted to the City Council.
DISCUSSION
General Fund Detailed Mid-Year Budget Adjustments
The Detailed Mid-Year Budget Adjustments for the General Fund include the amendments approved by the City Council in March.
The proposed adjustments also include two key changes. An increase in the Commercial Property Transfer Tax estimate to reflect the purchase by Sutter Medical Foundation of several parcels formerly owned by BioMed. The property transfer tax payment by Sutter was $11,230,000 which raised this revenue estimate to $11,330,500.
It should be noted that Sutter Medical Foundation is a Non-Profit Health Foundation under California State Law. This means that Sutter will be exempt from paying Property Taxes and Business License Taxes now that it has title to this property. That will impact revenue estimates in future years for the City General Fund and the Emeryville Successor Agency.
The other key change is a reduction in the estimate of Business License Tax revenues. Business License Tax renewals are currently 30% below the prior fiscal year. To reflect that change, Finance has reduced the Business License tax estimate from $5.8 Million to $5.1 Million. This revenue will continue to be monitored in the weeks ahead to see if additional follow-up and audit and collection work is needed.
The Detailed General Fund Mid-Year Adjustments are shown in Attachment 1.
Detailed Mid-Year Budget Adjustments in Other Funds
Finance has also prepared Detailed Mid-Year Budget Adjustments for all other funds in the City Budget. These are shown in Attachment 2.
Key changes in these adjustments include an increase in Investment Earnings in several funds, reflecting an increase in Investment Earnings in the current year. The changes also reflect receipt of a $13 Million Grant from the Metropolitan Transportation Commission (MTC) for the 40th Street Project and the rollover of prior year appropriations into the current year Capital Projects funds.
Approved and Forwarded to the
City Council of the City of Emeryville:
LaTanya Bellow, City Manager
Attachments
Resolution Adopting Detailed Mid-Year Budget Adjustments & Amending the 2024-25 Budget Exhibit A - 2024-25 Detailed Mid-Year Adjustments – General Fund Exhibit B - 2024-25 Detailed Mid-Year Adjustments – Other Funds Adopting 2024-25 Detailed Mid-Year Adjustments & Amending the 2024-25 Budget City Council Meeting | April 1, 2025
MEMORANDUM