Live, Work & Play
in Foster City
City of Foster City
Financial Services Dept.
Positive revenue growth trends for the fiscal year is expected to help reverse the projected General Fund deficit of $2.65 million instead of the budgeted amount of $5.6 million.
UNBUDGETED IMPROVEMENTS IN THE INTER-
EST INCOME, PROPERTY TAXES IN LIEU OF
VEHICLE LICENSING FEES, AND PERSONNEL
COSTS ARE DRIVING THE IMPROVED RESULTS
FOR FY 24/25.
Amended revenue and expenditure projections for
the full year are $64.8 million and $62.9 million re-
spectively. Property Tax revenues, including ERAF
refunds, are projected to reach $39.1 million. FY
2024-25 property tax in lieu of vehicle license fees
(VLF) is anticipated to be $4.6 million, which in-
cludes an unbudgeted payment of $1.4 million to
Foster City representing the shortfall from FY
2022-23. San Mateo County continues to work
with the State for a permanent solution for VLF
shortfalls.
Transient Occupancy Tax (TOT) is anticipated to
meet the budgeted amount of $4.7 million. The
City’s investment income is anticipated to exceed
budget assumptions of $1.6 million and is projected
to earn $2.2 million compared to $2.6 million in
the prior fiscal year.
At the 6-month mark, General Fund operating ex-
penditures were 49.3% of its amended budget or
$35.2 million and included 9 months of funding to
San Mateo Consolidated Fire Department for the
City’s shared costs for fire protection and preven-
tion services. The FY 2024-25 budget assumes full
staffing for the entire year. Normal vacancy rates
through the first six months are expected to con-
tinue until year end, resulting in lower than budgeted
personnel costs.
Overall, staff projects a $2 .65 million deficit at year end as opposed to the originally budgeted deficit of
$5.6 million. This updated projection includes ap-
proximately $1.2 million in unspent personnel cost at
the 6-months mark.
Expenditures for the City ’s other Governmental
Funds, Internal Service Funds, and the District’s Wa-
ter and Wastewater Funds are performing generally
as expected.
Foster City Financial
Update FY 24/25 Q2