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 $307,000 instead of the budgeted amount of $5.6 million.
UNBUDGETED IMPROVEMENTS IN THE INTER-
EST INCOME, PROPERTY TAXES IN LIEU OF
VEHICLE LICENSING FEES, BUSINESS LICENSE
TAX (BLT), PERMITS REVENUE AND PERSON-
NEL COSTS ARE DRIVING THE IMPROVED RE-
SULTS FOR FY 24/25.
Amended revenue and expenditure projections for
the full year are $67.1 million and $61.7 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
be at $4.3 million, approximately $400,000 lower
than the projected amount. The City’s investment
income is anticipated to exceed budget assump-
tions of $1.6 million and is projected to earn $2.1
million compared to $2.6 million in the prior fiscal
year.
At the 9-month mark, General Fund operating ex-
penditures were 73.9% of its amended budget or
$46.5 million and included the full year 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 9- months mark are expected to contin-
ue until year end, resulting in lower than budgeted
personnel costs.
Overall, staff projects a $ 307,000 deficit at year end as opposed to the originally budgeted deficit of $5.6
million. This updated projection includes approxi-
mately $1.2 million in unspent personnel cost at the
9-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 Q3