City of Fullerton, CAJune 4, 2024
FY 2024-25 Adoption of Operating Budget, Appropriations Limit & Master Schedule of Fees and Charges
FY 2024-25 Proposed Budget
All City Funds Proposed Budget
FY 2024-25 Proposed General Fund Budget
Capital Improvement Plan (CIP) / Infrastructure
Recommendations
2 FY 2024-25 Proposed Budget Highlights
Proposed All Funds Budget ~ $285.7 million
General Funds, Enterprise Funds, Special Revenues Funds, Internal Services Funds, Successor Agency Fund Capital Improvement Program (CIP) Fund
Proposed General Fund Budget ~ $132.9 million
Public Safety ~ Enhanced Service levels and Investment in Safety Equipment Investment in the Labor Workforce
Return of Key Community Events ~ Fourth of July, First Night & Hunt Library 17% Contingency Reserve levels anticipated for FY 2024-25 Includes direction provided at Budget Study Session on 4/23/24 Proposed CIP Budget ~ $49.2 million
3 FY 2024-25 Proposed All Funds Budget ~ $285.7 Million 4 All Funds by Fund Type
FY 24-25
Proposed
General Fund
132,859,319
Special Revenue Funds
36,752,839
Water Fund (Operating Only)
40,002,253
Other Enterprise Funds (Operating Only)
11,579,044
CIP Program
49,227,050
Successor Agency
15,242,396
All Funds Expenditures Total
$285,662,901
All Funds Revenues Total
$271,116,514
Designated Funds for Capital Projects
17,145,440
All Funds Revenues and Capital Designated
$288,261,954
Changes from Budget Study Session
5 General Fund Expenditure Adjustments
Add Library Part-Time Staffing ~ Increase Library hours Add 1 FTE Economic Development Project Manager ~ To enhance the City’s economic development efforts beginning in January 2025.
CIP Budget Adjustments $7.6 million
Streets Projects ~ Adds million of State and Federal earmarks for Nutwood Mobility Project ($7.1M) & Harbor Complete Streets Project ($0.3M) plus City match ($0.2M) Facility Projects ~ Adds $2.5 million Federal earmark for PD Renovation Project.
FY 2024-25 General Fund Revenues of $127.7 Million
6 $127.7 M
FY 2024-25 General Fund Revenues
General Fund Revenues $127.7 Million – $7.0 million (or 5.8%) increase Property Tax – $58.0 million; $3.4 million increase
Diverse & stable property tax base
Strong assessed valuations & RDA property tax receipts
Sales Tax – $30.5 million
Flat growth due to stabilization of the economy
Diverse economic sales tax base
TOT – $3.4 million
Slight projected decrease
Charges for Services – $14.3 million; $2.4 million increase Cost Recovery for Fire User Fees
Ambulance billing revenue
7 FY 2024-25 General Fund Expenditures of $132.9 Million 8 FY 2024-25 General Fund Expenditures
General Fund Expenditures $132.9 Million – Increase of $12.0 million (9.9%) from FY 2023-24.
Salaries & Benefits – $7.3 million increase
Approved Labor Agreements with all Labor Groups
CalPERS Pension UAL – Rising UAL amortization
Maintenance & Operations – $1.3 million increase
Current inflationary environment & cost of doing business Internal Service Fund (ISF) Allocations – $3.3 million increase Labor driven ISF funds, agreement and software increases General Fund Transfers Out (Non-Operating)
Streets Infrastructure ~ $3 million (General & Infrastructure Funds) to Residential Streets IT Fund ~ $1.6 million for critical IT replacement and upgrade projects 9 FY 2024-25 Proposed General Fund Budget
10 Fiscal Challenges
Expenditures are Outpacing Revenue
Budget impacts from maintaining competitive salaries in region with approved labor agreements Even with Pension reform, Unfunded Actuarial Liability (UAL) remains high due to external factors (i.e., legislation, lowering the discount rate, investment strategies, etc.) Historically high inflationary environment & higher cost of doing business Aging City Infrastructure
In First Quarter of 2025, the City Manager will bring alternatives to be explored including cost efficiencies and alternative revenues 11 CIP / Infrastructure Projects
12 FY 2024-25 Proposed CIP Budget
13 CIP Project Category
FY 24-25
Proposed
Street Rehabilitation
8,000,000
Street Rehabilitation – State & Federal Earmarks
7,645,000
Utility – Water System
20,225,000
Utility - Sewer and Storm Drain Systems
1,700,000
Traffic Systems
1,234,050
Airport
1,173,000
City Facilities (Buildings, Accessibility, etc.)
1,800,000
City Facilities – Federal Earmark
2,500,000
Parks
4,550,000
Misc. Projects (Sidewalk, PMP, etc.)
400,000
Total Proposed CIP Budget
$49,227,050
CIP / Infrastructure Projects
Street Rehabilitation Projects ~ $15.6 million in FY 2024-25 $8.0 million from SB1 Gas Tax, Measure M2 and General Funds $7.6 million in approved State and Federal Earmarks:
$7.1 million State earmark for Nutwood Mobility Project $0.3 million Federal earmark for Harbor Complete Streets Project $0.2 million in City matching funds
Arterial Streets: Placentia Ave & 1 other major arterial street Residential Streets: Maplewood Area, Hermosa Area & other identified streets. 14 CIP / Infrastructure Projects
Water Infrastructure Planned Projects ~ $20.2 million
Water Main replacements with PFAS issues
Reservoir rehabilitation
Sewer & Storm Drain Planned Projects ~ $1.7 million
Storm Drain Repair and Rehabilitation
Curb, Gutter and Sidewalk Reconstruction
15 CIP / Infrastructure Projects
Traffic Systems Projects ~ $1.2 million
Traffic Signal upgrades and repairs
Street Light conversion analysis
City Facilities Projects (incl. Airport and Parks) ~ $10.4 million Supported by Infrastructure, Facility Capital, Park Dwelling & grant funds.
Airport Hangars rehabilitation with $1.2 million FAA grant Various City facilities and ADA improvements (Infrastructure funds) Independence Park and Lions Field
New $2.5 million Federal earmark for PD Renovations Project. 16 GANN Limit and Fee & Charges Schedule
17 Annual Appropriations or GANN Limit
City is in compliance & under limit pursuant to CA State law.
Resolution to approve GANN Limit for FY 2024-25.
FY 2024-25 Master Fee & Charges Schedule
Fee and Charges Schedule adopted annually.
Includes Administrative fee changes, previously approved user fees & cost recover adjustments for higher cost of doing business.
Recommendation
It is recommended that the City Council approve and adopt the following resolutions:
Resolution 2024-XXX - A Resolution of the City Council of the City of Fullerton, California, Approving and Adopting the City of Fullerton’s Operating Budget for Fiscal Year 2024-25 and Appropriating the Funds Necessary to Meet the Expenditures Set Forth Therein Resolution 2024-XXX - A Resolution of the City Council of the City of Fullerton, California, Adopting the Annual Appropriations Limit for Fiscal Year 2024-25 Pursuant to Article XIII B of the California State Constitution Resolution 2024-XXX - A Resolution of the City Council of the City of Fullerton, California, Adopting the City of Fullerton’s Master Schedule of Fees and Charges for Fiscal Year 2024-25 18