STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 28, 2024
TO: Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
Edwin Gato, Director of Finance
SUBJECT: Public Hearing on Proposed FY 2024-25 City of Hercules Budget Plan including the First Year of the Ten Year 2025–34 Capital Improvement Plan (CIP) RECOMMENDED ACTION:
Open the Public Hearing, Receive the Staff Report, Take Public Testimony, and Continue the Public Hearing to June 11, 2024. It is recommended that the City Council discuss and provide policy direction, if any, to staff regarding the approval of the proposed FY 2024-25 Annual Budget.
BACKGROUND:
The City Council held a series of budget workshops to discuss and review the proposed Five-Year Capital Improvement Plan (CIP) and FY 2024-25 Annual Budget at their regular meeting on March 26 and April 23, respectively. This is the first public hearing of the entire recommended annual budget. Based on Council’s concurrence or alternative direction received this evening, the desired changes (if any) will be incorporated into the final FY 2024-25 Annual Budget and recommended for adoption by the Council on June 11, 2024.
DISCUSSION:
Aside from the overall assumptions used and discussed at the budget workshops, a list of significant budget increases is incorporated on page 37 of the budget documents. Since the budget discussion at the last meeting on April 23, 2024, the following requests have been added and incorporated into the proposed annual budget:
Incorporation of the Landscaping and Lighting Assessment District’s (LLAD) into the FY 2024-25 proposed annual budget (pages 90-96) based on the Preliminary Engineer’s Report.
The five LLADs in the city provide:
Well-maintained, attractive landscaping.
Serviceable streetlighting along public streets.
Fire breaks adjacent to open spaces.
They also provide for the upkeep of playgrounds, fields, park furniture, tennis courts, graffiti abatement, lighting, landscaping, water features, and trails in City parks. The expenses associated with the maintenance of these LLADs include labor, materials, equipment, utilities, repairs, and administration.
LLAD Coordinator
Staff recommend funding an LLAD Coordinator position to provide residents with better customer service and higher-level oversight of the landscaping and tree trimming contracts. Enhanced oversight and customer service would be gained through increased operational efficiency by having primarily one person assigned to this function instead of multiple people with other priorities related to buildings, sewers, and streets. Existing staff costs would be reallocated from the LLAD funds to the Facility Maintenance fund as there is a need to enhance the level of maintenance of public buildings. This reallocation will result in an approximate $106,000 increase to the Facility Maintenance fund. As a result of this reallocation, the addition of the LLAD Coordinator position will be cost-neutral for all LLADs, except for LLAD No. 83-2 (Zone 10), which will have an annual increase of approximately $70,000 given the need to improve and better maintain City Parks as identified in the recently adopted Parks Master Plan.
FY 2024-25 Annual Proposed Budget
The entirety of the proposed FY 2024-25 Annual Budget, including the City Manager’s Budget Message, is available online on the City’s website (www.ci.hercules.ca.us) and through the following link: https://www.ci.hercules.ca.us/government/finance/budgets The proposed FY 2024-25 Budget is a living document that is subject to change until it is finalized and adopted tentatively on June 11, 2024. This evening’s public hearing was noticed in the local newspaper on May 16, 2024. The purpose of the public hearing is to provide a formal opportunity for community input. In addition, additional questions or proposals from the City Council will be incorporated into additional Budget Referrals and brought back for the Continued Public Hearing on June 11, 2024. At the City Council meeting on June 11, 2024, when there will be an opportunity for additional public input, it is anticipated that the City Council will adopt a final budget.
FISCAL IMPACT OF RECOMMENDATION:
Presuming the Council approves all the changes and adopts all the proposed, the City is projected to end the year with a General Fund cumulative available balance of $1.9 million, and $4.9 million in operating reserve, which is equivalent to 25% of the General Fund budget. Non-General Fund will end the year as follows:
ATTACHMENTS:
FY 2024-25 Proposed Annual Budget
Date Page 1