DATE:
June 4, 2024
TO:
Mayor and Council Members
Chair and Board Members, Hesperia Housing Authority
Chair and Board Members, Hesperia Fire Protection District Chair and Board Members, Hesperia Water District
FROM:
Rachel Molina, City Manager
BY:
Casey Brooksher, Assistant City Manager
SUBJECT:
Fiscal Year (FY) 2024-25 Operating Budget Adoption
RECOMMENDED ACTION
It is recommended that the City Council/Board’s adopt the following Resolutions approving the FY 2024-25 Operating Budget for the City of Hesperia, Hesperia Housing Authority, Hesperia Fire Protection District, and Hesperia Water District:
City of Hesperia Resolution No. 2024-22 adopting the Fiscal Year 2024-25 Budget City of Hesperia Resolution No. 2024-23 adopting the GANN Appropriations Limit Hesperia Housing Authority Resolution HHA 2024-02 adopting the Fiscal Year 2024-25 Budget Hesperia Fire Protection District Resolution HFPD 2024-01 adopting the Fiscal Year 2024-25 Budget Hesperia Fire Protection District Resolution HFPD 2024-03 adopting the GANN Appropriations Limit Hesperia Water District Resolution HWD 2024-05 adopting the Fiscal Year 2024-25 Budget Joint Resolution No. 2024-21, HHA 2024-03, HFPD 2024-02, and HWD 2024-04 re-adopting the Financial Policies
BACKGROUND
In compliance with the City Council’s policy direction, staff has prepared the FY 2024-25 Operating Budget for the City of Hesperia, the Hesperia Housing Authority, Hesperia Fire Protection District, and the Hesperia Water District Board’s consideration and action. The information contained in this staff report follows two workshops regarding the City’s FY 2024-25 Operating Budget which began in May 2024.
ISSUES/ANALYSIS
The City Council/Board’s expenditure plan and related resources to fund the Fiscal Year (FY) 2024-25 Operating Budget have been presented and staff is available to answer questions that the legislative bodies may have. Included with this staff report and attached resolutions is the FY 2024-25 combined operating budget of $89,186,449, made up of: operating expenditures of $83,738,549, expenditures from non-operating funds of $1,773,211, capital outlay in operating funds of $1,095,200, and debt service of $2,579,489. The Capital Improvement Program (CIP) budget of $33,804,875 will be presented for City Council consideration on June 18, 2024. With both items combined, the FY 2024-25 Budget is proposed to be $122,991,324.
Staff requests authority to make technical corrections, minor edits, etc. to the FY 2024-25 Proposed Budget document to be incorporated into the final FY 2024-25 Budget as approved by the City Council.
Financial Policies
Resolutions are included to re-adopt the annual Financial Policies for the City. These policies, which follow current practices, will serve as guidelines for the financial management of the City; particularly in the area of budgeting, accounting for capital improvements, revenue, reserves, transfers of available budget within a fund, fiscal management, capital assets, long-term debt management, and Section 115 Trusts to address unfunded liabilities.
Gann Limit
Proposition 4, approved by California voters in 1979, requires cities and special districts to calculate and establish an appropriation limit each year. The limit is based on the actual appropriation in the fiscal year 1978-79 or year of incorporation, and increases with population growth and inflation. The FY 2024-25 Gann Limit for the City is $122,712,775 while the Fire District is $28,614,496.
CITY GOAL SUPPORTED BY THIS ITEM
Public Safety: Ensure public safety resources adequately protect our community.
Future Development: Facilitate balanced growth to ensure cohesive community development and pursue economic development.
Organizational Health: Foster a high performing organization that provides opportunities for professional growth.
Financial Health: Maintain a balanced budget and adequate reserves; and Capital Improvement: Continually evaluate capital improvement priorities.
FISCAL IMPACT
See Fiscal Year 2024-25 Proposed Budget.
ALTERNATIVE
Provide alternate direction to staff.
ATTACHMENTS
Resolution No. 2024-22
Resolution No. 2024-23
Resolution HHA 2024-02
Resolution HFPD 2024-01
Resolution HFPD 2024-03
Resolution HWD 2024-05
Joint Resolution No. 2024-21, HHA 2024-03, HFPD 2024-02, and HWD 2024-04 (Financial Policies) Exhibit A Financial Policies clean and track changes
Page PAGE \* Arabic \* MERGEFORMAT 2 of NUMPAGES \* Arabic \* MERGEFORMAT 3 Staff Report to the Mayor and City Council/Board Members Fiscal Year 2024-25 Operating Budget Adoption
June 4, 2024
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STAFF REPORT