FY 2024/25 Mid-Year
Budget Update
City Council Meeting
March 18, 2025
1 City Budget and Financial Position – FY 2023/24
The City ended FY 2023/24 with a $2.7 million General Fund surplus. 2 Description In Thousands
Revenue (Recurring) $290,289
Revenue (One-Time) * 2,276
Planned Use of Reserves 4,900
Total Sources of Funds $297,465
Expenditures less UAL 266,694
CalPERS UAL 4,643
POB Payment 13,255
One-Time Expenditures** 6,038
Total Expenditures $290,630
Other Restricted Changes in General Fund Balance*** 4,119 General Fund (Fund 100) Surplus $2,716
* FY 23/24 one-time revenue consists of $2.3M for Emerald Cove Superior Court Judgment ** Includes $4.9M for AES Transfer and $1.1M Transfer of 50% of Emerald Cove settlement to the General Liability Fund *** Includes adjustments to YE Market Value and set-asides for Ocean View Estates and General Plan Maintenance City Budget and Financial Position – FY 2024/25
The California unemployment rate increased slightly from 5.3% in September to 5.4% in October 2024, a full percentage point above pre-pandemic levels. Economic uncertainty stemming from higher business operating costs and potential tariffs could exert upward pressure on prices, driving down sales transactions.
• Property tax revenues, the City’s largest General Fund revenue source (35.8%), remains strong, with a 4.5% citywide growth in value in the 2024-25 assessment roll. • Sales tax revenues, the City’s second largest General Fund revenue source (17.7%), is projected to decline from the budgeted amount of $53.5 million. Revised projections based on Q4 2024 will be available in the upcoming weeks. • In October 2024, the City was awarded a $5 million settlement from Amplify for the 2021 Oil Spill.
3 City Projected Financial Position – FY 2024/25
4 * FY 24/25 one‐time consists of the General Fund portion of the first payment of the Waterfront Loan Settlement ($6.9M) and the Oil Spill Settlement ($4M).
** Planned use of reserves includes YTD approved use of HB Recovery Reserves for the Oil Well Abandonment Project. *** One-time expenditures includes transfers out of the Waterfront Loan Settlement ($6.9M), transfers out of 25% of the Oil Spill Settlement to the Section 115 Trust ($1M) per the City's current Reserve Policies, and estimated costs for the Special Election ($1.3M).
Description In Thousands
Revenue (Recurring) $293,540
Revenue (One-Time) * 10,877
Planned Use of Reserves ** 1,890
Total Sources of Funds $306,307
Expenditures less UAL 274,598
CalPERS UAL 5,215
POB Payment 13,106
One-Time Expenditures *** 11,090
Total Expenditures $304,009
General Fund (Fund 100) Surplus $2,298
NOTE: City Council is reviewing the City's
Reserve Policies. The $2.3M surplus
shown above illustrates the year-end
surplus should the $4M Oil Spill
Settlement revenues be used to cover
recurring General Fund expenditures.
General Fund Long-Term Financial Plan
9.5% CalPERS Return FY23/24
5 * FY 23/24 one-time revenue consists of $2.3M for Emerald Cove Superior Court Judgment. FY 24/25 one‐time consists of the General Fund portion of the first payment of the Waterfront Loan Settlement. ** Future CalPERS UAL Costs are estimated using the most recent CalPERS investment return of 9.5% in FY 23/24. (in thousands) Actual
FY23/24
Projected
FY24/25
Projected
FY25/26
Projected
FY26/27
Projected
FY27/28
Projected
FY28/29
Revenue (Recurring) 290,289 293,540 296,455 303,967 311,720 320,019 Revenue (One-Time)* 2,276 10,877 - - - -
Planned Use of Reserves 4,900 1,890 - - - -
Total Sources of Funds 297,465 306,307 296,455 303,967 311,720 320,019 Expenditures less UAL 266,694 274,598 282,175 290,563 297,958 304,813 CalPERS UAL ** 4,643 5,215 10,305 13,290 16,262 19,222
POB Payment 13,255 13,106 12,750 12,537 12,384 12,229
One-Time Expenditures 6,038 11,090 - - - -
Total Expenditures 290,630 304,009 305,230 316,390 326,604 336,264 Restricted Reserves 4,119 - - - - -
Surplus/(Deficit) $2,716 $2,298 ($8,775) ($12,423) ($14,884) ($16,245) Questions?