STAFF REPORT
City of Lancaster
PH 1
6/11/2024
JC
Date:June 11, 2024
To: Mayor Parris and City Council Members
From: Jason Caudle, City Manager
George Harris, Director of Finance
Subject:Proposed Fiscal Year 2024-2025 Budgets and Five-Year Capital Improvement Program.
Recommendation:
City Council and City Council acting as Lancaster Housing Authority, Lancaster Choice Energy, and Lancaster Power Authority conduct the public hearing and direct staff to schedule the Proposed Fiscal Year 2024-2025 Budget and Five-Year Capital Improvement Plan (CIP) adoption for June 25, 2024.
Fiscal Impact:
The City of Lancaster's Proposed Fiscal Year 2024-2025 Budget and Five-Year CIP totals $281.9 million, including $6.4 million for the Capital Improvement Program (CIP) and $16.2 million in transfers out.
Background:
City of Lancaster Budget
By July 1 of each year, the City is required to adopt a budget, which establishes appropriations and estimates revenue for the coming fiscal year. The proposed budget is the culmination of many months of work by the City Council and staff in reviewing priorities and evaluating programs, with a focus on maintaining responsive and relevant services for residents.
City Council’s priorities addressing:
•Sound fiscal foundation and resilience;
•Protect city infrastructure.
•Public safety;
•Economic development; and
•New facilities, programs, and services.
The following table summarizes the proposed citywide budget:
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Expenditures by Category
FY 25 Proposed
Budget
Personnel $60.7M
Operations & Maintenance 187.7M
Debt Service 10.8M
Transfers 16.2M
Capital Projects 6.4M
TOTAL $281.9 M
Estimating revenues for the upcoming fiscal year and forecasting out-years is essential. By reviewing past years’ actual revenue receipts, new revenue sources, fee-based program and service projections, grant opportunities, and the State’s economic outlook, the City is able to determine the revenues available for spending allocations best. The City estimated FY 2024-2025 revenues and transfers in total of $334,171,615.
The City’s largest unrestricted funding source is the General Fund, which totals $116,017,931, including transfers in. General Fund resources include property tax, sales tax, fees, grants, and others. Sales Tax and Measure LC are the top General Fund sources, projected at $48.5 million.
The proposed General Fund appropriations total $115.6 million, including transfers out.
The City of Lancaster desires to maintain a prudent level of financial resources to guard its residents against service disruption in the event of unexpected, temporary revenue shortfalls or unanticipated expenditures. Reserves accumulated during years when revenues exceeded expenditures cushion the City’s transition to a lower revenue base and allow the City to adjust spending in response to economic downturns, emergencies, State revenue takeaways, and/or investment opportunities. The Proposed FY 2024-2025 Budget greatly recognizes and strengthens the City Council’s priority of fiscal prudence and discipline, with reserves totaling approximately 40% ($46.4M).
To continue transforming the City, we must continue focusing on its infrastructure; we accomplish this through our Capital Improvement Program (CIP). We are persistent in our aggressive, proactive approach to completing all projects. The CIP for the Proposed FY 2024-2025 Budget adds an additional $6.4 million to the existing CIP.
The Proposed FY 2024-2025 Budget addresses community needs while maintaining healthy General Fund Reserves that will enable the City to continue providing the community with a full scope of high-quality municipal services, programs, and special events that enhance the quality of life of all Lancaster residents. It will also provide the required resources to construct significant capital improvement projects to improve infrastructure and facilities and beautify the community.
The City’s Proposed Fiscal Year 2024-2025 Budget and Five-Year Capital Improvement Plan, Proposed Fiscal Year 2024-2025 Budget will be presented to the City Council for final adoption on June 25, 2024.
Attachment:
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City of Lancaster Proposed Fiscal Year 2024-2025 Budget – available on the City’s website and on file in the City Clerk Department.