Fiscal Year 2024-25 Mid-Year Budget Status Report – Major Funds 1 Fund
Projected Fund
Balance Mid-Year Requests
Projected Fund
Balance
%
Change Page
100 - General Fund $ 37,422,703.68 $ (965,897.00) $ 36,456,806.68 -3% 2-3 320 - Measure M $ 5,547,694.15 $ (238,497.00) $ 5,309,197.15 -4% 3 420 - Gas Tax $ 35,469.98 $ 98,161.00 $ 133,630.98 277% 4 530 - Fire Facilities Fees $ 5,979,952.38 $ 748,000.00 $ 6,727,952.38 13% 4 540 - Government Facilities Fees $ 42,282,210.35 $ 1,449,900.00 $ 43,732,110.35 3% 5 640 - Sewer O&M $ 986,593.81 $ (1,555,564.00) $ (568,970.19) -158% 6 680 - Water O&M $ (6,397,925.69) $ (951,231.00) $ (7,349,156.69) 15% 7 Fund Balance Summaries
ATTACHMENT 2
Fiscal Year 2024-25 Mid-Year Budget Status Report – Major Funds 2 Fund 100 - General Fund Current
Amended
Budget
Year-to-Date
Transactions
through 2/10/25
Mid-Year
Requests:
Proposed
Budget
%
Change
REVENUES
Sales Tax $ 18,967,207 $ 8,359,666 $ 516,727 $ 19,483,934 3% Property Tax $ 28,427,500 $ 8,289,638 $ (101,814) $ 28,325,686 0% Transient Occupancy Tax $ 7,700,000 $ 1,869,104 $ - $ 7,700,000 0% Overhead Allocation Transfer In $ 8,017,000 $ - $ - $ 8,017,000 0% Franchise Fees $ 2,150,000 $ - $ - $ 2,150,000 0%
Property Transfer Tax $ 640,000 $ 509,187 $ - $ 640,000 0% Licenses and Permits $ 1,935,000 $ 718,668 $ 120,000 $ 2,055,000 6% Other Taxes $ 810,000 $ 816,950 $ - $ 810,000 0%
Investment Earnings $ 1,000,000 $ (884,337) $ - $ 1,000,000 0% Public Safety Programs $ 2,955,000 $ 1,302,979 $ - $ 2,955,000 0% Public Works Programs $ 146,800 $ 66,527 $ - $ 146,800 0% Recreation Programs $ 40,000 $ 34,656 $ - $ 40,000 0%
Rental Property $ 492,000 $ 474,356 $ 42,000 $ 534,000 9% State/County Grants $ 365,000 $ 279,992 $ - $ 365,000 0% Federal Grants $ - $ - $ - $ - 0%
Other Revenue $ 141,500 $ 324,021 $ 69,500 $ 211,000 49% Transfers $ - $ - $ 24,640 $ 24,640 0%
Total Revenues $ 73,787,007 $ 22,161,407 $ 671,053 $ 74,458,060 1%
EXPENDITURES BY CATEGORY
Salaries and Benefits $ 45,131,487 $ 23,878,943 $ 874,850 $ 46,006,337 2% Operating $ 26,982,764 $ 9,017,874 $ 762,100 $ 27,744,864 3% Capital $ 4,137,161 $ 547,636 $ - $ 4,137,161 0%
Transfers $ 1,281,500 $ - $ - $ 1,281,500 0%
Total Expenditures $ 77,532,912 $ 33,444,453 $ 1,636,950 $ 79,169,862 2%
EXPENDITURES BY DEPARTMENT
City Attorney $ 1,561,422 $ 668,952 $ - $ 1,561,422 0%
City Clerk $ 1,590,255 $ 520,088 $ - $ 1,590,255 0%
City Manager $ 4,879,291 $ 2,161,553 $ 363,200 $ 5,242,491 7% Engineering $ 321,008 $ 116,156 $ - $ 321,008 0%
Finance $ 3,264,674 $ 1,352,240 $ 69,469 $ 3,334,143 2% Fire Department $ 13,659,251 $ 7,561,120 $ 420,280 $ 14,079,531 3% Human Resources $ 1,459,302 $ 607,074 $ - $ 1,459,302 0% Non Departmental $ 12,361,731 $ 3,949,726 $ 37,500 $ 12,399,231 0% Police Department $ 26,005,664 $ 11,868,729 $ 499,585 $ 26,505,249 2% Public Works $ 11,682,130 $ 4,270,139 $ 246,752 $ 11,928,882 2% Recreation & Community Services $ 748,184 $ 368,676 $ 164 $ 748,348 0% Total Expenditures $ 77,532,912 $ 33,444,453 $ 1,636,950 $ 79,169,862 2% Surplus/Deficit $ (3,745,905) $ (11,283,046) $ (965,897) $ (4,711,802) Projected Fund Balance $ 37,422,704 $ 36,456,807
Fiscal Year 2024-25 Mid-Year Budget Status Report – Major Funds 3 100 – General Fund (continued)
Revenue Commentary
Expenditure Commentary
• Overall, the proposed adjustments result in a $965k deficit; however, the General Fund can remain stable due to expected vacancy savings that can offset the deficit.
• Sales taxes have been flat for the last 2 years. There is a one-time tax allocation correction from the County this fiscal year that was unexpected. If it weren't for this one-time allocation, sales taxes would have decreased by 2% from last fiscal year. • Property tax budget was adjusted by less than 1% in line with the most recent reports from our consultant. Home sales pulled back in June, although there has been a moderate increase in median sale prices from a year ago resulting in a projected a 4% increase in FY25 over FY24.
• Additional increases under other revenue include adjustments for economic conditions. • Adjustments to salaries and benefits are related to retiree health benefit allocations and retiree payouts. Accurately accounting for these obligations will ensure future budgets reflect the true financial commitment to retirees. • Increases to operations include fuel, utilities and bank fees. • Small business grants through the Economic Development Programs are moving out of Development Services and into the General Fund.
Fund 320 - Measure M Public Safety Tax
Adopted
Budget
Current
Amended
Budget
Year-to-Date
Transactions
through
2/10/25
Mid-Year
Requests
Proposed
Budget % Change
REVENUES
Investment Earnings $ 50,000 $ 50,000 $ - $ - $ 50,000 0% Sales Tax $ 10,178,497 $ 10,178,497 $ 408,146 $ (171,497) $ 10,007,000 -2% Total Revenues $ 10,228,497 $ 10,228,497 $ 408,146 $ (171,497) $ 10,057,000 -2%
EXPENDITURES
Salaries/Benefits $ 9,937,850 $ 10,163,202 $ 5,251,731 $ 67,000 $ 10,230,202 1% Operations $ 204,358 $ 204,358 $ 11,921 $ - $ 204,358 0% Capital $ - $ 162,262 $ 11,347 $ - $ 162,262 0%
Total Expenditures $ 10,142,208 $ 10,529,822 $ 5,274,999 $ 67,000 $ 10,596,822 1% Surplus/Deficit $ 86,289 $ (301,325) $ (4,866,853) $ (238,497) $ (539,822) Projected Fund Balance $ 5,935,308 $ 5,547,694 $ 5,309,197 Commentary
The Public Safety Sales Tax Fund is projected to decrease by 2%, signaling potential financial challenges. This decline is due to lower-than-expected public safety sales tax revenues, economic shifts, and changes in spending patterns. The increase in salaries and benefits covers a retirement payout. If this trend continues, it could impact the fund's ability to support critical public safety services, requiring adjustments such as cost controls, alternative funding sources, or budget reallocations to maintain stability.
Fiscal Year 2024-25 Mid-Year Budget Status Report – Major Funds 4 Fund 420 - Gas Tax/Street Improvement
Adopted
Budget
Current
Amended
Budget
Year-to-Date
Transactions
through
2/10/25
Mid-Year
Requests
Proposed
Budget % Change
REVENUES
Intergovernmental Revenues $ 2,427,457 $ 2,427,457 $ 1,613,790 $ 130,177 $ 2,557,634 5% Investment Earnings $ 8,000 $ 8,000 $ - $ 8,000 0%
Other Revenue $ - $ - $ 250 $ - 0%
Total Revenues $ 2,435,457 $ 2,435,457 $ 1,614,040 $ 130,177 $ 2,565,634 5%
EXPENDITURES
Salaries/Benefits $ 1,804,282 $ 1,826,014 $ 825,389 $ 2,016 $ 1,828,030 0% Operations $ 1,775,386 $ 1,775,516 $ 528,562 $ 30,000 $ 1,805,516 2% Capital $ - $ 34,324 $ 1,688 $ 34,324 0%
Total Expenditures $ 3,579,668 $ 3,635,854 $ 1,355,640 $ 32,016 $ 3,667,870 1% Surplus/Deficit $ (1,144,211) $ (1,200,397) $ 258,400 $ 98,161 $ (1,102,236) Projected Fund Balance $ 91,656 $ 35,470 $ 133,631
Commentary
Gas tax revenues are projected to increase by 5%. The increase to salaries and benefits is an adjustment for retiree health benefits and the increase to operations is to cover an increase for fuel. This fund continues to have limited reserves, leaving little cushion for unexpected costs. Staff are developing a plan to address the limited reserves.
Fund 530 - Fire Facilities Fees
Adopted
Budget
Current
Amended
Budget
Year-to-Date
Transactions
through
2/10/25
Mid-Year
Requests
Proposed
Budget % Change
REVENUES
Charges for Services $ 813,000 $ 813,000 $ 1,016,137 $ 748,000 $ 1,561,000 92% Investment Earnings $ - $ - $ - $ - 0%
Other Revenue $ - $ - $ - $ - 0%
Total Revenues $ 813,000 $ 813,000 $ 1,016,137 $ 748,000 $ 1,561,000 92%
EXPENDITURES
Salaries/Benefits $ - $ - $ - $ - $ - 0%
Operations $ 30,000 $ 30,000 $ 14,715 $ 30,000 0%
Capital $ - $ 357,571 $ 11,410 $ 357,571 0%
Total Expenditures $ 30,000 $ 387,571 $ 26,125 $ - $ 387,571 0% Surplus/Deficit $ 783,000 $ 425,429 $ 990,013 $ 748,000 $ 1,173,429 Projected Fund Balance $ 6,337,523 $ 5,979,952 $ 6,727,952 Commentary
The increase to revenues includes moving approximately $250,000 of Government Facilities funding to Fire Facilities, and unanticipated increases due to incredibly strong development growth.
Fiscal Year 2024-25 Mid-Year Budget Status Report – Major Funds 5 Fund 540 - Government Facilities Fees
Adopted
Budget
Current
Amended
Budget
Year-to-Date
Transactions
through
2/10/25
Mid-Year
Requests
Proposed
Budget % Change
REVENUES
Charges for Services $ 3,550,100 $ 3,550,100 $ 4,656,312 $ 1,449,900 $ 5,000,000 41% Investment Earnings $ - $ - $ - $ - 0%
Other Revenue $ - $ - $ - $ - 0%
Total Revenues $ 3,550,100 $ 3,550,100 $ 4,656,312 $ 1,449,900 $ 5,000,000 41%
EXPENDITURES
Salaries/Benefits $ - $ - $ - $ - $ - 0%
Operations $ - $ 120,360 $ - $ 120,360 0%
Capital $ - $ 1,151,840 $ 28,750 $ 1,151,840 0%
Total Expenditures $ - $ 1,272,200 $ 28,750 $ - $ 1,272,200 0% Surplus/Deficit $ 3,550,100 $ 2,277,900 $ - $ 1,449,900 $ 3,727,800 Projected Fund Balance $ 43,554,410 $ 42,282,210 $ - $ 43,732,110 Commentary
Development has been incredibly stronger than anticipated resulting in better-than-expected revenues. Approximately $250,000 is moving to Fire Factilities Fees as a correction.
Fiscal Year 2024-25 Mid-Year Budget Status Report – Major Funds 6 Fund 640 - Sewer O&M
Adopted
Budget
Current
Amended
Budget
Year-to-Date
Transactions
through
2/10/25
Mid-Year
Requests
Proposed
Budget % Change
REVENUES
Charges for Services-Public Works$ 19,320,500 $ 19,320,500 $ 8,707,181 $ 19,320,500 0% Intergovernmental Grants-State/County $ - $ - $ - $ - 0% Investment Earnings $ 200,000 $ 200,000 $ - $ 200,000 0% Other Revenue $ 85,000 $ 85,000 $ 75,995 $ 85,000 0%
Total Revenues $ 19,605,500 $ 19,605,500 $ 8,783,176 $ - $ 19,605,500 0%
EXPENDITURES
Salaries/Benefits $ 7,875,199 $ 7,971,319 $ 3,607,960 $ 12,967 $ 7,984,286 0% Operations $ 12,653,931 $ 13,106,701 $ 4,697,788 $ 660,329 $ 13,767,030 5% Capital $ 3,890,000 $ 27,602,679 $ 3,512,225 $ 27,602,679 0% Debt Service $ 1,219,986 $ 1,219,986 $ 907,833 $ 1,219,986 0% Transfers Out $ 882,268 $ 882,268
Total Expenditures $ 25,639,116 $ 49,900,685 $ 12,725,805 $ 1,555,564 $ 51,456,249 3% Surplus/Deficit $ (6,033,616) $ (30,295,185) $ (3,942,629) $ (1,555,564) $ (31,850,749) Projected Fund Balance $ 25,248,163 $ 986,594 $ (568,970) Commentary
The Sewer Fund currently has no expected revenue increases, but proposed expenditures are rising. The increase to salaries and benefits is an adjustment for retiree health. The operations increase is moving current budget for the Sewer Master Plan and Rate Study (CIP 22040) from PFIP Sewer (Fund 630) to this account along with small adjustments for bank fees and fuel. The 882k transfer is paying back PFIP Sewer (Fund 630) for expenses occuring in previous year and correcting fund balances. To address future challenges, a rate study has been completed that will help ensure the fund's longterm sustainability and ability to cover needs.
Fiscal Year 2024-25 Mid-Year Budget Status Report – Major Funds 7 Fund 680 - Water O&M
Adopted
Budget
Current
Amended
Budget
Year-to-Date
Transactions
through
2/10/25
Mid-Year
Requests
Proposed
Budget % Change
REVENUES
Charges for Services $ 13,105,000 $ 13,105,000 $ 6,537,723 $ 13,105,000 0% State/County Grants $ - $ - $ 2,207,428 $ - 0%
Investment Earnings $ 100,000 $ 100,000 $ - $ 100,000 0% Other Revenue $ 35,000 $ 35,000 $ 107,751 $ 35,000 0%
Total Revenues $ 13,240,000 $ 13,240,000 $ 8,852,901 $ - $ 13,240,000 0%
EXPENDITURES
Salaries/Benefits $ 6,017,878 $ 6,094,654 $ 2,914,186 $ 30,991 $ 6,125,645 1% Operations $ 13,194,204 $ 13,441,685 $ 4,548,473 $ 920,240 $ 14,361,925 7% Capital $ 205,500 $ 5,435,470 $ 1,903,177 $ 5,435,470 0% Debt Service $ 1,133,325 $ 1,133,325 $ 204,146 $ 1,133,325 0% Total Expenditures $ 20,550,907 $ 26,105,134 $ 9,569,982 $ 951,231 $ 27,056,365 4% Surplus/Deficit $ (7,310,907) $ (12,865,134) $ (717,081) $ (951,231) $ (13,816,365) Projected Fund Balance $ (843,699) $ (6,397,926) $ (7,349,157) Commentary
The Water Fund currently has no expected revenue increases, but proposed expenditures are rising. The increase to salaries and benefits is an adjustment for retiree health. The proposed operations increase covers fuel, bank fees, and utility increases. To address future challenges, a rate study has been completed that will help ensure the fund's long-term sustainability and ability to cover needs.