Item #04
Date: June 18, 2024
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Adopt the City of Marysville’s Fiscal Year 2024-25 Budget and Appropriation Limits Recommendation:
Pass a Motion to 1) approve the Fiscal Year 2024-25 Budget, 2) adopt the Budget Resolution number 2024- XX, 3) approve the corresponding appropriation limits and 4) adopt the Appropriation Limits Resolution number 2024-XX.
Rationale for Recommendation:
Chapter 2.10.040(6) of Title 2 of the Marysville Municipal Code requires the City Manager to prepare and submit the preliminary annual operating and capital improvement budget to the council prior to June 30 of each year. The budget preparation process includes a thorough analysis of all revenue and expenditure for all City operating funds. It is standard and required by State law for local government to annually or biannually adopt an operating budget and appropriation limit for the fiscal year.
State law requires adopting a resolution that limits the level of most appropriations from tax sources that the state and most local government entities are permitted to make in any given year. The limit for each year is equal to the limit of the prior year, adjusted for changes in the cost-of-living and population.
Background:
On May 21, 2024, the first of two Fiscal Year 2024-25 Budget Workshop was presented by staff to the City Council. The week ending May 27, 2024, the City Manager and the Finance Director held one-on-one budget sessions with each Council Member as requested and in addition answered Council questions by phone as needed. Subsequently, on June 4, 2024, staff presented the proposed budget and requested direction from the Council. Per Council feedback, no changes were made to the budget presented on June 4, 2024.
The City of Marysville Fiscal Year 2024-25 Proposed Operation Budget includes $22.26 million in ongoing operating and non-recurring revenues and $23.59 million in ongoing operational and non-recurring expenditures. This is comprised of the City’s six Governmental fund type categories (General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Fiduciary Funds, and the Enterprise Funds). As of June 30, 2024, the City’s Starting General Fund Balance (unaudited) is projected at $7,375,181 with a projected June 30, 2025, Ending General Fund Balance of $5,425,752. For Fiscal Year 2024-25, the General Fund ongoing operating revenue and expenditures are projected to be $14.51 million and $14.17 million respectively for an ongoing operating surplus of $340,597. Also included in the General Fund budget are Item #04
non-recurring revenues and expenditures of $.99 million and $3.28 million respectfully for a projected expenditures over revenues of $2.29 million.
Discussion & Analysis:
The attached Executive Summary for the FY 2024-25 Budget offers greater details regarding the proposed budget. With no changes and/or additions to the budget since the June 4, 2024 City Council presentation, all budget details in the Executive Summary are a relevant and accurate portrayal of the proposed and staff proposed budget for Fiscal Year 2024-25.
Fiscal Analysis:
Adopting this budget will allow City management to expend City funds per Council approval and as outlined in the proposed Fiscal Year 2024-25 budget and based on projected revenues and expenses.
Attachments:
1. Resolution 2024-XX – Adopting a Fiscal Year 2024-25 Budget
2. Resolution 2024-XX – Adopting an Appropriations Limit for Fiscal Year 2024-25
3. Fiscal Year 2024-25 Appropriations Limit
4. Detail Budget Sheets
5. Executive Summary