Report to City Council
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TO: Mayor and City Council
Mayor and City Council Acting in its Capacity as
President and Members of the Board of Directors of
the Moreno Valley Community Services District (CSD)
Mayor and City Council Acting in its Capacity as
Chairman and Commissioners of the Moreno Valley
Housing Authority (HA)
Mayor and City Council Acting in its Capacity as
Members of the Moreno Valley Successor Agency (SA)
Mayor and City Council Moreno Valley Community
Foundation (MVCF)
FROM: Launa Jimenez, Assistant City Manager
(Administration)/Chief Financial Officer/City Treasurer
AGENDA DATE: March 4, 2025
TITLE: FISCAL YEAR 202 4/25 MID-YEAR OPERATING & CIP
BUDGET REVIEW AND APPROVAL OF THE MID-YEAR
OPERATING & CIP BUDG ET AMENDMENTS
(FINANCIAL & MANAGEMENT SERVICES)
TITLE SUMMARY: Fiscal Year 2024/25 Mid -Year Operating & CIP Budget Review and Approval of the Mid -Year Operating & CIP
Budget Amendments
Recommendation(s)
That the City Council:
1. Receive and file the Fiscal Year (FY) 2024/25 Mid-Year Operating Budget Review.
2. Receive and file the Fiscal Year (FY) 2024/25 Mid-Year CIP Budget Review.
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3. Adopt Resolution No. 2025 -XX. A resolution of the City Council of the City of Moreno Valley, California, adopting the revised operating and CIP budgets for Fiscal Year 2024/25
4. Approve the Moreno Valley Community Foundation Budget.
That the CSD:
1. Adopt Resolution No. CSD 2025-XX. A resolution of the City Council of the City of Moreno Valley, California, adopting the revised operating and CIP budgets for Fiscal Year 2024/25.
That the Housing Authority:
1. Adopt Resolutio n No. HA 2025 -XX. A resolution of the City Council of the City of Moreno Valley, California, adopting the revised operating and CIP budgets for Fiscal Year 2024/25.
That the Moreno Valley Community Foundation:
1. Adopt Resolution No. MVCF 2025 -XX. A reso lution of the City Council of the City of Moreno Valley, California, adopting the revised operating and CIP budgets for Fiscal Year 2024/25.
That the City Council as Successor Agency:
1. Adopt Resolution No. SA 2025 -XX. A resolution of the City Council o f the City of Moreno Valley, California, adopting the revised operating and CIP budgets for Fiscal Year 2024/25.
SUMMARY
This report provides the Mid -Year Financial Summary (Operating and CIP Budget Reviews), which updates the Mayor and City Council regarding current year financial trends through December 31, 2024. This report also requests the approval of certain FY 2024/25 revenue and expenditure budget amendments.
DISCUSSION
Based on a long -term practice of maintaining a structurally balanced budget and being identified as one of the most fiscally fit cities in the Country, on May 2, 2023, the City Council continued this trend and adopted the Two-Year Operating Budget for Fiscal Years 2023/24 – 2024/25, while adhering to those past practices. Additionally, as established after the last recession, the budget continues to fund and maintain separate reserves specifically est ablished for periods of economic uncertainty or natural disasters. The budget included all component units of the City, including the General Fund, Community Services District, Housing Authority, Successor Agency, and the Moreno Valley
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Community Foundation . During the two -year budget period, the City Council will be updated of the City’s financial condition through the process of Quarterly Budget Reviews.
This ongoing process ensures a forum to review expenditure and revenue changes from the estimates made in the budget document. Additionally, any significant changes in projected revenue or unanticipated expenditures that may occur will be presented to the City Council.
This report provides the FY 2024/25 Mid-Year Financial Summary for the first six months, July thru December. The Mid -Year Financial Summary will focus primarily on the City’s General Fund. This review will also present three -month operational results from other key funds.
The City Council’s direction of “Maintain a Balanced General Fund Bu dget” serves as a foundation for the fiscal status of City operations. Ongoing funding is directed to sustain ongoing operational expenses; one -time funding is directed toward one -time expenditures. This report identifies the budget adjustments as recommended by the City Manager.
FISCAL YEAR 2024/25 MID-YEAR REVIEW:
This Mid-Year Report updates the Mayor and City Council regarding current year financial trends and provides the opportunity for the City Council to review the recommended actions as they relate to revenues and expenditures.
General Fund Revenue Update
Revenue receipts do not follow an even schedule. Although 50% of the fiscal year has elapsed, based on historic trends revenues are estimated to be at approximately 32% of the budgeted amount. Actual revenues received are currently 36% of the budget. As the FY 2024/25 revenue estimates were developed prior to the adoption of the budget on May 2, 2023, the revenue estimates may require adjustments based on the FY 2024/25 actuals and revised projections throughout the year. Although there will be variances in some of the amounts budgeted, the total is expected to remain within 1% of the amended budget for the year. It should be noted that the lag in timing of revenue receipts helps illustrate the need for an operating cash reserve throughout each fiscal year.
FISCAL YEAR 2024/25 BUDGET ADJUSTMENTS
The FY 2024/25 General Fund revenue budget, as amended, totals approximately $160.4 million. Based on economic activity and revenue collections t hrough December 2024, staff is recommending a Mid -Year budget increase of $ 23.7 thousand, to approximately $160.5 million.
The FY 2024/25 General Fund expenditures budget as currently amended totals approximately $160.5 million. The recommended Mid-Year budget amendments increase expenditures by $23.7 thousand to $160.5 million. The fund continues to be structurally balanced, without the use of fund balance for ongoing operations . The specific budget
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adjustments for the General Fund are summarized in Exhibit A.
Fund Type
(Rev/Exp)
FY 2024/25
Amended
Budget (1)
Proposed
Adjustments
FY 2024/25
Amended
Budget
Proposed
Adjustments
(%)
General Fund Rev
$160,477,539
$23,658 $160,501,197
<1%
General Fund Exp
$160,472,863
$23,658
$160,496,521
<1%
Net Total $4,676 $0 $4,676
Summaries of Other Major Funds
The following provides a summary of some of the proposed budget adjustments to other major funds. A complete list of all changes are identified in Exhibit A to the Resolutions.
LMC 2014-02 Landscape Maintenance District (Fund 5014)
Budgeting for projected water usage.
Transfers
Budgeting for projected transfers related to capital project improvements.
ALTERNATIVES
1. Approve Recommended Actions as set forth in this staff report, including the approval of the budget adjustments, as presented in Exhibit A. The approval of these items will allow ongoing activities to be carried out in the current fiscal year and the Ci ty is able to modify budgets and operations as necessary through this quarterly review, while retaining a structurally balanced General Fund budget. Staff recommends this alternative.
2. Do not approve proposed Recommended Actions as set forth in this st aff report, including the resolutions adopting the budget adjustments to the budget, as presented in Exhibit A. Staff does not recommend this alternative
FISCAL IMPACT
The City’s Operating and CIP Budgets provide the funding and expenditure plan for all funds. As such, they serve as the City’s financial plan for the fiscal year. The fiscal impacts for the proposed budget amendments are identified in Exhibit A.
NOTIFICATION
Publication of the agenda.
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PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Stephanie Cuff Launa Jimenez
Senior Management Analyst Assistant City Manager (Administration)/Chief Financial Officer/City Treasurer
Concurred By: Approved by:
Natalia Lopez Brain Mohan
Financial Resources Division Manager City Manager
CITY COUNCIL GOALS
Advocacy: Develop cooperative intergovernmental relationships and be a forceful advocate of City policies, objectives, and goals to appropriate external governments, agencies and corporations.
Community Image, Neighborhood Pride and Cleanliness: Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.
Positive Environment: Create a positive environment for the development of Moreno Valley's future.
Public Facilities and Capital Projects: Ensure that needed public facilities, roadw ay improvements, and other infrastructure improvements are constructed and maintained.
Public Safety: Provide a safe and secure environment for people and property in the community, control the number and severity of fire and hazardous material incidents, and provide protection for citizens who live, work and visit the City of Moreno Valley.
Revenue Diversification and Preservation: Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
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See the Discussion section above for details of how this action supports the City Council’s Strategic Priorities.
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Report Approval Details
Document
Title:
STAFFREPORT_FMS_FINRES_MIDYEAR_BA_SUMMARY_FY2024-
2025.docx
Attachments: - FY 2024-25 Mid-Year Operating Budget Review.pdf - FY 2024-25 Mid-Year CIP Budget Review.pdf
- Moreno Valley Community Foundation Budget.pdf
- City Resolution 2025-XX.pdf
- CSD Resolution 2025-XX.pdf
- HA Resolution 2025-XX.pdf
- MVCF Resolution 2025-XX.pdf
- SA Resolution 2025-XX.pdf
Final
Approval
Date:
Feb 27, 2025
This report and all of its attachments were approved and signed as outlined below:
Natalia Lopez
Launa Jimenez
Brian Mohan
Patty Rodriguez