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ATT 6 - Staff Presentation - Received After Agenda Printed

Murrieta City Council
November 19, 2024

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ATT 6 - Staff Presentation - Received After Agenda Printed
Meeting
November 19, 2024
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Murrieta City Council
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Text extracted from the city's file for reading and search. Open the original on murrieta.legistar1.com. That file is the official record.

Fiscal Year 2024/25 First Quarter
Budget Update
Javier Carcamo, Director of Finance
Jennifer Terry, Finance Manager
Tanner Benson, Financial Analyst
November 19, 2024, City Council Meeting, Agenda Item No.19 Received After Agenda Printed 11/19/2024 - Regular Meeting DISCUSSION - Item No. 19
Presentation
Overview of Presentation
• 2nd Year of the Biennial (two-year) Budget
• Summary of Prior Actions for Fiscal Year 2024/25
• First Quarter Updates (July - Se pt)
• Citywide and Major Funds Overview
• Overview of Unassigned Fund and Reserve Balances
• Changes in the Schedule of Authorized Positions
• Future Budget Updates
• Recommended Actions
Fiscal Year 2024/25 First
Quarter Budget Update
• August 20 Council Action
• Revenues adjusted in line with historical collections • Personnel costs adjusted for approved labor agreements • Departments identified 10% budgetary savings
• Overtime budgets reduced by 10% citywide
• Removed New FY25 Approved Positions from Budget
• Vacant positions require approval by the City Manager p
rior to recruitment
Summary of Prior Actions for Fiscal Year 2024/25
Fiscal Year 2024/25 First Quarter Budget Update
Fiscal Year 2024/25 First Quarter Budget Update
FY 2024/25
Amended
Budget
FY25 YTD thru
09/30/2024
% of Budget
Used thru
09/30/2024
Proposed
Adjustments
FY 2024/25
Proposed
Amended Budget
Revenues
Taxes-Sales Tax 55,668,067$ 4,345,292$ 8% -$ 55,668,067$ Taxes-Property 30,682,583 - 0% 1,984,975 32,667,558 Taxes-VLF/Property Tax Comp 10,227,948 - 0% 887,027 11,114,975 Charges for Services 24,145,153 5,119,562 21% 21,000 24,166,153 Other Misc Revenue 19,932,956 8,894,086 45% 3,594,396 23,527,352 Special Assessments 11,907,560 - 0% - 11,907,560 Tax-Special Tax 9,387,543 12,561 0% - 9,387,543 Taxes-Franchises 4,710,000 1,800 0% 92,800 4,802,800 Taxes-Other 3,003,380 577,912 19% - 3,003,380 Taxes-Transient Occupancy Tax 2,580,000 324,743 13% - 2,580,000 License/Permit Fees 1,834,575 395,277 22% - 1,834,575 Taxes-Business Licenses 1,065,400 326,933 31% 21,308 1,086,708 Taxes-Property Transfer 550,000 174,201 32% 25,000 575,000 Loan/Bond/Lease Proceeds - 3,430 0% - - Total Revenue 175,695,164$ 20,175,797$ 11% 6,626,506$ 182,321,671$ Expenditures
Personnel Costs 102,219,296$ 18,559,059$ 18% (1,695,014)$ 100,524,282$ Operations & Maintenance 58,438,469 12,103,613 21% 229,521 58,667,990 Capital Outlay 1,993,720 1,914,702 96% - 1,993,720 Allocations 11,522,578 3,065,431 27% - 11,522,578 Total Expenditures 174,174,063$ 35,642,805$ 20% (1,465,493)$ 172,708,570$ Contributions to Unassigned
Fund Balance 1,521,101$ 9,613,101$
Total Expenditures Sources 175,695,164$ 182,321,671$
Transfers
Transfer In 13,308,786 3,327,197 25% (2,185,117) 11,123,669 Transfer Out 13,308,786 3,327,197 25% (2,185,117) 11,123,669 Net Transfers -$ -$ 0% -$ -$

CITYWIDE
General Fund Overview- Year-to-Date Comparison
Fiscal Year 2024/25 First Quarter Budget Update
FY 2024/25
Amended
Budget
YTD thru
09/30/2024
% of Budget
Used thru
09/30/2024
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
Revenues
Taxes-Sales Tax 26,590,074$ 2,095,665$ 8% -$ 26,590,074$ Taxes-VLF/Property Tax Comp 10,227,948 - 0% 887,027 11,114,975 Taxes-Property 10,113,634 - 0% 787,283 10,900,917 Other Misc Revenue 7,580,503 3,761,374 50% 620,000 8,200,503 Taxes-Franchises 4,652,000 1,800 0% 92,800 4,744,800 Charges for Services 4,360,660 1,644,746 38% - 4,360,660 License/Permit Fees 1,824,075 392,880 22% - 1,824,075 Special Assessments 21,306 - 0% - 21,306 Taxes-Transient Occupancy Tax 2,580,000 324,743 13% - 2,580,000 Taxes-Business Licenses 1,065,400 326,933 31% 21,308 1,086,708 Taxes-Property Transfer 550,000 174,201 32% 25,000 575,000 Total Revenue 69,565,600$ 8,722,342$ 13% 2,433,417$ 71,999,017$ Use of Unassigned Fund Balance 7,901,506 4,426,304 Total Revenue Sources 77,467,106$ 76,425,321$
FY 2024/25
Amended
Budget
YTD thru
09/30/2024
% Expended
thru 09/30/2024
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
Expenditures
Personnel Costs 54,554,230$ 8,969,678$ 16% (1,100,000)$ 53,454,230$ Operations & Maintenance 12,890,580 2,036,606 16% 79,521 12,970,101 Capital Outlay 1,255,782 459,637 37% - 1,255,782 Allocations 7,594,685 1,898,671 25% - 7,594,685 Transfer Out 1,150,523 287,631 25% - 1,150,523 Total Expenditures 77,445,800$ 13,652,223$ 18% (1,020,479)$ 76,425,321$

GENERA L FUND
Fire Fund Overview- Year-to-Date Comparison
Fiscal Year 2024/25 First Quarter Budget Update
FY 2024/25
Amended
Budget
YTD thru
09/30/2024
% of Budget
Used thru
09/30/2024
Proposed
Adjustments
FY 2024/25
Proposed
Amended Budget
Revenue
Taxes-Property 15,062,995$ -$ 0% 1,016,773$ 16,079,768$ Other Misc Revenue 1,106,649 240,656 22% 64,905 1,171,554 Charges for Services 440,876 140,767 32% 20,000 460,876 Special Assessments 1,577,711 - 0% - 1,577,711 License/Permit Fees 10,500 2,397 23% - 10,500 Transfer In 7,368,265 1,842,066 25% (1,209,666) 6,158,599 Total Revenue 25,566,996$ 2,225,887$ 9% (107,988)$ 25,459,008$ Use of Unassigned Fund Balance 864,733 - 867,721 Total Revenue Sources 26,431,729$ 26,326,729$
Expenditures
Personnel Costs 21,961,130$ 4,810,347$ 22% (255,000)$ 21,706,130$ Operations & Maintenance 2,326,009 517,145 22% 150,000 2,476,009 Allocations 2,144,590 536,147 25% - 2,144,590 Total Expenditures 26,431,729$ 5,863,639$ 22% (105,000) 26,326,729$

FIRE DISTRICT
Community Services District (CSD) Fund Overview- Year-to-Date Comparison
Fiscal Year 2024/25 First Quarter Budget Update
FY 2024/25
Amended
Budget
YTD thru
09/30/2024
% of Budget
Used thru
09/30/2024
Proposed
Adjustments
FY 2024/25
Proposed
Amended Budget
Revenue
Special Assessments 1,965,302$ -$ 0% -$ 1,965,302$ Charges for Services 521,775 256,414 49% 1,000 522,775 Other Misc Revenue 151,142 59,509 39% 20,000 171,142 Transfer In 2,830,175 707,544 25% (360,560) 2,469,615 Total Revenue 5,468,394$ 1,023,466$ 19% (339,560)$ 5,128,834$ Use of Unassigned Fund Balance 336,042 - 435,602 Total Revenue Sources 5,804,436$ 5,564,436$
Expenditures
Personnel Costs 2,586,993$ 736,350$ 28% (240,000)$ 2,346,993$ Operations & Maintenance 3,190,250 704,040 22% - 3,190,250 Capital Outlay 50,000 43,661 87% - 50,000 Allocations (22,807) 179,085 -785% - (22,807) Total Expenditures 5,804,436$ 1,663,137$ 29% (240,000)$ 5,564,436$

COMMUNITY SERVICES DISTRICT
Library Fund Overview- Year-to-Date Comparison
Fiscal Year 2024/25 First Quarter Budget Update
FY 2024/25
Amended
Budget
YTD thru
09/30/2024
% of Budget
Used thru
09/30/2024
Proposed
Adjustments
FY 2024/25
Proposed
Amended Budget
Revenue
Taxes-Property 2,564,384$ -$ 0% 180,920$ 2,745,304$ Other Misc Revenue 124,700 71,209 57% 17,500 142,200 Charges for Services 20,900 6,936 33% - 20,900 Transfer In 806,496 201,624 25% (614,891) 191,605 Total Revenue 3,516,480$ 279,769$ 8% (416,471)$ 3,100,009$ Use of Unassigned Fund Balance 101,213 - 517,684 Total Revenue Sources 3,617,693$ 3,617,693$
Expenditures
Personnel Costs 2,329,210$ 407,810$ 18% -$ 2,329,210$ Operations & Maintenance 789,783 127,316 16% - 789,783 Allocations 498,700 124,675 25% - 498,700 Total Expenditures 3,617,693$ 659,801$ 18% -$ 3,617,693$

LIBRA RY
Measure T Overview- Year-to-Date Comparison
Fiscal Year 2024/25 First Quarter Budget Update
FY 2024/25
Amended
Budget
YTD thru
09/30/2024
% Received
thru 09/30/2024
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
Revenue
Taxes-Sales Tax 29,077,993$ 2, 249,628$ 8% -$ 29,077,993$ Total Revenue 29,077,993$ 2,249,628$ 8% -$ 29,077,993$ Expenditures
Personnel Costs 13,462,574$ 2,751,484$ 20% -$ 13,462,574$ Operations & Maintenance 2,167,030 355,617 16% - 2,167,030 Capital Outlay 648,117 435,023 67% - 648,117 Allocations 928,500 232,125 25% - 928,500 Transfer Out 11,004,936 2,751,234 25% (2,185,117) 8,819,819 Total Expenditures 28,211,157$ 6,525,483$ 23% (2,185,117)$ 26,026,040$ Contributions to Unassigned
Fund Balance 866,836$ 3,051,953$
Total Expenditures Uses 29,077,993$ 29,077,993$

MEASURE T
Unassigned Fund Balance
Fiscal Year 2024/25 First Quarter Budget Update
• Definition
• Impact to Unassigned Fund Balance
• Operating Surplus or Deficit
• Contribution to reserves
• Changes in other fund balance categories
• Non-s pendable
• Assigned (Budget Carryover, CIP commitment)
• Restricted (debt service reserve)
• Committed (Operating Reserve)
• When is best time to report Unassigned
Fund
Balance?
• After completion of audit and Financial
S
tatements
• Reconciliation of Unassigned Fund Balance
• All other instances = Estimate
FY 2023/24 Unassigned Fund Balance
General Fund $34.4 Million
Measure T Fund $14.4 Million
• Reconciliation of prior years

CIP Commitments
• Upward Retroactive Adjustment
• Year-End Report
Fund
Beg.

Unassigned
Fund Bal.,
7/1/23
Actuals
Revenues
Actuals
Transfers In
Actuals
Expenditures
Actuals
Transfers Out
Actuals
Capital Outlay
Adjustment to
Balance to
ACFR
Use of
Reserves
Transfer to
Reserves
End.

Unassigned
Fund Bal.,
6/30/24
General Fund 37,055,337 77,671,286 2,584 (65,815,141) (965,374) (121,097) 1,392,842 4,000,000 (18,737,018) 34,483,419 Measure T 31,212,827 28,226,552 239,040 (17,382,210) (5,950,395) (7,053,528) (983,740) 533,000 (14,367,705) 14,473,840 Fire District Fund (52,575) 20,239,044 3,954,583 (23,275,622) - - - - - 865,430 CSD Fund 99,506 2,992,458 2,166,490 (4,822,853) - - - - - 435,602 Library Fund 640,303 3,006,938 783 (3,130,340) - - - - - 517,683 Total 68,955,399 132,136,277 6,363,480 (114,426,167) (6,915,768) (7,174,625) 409,102 4,533,000 (33,104,723) 50,775,974 Fund
Beg.

Unassigned
Fund Bal.,
7/1/24
Proposed
Amended
Revenues
Proposed
Amended
Transfers In
Proposed
Amended
Expenditures
Proposed
Amended
Transfers Out Capital Outlay
Proposed
Rollovers
Use of
Reserves
Transfer to
Reserves
Est. End.

Unassigned
Fund Bal.,
6/30/25
General Fund 34,483,419 71,999,017 - (75,274,798) (1,150,523) (2,044,966) - - (833,670) 27,178,479 Measure T 14,473,840 29,077,993 - (17,206,221) (8,819,819) 217,249 - - (626,487) 17,116,555 Fire District Fund 865,430 19,300,409 6,158,599 (26,326,729) - 2,291 - - - 0 CSD Fund 435,602 2,659,219 2,469,615 (5,564,436) - - - - - 0 Library Fund 517,683 2,908,404 191,605 (3,617,693) - - - - - (0) Total 50,775,974 125,945,043 8,819,819 (127,989,877) (9,970,342) (1,825,426) - - (1,460,157) 44,295,034 Fiscal Year 2024/25
Fiscal Year 2023/24
Impacts on Unassigned Fund Balance Update
Fiscal Year 2024/25 First Quarter Budget Update
Operating Reserves – FY 2024/25 Ending Balances
Fiscal Year 2024/25 First Quarter Budget Update
Policy 100-11
• Fund Balance and Reserve Policy
• Established Reserves
• 25% Operating Reserve Reserve Balance
Reserve
Level
General Fund 21,250,000 28.2%
Measure T Fund 5,275,784 30.7%
Fire District Fund 7,425,024 28.2%
CSD Fund 1,631,039 29.3%
Library District Fund 1,016,788 28.1%
Total 36,598,634$
FY 2024/25
Operating Reserve Balance
Sustainability Reserves – FY 2024/25 Ending Balances
Fiscal Year 2024/25 First Quarter Budget Update
Policy 100-11
• Fund Balance and Reserve Policy
• Sustainability Reserves
• Economic Contingency
• Information Technology
• Fleet Replacement
• Facilities Repairs
• Continuing Operations
FY 2024/25
Reserve Balance
Economic Contingency 8,382,884
Fleet Replacement 4,539,815
Fire Fleet Replacement 3,815,443
Information Services 1,282,000
Citywide Facility Repairs 1,367,000
CSD Facility Repairs 7,605,850
Fire Facility Repairs 1,935,000
Pension Rate Stabilization 9,000,000
Continuing Operations 6,025,000
Total 43,952,992
Sustainability Reserve Balance
Schedule of Authorized Positions
Fiscal Year 2024/25 First Quarter Budget Update
Dept. Title
FY 25
Changes
SR HUMAN RESOURCES ANALYST 1
HUMAN RESOURCES TECHNICIAN -1
HUMAN RESOURCES ANALYST 1
SR HUMAN RESOURCES ANALYST -1
Fire Operations
FIRE INVESTIGATOR CAPTAIN 1
FIRE BATTALION CHIEF 56 (Temp.) 1
2 Proposed FY 2024/25 First Quarter
Updates
ASD / HR & Risk
• Currently 468 Full-T ime Equivalent
Positions
• Classification update for HR/Risk
po
sitions.
• Temporary Positions
• Fire Captain
• Fire Battalion Chief
• Net Impact: 2 FTE
• Vacancies
Future Budget Updates
• December 2024 Fiscal Year 2023/24 Year-End (4th Quarter)Budget Update • February 2025 Fiscal Year 2024/25 Mid-Y ear (2nd Quarter) Budget Update • May 2025 Fiscal Year 2024/25 3rd Quarter Budget Update • December 2025 Fiscal Year 2025 Year-End (4th Quarter) Budget Update Biennial Budget Development for FY 2025/26 and 2026/27
• Nov/Dec 2024 Budget Development Process
• April/May 205 Budget Workshop
• June 2025 Adoption of proposed Budget
Fiscal Year 2024/25 First Quarter Budget Update
Recommended Actions
• Accept the report;
• Adjust the Fiscal Year 2024/25 Operating Budget as defined in the Fiscal Y ear 2024/25 First Quarter Proposed Budget Amendments;
• Approve the Updated Schedule of Authorized Positions List.

Fiscal Year 2024/25 First Quarter Budget Update

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