Agenda Item
City Council
Item #: 9.1. 8/13/2024 File #: 24-0462
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
Fiscal Year 2024-25 Proposed Budget Amendment No. 1. (Continued from July 23, 2024)
2. SUMMARY
On June 25, 2024, the City Council adopted the Fiscal Year 2024-25 budget with a projected operating deficit of almost $8.0 million. Per City Council direction, and additional staff recommendations, staff is proposing an additional $1.3 million in budget reductions to the Fiscal Year 2024-25 budget.
3. RECOMMENDED ACTION
1. Approve the $1.3 million in additional proposed budget reductions.
2. Approve the position changes for Fiscal Year 2024-25.
3. Provide staff with direction on any additional reductions to the Fiscal Year 2024-25 budget.
4. FISCAL IMPACT
Upon approval of the budget reductions, the General Fund total expenditures for Fiscal Year 2024-25 is approximately $154.8 million. Any additional direction for budget amendments provided by the City Council will be brought forward for approval at a future date.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
b: Analyze future fiscal needs and potential revenue opportunities. c: Provide appropriate reserves.
6. DISCUSSION AND BACKGROUND
Background:
The City Council adopted the Fiscal Year 2024-25 (FY25) budget on June 25 and directed staff to continue collaborating with the Budget Ad Hoc Committee to identify additional budget reductions.
The FY25 adopted budget includes almost $4.1 million in budget reductions, over $4.2 million of additional revenues, of which $3 million is one-time monies.
Tonight, staff is proposing an additional $1.3 million in budget reductions as a result of City Council City of Orange Printed on 8/7/2024Page 1 of 2
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Item #: 9.1. 8/13/2024 File #: 24-0462
Tonight, staff is proposing an additional $1.3 million in budget reductions as a result of City Council direction and City Manager recommendation. This reduction includes:
Description Amount
Part-time staff for special events $45,500
Tree lighting decorations 16,000
Movies in the Park 9,200
Concerts in the Park 26,700
Veteran’s Day 2,245
Treats in the Streets 14,141
Tree Lighting Ceremony 55,425
Special event supplies and overtime 136,483
Holding additional full-time vacancies 917,031
Total Additional Reductions $1,315,493
In addition, the FY25 adopted budget included costs associated with staffing changes as illustrated in Attachment B.
Approval of the proposed FY25 budget amendment will reduce the projected operating deficit to $6.7 million, down $1.3 million from the original estimate of $8.0 million. The following is the updated FY25 General Fund’s fiscal position.
Fiscal Year 2025 1-time Recurring Total
Proposed Revenues (1st budget study
session)
$0 $144,006,541 $144,006,541
Additional Revenues 0 1,201,000 1,201,000
Transfers In (CR&R) 3,000,000 0 3,000,000
Total Adopted Revenues 3,000,000 145,207,541 148,207,541 Proposed Expenditures (1st budget
study session)
0 161,236,003 161,236,003
Changes from 1st budget study
session
-960,000 0 -961,030
Budget Reductions (6/25 budget
adoption)
0 -4,074,242 -4,074,242
Proposed Reductions (7/23) -1,315,493 -1,315,493
Transfers Out 0 0 0
Total Revised Expenditures -960,000 155,846,268 154,885,238 Revised Operating Surplus/(Deficit) $3,960,000 -$10,638,727 -$6,677,697
7. ATTACHMENTS
· Attachment A - FY25 Budget Reductions
· Attachment B - FY25 Position Changes
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