March 25, 2025
City Council Meeting
PowerPoint Presentations
BUDGET STUDY
SESSION-
GENERAL FUND
Mid Year 2024-2025
Proposed Fiscal Year 2025-2026
1MARCH 25TH, 2025
AGENDA
1. FY 25 Mid-Year Report
a. Expenditures
b. Revenues
c. Year End Estimates
d. Year-End Estimated Fund Balance
2. Annual Budget Process and Timeline
3. FY 26 Proposed General Fund Budget
a. General Fund Revenues
b. Proposed Cost Reductions
c. General Fund Expenditures
d. Projected Fund Balance
FY 25
MID YEAR
BUDGET
Covers revenues and expenditures occurring July through December 2024
FY 25 Year End Estimate
FY 25 Estimated Ending Fund Balance
FY 25 GENERAL
FUND
MID YEAR
REVENUES
FY 25 REVISED BUDGET
$149.4 M
TOTAL AT MID YEAR
$58.4 M
Operating Revenues
Excludes Transfers
Property Tax,
$15.2 M, 27%
Sales Tax,
$24.2 M, 42%
Transient Occupancy
Tax, $2.2 M, 4%
Fees for Services,
$3.5 M, 6%
Licenses and Permits,
$3.3 M, 6%
Interfund Revenue,
$3.5 M, 6%
Other Revenue, $5.0 M,
9%
FY 25 GENERAL
FUND
MID YEAR
REVENUES
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Property Tax
Sales Tax
Transient Occupancy Tax
Fees for Services
Licenses and Permits
MAJOR REVENUE SOURCES
FY 25 First Quarter FY 25 Second Quarter
FY 25 REVISED BUDGET
$149.4 M
TOTAL AT MID YEAR
$58.4 M
38% of Revised
Budget
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Property Tax
Sales Tax
Transient Occupancy Tax
Fees for Services
Licenses and Permits
MAJOR REVENUE SOURCES
FY 25 First Quarter FY 25 Second Quarter
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Property Tax
Sales Tax
Transient Occupancy Tax
Fees for Services
Licenses and Permits
MAJOR REVENUE SOURCES
FY 25 First Quarter FY 25 Second Quarter FY 24 Actual
$8.7 M or 17.5%
increase from FY 24
mid year
FY 25 GENERAL FUND
MID YEAR
EXPENDITURES
FY 25 REVISED BUDGET
$159.4 M
TOTAL AT MID YEAR
$71.9 M
Salaries and Benefits,
$12.8 M, 18%
Salaries and Benefits -
Public Safety,
$40.4M, 56% Contractual Services,
$6.8 M, 10%
Materials &
Supplies,
$880K, 1%
Internal Service Costs,
$9.6 M, 13%
Other Expenditure
Categories,
$1.5 M, 2%
FY 25 GENERAL FUND
MID YEAR
EXPENDITURES
FY 25 REVISED BUDGET
$159.4 M
TOTAL AT MID YEAR
$71.9 M
45% of Revised
Budget
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Salaries and Benefits
Contractual Services
Materials and Supplies
Misc Expenditures
Capital Outlay
OPERATING EXPENDITURES
FY 25 First Quarter FY 25 Second Quarter
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Salaries and Benefits
Contractual Services
Materials and Supplies
Misc Expenditures
Capital Outlay
OPERATING EXPENDITURES
FY 25 First Quarter FY 25 Second Quarter
$2.5 M or 4%
increase from FY
24 Mid Year
Estimate for
Operating
ExpenditureFY 24 Actual
FY 25 GF REVENUE
YEAR END ESTIMATE
FY 24 ACTUAL
$146.6 M
FY 25 YEAR END ESTIMATE
$149.4 M
$2.7 M or 1.9%
increase from
FY 24 Actual
- 10 20 30 40 50 60
Property Tax
Sales Tax
Transient Occupancy Tax
Franchises
Fees for Services
Licenses and Permits
Fine and Forfeitures
Rev from other Agencies
Use of Money and Property
Interfund Revenue
Misc Revenue
Transfers In
Millions
FY 24 ACTUAL TO FY 25 YEAR END ESTIMATE
FY 24 Actual FY 25 Year End Estimate
FY 25 GF EXPENDITURE
YEAR END ESTIMATE
FY 24 ACTUAL
$143.9 M
FY 25 REVISED BUDGET
$149.3 M
$5.4 M or 3.8%
increase from
FY 24 Actual
0 20 40 60 80 100 120
Salaries and Benefits
Contractual Services
Materials and Supplies
Capital Outlay
Misc Expenditure
Debt Service
Internal Service Costs
Millions
FY 24 ACTUAL TO FY 25 YEAR END ESTIMATE
FY 24 Actual FY 25 Year End Estimate
FY 25 ESTIMATED FUND BALANCE
VarianceFY 25 Year End
EstimateFY 24 Actual
$2,237,591$146,214,947$143,977,356Operating Revenues
547,2793,176,3282,629,049Transfers-In
2,784,870149,391,275146,606,405Total Revenues
-5,405,947-149,329,788-143,923,841Operating Expenditure ---Transfers-Out
5,405,947-149,329,788-143,923,841Total Expenditures
-$2,621,077$61,487$2,682,564Operating Surplus/Deficit
FY 25 ESTIMATED FUND BALANCE CONT.
VarianceFY 25 Year-End
EstimateFY 24 Actual
$26,910,980$24,228,416Estimated Beginning Fund
Balance at 07/01
-$2,621,07761,4872,682,564Operating Surplus/Deficit
61,48726,972,46726,910,980Estimated Ending Fund
Balance at 6/30
897,38724,788,74523,891,358Reserved - Catastrophic
-2,293,594-2,293,594Reserve for Carryover and
Nonspendable
$1,457,694$2,183,722$726,029Undesignated
Revised Operating Deficit
$61,487Operating
Surplus/Deficit
-3,176,328One-Time
Transfers
-13,815,518Budget
Reductions
-$16,930,359
FY 26 BUDGET
STUDY SESSION
– GENERAL
FUND
Budget Timeline
Proposed revenues and expenditures for Fiscal Year 2025-2026 Proposed Cost Reductions
Incorporates FY 25 Year End Estimate
FY 26 Proposed Ending Fund Balance
ANNUAL BUDGET
PROCESS
FEBRUARY
Operating
Budget
Meetings with
Dept & CM
JANUARY
CIP Budget
Meetings w/
Dept & CM
NOV-JAN
Dept Budget
Preparation
NOVEMBER
City-wide
Budget Kickoff
JUNE
Budget
Adoption
MAY
Preliminary
Budget
APRIL
Budget
Study
Session - CIP
MARCH
Budget
Study
Session - GF
FY 26 GENERAL
FUND REVENUES
TOTAL $145.9 M
Operating Revenues
Excludes Transfers
Property Tax,
$58.2 M, 40%
Sales Tax,
$51.6 M, 35%
Transient Occupancy
Tax, $6.3 M, 4%
Fees for Services,
$6.0 M, 4%
Licenses and Permits,
$6.9 M, 5%
Interfund Revenue,
$7.0 M, 5%
Other Revenue, $9.8 M,
7%
FY 26 GENERAL
FUND REVENUES
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
Property Tax Sales Tax Transient
Occupancy Tax
Fees for Services Licenses and
Permits
MAJOR REVENUE SOURCES
FY 24 Actual FY 25 Year End Estimate FY 26 Proposed
TOTAL REVENUES
$145.9 M
Total Major Revenues
$129.1 M
88%
12%
FY 26 GENERAL
FUND REVENUES
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Franchises Fines and
Forfeitures
Revenue from
Other Agencies
Use of Money
and Property
Miscellaneous
Revenue
Interfund
Revenues
OTHER REVENUE SOURCES
FY 24 Actual FY 25 Year End Estimate FY 26 Proposed
88%
12%
TOTAL REVENUES
$145.9 M
Total Other Revenues
$16.8 M
FY 26 BUDGET
REDUCTION
MEASURES
ORIGINAL PROPOSED
EXPENDITURE
$163.6 M
PROPOSED REDUCTIONS
$13.0 M
PROPOSED EXPENDITURE
$150.6
Contributions to IT, $2 M, 15%
Contributions to IT
Capital,
$900k, 7%
OT at 60%,
$2.6 M, 20%
UAL at 60%,
$2.1 M, 16% PT Positions at 50%,
$1.1 M, 9%
Vacant Positions,
$4.3 M, 33%
TOTAL COST REDUCTION
$13 M
FY 26 GENERAL FUND
EXPENDITURES
TOTAL $150.6 M
Salaries and Benefits,
$28.0 M, 19%
Salaries and Benefits -
Public Safety,
$76.8 M, 51%
Contractual Services,
$15.4 M, 10%
Materials &
Supplies,
$2.3 M, 2%
Internal Service Costs,
$26.0 M, 17%
Other Expenditure
Categories,
$2.1 M, 1%
FY 26 GENERAL FUND
EXPENDITURES
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
Salaries and
Benefits
Contractual
Services
Materials and
Supplies
Capital Outlay Debt Service Miscellaneous
Expenses
OPERATING EXPENDITURES
FY 24 Actual FY 25 Year End Estimate FY 26 Proposed
84%
16%
TOTAL $150.6 M
Operating Expenditures $124.6 M
FY 26 GENERAL FUND
EXPENDITURES
TOTAL $150.6 M
Internal Service Costs $26.0 M
84%
16%
IT Operating,
$2.1 M, 8%
IT Capital,
$2.1 M, 8%
Fuel ,
$1.5 M,
6%
Liability & Property Damage,
$3.1 M, 12%
Pension Obligation Bond,
$15.5 M, 60%
Vehicle Maintance,
$1.6 M, 6%
INTERNAL SERVICE COSTS
FY 26 PROJECTED FUND BALANCE
VarianceFY 26 ProposedFY 25 Year-End Estimate
-$312,385$145,902,562$146,214,947Operating Revenues
331,6723,508,0003,176,328Transfers-In
19,287149,410,562149,391,275Total Revenues
1,264,036-150,593,824-149,329,788Operating Expenditure
---Transfers-Out
1,264,036-150,593,824-149,329,788Total Expenditures
-$1,244,749-$1,183,262$61,487Operating Surplus/Deficit
FY 26 PROJECTED FUND BALANCE CONT.
VarianceFY 26 ProposedFY 25 Year-End
Estimate
61,487$26,972,467$26,910,980Estimated Beginning Fund
Balance at 07/01/2025
-1,244,749-1,183,26261,487Operating Surplus/Deficit
-1,183,26225,789,20526,972,467Estimated Ending Fund
Balance at 6/30/2026
209,83025,789,20524,788,745Reserved - Catastrophic
-$1,393,092$790,631$2,183,722Undesignated
Revised Operating Deficit
-$1,183,262Operating
Surplus/Deficit
-3,508,000One-Time
Transfers
-12,993,748Budget
Reductions
-$17,685,010
Q & A
Michelle Kresan, Budget Manager
Trang Nguyen, Finance Director