City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwn, City Manager
BY: Jennifer Riedeman, Finance Director
MEETING DATE: August 20, 2024
ITEM NO: 9.1
SUBJECT: Approve Resolution No. 2024-49 adopting General Fund and All Other Funds Budgets for the Fiscal Year 2024-25 and approving the Budget Errata item for a digital budget book estimated to cost $11,000.
RECOMMENDATION
Motion to Approve Resolution No. 2024-49 adopting General Fund and All Other Funds Budgets for the Fiscal Year 2024-25 and approving the Budget Errata item for a digital budget book estimated to cost $11,000.
BACKGROUND
On June 18, 2024 Council adopted Resolution No. 2024-41 to continue the FY 2023/24 Budget until adoption of the Fiscal Year 2024-2025 Budget to allow further review and internal discussion due to negative results of the estimated Fund Balance calculations for the Enterprise Funds. Specifically, staff performed further evaluations of the Solid Waste and Sewer Funds, which both are expected to end with negative available fund balance and are currently pending rate study results.
A Budget Workshop was held on July 23, 2024, at which time the Proposed General Fund and All Other Funds Budget was reviewed with Council. Council was asked to provide staff direction on any requested changes and was informed that the General Fund and All Other Funds budget would be brought back to Council on August 20, 2024.
The City Council did not request any modification to adjust the Proposed General Fund, and All Other Funds Budget FY 2024-25 presented on July 23, 2024. However, Council did authorize staff to review current rates, fees and taxes to determine if it is reasonable to adjust the amounts based on a cost/benefit analysis.
The City has approximately 56 Other Funds in addition to the General Fund and its various departments. Other Funds consists of Enterprise Funds (Water, Sewer, Garbage), Special Revenue Funds - Assessments (Landscape Maintenance Districts, Benefit Assessment Districts, Community Facilities Districts, etc.), Special Revenue Funds (Housing, Streets, Local Transportation Funds, Gas Tax, etc.), and Special Revenue Funds - Impact Fee (Community Facilities, Water, Sewer, Street, Public Safety, etc.).
ANALYSIS
Staff and City Manager have reviewed General Fund and All Other Funds revenue projections and expenditures and are recommending the approval of Resolution No. 2024-49 adopting General Fund and All Other Funds Budgets for the Fiscal Year 2024-25, including the Budget Errata item for a Digital Budget Book estimated to cost $11,000.
FISCAL IMPACT
The total General Fund is expected to have $1,527,553 in available fund balance at the end of FY 2024/25 based on the budget, not including the Budget Errata item for $11,000.
The expenditure budget requested for approval in the FY 2024-25 for the General Fund and All Other Funds budgets are $117,097,184, including an expense budget of $77,167,910, and Transfers Out totaling $39,929,273. The expense budget does not include the Budget Errata item for a digital budget book in the amount of $11,000.
Approval of Resolution No. 2024-49 will establish estimated revenues and appropriate expenditures for General Fund and All Other Funds such as Enterprise Funds (Water, Sewer, Garbage), Special Revenue Funds - Assessments (Landscape Maintenance Districts, Benefit Assessment Districts, Community Facilities Districts, etc.), Special Revenue Funds (Housing, Streets, Local Transportation Funds, Gas Tax, etc.), and Special Revenue Funds - Impact Fee (Community Facilities, Water, Sewer, Street, Public Safety, etc.).