FY 2024 and FY 2025
Mid-Year Budget Adjustments
Agenda Item 12.B
By Nadia Feeser, Administrative Services Director
Meeting Date: December 5, 2023
Overview
•Proposed Mid-Year budget adjustments for FY 2024 and
FY 2025:
Category
FY 2024 Proposed
Budget Adjustment
Fiscal Impact
FY 2025 Proposed
Budget Adjustment
Fiscal Impact
2012 Wastewater Bond Redemption (2,926,660.01)$ 393,637.50$ Technical correction (1,006,392.00) (6,392.00) Revenue (892,728.00) -
Operating costs (190,721.98) (106,466.00) Workforce Development (29,000.00) (7,500.00) Funding Source changes - - IT Allocation - -
Project Savings 1,986,764.83 -
Total Fiscal Impact (3,058,737.16)$ 273,279.50$ 2 2012 Wastewater Bond Redemption
October 17, 2023, City Council adopted Resolution R-2023-078 to redeem the Series 2012 Wastewater refunding revenue bonds effective November 1, 2023.
Proposed budget adjustments include transactions necessary to pay off the $3,320,000 of outstanding principal plus interest.
Net fiscal impact is additional cost of $2,926,660 in FY 2024 and ongoing savings of $393,638 in FY 2025.
3 Technical Corrections
•Fiscal impact is additional cost of $1.0 million
(no fiscal impact across fiscal years)
One-time move of $1.0 million
Housing in Lieu Fee Fund
budget for the 2655 Shell
Beach Road affordable housing
project from FY 2023 to FY
2024.
•Fiscal impact is additional cost $6,392 across
all funds.
Ongoing allocation of internet
portion of phone budget to
internet account and reflect
updated internet service costs.
Proposed Budget adjustments include:
4 Revenue Adjustments
Proposed budget adjustments reflect projections from the FY 2024 First Quarter Financial Status Report.
Fund Title Description
FY 2024 Proposed
Budget Adjustment
General Fund Reduce TOT based on updated projections (790,000)$ General Fund Settlement for Shell Beach Streetscape project 175,000 General Fund Legal settlement revenues 400,000
Local Transportation
Fund
Reduce Local Transportation Fund (LTF) budget
based on SLOCOG's LTF annual apportionment
(89,728)
Grants-Non-Capital
Fund
Reduce projected COPS grant revenues based
on prior year revenues
(50,000)
LBID Fund Reduce LBID Assessment based on updated
projections
(269,000)
LBID Fund Reduce LBID Assessment for physical
improvements based on updated projections
(269,000)
Subtotal Revenues (892,728)$
Net Fiscal Impact (Revenues - Expenditures)(892,728)$
5 Operating Costs
Proposed Operating Costs budget adjustments across all funds is a net additional cost of $192,722 in FY 2024 and $109,466 in FY 2025.
Major components include:
Wastewater air vacs and saddles replacement: $30,000 in FY 2024 and FY 2025 from Wastewater Enterprise Fund.
Police Radio Encryption Upgrade: Invest $28,800 in FY 2024 from various funds: $17,500 General Fund, $1,300 Parking Enterprise Fund, $5K Water Enterprise Fund, $5K Wastewater Enterprise Fund.
City-wide Tree Trimming Services: Add $25K in FY 2024 and $10K in FY 2025 in General Fund Police Watchguard Body Camera Cloud Storage Solution: Invest $17,667 in FY 2024 and $24,000 in FY 2025 in General Fund
6 Operating Costs
Proposed Operating Costs budget adjustments across all funds is a net additional cost of $192,722 in FY 2024 and $109,466 in FY 2025.
Major components include:
Adopt-a-Bench Program: Add $15,000 in expenditures and corresponding revenues in General Fund
Parks Equipment: Add $12,000 in FY 2024 in General Fund Veterans Hall Interior Painting: Add $10,000 in FY 2024 in General Fund Pier Plaza Parking Lot Bollard Replacement: Add $9,500 in FY 2024 in General Fund 7 Workforce Development
Public Works Facilities Division Workforce Development: Proposed additional $4,000 in FY 2024 and $2,500 in FY 2025 into the General Fund budget for mandatory Class B license training, Facilities Manager training, and attendance at a management conference, enhancing the skill set and knowledge base of the Public Works Facilities team.
Public Works safety boot allowance: Proposed additional $5,000 in both FY 2024 and FY 2025 to cover the safety boot allowance for Public Works staff. This adjustment accounts for updated costs associated with boots and related materials, ensuring that employees have the necessary safety gear.
City-wide Software training: Proposed increase of $20,000 in the Technology Services Fund by for professional, citywide software training for all departments. 8 IT Cost Allocation
Fund
One-time/
Ongoing
FY 2024 Proposed
Budget Adjustment
FY 2025 Proposed
Budget Adjustment
Revenues
Technology Service Fund ongoing 68,365$ 29,200$ Subtotal Revenues 68,365$ 29,200$
Expenditures
General Fund ongoing 53,865$ 28,190$ Lodging Business Improvement ongoing - - Chapman Estate Fund ongoing - - Water Enterprise Fund ongoing 5,987 21 Wastewater Treatment Fund ongoing 5,845 21 Parking Enterprise Fund ongoing 2,523 965 Technology Service Fund ongoing - - Motor Vehicle Fund ongoing 145 3 Subtotal Expenditures 68,365$ 29,200$ Net Fiscal Impact (Revenues - Expenditures)-$ -$ 9 Funding Source Change
Proposed adjustment reflects shifting
$18,536 of General Fund support of the
Paving project to the Gas Tax Fund,
frees up General Fund
Additional funds available in the Gas Tax
Fund, Senate Bill 1 Road Maintenance
and Rehabilitation Account, earmarked
for road maintenance and rehabilitation
10 Project Savings
•Free up budgeted funds for other current priorities
•Completed projects: Microsoft Office 365, Economic Impact Study, Parking Management Study •De-appropriate to support Public Safety Facility: Parking Garage/Parking Inventory, Parking property paving
Fund Project Description
FY 2024 Proposed
Budget Adjustment
Revenues
Technology Service Fund Microsoft Office 365 De-appropriate, project completed $ (5,802.73) Subtotal Revenues (5,802.73)$
Expenditures
General Fund Economic Impact Study De-appropriate, project completed $ (26,960.82) General Fund Microsoft Office 365 De-appropriate, project completed (5,802.73) Parking Enterprise Fund Parking Garage De-appropriate remaining parking land purchase budget
(1,198,916.28)
Parking Enterprise Fund Parking Mgmt Study De-appropriate - parking management plan completed
(5,085.00)
Parking Enterprise Fund Parking property paving De-appropriate - parking property paving (750,000.00) Technology Service Fund Microsoft Office 365 De-appropriate, project completed (5,802.73) Subtotal Expenditures (1,992,567.56)$
Net Fiscal Impact (Revenues - Expenditures)1,986,764.83$ 11 Fiscal Impact
Fund Title Type
FY 2024 Proposed
Budget Adjustment
FY 2025 Proposed
Budget Adjustment
General Fund Rev (200,000.00)
General Fund Exp 106,872.45 64,951.00
Subtotal General Fund Net (306,872.45) (64,951.00) Gas Tax Fund Exp 18,536.00
Subtotal Gas Tax Fund Net (18,536.00) -
Local Transportation Rev (89,728.00)
Subtotal Local Transportation Net (89,728.00)
Grants - Non-Capital Rev (50,000.00)
Subtotal Grants - Non-Capital Net (50,000.00)
Housing In Lieu Fee Exp 1,000,000.00
Subtotal Housing In Lieu Fee Net (1,000,000.00) - LBID Fund Rev (538,000.00)
LBID Fund Exp - -
Subtotal LBID Fund Net (538,000.00) -
Chapman Estate Fund Exp - -
Subtotal Chapman Estate Fund Net - - Capital Projects Rev -
Subtotal Capital Projects Net -
Fund Title Type
FY 2024 Proposed
Budget Adjustment
FY 2025 Proposed
Budget Adjustment
Public Financing Authority Debt Service Rev 2,979,267.72 (389,737.50) Public Financing Authority Debt Service Exp 2,930,887.50 (389,737.50) Subtotal Public Financing Authority Debt Service Net 48,380.22 - Water Enterprise Fund Exp 26,703.98 20,551.00 Water Enterprise Fund Total Net (26,703.98) (20,551.00) Wastewater Treatment Fund Rev 267.49 (295,000.00) Wastewater Treatment Fund Exp 3,013,272.72 (656,496.50) Subtotal Wastewater Treatment Fund Net (3,013,005.23) 361,496.50 Pier Enterprise Fund Exp 14,500.00
Subtotal Pier Enterprise Fund Net (14,500.00) - Parking Enterprise Fund Exp (1,950,228.28) 2,715.00 Subtotal Parking Enterprise Fund Net 1,950,228.28 (2,715.00) Technology Service Fund Rev 62,562.27 29,200.00 Technology Service Fund Exp 62,562.27 29,200.00 Subtotal Technology Service Fund Net 0.00 - Motor Vehicle Fund Rev 2,000.00 3,000.00 Motor Vehicle Fund Exp 2,000.00 3,000.00 Subtotal Motor Vehicle Fund Net - - Total All Funds (3,058,737.16)$ 273,279.50$
12 Recommendation
•Staff recommends that the City Council adopt a
Resolution approving and appropriating budget
adjustments for FY 2024 and FY 2025.
13