Attachment No.2
POMONA
CITY OF
FY 2023 -24 Unaudited Year -End Overview &
FY 2024 -25 1st Quarter Budget Review
TONIGHT‘S PRESENTATION
FY 2023 -24
Unaudited Year -End
FY 2024 -25
1st Quarter Budget
ReviewOverview
FY 2023 -24
UNAUDITED
YEAR-END
FY 2023 -24
GENERAL FUND OVERVIEW
Total Expenditures
$160,478,401 $163,153,824
Total Revenues
($2,675,423
)
Deficit
Totals based off of 2023 -24 Unaudited Actuals show a
deficit of $2.7 million for our General Fund
Total Revenue $ 15 5 ,8 11,4 6 4 $ 15 9 ,8 9 7,0 76 $ 16 0 ,4 78 ,4 0 1 1 00% $ 16 2,8 6 2,4 0 0 Total Expense $1 54, 595, 498 $ 16 7 ,0 9 1,0 4 2 $ 16 3 ,15 3 ,8 2 4 98% $1 64, 622, 361 NET $1,215,966 ($7,193,966) ($2,675,423) ($1,759,961)
FY 2023 -24
GENERAL FUND OVERVIEW CONT.
FY 2023 -24
Adopted
Budget
FY 2023 -24
Amended
Budget
FY 2023 -24
Actuals to
Date
FY 2023 -24
%Actuals/Budget
FY 2023 -24
Year End
Estimate
Revenue
Summary
• Conservative spending in
some Departments
contributed to some savings in
the controllable expense
category.
• Expenses exceeded revenues by
$2.7M due to unanticipated
decreases in Sales Tax, UUT
Tax, Property Tax, and All -Other
Tax Category.
Expenses
Summary
• To date, $160.5M in revenue has
been received and no other
significant sources are
forthcoming.
• Actual revenues for Property Tax,
Sales & Use Tax, and Utility User Tax
fell short of year -end estimates by
$2.6M with a $2M reduction coming
from the Sales & Use Tax Category.
• Approximately $700k in Host Fee
Revenues was not received. Staff is
currently working with the vendor on
terms of an updated agreement.
• Any additional revenues that
should have been received in FY
2023 -24 will be collected in the
current fiscal year.
FY 2023 -24
REVENUES
Revenues
• The preliminary overall expenditures
are at $163.2M, which creates an
estimated savings of $4M as
compared to the amended budget
and year -end estimates.
• The main contributor to these savings
is in the controllable contracts
category within several Departments
that had contracts not utilized or
spent conservatively, saving $2.4M.
• In addition, $360k in savings in
reduced expenses than
anticipated in the City Attorney
contract contributed as well.
FY 2023 -24
EXPENDITURES
Revenues
ADDITIONAL DISCUSSION
• Another factor that contributes to the
deficit of $2.7M is the April 2024
council action that appropriated
$4.4M of the $13.3M Fiscal Year
2022 -23 General Fund Unassigned
Fund balance to be used towards the
3 areas of Section 115 Trust, CIP
funding, and Reserves for Equipment
Replacement.
Appropriations
• Wi th the status of the 2024 -25
budget, as well as the net budget
changes, the General Fund balance
wi ll be at a level over the 24% whi ch
i s the requi rement to be met by June
30th, 2025 per the Ci ty’ s
Consoli dated Fi scal Poli ci es and
A dmi ni strati ve Procedures.
Future Outlook
FY 2024 -25
1ST QUARTER
BUDGET OVERVIEW
Total Revenue $ 16 1,2 9 8 ,2 12 $898, 598 $ 16 2 ,19 6 ,8 10 $ 9 ,0 5 5 $ 16 2,20 5 ,8 6 5 $ 16 ,0 2 1,4 5 4 10 % Total Expense $ 16 1,2 6 0 ,15 9 $3, 1 30, 000 $ 16 4 ,4 0 6 ,15 9 $ 17 1,8 0 9 $ 16 4 ,5 77,9 6 8 $34,777,857 2 1% NET $38,053 ($2,231,402) ($2,209,349) $162,754 ($2,372,103) ($18,756,403) FY 2024 -25
1ST QUARTER SUMMARY - 25% COMPLETE
Adopted
Budget
Amendments Amended
Budget
1st Quarter
Proposed
Amendments
Proposed
Amended Budget
As of Sep.
30th 2024
% Received /
Expended
The estimated deficit through October 2024 is $2.2M. The negative cash flow is normal due to the timing of tax receipts. *Includes appropriations approved from July 2024 -October 2024 All Property Taxes $50, 1 1 0, 000 $488, 801 1% $ 5 1,23 5 ,0 0 0 $522,686 1% All Sales & Use Tax $ 4 2,4 6 7,0 0 0 $3, 61 4, 742 9% $43, 575, 91 4 $3, 488, 853 8% All Utility Tax $21 ,777,000 $ 2,8 5 6 ,4 0 2 13 % $ 21,9 8 9 ,6 8 6 $ 3 ,9 76 ,5 0 2 18 % All Other Taxes $ 2 1,5 18 ,8 0 0 $ 2,76 5 ,3 6 6 13 % $ 21,3 0 4 ,8 0 0 $ 3 ,28 6 ,15 9 15 % All Other Sources $24,024,276 $ 6 ,18 5 ,6 20 26% $24, 091 , 41 0 $ 4 ,74 7,25 4 20% Total Revenue $159,897,076 $15,910,931 10% $162,196,810 $16,021,454 10% FY 2024 -25
1ST QUARTER REVENUE SUMMARY
2023 -24
Amended
Budget
2023 -24
1st Quarter
% Actuals /
Budget
2024 -25
Amended
Budget
2024 -25
1st Quarter
% Actuals /
Budget
FY 2024 -25
GENERAL FUND REVENUES
Property Tax Sales Tax Utility Users Tax
(UUT)
• Based on revenues received
through Sep. 30th, the
actuals are slightly higher
this year and are expected to
continue to come in higher
than previous year due to
property value stability.
• Largest portion of revenue
received November to May.
• City also receives “In Lieu”
property tax twice a year in
January and June.
• Received about $3.4M from the
below three sales tax sources
through September 30th.
• Total revenue budget comes from
Retail Taxes derived from:
⚬ 1% share of local sales
⚬ Transactions & Use Tax at 0.75%
⚬ Allocations of Public Safety
Augmentation Fund (PSAF) tax
• Responsive to economic
circumstances
• It has been suggested that the City
hold off on any changes to revenue
projections pending a possible
reduction to consumer spending.
• Total $3.9M received in the first
quarter does not represent a full
quarter of receipts as revenues
received in July and August are
accrued back to the previous Fiscal
Year.
• This tax represents 14% of General
Fund revenues.
• Based off of previous year
comparison, the revenue received in
the first quarter aligns with the
budget.
• Overall, we estimate that this tax will
come under budget due to a decrease
in gas remittance revenue.
FY 2024 -25
GENERAL FUND REVENUES CONT.
Other Taxes Other Sources
• Other taxes include Business
Licenses, Transient Occupancy Tax,
Property Transfer Tax, Franchise
Fees, and the Cannabis Business Tax
(CBT) - Measure PC, which make up
13% of total General Fund revenues.
• Business license revenue is trending
slightly lower than previous years
• Property Transfer Tax and Franchise
Fees are trending as expected.
• CBT is reflecting a decrease from
operators’ sales slowing down
• No revenue increase is recommended
at this time
• All Other Sources include Fees,
Licenses, Permits, and Other
Miscellaneous categories.
• These revenue sources appear to
be trending lower than this time
last year.
• Decrease is due to a decrease in
building and construction in the
City.
• No decrease in revenue estimate is
recommended by staff due to other
line items coming in stronger than
anticipated.
FY 2024 -25
1ST QUARTER EXPENDITURES BY CATEGORY
Personnel Controllable
Expenses
Required
Expenses
Allocation
& Utilities
Recovered
Costs
Capital Debt
Service
Transfers to
Other Funds
72.39 14.37 15.75
1.72 41.19
9.81 27.32
6.65 -1.81 -0.45 0.89 0.19 0.08 8.59 2.49
FY 2024 -25
Amended Budget
$4.71
$0.60
$1.71
$2.21
$2.83
FY 2023 -24
Budget
FY 2024 -24 1st
Quarter
$0.74
$0.11
$0.19
$0.40
$0.54
FY 2023 -24
Budget% of Expended
16%
18%
11%
18%
19%
Recovered Costs
Mayor & Council
City Clerk
Human Resources
Finance
General Services
-$1.81 -$0 .45 25%
FY 2024 -25
1ST QUARTER EXPENDITURES BY DEPARTMENT
City Administration 18%$0 .29$1.63
FY 2024 -25
Amended Budget
$7.81
$36.63
$17.47
$0.65
$7.02
FY 2023 -24
Budget
FY 2024 -24 1st
Quarter
FY 2023 -24
Budget% of Expended
$164.40M $34.78M 21%
Police
Fire
Public Works & CIP
Neighborhood Svcs.
Community Services
Development Services
$80 .77
FY 2024 -25
1ST QUARTER EXPENDITURES BY DEPARTMENT CONT.
Library $2.17
$1.21
$9.11
$3.64
$0 .13
$1.10
$17.40
$0 .36
15%
25%
21%
20 %
20 %
22%
16%
GENERAL FUND
APPROPRIATION ESTIMATE REQUESTS
+$171.8k
• Carryover for Police Vehicle
Retrofit
• Receive Library
Reimbursement from Imperial
County Office of Education for
the partial reimbursement for
the State Funded broadband.
+$9k
NON-GENERAL FUND
APPROPRIATION ESTIMATE REQUESTS
• Carryover of ARP funds
⚬ Net zero fiscal impact
+$72k
• Carryover of State Homeland
Security Program (SHSGP) for
SHSGP 2021
⚬ Savings in previous program
made funding available for
additional expenditures
• Carryover of SHSGP 2022
⚬ Due to purchase delays of
authorized Motorola radio
equipment.
+$1.5k
• Carryover of LATA Grant funds
NON-GENERAL FUND
APPROPRIATION ESTIMATE REQUESTS CONT.
-$324k
• Termination of Proposition 64 Grant
⚬ Originally awarded $1M from Board of
State and Community Corrections (BSCC)
in May 2021
⚬ Notified in July 2024 to terminate the
grant agreement due to failure to meet
grant reporting requirements
⚬ The City appealed this decision in August
2024, to which BSCC denied the request.
⚬ The City appealed this decision a second
time, to which the BSCC denied the
request September 2024.
⚬ Unreimbursed grant ependitures totaling
$634k were moved and covered under
General Fund (Youth Commitment) and
Cannabis Community Benefit Fund.
• Appropriation in the Refuse Fund for
Illegal Dumping Contract Costs
⚬ As part of the Athens Refuse
Services contract, the City
receives over 2,000 requests for
illegal dumping pickups each
year.
⚬ At this time, the City has
exceeded the minimum free
pickups allowed for this fiscal
year and will pay Athens $265k
for illegal dumping services
received to date.
SUMMARY
APPROPRIATION & REVENUE ESTIMATE REQUESTS
General Fund Revenue Estimate Appropriation Changes
Carryover PD Vehicle Retrofit (101 -2xxx -66182-00000) $171,809 Receive Library Reimbursement (101 -4501-40873 -0000) $9,055 TOTAL GENERAL FUND REVENUE ESTIMATES/APPROPRIATIONS $9,055 $171,809 Non-General Fund Revenue Estimate Appropriation Changes Carryover of LATA Grant (215 -1410-40873/52285 -58779) $1,488 $1,488 Carryover Adjustment (ARP) (191 -xxxx -xxxxx -xxxxx) $12,726,963 $12,726,963 Carryover of State Homeland Security Program 2021 (263 -2090 -4xxxx/5xxxx -58755) $72,000 $72,000 Carryover of State Homeland Security Program 2022 (263 -2090 -4xxxx/5xxxx -58778) $45,577 $45,577 Termination of Prop 64 (215 -xxxx -xxxxx -58742) ($323,953) ($323,953) Refuse Fund Appropriation for Illegal Dumping Contract (582 -2505 -52285 -00000) $265,000 TOTAL NON-GENERAL FUND REVENUE ESTIMATES/APPROPRIATIONS $12,522,075 $12,787,075 TOTAL REVENUE ESTIMATES/APPROPRIATIONS $12,531,130 $12,958,884 Fund Balance $62,959,951 $60,284,52
8 $57,912,425
Change in Fund Balance N/A ($2,675,423
) ($2,372,103)
Expenditures/Appropriati
ons
Transfers
Total
$133,377,621
10,754,494
$144,132,115
$153,237,741
9,916,083
$163,153,82
4 $157,668,268
8,593,863
$166,262,131
Percentage 43.7% 36.9% 34.8%
Policy Goal 22% 23% 24%
Difference 21.7% 13.9% 10.8%
GENERAL FUND
ESTIMATED FUND BALANCE
FY 2022 -23 FY 2023 -24
Est
FY 2024 -25
Est
FY 23-24 and
Projected FY 24 -25
⚬ The projected ending fund balance for FY 2024 -
25, including the unaudited FY 23 -24 deficient of
$2.7M, will easily meet the policy goal of 24%
reserves, estimating 11.3% over the benchmark
percentage.
⚬ The importance of meeting the reserve
requirement allows the City to be well prepared
for emergency situations, cash flow needs in the
first six months of the fiscal year, and one -time
capital replacement projects in the future.
⚬ The City’s bond rating could also be impacted if
the reserve policy percentage requirement was
not met.
⚬ Two primary uses of the current year fund balance
was the carryover of $172k for items budgeted in FY
23 -24 but not received until FY 24 -25, and the $2.3M
that was appropriated for Civic Center Plaza New
Playground and Amenities Project on October 7,
2024 that will be returned to the General Fund once
Development Impact fees (DIF)
*Assumes proposed budget action in FY 2024 -25 1st Quarter Report
CLOSING REMARKS
• General Fund budget adjustment
recommendations included in this
presentation, will result in an overall
$2.4M deficit.
• Current estimated fund balance far
exceeds the reserve policy amount of
24%.
• Departments will continue to operate
within their budget while monitoring
expenditures.
CLOSING REMARKS
CONT.
• Finance Staff will continue to
appraise the Mayor and City Council
of any significant impacts.
• Measure Y, which was on the November 5th,
2024 election ballot is trending towards a
confirmation of “yes”
⚬ T hi s wi ll amend the Ci ty Charter to allocate
an addi ti onal 1 0% of the Ci ty’ s General Fund
youth programs by FY 2030 -31
⚬ T he fi rst acti on of thi s measure would i mpact
the current fiscal year with a contribution of
2% of General Fund as of J anuary 1 , 2025
unrestri cted revenues to the newly formed
Y outh and Fami ly D epartment.
⚬ T he proj ected i mpact on General Fund
reserves would be $1 . 6M bei ng moved to
Children and Y outh Fund in FY 24 -25
Measure Y