POMONA
CITY OF
FY 2024-25 Mid-Year Budget Review
Attachment No. 2
TONIGHT‘S PRESENTATION
FY 2024-25
Mid-Year Budget
Review
Overview
FY 2024-25
Estimated Fund
Balance
Summary
FY 2024-25
MID-YEARBUDGET REVIEW
Total Revenue $161,298,212 $162,209,865 ($30,000) $162,179,865 $67,324,297 42% $159,276,687 Total Expense $161,260,159 $166,223,748 ($66,479) $166,157,269 $79,294,707 48% $166,962,881 NET $38,053 ($4,013,883) ($96,479) ($3,977,404) ($11,970,410) ($7,686,194) FY 2024-25
MID-YEAR SUMMARY - 50% COMPLETE
Adopted
Budget
Amended
Budget
Mid-Year
Budget
As of Dec. 31st
2024
% Received /
Expended
Year-End
Estimate
Proposed
Mid-Year
Amendments
All Property Taxes $51,235,000 $51,235,000 $21,761,471 42% $52,852,298 All Sales & Use Tax $43,575,914 $43,575,914 $16,109,844 37% $40,851,887 All Utility Tax $21,989,686 $21,989,686 $11,681,721 53% $21,290,921 All Other Taxes $21,304,800 $21,304,800 $8,576,823 40% $22,504,800 All Other Sources $24,104,465 $24,074,465 $9,194,437 38% $21,776,781 Total Revenue $162,209,865 $162,179,865 $67,324,297 42% $159,276,687 FY 2024-25
GENERAL FUND REVENUE - MID-YEAR SUMMARY
Amended
Budget
Mid-Year
Budget
Mid-Year
Actuals
% Actuals /
Budget
Year-End
Estimate
FY 2024-25
GENERAL FUND REVENUES
Property Tax Sales & Use Tax
Revenues are expected to
bring in an estimated $2.4M
more than last fiscal year.
The taxable assessed value
growth in Pomona for this
fiscal year has increased by
4.9%
Overall, this revenue category
is expected to end the fiscal
year approximately $1.6M
higher than originally
budgeted.
Derived from three distinct sources:
1% share of local sales (State and County Pools)
Allocations of Public Safety Augmentation Fund (PSAF) - County Tax 3/4 Cent Transaction and Use Tax (Measure PG) revenues
Per the City’s Sales Tax Consultant/Revenues received through December 31st, total Sales Tax is anticipated to come in $2.7M lower than the current budget.
The Sales and Use Tax is projected to come in at $21.8M, which is $2.1M under budget related to statewide audit on ecommerce and auto businesses resulting in a reduction in sales tax revenue originally allocated to Pomona.
Additional Sales Taxes sources estimated to come in lower than the original budget:
Measure PG revenues are estimated to come in $400k less 1/2 Cent Sales Tax to come in $46k below
FY 2024-25
GENERAL FUND REVENUES CONT.
Other Taxes Other Sources
Category includes Business
Licenses, Transient Occupancy
Tax, Property Transfer Tax,
Cannabis Business Tax, and
Franchise Fees (represents 13%
of General Fund Revenues)
Receipts for Business License
and Property Transfer Tax are
coming in strong than initially
anticipated resulting in an
estimated $1.2M higher than
originally budgeted.
Category includes Fees, Licenses, Permits, and
Revenue from Use and Property categories
(Represents 15% of General Fund revenues)
Permits category is estimated to come in $1M below
budget due to a decrease in large projects and
permits being processed through the building and
safety division. Some of the expected project plan
and permit revenue that was anticipated this FY will
be realized in FY 25-26.
The Fees Category is expected to realize a decrease
of $1.4M mostly due to a decrease in Host revenue by
$1M.
Overall the category is expected to receive $2.3M
less than budgeted mainly due to various decreases in
revenues for fees and permits
Utility Users Tax
(UUT)
Represents 13% of General Fund
revenues
Projected to come under budget due
to a decrease in the remittance
revenues received in the Utility Users
Tax - Gas category
$1.5M under budget in
FY 2023-24
$1.7M under budget in
FY 2024-25
Due to short-term hike in natural gas
prices that inflated remittance
revenue in FY 22-23, causing future
estimates and averages to be off
72.5 72.5
72.5 72.5 72.5
72.5 72.5
72.5 72.5
72.5 72.5 72.5 72.5 72.5
72.5 72.5 72.5 72.5 72.5 72.5 72.5 72.5
Personnel $72,213,181 43% $35,348,968 49% $72,176,702 $73,666,575 Debt Service $79,032 0% ($5,595) (7%) $79,032 $79,032
Controllable Expenses $15,913,008 10% $5,013,198 32% $15,883,008 $15,197,961 Required Expenses $41,246,446 25% $20,049,893 49% $41,246,446 $41,192,043 Allocation and Utilities $27,269,762 16% $13,598,407 50% $27,269,762 $27,186,554 Recovered Costs ($1,807,570) (1%) ($903,785) 50% ($1,807,570) ($1,807,570) Capital $1,064,296 1% $319,725 30% $1,064,296 $1,002,693 Transfers to Other Funds $10,245,593 6% $5,873,896 57% $10,245,593 $10,445,593 Total Expense $166,223,748 100% $79,294,707 48% $166,157,269 $166,962,881 Mid-Year
Budget
FY 2024-25
MID-YEAR EXPENDITURES BY CATEGORY
Amended
Budget
% of Total Mid-Year
Actuals
% Expended Year-End
Estimate
Amended
Budget
$4.71
$0.60
$1.71
$2.21
$2.83
FY 2023-
24 Budget
% of Total
3%
0%
1%
1%
2%
Mid-Year
Exp.
$2.19
$0.27
$0.42
$1.00
$1.27
Recovered Costs
Mayor & Council
City Clerk
Human Resources
Finance
General Services
($1.81) (1%) ($0.90)
FY 2024-25
MID-YEAR EXPENDITURES BY DEPARTMENT
% of
Expended
46%
45%
25%
45%
45%
FY 2023-
24 Budget
Mid-Year
Budget
$4.71
$0.60
$1.71
$2.21
$2.82
50% ($1.81)
FY 2023-
24 Budget
Year-End
Estimate
$5.95
$0.59
$1.54
$2.15
$2.64
($1.81)
Amended
Budget
$1.63
$80.94
$36.63
$13.92
$0.65
FY 2023-
24 Budget
% of Total
1%
49%
22%
8%
0%
Mid-Year
Exp.
$0.68
$39.43
$18.31
$6.08
$0.29
Development Services
Police
Fire
Public Works
Neighborhood Services
City Administration
$7.81 5% $3.03
FY 2024-25
MID-YEAR EXPENDITURES BY DEPARTMENT-CONT.
% of
Expended
42%
49%
50%
44%
45%
FY 2023-
24 Budget
Mid-Year
Budget
$1.60
$80.94
$36.63
$13.92
$0.65
39% $7.78
FY 2023-
24 Budget
Year-End
Estimate
$1.56
$81.68
$36.63
$13.89
$0.65
$7.74
Amended
Budget
$7.02
$3.55
$1.65
FY 2023-
24 Budget
% of Total
4%
2%
1%
Mid-Year
Exp.
$2.80
$3.55
$0.00
Library
CIP
Children & Youth Transfer
Community Services
$2.17 1% $0.88
FY 2024-25
MID-YEAR EXPENDITURES BY DEPARTMENT-CONT.
% of
Expended
40%
100%
0%
FY 2023-
24 Budget
Mid-Year
Budget
$7.02
$3.55
$1.65
41% $2.17
FY 2023-
24 Budget
Year-End
Estimate
$6.90
$3.55
$1.65
$1.63
GENERAL FUND
MID-YEAR APPROPRIATION & REVENUE ESTIMATE REQUESTS
Decrease in revenue and
appropriations of $30k due to the
creation of the CASp Certification
and Training Fund
Amount will be budgeted in the
New CASp Certification and
Training Fund 150
Offsetting actions in the Non-
General Fund Amendment section
Decrease in appropriations of $36k due to Measure Y Salary Allocations
Task Force - City Manager, Assistant City Manager, City Attorney, Assistant to the City Manager, Finance Director, and Deputy Finance Director
Primary role of the Task Force is to fulfill the initial requirements of Measure Y, including establishing the Accountability Board, which will oversee and administer the Children and Youth Fund
5% of the Task Force Members’ Salaries and Benefits, along with estimated City Attorney costs will be allocated to the Children and Youth Fund.
Offsetting actions in the Non-General Fund Amendment section -$30k -$36k
NON-GENERAL FUND & CIP
APPROPRIATION & REVENUE ESTIMATE REQUESTS
+$30k
Senate Bill 1186 was passed to collect
fees for increased Certified Access
Specialist (CASp) training and
certification within Pomona and to
facilitate compliance with construction-
related accessibility requirements, and
to provide financial assistance to small
business for construction of physical
accessibility improvements.
CASp training fees need to be set aside
in their own fund
Increase revenues and appropriations by
$30k
Offset in General Fund Amendment
section
+$9.8k
Staff is requesting to increase
appropriations by $9,810 for the
PEG fund
This will improve City Council
Meeting broadcasting and
interpreter functions by installing
additional wireless microphones
and relocating the interpreter table
from the chambers to the foyer
Appropriation to the Children and Youth Fund in the
amount of $61k
Measure Y Task Force - City Manager, Assistant City
Manager, City Attorney, Assistant to the City
Manager, Finance Director, and Deputy Finance
Director.
Primary role of the Task Force is to fulfill the initial requirements of Measure Y, including establishing
the Accountability Board, which will oversee and
administer the Children and Youth Fund.
5% of the Task Force Members’ salaries and benefits
along with estimated City Attorney costs will be
allocated to the Children and Youth Fund
Partial offset in General Fund Amendment section
+$61k
SUMMARY
MID-YEAR APPROPRIATION & REVENUE ESTIMATE REQUESTS
General Fund Revenue Estimate Appropriation Change
CASp Certification & Training Unappropriated from General Fund (101-2521-40910/52130- 00000) ($30,000) ($30,000)
Measure Y Task Force Salary Allocation (101-xxxx-51012-00000) ($36,479) TOTAL GENERAL FUND REVENUE ESTIMATES/APPROPRIATIONS ($30,000) ($66,479) Non-General Fund Revenue Estimate Appropriation Change
CASp Certification & Training Appropriation to New Fund (150-2521-40910/52130-00000) $30,000 $30,000 PEG Fund Microphone Council Chambers (196-1410-xxxxx-00000) $9,810 Measure Y Task Force Salary Allocation (148-xxxx-51012-00000) $36,479 Measure Y City Attorney Costs (148-xxxx-52945-00000) $25,000 TOTAL NON-GENERAL FUND REVENUE ESTIMATES/APPROPRIATIONS $30,000 $101,289 TOTAL REVENUE ESTIMATES/APPROPRIATIONS $0 $34,810
FY 2024-25
ESTIMATED FUNDBALANCE
Item
Fund Balance FY 2023-24 (Based on Annual Audit-Not Audited) $60,284,528 Total Amended Revenue to Date
Total Amended Expense to Date
Total
$162,209,865
166,223,748
($4,013,883)
Total Request at March 17, 2025 City Council Meeting ($36,479) Anticipated 2024-25 Usage of Unassigned Fund Balance ($3,977,404) Updated Budgeted Fund Balance FY 2024-25 $56,307,124
Estimated Committed Fund Balance Per Policy (24%) $38,216,172
GENERAL FUND
ESTIMATED FUND BALANCE Projected FY 24-25
Estimated Fund Balance
Based on the un-audited FY 2023-24 figures, the
General Fund balance will be $60.3M, which is
about 34% of total operating expenditures.
However, based on the FY 2024-25 Adopted
Budget, with the additional budget amendments
since July 1, 2024 and mid-year
appropriations/revised revenue estimates, the
estimated fund balance at the end of this fiscal
year will be $56.3M (with the use of reserves).
Even with the use of reserves this year, General
Fund should exceed the Fund Balance Policy
target of 24%.
As shown in the table on the left, the $36k
decrease in budget amendments combined with
the anticipated deficit for FY 2024-25, will still
result in the use of reserves.
Another key factor to note is that if the year-end
estimate of $7.7M deficit does occur, the fund
balance will be at a level of 32%
CLOSING REMARKS
General Fund budget adjustment
recommendations included in this
presentation, will result in an overall
$4M deficit ($7.7M YrEnd Estimate).
Current estimated fund balance
exceeds the reserve policy amount of
24% at 34% (Budget) and 32% (YrEnd)
Departments will continue to operate
within their budget while monitoring
expenditures.
CLOSING REMARKS
CONT.
Finance Staff will continue to apprise
the Mayor and City Council of any
significant impacts.
The $4M deficit is primarily the related to the
$2.2M transfer to the Civic Center Plaza CIP Project
(DIF funds will replace) and the $1.6M transfer to
the Children and Youth Fund (Measure Y)
The additional factors contributing to the Year-End
estimated deficit of $7.7M is due to revenue losses
of Sales Tax, UUT Gas-Tax, and the removal of the
HOST Fee
The national economic situation will
continue to bring challenges and reminds
us of the importance of having adequate
reserves
Tariffs, unemployment, interest rate
fluctuation, and changes in the market
raise questions if a downturn in the
economy is forthcoming
Challenges to the City’s Budget will continue into FY
2025-26 Budget Process including the possible
inability to fund the City Consolidated Financial
Policies (115 Trust, CIP Reserve, and Equipment
Reserve) that support long term financial goals and
address efforts to assist with future liabilities
Reductions in programs and services will be
discussed along with the data shared in the City’s
long term financial plan (10-year forecast) and the
forthcoming budget projections
FISCAL YEAR 2025-26
BUDGET MEETINGS
Important Dates
Two community Budget Forums will be held in
Pomona City Council Chambers and will be
available to watch online and on TV via the
public access channel or on the City’s live
stream
Session 1
March 24, 2025 at 7:00PM
Session 2
April 2, 2025 at 3:00PM
New format to encourage a more meaningful
community dialogue with constructive input
We encourage all community members to
attend and participate in these important
budget forums
The FY 2025-26 Annual Proposed
Budget Study Session will be
brought forward for discussion on
Monday, May 12, 2025.