Administrative
Report
L.2., File # 24-1071 Meeting Date: 6/18/2024
To: MAYOR AND CITY COUNCIL
From: WENDY COLLAZO, FINANCE DIRECTOR
TITLE
CONTINUED PUBLIC HEARING TO CONSIDER THE FISCAL YEAR 2024-25 PROPOSED
BUDGET, FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM, AND ASSOCIATED BUDGET
RESPONSE REPORTS
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2406-054, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADOPTING AN ANNUAL BUDGET FOR FISCAL YEAR 2024-25
a. Reconvene the Public Hearing, take testimony;
b. Close the Public Hearing;
c. Receive and file the Budget Response Reports; and
d. Adopt by title only Resolution No. CC-2406-054, including approval of Budget Response Report Nos. 1 and 56.
EXECUTIVE SUMMARY
On May 16, 2024, in accordance with the City Charter, the Mayor and City Council received the Proposed Budget for FY 2024-25 and the Proposed Five-Year Capital Improvement Program (CIP).
On June 4, 2024, the first Public Hearing on these documents was conducted and continued to June 11, 2024. The June 4th Public Hearing included an introduction and summary of the Proposed Budget, presentations from operating departments, and provided an opportunity for the City Council to ask questions and review/add to the list of Budget Response Reports (BRRs). The June 11th Hearing focused on the proposed capital projects. The June 18th Hearing will be focused on the Council’s consideration of Budget Adoption.
The City Charter requires the annual budget be adopted by June 30, 2024. A resolution for City Council adoption of the FY 2024-25 Budget (which includes the annual appropriations for operations and capital projects as proposed by the City Manager) is attached for City Council consideration of approval. It is also recommended that the City Council approve Budget Response Reports 1 and 56 as part of the final budget motion, to incorporate identified corrections to the proposed budget document and Council directed changes to the project appropriations in the John Parsons Public Art Fund.
BACKGROUND
The Proposed Fiscal Year 2024-25 Budget is balanced in accordance with the City Council’s adopted Financial Principles. If all recommended Decision Packages are adopted as modifications to the core
L.2., File # 24-1071 Meeting Date: 6/18/2024
Financial Principles. If all recommended Decision Packages are adopted as modifications to the core budget, the General Fund’s unallocated balance would be $83,191. After incorporating BRR #1, the unallocated balance is $69,304. During the FY 2024-25 budget process, staff submitted 57 Budget Response Reports to the City Council. These reports provide detailed information on prospective projects or policy changes the City Council may wish to consider during the budget adoption process.
Additionally, Budget Response Report No. 1 provides the City Council with corrections and adjustments to the Proposed Budget for inclusion in the Adopted Budget.
The City Manager’s Budget Message describes the Budget development process, the projected financial outlook for the coming fiscal year, and summarizes the Budget’s proposed revenues and expenditures. It also presents recommended Decision Packages - additions or reductions to the base budget that are not contractually obligated or the result of annual personnel allocation updates - and their financial impact.
The Budget includes a Fund Summaries Section, which highlights the status of key fund balances and presents more detailed summaries (mini-financials) to describe important fund activities and business unit proformas.
The Capital Improvement Program (CIP) identifies the capital investment required to meet the City’s General Plan and other policy goals and to ensure good stewardship of public infrastructure. The CIP identifies the projects, their estimated costs, and the financing methods needed to implement the City’s capital investment goals and the maintenance of new and existing infrastructure.
The Department Sections of the Budget identify each Department’s mission, level of personnel, annual maintenance and operations expenses, core services, key projects and assignments, and customer service work measures.
The proposed General Fund Budget for the upcoming Fiscal Year is summarized in the table below.
This shows the breakdown shared in the June 4, 2024 and June 11, 2024 Administrative Reports, updated to reflect the impact of BRR #1.
Further detail on the General Fund correction can be found in BRR #1.
L.2., File # 24-1071 Meeting Date: 6/18/2024
Final adjustments to the Proposed Budget will be made via the final Budget Adoption Resolution, and will be tabulated in real time, after the City Council concludes the Public Hearing and completes deliberations.
COORDINATION
All City Departments participated in the preparation of the Fiscal Year 2024-25 City Manager’s Proposed Budget and Five-Year Capital Improvement Program. The Planning Commission reviewed the Proposed Budget on May 23rd, 2024, the Budget and Finance Commission on May 30, 2024 and June 13, 2024 and the Harbor Commission on June 10, 2024. The input provided by the commissions has been included in Budget Response Report #36.
FISCAL IMPACT
The adopted version of the Fiscal Year 2024-25 Budget will create the financial guideline for all City operations. The Five-Year CIP is a planning document. Only funding for the capital projects identified in the first year of the Plan will be appropriated as part of the Fiscal Year 2024-25 Budget.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Resolution- Budget Adoption Resolution
· Resolution Exhibit A- FY 2024-25 Summary of Estimated Fund Balance · FY 2024-25 Budget Response Reports- June 18, 2024