June 18, 2024
City Manager’s Office and
Finance Department
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
LaShonda White, Deputy City Manager, Community
Services
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Jerry Gurule, Accounting Manager
Subject: Fiscal Year (FY) 2024-25 Proposed Operating Budget and FY 2024-25 to 2028-29 Proposed Five-Year Capital
Improvement Plan (CIP) Budget
FINANCIAL IMPACT: There is no financial impact associated with adopting the FY 2024-25 Proposed Operating Budget and FY 2024-29
Proposed Five-Year Capital Improvement Plan Budget.
The General Fund budget is structurally balanced with
revenue and expenditures equal to $248,935,372. FY
2024-25 Total Proposed Non-General Revenue budget is
$254,008,291 and Proposed Expenditure budget is
$332,078,233.
PREVIOUS COUNCIL
ACTION:
May 7, 2024, May 28, 2024, June 4, 2024
STATEMENT OF THE
ISSUE:
City staff is submitting the Fiscal Year (FY) 2024-25
Proposed Operating Budget and the FY 2024-25 to FY
2028-29 Proposed Five-Year Capital Improvement Plan
Budget to City Council for adoption.
AGENDA
REPORT
June 18, 2024
RECOMMENDED ACTION:
ADOPT resolutions approving: (1) Fiscal Year (FY) 2024- 25 Proposed Operating Budget, and (2) FY 2024-25 to
FY 2028-29 Proposed Five-Year Capital Improvement
Plan Budget – City Manager’s Office/Finance Department
(Shasa Curl 510-620-6512/ Nickie Mastay 510-620-6609/
Andrea Miller 510-620-6790/Mubeen Qader 510-412-
2077).
DISCUSSION:
FY 2024-25 PROPOSED BUDGET
On May 7, 2024, per Richmond Municipal Code Section 2.61.010, the City Manager submitted the first draft of the Fiscal Year (FY) 2024-25 Operating budget and the draft FY 2024-25 to FY 2028-29 Five-Year Capital Improvement Plan (CIP) budget. The General Fund operating budget was balanced with the revenues and expenditures at $252,509,054. However, this draft budget did not include all departmental requests.
On May 28, 2024, the City staff provided an FY 2024-25 budget presentation and compiled a budget checklist of questions received from the City Council with proposed modifications to the draft budget before final approval.
On June 4, 2024, City staff responded to the checklist developed based on the City Council feedback from May 28, 2024. The City Council also provided directions to staff on the FY 2024-25 Proposed Budget. This agenda item presents a balanced General Fund budget for FY 2024-25 and requests that the City Council adopt resolutions approving (1) FY 2024-25 Proposed Operating Budget and (2) FY 2024-25 to FY 2028- 29 Proposed Five-Year Capital Improvement Plan Budget.
GENERAL FUND
The proposed FY 2024-25 General Fund budget in this agenda item is balanced with revenue and expenditures equal to $248,935,372. The proposed General Fund budget presented for adoption is lower than the draft General Fund Budget presented on May 7, 2024, and May 28, 2024, by $3,573,682. Table 1 below shows the General Fund revenue and expenditure budget presented at the various City Council meetings. Since the June 4, 2024, City Council meeting, City staff have identified revenue and expenditure adjustments with a net decrease of $3,573,682. This revises the total General Fund revenue and expenditure budget balanced at $248,935,372.
June 18, 2024
Table 1: FY 2024-25 Proposed General Fund Revenue and Expenditure Budget General Fund
FY 2023-24
Revised Budget
(Through March)
FY 2024-25
Proposed Budget
(May 7 & 28,
2024)
FY 2024-25
Proposed
Budget
(June 4, 2024)
Adjust.
FY 2024-25
Proposed
Budget
(June 18, 2024)
TOTAL
REVENUES (234,380,287) (252,509,054) (254,560,261) 5,624,889 (248,935,372) TOTAL
EXPENDITURES 246,295,113 252,509,054 252,509,054 (3,573,682) 248,935,372
NET(-SURPLUS)
+ DEFICIT 11,914,826 - (2,051,207) 2,051,207 -
At the June 4, 2024, City Council meeting, City staff presented a General Fund Revenue increase of $2,051,207. This increase stems primarily from the Successor Agency surplus payment from Contra Costa County (County) being significantly higher than originally budgeted to the updated Sales Tax forecast as provided by Avenu Insights & Analytics, the City’s Sales Tax consultant.
For the adopted budget, there will need to be a decrease in the General Fund Revenue of Documentary Transfer Tax of $5,624,889. This decrease is based on the average monthly amount collected by the County for Documentary Transfer Tax since the passage of Measure H in 2018. It excludes the sale of properties with a sale price of $10 million or above. The City has an average of five sales per year of $10 million or greater over the last five years, ranging from $10 million to nearly $150 million.
However, zero transactions were over $10 million in the first 11 months of FY 2023-24.
There was one sale in June that exceeded the threshold of $10 million. Budget estimates excluding large volatile sales provide a more likely base to budget for Documentary Transfer Tax.
The revenue adjustments mentioned above resulted in a net decrease of $3,573,682 in General Fund revenues (Table 2).
Table 2: Proposed General Fund Revenue Adjustments
Revenue FY 2024-25
Proposed Budget Assumptions
Revenue Budget
(May 28, 2024) (252,509,054)
Increase
(June 4, 2024) (2,051,207) Revised estimates based on additional information, including a major increase in Property Tax/Successor Agency Surplus.
Decrease
(June 18, 2024) 5,624,889 The documentary transfer tax estimate is based on the projected revenue for the current year.
Revenue Budget
(June 18, 2024) (248,935,372)
Net Decrease in
Revenue 3,573,682
June 18, 2024
Adjustments to the FY 2024-25 General Fund expenditures are currently advised to balance the budget. The adjustments include a decrease of $3,878,682 and an increase of $305,000, resulting in a net decrease of $3,573,682 in expenditures (Table 5).
Budget adjustments are anticipated to be required as Measure U payments are received, and various capital improvement project bids are finalized. Suppose the City Council would prefer other modifications to the budget that lead to a net decrease of $3.6 million. In that case, it is appropriate for the City Council to provide direction to adopt a balanced budget on June 18, 2024. Failure to adopt the budget will lead to further delays with CIP projects and slow down positive movement, given the large volume of work that is required to be completed before the City Council recess. These initial reductions in the budget are not expected to have an impact on current service levels.
General Fund Reductions
Since FY 2020-21, the City Council has provided policy direction that has led to a 22 percent decrease in unhoused Richmond residents and has approved $15,250,000 in Federal, State, and City funds for unhoused residents in Richmond.
The City has expended and encumbered $11,551,946 of these funds as of FY 2023-24.
The City contribution of $4,900,000 is needed to support the proposed acquisition of the Motel 6 for permanent supportive housing and is comprised of the Affordable Housing In-Lieu Fund of $2,419,200, which is anticipated to be spent from years 1 – 5 (FY 2024- 25 through FY 2028-29), and the remaining City contribution is anticipated to be expended in years 5 – 7 (FY 2029-30 and FY 2030-31) (Table 3 and Table 4). The HomeKey grant award announcement is expected in the coming weeks, and City staff are optimistic that Richmond is well positioned. Nonetheless, suppose the funds are not awarded to the City. In that case, staff will return to the City Council with an updated plan for City Council consideration in the fall of 2024 with the aim of continuing to increase services and housing options for unhoused Richmond residents.
Table 3: Support for Unhoused Residents in Richmond
Sources FY 2021-22 FY 2022-23 FY 2023-24
Total
Expenditure/
Encumbered
ARPA
($50,000)(Federal) $0 $50,000 $0 $50,000
ERF Round 1- Grant
($4.8Million)(State) $6,755 $2,547,093 $2,245,669 $4,799,517 Reimagining Public Safety
($1.8Million/Year)(General Fund) $714,390 $732,154 $954,591 $2,401,135 ERF Round 2 Grant
($8.6Million)(State) $0 $0 $4,301,294 $4,301,294
Total $721,145 $3,329,247 $7,501,554 $11,551,946
Grant Requests Pending TOTAL 28,749,406
June 18, 2024
Homekey Grant
($14Million)(State) 14,512,660
Homekey (City Contribution)
(Affordable Housing In-lieu funds) 4,900,000
ERF Round 3 Grant 9,336,746
Table 4: Support for Unhoused Residents in Richmond (Continued) Sources FY 2024-25 FY 2025-26 FY 2026-27
ARPA
($50,000)(Federal) $0 $0 $0
ERF Round 1- Grant
($4.8Million)(State) $0 $0 $0
Reimagining Public Safety
($1.8Million/Year)(General Fund) $800,000 $1,800,000 $1,800,000 ERF Round 2 Grant
($8.6Million)(State) $4,301,293 $2,150,647 $2,150,646
Total $5,101,293 $3,950,647 $3,950,646
Grant Requests Pending
Homekey Grant
($14Million)(State) $12,500,000 $500,000 $500,000
Homekey (City Contribution)
(Affordable Housing In-lieu funds) $2,343,460
ERF Round 3 Grant
A total reduction of $3,878,682 in the General Fund expenditure budget is provided below and includes the following:
Reimagining Public Safety, Reduction of $1,000,000 - In June 2021, the City Council approved the recommendations of the Reimagining Public Safety Community Task Force, which included an original allocation of $6.38 million for these four (4) interventions: YouthWORKS, Office of Neighborhood Safety, Community Crises Response Program (CCRP), and Unhoused Intervention. The FY 2024-25 proposed program budget as of June 4, 2024, was $8,794,605.
Since the City has secured several federal and state grants to support the services for the unhoused and continues to explore additional funding, the proposed reduction is not expected to significantly reduce Citywide positive momentum, especially since the Community Crisis Response Program is taking shape and beginning to provide direct services to residents that include the unhoused.
June 18, 2024
Table 5: Reimagining Public Safety Budget
Reimagining Public Safety Intervention FY 2024-25
(June 4, 2024)
FY 2024-25
(June 18, 2024)
Unhoused Intervention 1,800,000 800,000
Community Crises Response 2,905,751 2,905,751
Office of Neighborhood Safety 2,108,854 2,108,854
Youth Works 1,980,000 1,980,000
Total 8,794,605 7,794,605
Equipment Replacement, Reduction of $1,300,000 – As of June 4, 2024, the FY 2024-25 total proposed budget was $7,185,000 for Equipment Replacement. The budget included a $387,755 carry forward from FY 2023-24 and $6,797,245 proposed for FY 2024-25 to purchase additional replacement equipment. City staff recommends delaying certain purchases to later in FY 2024-25 and/or FY 2025-26 pending additional revenues from Measure U or other sources. The new proposed budget for Equipment Replacement on June 18, 2024, is $5,497,245.
This will also allow Public Works to develop an updated Equipment and Vehicle Replacement Policy that includes electric vehicles.
Table 6:Deferred Equipment List to FY 2025-26
Program Vehicle Quantity Cost
Fire Gladiator Pumper 1 1,300,000
Total 1,300,000
Paving, Reduction of $650,000 – As of June 4, 2024, the Proposed Budget included an additional General Fund appropriation for $4,732,000, and the Proposed Budget on June 18, 2024, includes a total General Fund allocation of $4,082,000. The total Paving budget for FY 2024-25, including Gas Tax, General Capital, and the General Fund is $7,682,467.
Outside Counsel Budget Reduction of $928,682—The City has recently filled key attorney positions, and the staff attorneys are expected to handle a significant amount of legal analysis and litigation work, resulting in lower costs for outside counsel.
General Fund Additions
The following additions to the General Fund budget are based on City Council priorities and guidance: a total of $305,000 for additional City Council requests as the City Council deems appropriate.
Mobile Vendor Program: $100,000
Council Chamber Art Installations: $5,000
Sea Level Rise Consultant Costs: $200,000
June 18, 2024
Table 7: Proposed General Fund Expenditure Adjustments
Reductions Amount
Re-Imagining Public Safety Budget (1,000,000) Equipment Replacement (1,300,000) Paving (650,000) Outside Counsel Budget (928,682) Total Reductions (3,878,682) Additions Amount
Mobile Vendor Program 100,000 City Council Chamber Art Installations 5,000
Sea Level Rise Consultant 200,000
Total Additions 305,000
Net Decrease in Expenditures (3,573,682)
General Fund Summary
As a recap, the Tables below reflect proposed FY 2024-25 General Fund Revenue and Expenditures budget with changes from May 28, June 4, and June 18.
Table 8: General Fund Revenue Budget by Character
GENERAL FUND
FY2023-24
REVISED
BUDGET
(March 2024)
FY2024-25
PROPOSED
BUDGET
(May 7 & 28, 2024)
FY2024-25
PROPOSED
BUDGET
(June 4,2024)
FY2024-25
PROPOSED
BUDGET
(June 18,2024)
PROPERTY TAXES (52,181,354) (55,866,944) (57,597,487) (57,597,487) SALES & USE TAX (57,897,341) (61,366,250) (60,456,550) (60,456,550) UTILITY USERS TAX (57,938,011) (62,092,359) (62,092,359) (62,092,359) OTHER TAXES (24,144,377) (27,799,882) (29,030,246) (23,405,397) LICENSES, PERMITS & FEES (15,779,175) (16,252,810) (16,252,810) (16,252,770) FINES & FORFEITURES (151,438) (176,438) (176,438) (176,438) USE OF MONEY & PROPRTY (1,796,421) (1,796,421) (1,796,421) (1,796,421) CHARGES FOR SERVICES (2,536,992) (3,255,703) (3,255,703) (3,255,703) OTHER REVENUE (238,480) (142,830) (142,830) (142,830)
RENTAL INCOME (777,028) (777,478) (777,478) (777,478)
INTERGOV STATE TAXES (125,000) (125,000) (125,000) (125,000) INTERGOV STATE GRANT (183,911) (130,000) (130,000) (130,000) INTERGOV OTHER GRANT (280,000) (250,000) (250,000) (250,000) PROC FR SLE PROP - (15,000) (15,000) (15,000)
LOAN/BOND PROCEEDS (40,400) (40,400) (40,400) (40,400)
OPER XFERS IN (20,310,358) (22,421,539) (22,421,539) (22,421,539) TOTAL GENERAL FUND (234,380,287) (252,509,054) (254,560,261) (248,935,372)
June 18, 2024
Figure 1: General Fund Revenue Proposed Budget FY 2024-25
Table 9: General Fund Expenditures Budget by Character
GENERAL FUND
FY2023-24
REVISED
BUDGET
(March 2024)
FY2024-25
PROPOSED
BUDGET
(May 7 & 28,2024)
FY2024-25
PROPOSED
BUDGET
(June 4,2024)
FY2024-25
PROPOSED
BUDGET
(June 18,2024)
SALARIES AND WAGES 85,847,575 95,236,672 95,236,672 95,236,672 PYRLL/FRINGE BENEFIT 65,538,296 70,666,261 70,666,261 70,666,262 PROF & ADMIN 21,688,714 21,301,798 21,301,798 20,378,340 OTHER OPERATING 8,963,844 8,762,886 8,762,886 8,862,886 UTILITIES 5,690,630 5,594,204 5,594,204 5,594,204
EQPT & CONTRACT SVCS 5,946,835 4,315,665 4,315,665 4,315,665 PROVISN FOR INS LOSS 34,200 35,500 35,500 35,500
COST POOL 21,593,734 24,700,598 24,700,598 23,400,598
ASSET/CAPITAL OUTLAY 2,817,457 2,502,328 2,502,328 2,502,328 DEBT SVC EXPENDITURE 841,353 850,905 850,905 850,905
A87 COST PLAN REIMBS (3,514,373) (3,514,373) (3,514,373) (3,514,373) GRANT EXPENDITURES 98,723 49,013 49,013 49,013
OPER XFERS OUT 30,748,126 22,007,597 22,007,597 20,557,373 TOTAL EXPENDITURES 246,295,113 252,509,054 252,509,054 248,935,372
Figure 2: General Fund Expenditures Proposed Budget FY 2024-25
Position Control Changes
The Proposed FY 2024-25 Operating Budget includes 771 Full-Time Equivalent (FTE) positions, a net of one additional FTE. This represents an increase of 38 FTEs, a 5 percent increase from FY 2022-23, and an increase of 64 FTE, a 9 percent increase from FY 2021-22. The reallocation of existing positions is required to provide additional
PROPERTY TAXES,
57,597,487 , 23%
SALES & USE TAX,
60,456,550 , 24%
UTILITY USERS TAX, 62,092,359 , 25%
OTHER TAXES, 23,405,398 , 9%
LICENSES, PERMITS & FEES,
16,252,770 , 7%
OTHER, 1,657,146 , 1%
USE OF MONEY & PROPRTY,
1,796,421 , 1%
CHARGES FOR SERVICES, 3,255,703 , 1% OPERATING TRANSFERS IN, 22,421,539 , 9%
SALARIES AND WAGES ,
95,236,672 , 38%
BENEFITS, 70,666,262 ,
28%PROFESSIONAL & ADMIN,
20,378,340 , 8%
OTHER OPERATING ,
8,862,886 , 4%
OTHER, 9,833,242 ,
4%
COST POOL,
23,400,598 , 10%
TRANSFERS OUT,
20,557,373 , 8%
June 18, 2024
resources in the Department of Public Works and to try to provide needed modifications for other departments. The position reallocations will result in a net of four (4) FTE increases for the Public Works Department. The City Manager’s Office, the Police Department, and the Finance department are collectively losing 3 FTEs. The department's totals are reflected in Table 10 below. Table 11 reflects the complete list of reallocations in each department.
Table 10: Position Reallocations by Department
Department -Original FTE Department -After Reallocation FTE CITY MANAGER'S OFFICE 1 COMMUNITY SERVICES - ADMIN 1
COMMUNITY SERVICES - RECREATION 2 COMMUNITY SERVICES - ONS 1 COMMUNITY DEVELOPMENT 1 COMMUNITY DEVELOPMENT 1
FINANCE 3 FINANCE 2
HUMAN RESOURCES 1 HUMAN RESOURCES 1
POLICE 2 POLICE 1
PORT 1 PORT 1
PUBLIC WORKS - PARKS 1 PUBLIC WORKS - PARKS 3
PUBLIC WORKS - ENGINEERING 1 PUBLIC WORKS - ENGINEERING 1 PUBLIC WORKS - TRAFFIC 1 PUBLIC WORKS - TRAFFIC 1
PUBLIC WORKS - TBD 2
TOTAL 14 15
Table 11: Proposed Position Control Reallocations by Department & Union
ORIGINATING
DEPARTMENT
REALLOCATED
POSITION UNION NEW
DEPARTMENT NEW POSITION UNION
CITY
MANAGER'S
OFFICE
MANAGEMENT
ANALYST MID MGMT PUBLIC WORKS GROUNDSKEEPER SEIU
PUBLIC WORKS GROUNDSKEEPER SEIU
FINANCE ACCOUNTANT I/II SEIU PUBLIC WORKS MAINTENANCE
LEADWORKER SEIU
COMMUNITY
SERVICES -
RECREATION
ASSOCIATE ADMIN
ANALYST MID MGMT
COMMUNITY
SERVICES -
ADMIN
ASSOCIATE
MANAGEMENT
ANALYST
MID MGMT
FINANCE PROJECT MANAGER EXECUTIVE FINANCE ACCOUNTING/FINANCE
MANAGER MID MGMT
FINANCE BUDGET ANALYST
I/II MID MGMT FINANCE ACCOUNTING/FINANCE
MANAGER MID MGMT
HUMAN
RESOURCES
HUMAN RESOURCES
MANAGER MID MGMT HUMAN
RESOURCES
HUMAN RESOURCES
ANALYST - PRINCIPAL MID MGMT
POLICE COMMUNITY SVCS
OFFICER SEIU PUBLIC WORKS PW TBD TBD
POLICE COMMUNITY SVCS
OFFICER SEIU POLICE ADMINISTRATIVE
ASSISTANT SEIU
PORT
PORT MARKETING
AND OPERATIONS
MANAGER
MID MGMT PORT CIP MANAGER MID MGMT
PUBLIC WORKS -
ADMIN
ADMINSTRATIVE
ASSISTANT SEIU PUBLIC WORKS PW TBD TBD
PUBLIC WORKS -
ADMIN OFFICE ASSISTANT SEIU PUBLIC WORKS -
ENGINEERING
PERMIT TECHNICIAN
I/II SEIU
COMMUNITY
DEVELOPMENT
PERMIT TECHNICIAN
I/II SEIU COMMUNITY
DEVELOPMENT
SENIOR PERMIT
TECHNICIAN SEIU
PUBLIC WORKS -
ENGINEERING
ASSOCIATE CIVIL
ENGINEER MID MGMT PUBLIC WORKS -
ENGINEERING
JR/ASSISTANT CIVIL
ENGINEER MID MGMT
COMMUNITY
SERVICES -
RECREATION
ADMINSTRATIVE
ASSISTANT (TEMP) SEIU COMMUNITY
SERVICES - ONS
NEIGHBORHOOD
CHANGE AGENT
(TEMP)
SEIU
June 18, 2024
UNION REALLOCATED NEW
LOCAL 21
EXECUTIVE 1 0
LOCAL 21 MID-
MANAGEMENT 6 6
SEIU 1021
GENERAL
EMPLOYEES
7 7
UNKNOWN/TBD 0 2
TOTAL 14 15
NON-GENERAL FUNDS
Non-General Fund Revenue and Expenditures
The total proposed revenue budget for the Non-General Fund is $254,008,291, and the proposed expenditure budget is $332,078,233. Attachment 4—Fiscal Year 2024-25 Comprehensive Budget by Fund provides a detailed budget for each fund.
Table 12: Non-General Fund Proposed Revenue Budget FY 2024-25 FY 2023-24
REVISED
BUDGET
(March 2024)
FY 2024-25
PROPOSED
BUGET
(May 28,2024)
FY 2024-25
PROPOSED
BUDGET
(June 4,2024)
FY 2024-25
PROPOSED
BUDGET
(June 18,2024)
TOTAL CAPITAL PROJECT FUNDS (73,958,041) (60,412,237) (64,512,237) (63,990,718) TOTAL DEBT SERVICE FUNDS (19,551,216) (16,161,500) (16,161,500) (16,161,500) TOTAL ENTERPRISE FUNDS (41,493,141) (39,394,502) (39,394,502) (39,394,502) TOTAL HOUSING AUTHORITY FUNDS (5,549,921) (4,676,806) (4,676,806) (4,676,806) TOTAL HOUSING FUNDS (1,911,772) (2,702,120) (2,702,120) (2,702,120) TOTAL INTERNAL SERVICES FUNDS (30,919,340) (38,150,187) (38,150,187) (36,850,188) TOTAL OTHER OPERATING FUNDS (35,280,981) (28,324,024) (28,324,024) (27,524,024) TOTAL SPECIAL REVENUE FUNDS (96,056,935) (62,629,383) (62,708,434) (62,708,434) GRAND TOTAL – NON-GENERAL FUND
REVENUES (304,721,347) (252,450,759) (256,629,810) (254,008,291)
Table 13: Non-General Fund Proposed Expenditure Budget FY 2024-25
FY 2023-24
REVISED
BUDGET
(March 2024)
FY 2024-25
PROPOSED
BUGET
(May 28,2024)
FY 2024-25
PROPOSED
BUDGET
(June 4,2024)
FY 2024-25
PROPOSED
BUDGET
(June 18,2024)
TOTAL CAPITAL PROJECT FUNDS 111,302,273 64,404,091 68,504,091 69,582,572 TOTAL DEBT SERVICE FUNDS 19,174,878 16,261,836 16,261,836 16,261,836 TOTAL ENTERPRISE FUNDS 100,777,213 73,915,051 73,915,051 73,915,051 TOTAL HOUSING AUTHORITY FUNDS 5,763,509 4,685,856 4,685,856 4,685,856 TOTAL HOUSING FUNDS 6,249,305 5,821,825 5,821,825 5,821,825 TOTAL INTERNAL SERVICES FUNDS 42,753,440 38,736,426 44,036,426 42,736,426 TOTAL OTHER OPERATING FUNDS 40,221,190 30,827,007 30,827,007 30,507,007 TOTAL SPECIAL REVENUE FUNDS 128,898,804 84,812,620 84,968,418 88,567,660 GRAND TOTAL – NON-GENERAL FUND
EXPENDITURES 455,140,613 319,464,711 329,020,509 332,078,233 Traffic Calming
Based on the City Council's direction, $1,600,000 is provided for the City’s Traffic Calming Program in Measure J funds. FY 2024-25 Proposed Budget totals $3,218,752.
This includes a carryforward amount of $1,618,752 from FY 2023-24.
June 18, 2024
FY 2023-24 Unspent Funds
City staff provides Quarterly Budget Review updates to the City Council, with the last such update provided to the City Council on May 28, 2024, for FY 2023-24 Quarter 3 (Q3). The Q3 Budget Review covered the FY 2023-24 periods from July 1, 2023, through March 31, 2024.
City staff cannot accurately anticipate the estimated unspent funds for FY 2023-24 at this juncture. The fiscal year is open, and many revenue and expenditure transactions are still in progress and not posted to the City’s financial system.
The City is experiencing a significant reduction in Documentary Transfer Tax revenue actuals versus budget for the first 11 months of the year, which will impact potential unspent funds remaining at the end of the fiscal year. In addition, there is a 60-day period after the end of the fiscal year to process invoices for goods received and services provided on or before June 30, 2024 against the FY 2023-24 budget.
City staff will better assess anticipated unspent funds after the close of the fiscal year with the FY 2023-24 Q4 Budget Review in October 2024. Table 14 below lists the line items that the City Council may want to prioritize when the unspent funds estimates are available by the end of this calendar year. Furthermore, as additional grant funding and project bids are received, this list should be updated based on available funds, grants, ARPA, City Council priority, and City Council policy direction.
Table 14: FY 2023-24 Proposed Unspent Funds Expenditures for Council Consideration No. Description Amount
Total Available Unspent Funds (TBD)
1 Required Contribution to Maintain Reserve at 21% $5.7 Million 2 Other Post Employment Benefits – Trust 115 Contribution 10% 3 CalPERS Pension Trust 115 Contribution 10%
4 Booker T. Anderson Community Center Exterior Improvements TBD 5 Main Library Renovation Project Additional Funding $4.1 Million 6 Boorman Park $1.9 Million
7 Fire Apparatus $1.3 Million
8 Facilities Needs Assessment $500 Thousand
9 Point Molate Bay Trail Erosion $3.0 Million
10 Citywide Historic Preservation TBD
11 Dog Park Assessment TBD
12 Mobile Vendor Program $100 Thousand
13 Point Richmond Street Safety Improvements TBD
14 Carlson Ave Traffic Calming TBD
15 Canal Boulevard Gates $65 Thousand
NEXT STEPS
City staff recommends ADOPTING resolutions approving (1) Fiscal Year (FY) 2024-25 Proposed Operating Budget, and (2) FY 2024-25 to FY 2028-29 Proposed Five-Year Capital Improvement Plan Budget.
June 18, 2024
DOCUMENTS ATTACHED:
Attachment 1 – Resolution Adopting the Fiscal Year 2024-25 Operating Budget Attachment 2 – Resolution Approving Capital Improvement Plan for FY 2024-25 to FY 2028-29
Attachment 3 – June 4, 2024, Draft Budget Staff Report
Attachment 4 – Fiscal Year 2024-25 Comprehensive Budget by Fund Attachment 5 – Fiscal Year 2024-25 Proposed Position Listing Attachment 6 – General Fund Revenue and Expenditure Assumptions Attachment 7 – General Fund Revenue and Expenditure Summary Attachment 8 – Capital Improvement Plan FY 2024-25 to FY 2028-29 Attachment 9 – Transfer In-Out Schedule FY 2024-25