April 22, 2025
Finance Department
DATE: April 22, 2025
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
Jerry Gurule, Accounting Manager
Antonio Banuelos, Accounting Manager
SUBJECT:
Fiscal Year 2024-25 Mid-Year Budget Review
FINANCIAL IMPACT: There are no recommended Mid-year budget adjustments for the General Fund. The fiscal impact represents an increase in the Non-General Funds Revenues of $994,878 and an
increase in Non-General Funds Expenditures by $4,601,950, resulting in a net increase of $3,607,072 funded from fund balance.
PREVIOUS COUNCIL
ACTION:
June 24, 2024,
November 19, 2024
STATEMENT OF THE
ISSUE:
Finance staff are presenting the Fiscal Year 2024-25 Mid- Year Budget report to provide an overview of the City’s operating revenue and expenditures which covers financial activity from July 1, 2024, through December 31, 2024.
RECOMMENDED
ACTION:
RECEIVE the Fiscal Year 2024-25 Mid-Year budget
presentation and report for the period of July 1, 2024, through December 31, 2024; and ADOPT a resolution approving
proposed Fiscal Year 2024-25 Mid-Year budget adjustments – Finance Department (Andrea Miller 510-620-6790/Mubeen Qader 510-412-2077/Jerry Gurule 510-620-6591).
DISCUSSION:
AGENDA
REPORT
April 22, 2025
City staff prepared the Mid-Year budget report to assist in monitoring revenues and expenditures compared to the approved budget. The report also provides City staff, the City Council, and the community with the ability to monitor trends that impact the budget cycle.
This report presents an overview of the City’s Mid-Year operating revenue and expenditures for Fiscal Year (FY) 2024-25, which covers financial activity from July 1, 2024, through December 31, 2024. The threshold for the first six months of the fiscal year is 50 percent, meaning an average of 50 percent of the adopted budget is expected to have been expended, and 50 percent of revenue should have been received. It is to be noted that revenues can vary due to the seasonality of some of the major revenue sources, such as property taxes, which are received in December, April, and June of each fiscal year.
Federal Funding Uncertainties – City of Richmond Estimated Risk Exposure
The current Federal Administration (“Administration”) in Washington D.C. has been sending shockwaves throughout the country by issuing various executive orders regarding several aspects of the federal government. The Administration’s economic policy is reflected through the imposed tariffs on international trade, which may send the economy into the downward spiral of a recession. Economists and the market are struggling to decode the impacts of the unprecedented uncertainty around trade and economic policy.
The Federal Reserve Bank of Atlanta's (Atlanta Fed) GDPNow forecast model offers a "nowcast" of the official Gross Domestic Product (GDP) by estimating GDP growth using a methodology similar to that employed by the U.S. Bureau of Economic Analysis.
It is important to note that GDPNow is not an official forecast of the Atlanta Fed.
Instead, it should be considered as a real-time estimate of real GDP growth based on the available economic data for the current measured quarter. This estimate is derived from the mathematical results of the model without any subjective adjustments. As of April 16, 2025, the Atlanta Fed's GDPNow estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2025 stands at -2.2 percent1.
The Office of Management and Budget (OMB) is a key office within the Executive Office of the President of the United States. It serves the President by overseeing the implementation of their vision across the Executive Branch. Specifically, OMB assists the President in meeting their policy, budget, management, and regulatory objectives and fulfills the agency’s statutory responsibilities. At the end of January 2025, OMB issued a federal funding freezing memo, which was subsequently rescinded with a court order thereafter. To summarize the events:
On January 27, 2025, OMB Memo M-25-13 was issued to temporarily pause agency grants, loans, and other financial assistance programs to take effect at 5:00 pm Eastern Standard Time the same day (Memo FAQs). The memo sent
1 https://www.atlantafed.org/cqer/research/gdpnow
April 22, 2025
agencies across the country into a state of panic and, in some cases, locked out of funding drawdown portals.
On January 28, 2025, OMB Memo M-25-14 was issued to rescind M-25-13. On February 2, 2025, a Notice of Court Order was issued placing a temporary restraining order on the “pause” of certain Federal financial assistance.
The Administration has indicated plans to withhold all federal funding from sanctuary cities. This move is part of the Administration’s broader crackdown on immigration and undocumented workers.
With the recent uncertainty regarding Federal funding, City staff have identified a total of approximately $62.2 million at risk. The City staff estimate about $55.9 in capital projects, and programs that are currently at risk. In addition, the City of Richmond has two departments that are primarily federally funded, the Richmond Housing Authority (RHA) Program and Employment and Training (E&T) Program. The current estimated amount at risk for these two departments is approximately $6.2 million annually. The Table 1 below summarizes the amount of Federal funding uncertainties.
Table 1: Federal Grant Funding Uncertainties
Federal Grants Risk Amount
Program Grants 2,535,176
Capital Project Grants 53,413,409
Total Federal Grants at Risk 55,948,585
Federally Funded Annual Programs Risk Amount
RHA Program 2,200,000
E&T Program 4,000,000
Total Annual Risk Amount 6,200,000
Grand Total 62,148,585
General Fund
General Fund Revenues
The FY 2024-25 General Fund revenue is estimated at $250.3 million. Overall, General Fund revenue received totaled $114.9 million (45.9 percent of budget) through December of FY 2024-25. This is slightly below the threshold of 50 percent; however, the variance is primarily due to the seasonality of the revenue sources. For example, the City receives its first secured property tax installment (55 percent) in December.
Table 2 below summarizes year-to-date revenue budget-to-actuals. General Fund revenue details are included in Attachment 1 – General Fund Revenue and Expenditure Summary.
April 22, 2025
Table 2: General Fund Revenue, FY2024-25, Mid-Year
Property Tax – FY 2024-25 Property Tax revenue adopted budget includes estimated Assessed Valuation (AV) growth of 4.6 percent for Secured Property Taxes and matched Contra Costa County’s 2024-2025 Assessment Roll released in July 2024, which also indicated growth of the AV at 4.6 percent for Secured Property Taxes. No changes are proposed for this category.
Sales and Use Tax – Sales Tax revenue in FY2024-25 is expected to be lower than last year. After several years of significant growth, this revenue stream has slowed down. The decrease is due to several factors including a slowdown in the economy. The main categories seeing a decrease are Transportation, which includes auto dealerships and service stations, and Business to Business, which includes industry and green energy. Staff are not proposing changes at this time.
Utility Users Tax (UUT) – The year-to-date revenue received for UUT is trending as expected. UUT is comprised of gas, electricity, cable, and telecommunications. The revenue streams trending slightly higher are being offset by the revenue streams trending lower, staff does not recommend adjustments at this time.
Other Taxes – Other Taxes include franchise fees, hotel tax, and documentary transfer tax. Of the major revenue streams, the documentary transfer tax is the most volatile and hardest to predict as the month-to-month actual varies significantly. One or two sales can have a significant impact on the tax amount.
Gas and Electricity Franchise fees were projected to increase by 130 percent; however, the current actuals only increased by 78 percent or $3.3 million, $2.2 million less than originally forecasted. At this juncture, adjustments are not proposed in this category.
GENERAL FUND
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
YTD
ACTUALS
AVAILABLE
BUDGET % USED
PROPERTY TAXES 57,597,487 57,597,487 24,577,568 33,019,919 42.7% SALES & USE TAX 60,456,550 60,901,150 14,918,702 45,982,448 24.5% UTILITY USERS TAX 62,092,359 62,092,359 34,436,188 27,656,170 55.5% OTHER TAXES 23,405,397 23,405,397 10,408,665 12,996,733 44.5% LICENSES, PERMITS & FEES 16,252,770 16,352,770 3,030,064 13,322,706 18.5% FINES & FORFEITURES 176,438 176,438 116,905 59,533 66.3% USE OF MONEY & PROPERTY 1,796,421 1,796,421 1,624,326 172,095 90.4% CHARGES FOR SERVICES 3,255,703 3,255,703 1,407,161 1,848,542 43.2% OTHER REVENUE 142,830 142,830 167,820 (24,990) 117.5% RENTAL INCOME 777,478 777,478 573,926 203,552 73.8% INTERGOV STATE TAXES 125,000 125,000 - 125,000 0.0% INTERGOV STATE GRANT 130,000 130,000 208,203 (78,203) 160.2% INTERGOV OTHER GRANT 250,000 250,000 233,267 16,733 93.3% PROCEEDS FROM SALE OF PROPERTY15,000 15,000 31,834 (16,834) 212.2% LOAN/BOND PROCEEDS 40,400 40,400 - 40,400 0.0% OPERATING TRANSFERS IN 22,421,539 23,269,402 23,226,022 43,380 99.8% TOTAL REVENUES 248,935,372 250,327,835 114,960,651 135,367,184 45.9%
April 22, 2025
Licenses, Permits, & Fees – This revenue stream includes the business tax revenue. The actual revenue collected through December 2024 is $3 million (18.5 percent of the budget). Business tax revenue received year-to-date includes new Richmond businesses that started this fiscal year and delinquent payments from the prior year. With the 2025 due date as March 1 for rental properties and April 1 for non-rental businesses, the bulk of the business tax will be received February through April. No changes to this category are proposed.
Use of Money and Property – This revenue category includes interest earned.
The annual budgeted amount for this revenue category was $1.8 million and the City received $1.6 million in the first two quarters. No changes to this category are proposed.
Other Revenue – The Other Revenue category includes unexpected items that are usually not budgeted, such as donations, contributions, and other reimbursements and refunds. No changes to this category are proposed.
Intergovernmental State Grant – This revenue category includes reimbursements from the State for mandated costs. No changes to this category are proposed.
Intergovernmental Other Grant – Other grants have come in higher than expected. No changes to this category are proposed.
No changes are recommended for the General Fund revenues. Some revenue streams are expected to exceed projections and others to fall short, the overall anticipation is that revenues will be approximately in line with or slightly above the budgeted figures.
However, due to ongoing global volatility, this could change. the City staff will make further recommendations for consideration in the FY 2024-25 Third Quarter update.
General Fund Expenditures
Overall, expenditure totaled $123.9 million (47.5 percent of the budget) through December 2024. Actuals at mid-year are within the budget threshold at 47.5 percent without encumbrances and 50.7 percent with encumbrances. Encumbrances are funds earmarked with a purchase order for specific expenditures, such as copier leases. Table 3 below summarizes the year-to-date expenditure budget to actuals. General Fund expenditure details are included in Attachment 1 – General Fund Revenue and Expenditure Summary.
April 22, 2025
Table 3: General Fund Expenditure, FY2024-25, Mid-Year
Salaries & Wages – includes base salaries for full-time and part-time staff, overtime, and other compensation types. Actual expenditures total $43.6 million (45.8 percent of budget). This category is lower than the threshold primarily due to vacant positions.
Fringe Benefits – includes medical, dental, workers' compensation, CalPERS pension costs, other post-employment benefits (OPEB), and other fringe benefits.
Actual expenditures total $33.1 million (47.0 percent of budget), which is below the threshold due to vacant positions.
Professional & Administrative Services – includes professional and consulting services and contractual obligations (such as animal control). Actual expenditures total $7.8 million (35.5 percent of the budget), which is below the threshold. Major source of the positive variance is in the departments: Community Crises Response, Office of Neighborhood Safety, City Clerk, City Manager, Community Services, Economic Development, and Public Works. Factoring in purchase order encumbrances of $4.2 million, the total is $12.1 million (54.8 percent of the budget).
Other Operating – includes copier leases, office supplies, and other items. Actual expenditures total $3.1 million (35.1 percent of budget). Factoring in purchase order encumbrances of $1.6 million, the total is $4.7 million (53.6 percent of the budget).
Utilities – includes gas, electricity, water, refuse, telephone, and internet services for City facilities. Actual expenditures total $3.2 million (57.8 percent of budget).
Factoring in purchase order encumbrances of $794,326, the total is $4.0 million (71.9 percent of the budget). The variance is due to increased costs in water, gas, and fuel. PG&E rates increased by a net 12.8 percent in 2024, which significantly impacted the current fiscal year budget, which did not account for the most recent
8.3 percent increase on September 1, 2024. PG&E rates are expected to stabilize through 2025 and 2026. According to PG&E, rates will increase 1.6 percent in 2025 and decrease by 2.8 percent in 20262.
2 https://avaenergy.org/insight/pge-rate-increases-explained/
GENERAL FUND
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
YTD
ACTUALS ENCUMB. AVAILABLE
BUDGET
% USED
W/O
ENCUMB
% USED
W
ENCUMB
SALARIES AND WAGES 95,236,672 95,292,657 43,632,071 - 51,660,586 45.8% 45.8% PAYROLL/FRINGE BENEFIT 70,666,262 70,546,262 33,142,238 - 37,404,024 47.0% 47.0% PROFESSIONAL & ADMIN 20,378,340 22,111,004 7,844,049 4,268,470 9,998,485 35.5% 54.8% OTHER OPERATING 8,862,886 8,827,119 3,100,040 1,632,023 4,095,056 35.1% 53.6% UTILITIES 5,594,204 5,615,310 3,243,490 794,326 1,577,494 57.8% 71.9% EQUIPMENT & CONTRACT SERVICES 4,315,665 4,364,147 1,483,962 1,117,090 1,763,094 34.0% 59.6% PROVISION FOR INSURANCE LOSS 35,500 37,042 34,392 - 2,650 92.8% 92.8% COST POOL 23,400,598 24,750,598 12,350,305 - 12,400,292 49.9% 49.9% ASSET/CAPITAL OUTLAY 2,502,328 3,242,871 483,654 591,911 2,167,306 14.9% 33.2% DEBT SERVICE EXPENDITURE 850,905 850,905 423,262 - 427,643 49.7% 49.7% A87 COST PLAN REIMBURSEMENT (3,514,373) (3,514,373) (1,822,315) - (1,692,058) 51.9% 51.9% GRANT EXPENDITURES 49,013 49,013 (1,297) - 50,310 -2.6% -2.6% OPERATING TRANSFERS OUT 20,557,373 28,880,007 20,006,098 - 8,873,908 69.3% 69.3% TOTAL EXPENSES 248,935,372 261,052,560 123,919,950 8,403,820 128,728,790 47.5% 50.7%
April 22, 2025
Equipment & Contract Services – includes equipment and maintenance/repair services. Actual expenditures total $1.5 million (34.0 percent of the budget).
Factoring in purchase order encumbrances of $1.1 million, the total is $2.6 million (59.6 percent of the budget).
Provision for Insurance Loss – includes insurance premiums for various items including drone insurance, fire apparatus insurance, and fire boat insurance. Actual expenditures total $34,392 (92.8 percent of budget). Insurance premiums are due annually at the beginning of the Fiscal Year.
Cost Pool – includes General Liability Allocation, Vehicle Replacement Program, and Civic Center Allocation. Actual expenditures total $12.3 million (49.9 percent of budget). Cost Pool charges are allocated by the Finance department monthly through a journal entry transaction.
Asset/Capital Outlay – this category includes major capital purchases, maintenance projects, and other assets with a value greater than $5,000. Actual expenditures total $483,654 (14.9 percent of budget). The major driver behind the variance is pending purchase of stakebed truck for I Heart Republic Franchise project. Factoring in purchase order encumbrances of $591,911, the total is $1.1 million (33.2 percent of the budget).
Debt Service Expenditure – includes debt service for loans and bonds. Actual expenditures total $423,000 (49.7 percent of budget). Debt service payments were made for various loans and bonds related to streetlight upgrades.
A87 Cost Plan Reimbursement – reimburses departments in the General Fund for internal services provided to other funds. Actual expenditure is shown as a negative amount to reflect the reimbursement of the General Fund, totaling $1.8 million (51.9 percent of the budget).
Grant Expenditures – actual expenditures in this category total -$1,297 (-2.6 percent of budget). The negative expenditure is due to a refund of the unspent Love Your Block mini-grant franchise fee disbursed in the prior fiscal year under the I Heart Richmond Program. The negative expenditure will be offset by the current year’s activity in the coming months.
Transfers Out – includes transfers out from the General Fund to non-General Funds primarily for operating subsidies and for debt service payments. Actuals total $20.5 million (69.3 percent of budget). The variance is due to transfers that are processed in full instead of monthly installments.
No adjustments to General Fund expenditure are proposed at this juncture. For areas where higher expenditures are anticipated, Finance staff are closely collaborating with departments to determine where budget reallocations can be made within the existing appropriations. During the FY 2024-25 third quarter update to City Council, if revenues
April 22, 2025
are outpacing expenditures, Finance staff will alert Council to enable the Council to direct additional appropriations for unfunded Capital Improvement Projects (CIPs) and the Capital Programmatic Approach.
Non-General Funds
Non-General Fund Revenues
Overall, 39.9 percent of non-general fund revenue has been collected and is trending as expected. The timing of receipts varies among the funds based on the source of funding. For instance, grant funds are typically received after expenditures are incurred and reimbursement requests are submitted to grantors. Table 4 below summarizes the revenue budget-to-actuals for non-general funds. Non-General Fund revenue details are included in Attachment 2 – Non-General Fund Revenue and Expenditures by Fund.
Table 4: Non-General Fund Revenues, FY 2024-25, Mid-Year
Capital Improvement Funds - the total actual revenue is below the budget threshold of 50 percent. Although the entire grant awards are appropriated as budget, the actual revenue is based on the expenditures submitted for reimbursement to the grantor.
Budget adjustments of $641,403 are in several Developer Impact Fee Funds to recognize actual revenues received.
Debt Service - revenues are slightly above the budget threshold, mainly due to the transfer-in from the General Fund and Secured Pension Override fund for the Pension Obligation Bond debt service payment.
Enterprise Funds - actual revenue is above the threshold, mainly in the Wastewater fund. The sewer drain fee, which is the largest of the three installments from Contra Costa County, was posted in December. Housing Funds - actual revenue is below the budget threshold due to the Housing In-Lieu Developer fee coming in lower than budgeted by $118,000. Richmond Housing Authority (RHA) Funds - the revenue is below budget mainly FUND
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
YTD
ACTUALS
AVAILABLE
BUDGET % USED
PROPOSED
BUDGET
ADJUSTMENTS
Total Capital Improvement Funds 63,990,718 75,431,509 24,395,053 51,036,456 32.3% 641,403 Total Debt Service Funds 16,161,500 16,161,500 8,180,663 7,980,837 50.6% - Total Enterprise Funds 39,394,502 39,394,502 22,562,233 16,832,269 57.3% - Total Housing Funds 2,702,120 2,718,720 1,241,103 1,477,617 45.7% - Total Housing Authority Funds 4,676,806 4,676,806 1,396,132 3,280,674 29.9% - Total Internal Service Funds 36,850,188 38,150,188 20,481,408 17,668,780 53.7% - Total Other Operations Funds 27,524,024 28,524,024 12,178,403 16,345,621 42.7% - Total Special Revenue Funds 62,708,434 77,361,094 22,189,537 55,171,557 28.7% 353,475 Total All Funds 254,008,291 282,418,342 112,624,531 169,793,811 39.9% 994,878
April 22, 2025
due to the federal grant revenues pending to be received for Richmond Village I, II, and III for their Operating Subsidy period of October – December 2024.
Additional Capital Grant funds were drawn down in January 2025.
Internal Service Funds – the revenue is above the threshold due to Interest Income not being budgeted. The revenues from these funds are received monthly.
Other Operation Funds - actual revenue is below the budget threshold. The major source of the variance is the Transportation Fund and Employment and Training Fund due to grant revenues being received in January 2025. Special Revenue Funds - total actuals are 28.7 percent of the budget as of December, mainly due to the actual grant revenues being lower than the threshold due to pending reimbursements.
Proposed budget adjustments of $353,475 include a 1.5 percent Public Art Ordinance from the Main Library Revitalization Project and additional revenue received from the 1 percent Public Art Ordinance.
Non-General Fund Expenditures
Overall, 27.7 percent of non-general fund budget appropriations have been expended.
Spending patterns in non-general funds vary due to the nature of capital, debt, and grant funds. Other funds are trending as expected. Most of the actual expenditures are either at or below the threshold of 50 percent. Amounts over the threshold are primarily due to purchase order encumbrances and debt service. Table 2 below summarizes the expenditure budget-to-actuals for non-general funds. Non-General Fund expenditure details are included in Attachment 2 – Non-General Fund Revenue and Expenditures by Fund.
Table 2: Non-General Fund Expenditures, FY 2024-25, Mid-Year
Capital Improvement Funds - total expenditures are below budget due to the project's phases spanning over multiple years and their budgets being appropriated in a single year.
FUND
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
YTD
ACTUALS ENCUMB. AVAILABLE
BUDGET
% USED
W/O
ENCUMB
% USED
W.
ENCUM
PROPOSED
BUDGET
ADJUSTMENTS
Total Capital Improvement Funds 69,582,572 102,552,674 12,066,069 18,847,299 71,639,305 11.8% 30.1% 268,475 Total Debt Service Funds 16,261,836 16,261,836 10,237,621 - 6,024,215 63.0% 63.0% - Total Enterprise Funds 73,915,051 87,954,067 24,132,201 10,173,372 53,648,495 27.4% 39.0% 2,680,000 Total Housing Funds 5,821,825 6,098,867 533,219 292,673 5,272,975 8.7% 13.5% - Total Housing Authority Funds 4,685,856 4,685,856 1,457,995 118,959 3,108,902 31.1% 33.7% - Total Internal Service Funds 42,736,426 47,087,951 19,648,893 4,410,451 23,028,607 41.7% 51.1% - Total Other Operations Funds 30,507,007 34,202,759 11,219,485 5,236,163 17,747,111 32.8% 48.1% 975,000 Total Special Revenue Funds 88,567,660 116,326,844 35,686,030 18,479,404 62,161,411 30.7% 46.6% 678,475 Total All Funds 332,078,233 415,170,855 114,981,513 57,558,321 242,631,021 27.7% 41.6% 4,601,950
April 22, 2025
Proposed budget adjustments of $268,475 include appropriations for Public Art
1.5 percent ordinance for Main Library Revitalization and annual contribution for Regional Sports Complex.
Debt Service Funds - debt service expenditures are incurred in accordance with the debt service payment schedules. As a result, expenditures exceed the threshold of 50 percent.
Enterprise Funds - total actuals are 27.4 percent of the budget without encumbrance and 39.0 percent with encumbrances. Most of the variance is in the Port and Wastewater fund, which includes several capital projects that span multiple years.
Proposed budget adjustments are in the Port fund for $180,000 for Terminal 1 monitoring, graffiti removal, weed abatement, and electrical repair and Wastewater for $2.5 million fund for Veolia.
Housing Funds - total actuals are 8.7 percent of budget without encumbrances and 13.5 percent with encumbrances. Variances are primarily due to lower-than- expected expenditures in the Housing In-Lieu Developer Fee fund. Housing Authority Funds – year-to-date actuals without encumbrance are 31.1 percent of the budget and 33.7 percent without encumbrances. The variance is primarily due to Capital Fund expenses trending low until the negotiation process with developers for Nystrom Village is completed. Developers have been selected and approved by the City Council, and the City is in the process of finalizing the exclusive right to negotiate agreement (ERNA). Most of the capital funds will not be expended until Nystrom Village begins renovations. Internal Service Funds – year-to-date expenditures without encumbrances are
41.7 percent of the budget and 51.1 percent with encumbrances. Equipment Replacement fund has the largest number of encumbrances (purchase orders) to replace city vehicles.
Other Operations Funds – year-to-date expenditures without encumbrances are
32.8 percent of the budget and 48.1 percent with encumbrances. The variance is due to lower than anticipated expenditure in the Planning and Building Fund by $900,000, and in the Stormwater Fund ($1 million) due to encumbered capital projects.
Proposed budget adjustments include $550,000 in the Transportation fund for contracts to support Paratransit operations and $425,000 in the Stormwater Fund for Contra Costa County Clean Water Program.
Special Revenue Funds - year-to-date expenditures without encumbrances are
30.7 percent of the budget and 46.6 percent with encumbrances. The variance is due to lower than anticipated expenditure Chevron Modernization Project Fund,
April 22, 2025
Kids First Initiative Fund, Public Art Fund, Transformative Climate Grant Fund, Homekey Program.
The proposed budget adjustments are in the Emergency Operation Fund $75,000 and Public Art Fund $603,475 (Main library $253,475, Kennedy Park Sculpture $100,000 and International-Matex Tank Terminals Sculpture $250,000) from the respective fund balances.
Mid-Year Budget Adjustments - As outlined in the staff report, there are no proposed revenue or expenditure adjustments proposed for the General Fund.
The proposed Non-General Fund revenue budget adjustments are $994,878 across multiple funds detailed in Attachment 3 – Mid-Year Budget Adjustments. Table 6 below summarizes the adjustments by fund type.
Table 6: FY 2024-25 Mid-Year Budget Adjustments Non-General Fund Revenue
The proposed Non-General Fund expenditure budget adjustments are $4.6 million across multiple funds detailed in Attachment 3 – Mid-Year Budget Adjustments. Table 77 below summarizes the adjustments by fund type.
Table 7: FY 2024-25 Mid-Year Budget Adjustments Non-General Fund Expenditure
FUND
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
PROPOSED
BUDGET
ADJUSTMENTS
MID-YEAR
PROPOSED
BUDGET
Total Capital Improvement Funds 63,990,718 75,431,509 641,403 76,072,912 Total Debt Service Funds 16,161,500 16,161,500 - 16,161,500 Total Enterprise Funds 39,394,502 39,394,502 - 39,394,502 Total Housing Funds 2,702,120 2,718,720 - 2,718,720 Total Housing Authority Funds 4,676,806 4,676,806 - 4,676,806 Total Internal Service Funds 36,850,188 38,150,188 - 38,150,188 Total Other Operations Funds 27,524,024 28,524,024 - 28,524,024 Total Special Revenue Funds 62,708,434 77,361,094 353,475 77,714,569 Total All Funds 254,008,291 282,418,342 994,878 283,413,220 FUND
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
PROPOSED
BUDGET
ADJUSTMENTS
MID-YEAR
PROPOSED
BUDGET
Total Capital Improvement Funds 69,582,572 102,552,674 268,475 102,821,149 Total Debt Service Funds 16,261,836 16,261,836 - 16,261,836 Total Enterprise Funds 73,915,051 87,954,067 2,680,000 90,634,067 Total Housing Funds 5,821,825 6,098,867 - 6,098,867 Total Housing Authority Funds 4,685,856 4,685,856 - 4,685,856 Total Internal Service Funds 42,736,426 47,087,951 - 47,087,951 Total Other Operations Funds 30,507,007 34,202,759 975,000 35,177,759 Total Special Revenue Funds 88,567,660 116,326,844 678,475 117,005,319 Total All Funds 332,078,233 415,170,855 4,601,950 419,772,805
April 22, 2025
Proposed Position Control Mid-Year Adjustments
The proposed Mid-Year Budget adjustments include the reallocation of a Maintenance Lead worker to a Parks and Construction Maintenance Worker in the Parks division.
The proposed adjustment does not change the number of approved Full-Time Equivalent (FTE) positions (808) in the City’s position control, including 8 temporary Fire Trainee positions. Attachment 4 – Fiscal Year 2024-25 Mid-Year Proposed Position Listing shows approved positions by department.
Summary of the Staff Report
As described in this staff report, there are no recommended Mid-Year budget adjustments for the General Fund. There is an increase in Non-General Fund Revenues of $994,878 and an increase in Non-General Fund Expenditures by $4,601,262.
Next Steps
City staff recommend that the City Council approve the proposed FY 2024-25 Mid-Year budget adjustments. Staff will continue to monitor revenue and expenditure trends in the current fiscal year to determine if adjustments will be needed during the Quarter 3 budget review planned for May 2025. The draft FY 2025-26 Budget presentation to the City Council is planned for May 6, 2025, with the FY 2025-26 final budget adoption by June 24, 2025.
DOCUMENTS ATTACHED:
Attachment 1 – General Fund Revenue and Expenditure Summary Attachment 2 – Non-General Fund Revenue and Expenditure by Fund Attachment 3 – Mid-Year Budget Adjustments
Attachment 4 – Fiscal Year 2024-25 Mid-Year Proposed Position Listing Attachment 5 – Capital Improvement Projects Budget Report by Department Attachment 6 – Resolution - Mid-Year Budget Review FY 2024-25