December 16, 2025
Finance Department
DATE: December 16, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
Antonio Banuelos, Accounting Manager
SUBJECT:
Fiscal Year 2024-25 Quarter 4 Financial Report and
Administrative Budget Adjustments
FINANCIAL IMPACT: The following represent the impacts to the General Fund and Non-General Fund: Fiscal Year 2024-25 General
Fund Appropriations of $2,925,160, Non - General Fund
appropriations of $3,723,200, FY 2025-26 General Fund
appropriation of $66,555, Non-General Fund
appropriation of $400,000.
PREVIOUS COUNCIL
ACTION:
June 24, 2024
November 19, 2024
April 22, 2025
May 6, 2025
STATEMENT OF THE
ISSUE:
City staff is presenting the Fiscal Year 2024-25 Quarter 4 General Fund and Non-General Funds financial report
and administrative budget adjustments.
RECOMMENDED ACTION:
RECEIVE the Fiscal Year (FY) 2024-25 Quarter 4 (Q4)
report for the period of July 1, 2024, through June 30, 2025; ADOPT a resolution to APPROPRIATE proposed
administrative year-end budget adjustments in FY 2024-
25; and ADOPT a resolution to APPROPRIATE Unspent
Funds in FY 2025-26 – City Manager’s Office/Finance
Department (Shasa Curl 510-620-6512/Emily Combs
510-620-6790/Mubeen Qader 510-412-2077).
DISCUSSION:
AGENDA
REPORT
December 16, 2025
FY 2024-25 Quarter 4 Overview
This report presents an overview of the Quarter 4 (Q4) operating revenues and expenditures for Fiscal Year (FY) 2024-25, which includes year-to-date budget to actuals spent from July 1, 2024, through June 30, 2025 for the General Fund and Non- General Fund.
The City’s FY 2024-25 General Fund is projected to have actual expenditures exceed actual revenues by $3.1 million. As a result of expenditures exceeding revenues and City Council approved policies, the City is not obligated to contribute to Pension and Other Post-Employment Benefits; however, contributions will be re-evaluated as part of the year-end audit. City staff will work with our external auditors to complete the FY 2024-25 year-end audit and finalize the Annual Comprehensive Financial Report (ACFR). The year-end audit results and ACFR will be presented to City Council in early 2026, along with final General Fund year-end results.
The City’s General Fund Reserve Policy requires the City to maintain a minimum year- end reserve balance of 21 percent of next year’s budgeted General Fund expenditures including transfers out. Based on the City’s FY 2024-25 Beginning Fund Balance (Reserve) of $65.3 million, FY 2024-25 estimated year-end results (actual revenues minus expenditures), and the FY 2025-26 Adopted Budget of $260.0 million, it is currently anticipated that there will be approximately $7.6 million available to support City Council priorities (Table 1). This amount reflects the amount available above the minimum City Council-approved 21 percent target required reserve level for the General Fund of $54.6 million.
Table 1: FY 2024-25 Financial Summary based on Estimated Year-End Results
ITEM AMOUNT NOTES
FY 2024-25 Fund Balance (Reserve) (26%) 65,262,325 Beginning Fund Balance (Reserve) FY 2024-25 Policy Target Reserve (21%) 52,276,428 Based on $249.0 million FY 2024-25 Adopted Budget
a. Beginning amount above FY 2024-25 Policy
Target Reserve
12,985,897 Based on $249.0 million FY 2024-25
Adopted Budget
FY 2024-25 Actual Revenue 254,803,138 Estimated Year-End Revenues FY 2024-25 Actual Expenditure 257,875,368 Estimated Year-End Expenditures b. FY 2024-25 Actual Revenue minus
Expenditures
(3,072,230) Operating Deficit
FY 2024-25 Revised Ending Fund Balance
(Reserve)
62,190,095 Revised Reserve with Deficit
c. Increase in Policy Target Reserve from FY
2024-25 to FY 2025-26 of $54,611,239
(2,334,811) Amount needed for 21% Reserve Target
for FY 2025-26
Estimated Unspent Funds (a + b + c) 7,578,856 Amount above 21% Reserve Target
The Q4 report primarily focuses on the General Fund; however, it is important to note that Non-General Fund revenues reflect 79 percent of the revised budget, and expenditures reflect 57 percent of the budget. Most unspent Non-General Fund budgets will carry over to the next fiscal year.
December 16, 2025
City staff are presenting the Q4 financial report to provide the City Council with an overview of the FY 2024-25 estimated ending revenue and expenditure balances for both the General and Non-General Funds, proposed administrative budget adjustments, and an estimate of unspent funds in the General Fund. Most of the fiscal year activity has been captured; however, the amounts are not final until the annual audit and fiscal year close are completed and the ACFR is published. City staff will present the year-end audit results and ACFR to the City Council in early 2026, along with the actual General Fund unspent funds.
City of Richmond: Fiscal Horizon and Long-Term Financial Outlook The City has adopted a balanced budget for FY 2025-26, reflecting prudent fiscal management. While the current financial position is stable, the City must proactively address the following key areas on the City’s fiscal horizon:
$352.2 million in unfunded California Public Employees’ Retirement System (CalPERS) Pension Unfunded Accrued Liability (UAL)
Approximately $901.2 million in identified unfunded Capital needs $63.4 million in Other Post Employment Benefits (OPEB) Unfunded Liability 8.21 percent rate increase in CalPERS Healthcare Premiums in 2026 Effects of the federal policies and budget on City revenue streams and federally funded programs
These reflect current estimates based on the most recent data available. It is anticipated that the City’s CalPERS UAL, unfunded Capital needs, and OPEB Unfunded Liability will increase in future years.
General Fund
By the end of FY 2024-25 Q4, the estimated total General Fund expenditures are projected to exceed the estimated total revenue by approximately $3.1 million. The estimated year-end actuals for revenues are anticipated to be approximately 2 percent higher than the revised budget and expenditures are expected to be approximately 3 percent lower than the revised budget, as shown in Table 2 below.
Table 2: Estimated General Fund Revenue and Expenditures FY2024-25, Quarter 4
GENERAL FUND
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
ESTIMATED
YEAR-END
ACTUALS
VARIANCE
REVENUE TOTAL 248,935,372 250,327,835 254,803,138 102% EXPENDITURE TOTAL 248,935,372 266,925,091 257,875,368 97%
GENERAL FUND NET
+SURPLUS/(-DEFICIT) (16,597,256) (3,072,230)
Use of Fund Balance in FY 2024-25 – Throughout FY 2024-25, the City Council approved several appropriations totaling $16.6 million using prior year’s unspent funds (Fund Balance) and the current year’s estimated additional revenue (see Table 3).
There were no General Fund budget adjustments as part of the FY 2024-25 Mid-Year Budget Review.
December 16, 2025
Table 3: General Fund Appropriations from Fund Balance
DATE OF CITY
COUNCIL ACTION
DESCRIPTION BUDGET
9/24/2024 Paratransit Cost Plan Reduction 220,202
10/01/2024 Estimated FY 2023-24 Unspent Funds Appropriated 5,735,634 11/19/2024 Operating Costs Appropriated during Q1 update 334,464 11/19/2024 Library Renovation Project 4,100,000
12/17/2024 Legal Costs - Nevers, Palazzo, Packard, Wildermuth & Wynner, P.C. 200,000
12/17/2024 Legal Costs - Bertrand, Fox, Elliot, Osman, & Wenzel 200,000 12/17/2024 Legal Costs - Aleshire & Wynder, LLP 154,626 12/17/2024 Race Forward Equity Initiative Training Contract 48,325 3/11/2025 Immigration Services (City Council Action March 4, 2025) 1,000,000 3/11/2025 Capital Projects – FY 2023-24 Unspent Funds Appropriated 4,571,504 3/25/2025 Senate Bill 54, Chapter 45 Implementation Plan 32,500 Total 16,597,256
General Fund Revenues
Overall, estimated year-end actuals for revenue for FY 2024-25 totaled approximately $254.8 million (102 percent of budget). Property Taxes and Sales & Use Taxes are expected to end the year below budgeted levels, while most other revenue categories are expected to exceed budget as reflected in Table 4 and Figure 1.
Table 4: Estimated General Fund Revenue FY2024-25 Quarter 4
GENERAL FUND
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
ESTIMATED
YEAR-END
ACTUALS
VARIANCE
PROPERTY TAXES 57,597,487 57,597,487 55,064,108 96% SALES & USE TAX 60,456,550 60,901,150 59,619,633 98% UTILITY USERS TAX 62,092,359 62,092,359 63,825,320 103% OTHER TAXES 23,405,397 23,405,397 27,189,502 116% LICENSES, PERMITS & FEES 16,252,770 16,352,770 16,295,944 100% FINES & FORFEITURES 176,438 176,438 496,281 281% INTEREST INCOME 1,796,421 1,796,421 3,534,307 197% CHARGES FOR SERVICES 3,255,703 3,255,703 3,218,795 99% OTHER REVENUE 142,830 142,830 456,853 320% RENTAL INCOME 777,478 777,478 946,722 122%
INTERGOVERMENT STATE
TAXES 125,000 125,000 182,741 146% STATE GRANT 130,000 130,000 329,648 254% OTHER GRANT 250,000 250,000 550,914 220%
PROCEEDS FROM SALE
PROPERTY 15,000 15,000 32,814 219% LOAN/BOND PROCEEDS 40,400 40,400 - 0% TRANSFERS IN 22,421,539 23,269,402 23,059,557 99% REVENUE TOTAL 248,935,372 250,327,835 254,803,138 102%
December 16, 2025
Figure 1: FY 2024-25 Major General Fund Revenues
General Fund Revenue Variances
Property Tax – Property Tax revenue is anticipated to end the year below budgeted levels. Budgeted at $57.6 million, actual revenue is estimated at $55.1 million, a decrease of $2.5 million or 4.4 percent when compared to the revised budget. This variance is primarily due to lower Successor Agency Surplus revenues which came in $2.2 million or 18.8 percent below budget based on assessed values within the former redevelopment project areas and fluctuating enforceable obligations. This decline is significant as this revenue has grown over 20 percent since FY 2022-23.
Sales & Use Tax – Sales and Use Tax revenue is expected to end the year below budgeted levels. Budgeted at $60.9 million, actual revenue is estimated at $59.6 million, a decrease of $1.3 million or 2.1 percent when compared to the revised budget. This variance is primarily due to the loss of revenue generated from businesses that were temporarily located in the City but have since moved or closed. Major retailers like Costco, Target, Home Depot, and Walmart continue to support this revenue stream.
Utility Users Tax (UUT) – UUT, which applies to Cable Television, Gas and Electricity, Telecommunications, totaled $63.8 million. This is $1.7 million or 2.8 percent higher than the revised budget of $62.1 million. The variance is primarily due to amounts remitted by Pacific Gas & Electric (PG&E) resulting from rate increases.
Other Taxes – The estimated total revenue for Other Taxes is $27.2 million, an increase of $3.8 million or 16.2 percent when compared to the revised budget of $23.4 million. The following are significant factors contributing to this variance:
Documentary Transfer Tax – This revenue stream, which is collected by Contra Costa County on property sales, is extremely volatile. Monthly payments range from as low as $300,000 to as high as $7 million. This revenue stream totaled $13.4 million, an increase of $6.0 million or 81 percent $57.6
$60.9
$62.1
$23.4
$16.4
$6.7
$23.3
$55.1
$59.6
$63.8
$27.2
$16.3
$9.7
$23.1
$- $20 $40 $60
PROPERTY TAXES
SALES & USE TAX
UTILITY USERS TAX
OTHER TAXES
LICENSES, PERMITS & FEES
OTHER REVENUE
TRANSFERS IN
Millions
Revenue Category
ESTIMATED YEAR END ACTUALS REVISED BUDGET
December 16, 2025
when compared to the revised budget.
Gas Franchise Fee – PG&E pays these fees, and amounts paid in FY 2024-25 reflect a full year of the new Franchise Agreement, which includes reduced surcharges and portions of the fee not subject to the increased rate. This revenue stream totaled $4.0 million, a decrease of $2.1 million, or 34 percent, compared to the revised budget.
Licenses, Permits, and Fees – The estimated total revenue for Licenses, Permits, and Fees (including Business Tax) is $16.3 million, a $56,000 decrease when compared to the revised budget of $16.4 million. This is the third full year that Business Tax was calculated on gross receipts, as mandated by the passage of Measure U. Total Business Tax revenue was $14.0 million, an increase of $263,000, or approximately 1.9 percent, compared to the revised budget.
All Other Revenue – Total estimated revenue for all other General Fund categories is $9.7 million, an increase of $3.0 million or 45 percent when compared to the revised budget of $6.7 million. This revenue stream includes Interest Income, Fines & Forfeitures, Charges for Services, Rental Income, Grants, Loan & Bond Proceeds, and Proceeds from the Sale of Property. The increase in Other Revenue is primarily due to higher Interest Income, resulting from higher interest rates and increased cash in the City’s investment portfolio.
Transfers In – This includes transfers from Non-General Funds to the General Fund for General Fund capital projects and a transfer in from the Pension Tax Override (PTORS) Fund for pension obligations.
Table 5 shows the distribution of total Business Tax paid. For FY 2024-25, Business Tax revenue is estimated at $14.0 million. The top 50 taxpayers contributed 58.67 percent of the total, while the top 500 businesses made up 88.76 percent. The remaining businesses combined accounted for 11.24 percent.
Table 5: FY 2024-2025 Business Tax Percentage Paid by Businesses BUSINESS TAX ACCOUNTS FY 2024-25 PERCENTAGE TOTAL SHARE Top 1 to 25 6,989,044 49.86% 49.86%
26 to 50 1,234,723 8.81% 58.67%
51 to 100 1,506,159 10.75% 69.42%
101 to 250 1,730,927 12.35% 81.77%
251 to 500 980,297 6.99% 88.76%
501 to 1000 722,964 5.16% 93.92%
1001 to 6527 852,181 6.08% 100.00%
All 14,016,295 100.00%
December 16, 2025
Figure 2 illustrates the percentage of business tax paid by the business classes.
Figure 2: Business Tax Paid by Business Class
General Fund Expenditures
Overall, expenditures are projected to total $257.9 million (97 percent of the budget) at the end of FY 2024-25. Actual expenses are trending below budgeted levels, primarily due to lower-than-expected operating expenditures in several categories, as detailed below. The summary of budget-to-actual expenditures is shown in Table 6 below and illustrated in Figure 4.
Table 6: Estimated General Fund Expenditures FY 2024-25 Quarter 4
GENERAL FUND
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
ESTIMATED
YEAR-END
ACTUALS
VARIANCE
SALARIES AND WAGES 95,236,672 93,491,716 90,279,931 97% PAYROLL/FRINGE BENEFIT 70,666,262 70,627,111 71,473,537 101%
PROFESSIONAL &
ADMINISTRATIVE 20,378,340 23,108,323 18,423,301 80% OTHER OPERATING 8,862,886 7,436,604 7,602,966 102% UTILITIES 5,594,204 6,714,718 6,723,076 100%
EQUIPMENT & CONTRACT
SERVICES 4,315,665 5,590,483 4,729,638 85%
PROVISION FOR INSURANCE
LOSS 35,500 35,892 34,392 96% COST POOL 23,400,598 24,750,598 24,700,598 100% ASSET/CAPITAL OUTLAY 2,502,328 4,108,413 3,027,375 74% DEBT SERVICE EXPENDITURE 850,905 851,647 852,862 100% A87 COST PLAN
REIMBURSEMENT (3,514,373) (3,294,171) (3,424,409) 104% GRANT EXPENDITURES 49,013 52,246 590 1% TRANSFERS OUT 20,557,373 33,451,511 33,451,510 100% EXPENDITURE TOTAL 248,935,372 266,925,091 257,875,368 97%
December 16, 2025
Figure 3: FY 2024-25 Major General Fund Expenditures
General Fund Expenditure Variances
Salaries and Wages – This category includes salaries for full-time and part-time staff, overtime, and other pay types. Estimated actual expenditures total $90.3 million, which is 3 percent below the revised budget. The variance is mainly due to the timing of filling vacancies.
Payroll and Fringe Benefits – This category includes medical, dental, vision, workers’ compensation, CalPERS pension costs, Other Post Employment Benefits (OPEB), and other benefits. Estimated actual expenditures total $71.5 million, which is 1 percent above the revised budget. The variance is due to pending journal reimbursements for staff benefits from grants and projects. Once the journals are processed, this category is expected to reach budgeted levels.
Professional & Admin Services – This category includes professional and consulting services, legal services, computer software maintenance, security services, and contractual obligations, such as animal control services. Estimated actual expenditures total $18.4 million, or 80 percent of the revised budget. This variance is primarily due to lower-than-budgeted expenditures in the Office of Neighborhood Safety, Economic Development, and Non-Departmental.
Other Operating – This category includes copier leases, office supplies, and other items. Estimated actual expenditures total $7.6 million, which is 2 percent above the revised budget.
Utilities – This category includes gas, electricity, water, refuse, telephone, and internet services. Actual expenditures are expected to reach budgeted levels.
Equipment & Contract Services - This category includes equipment and maintenance/repair services. Estimated actual expenditures total $4.7 million, or 85 $93.5
$70.6
$23.1
$7.4
$6.7
$4.1
$5.6
$24.8
$0.9
$(3.3)
$33.5
$90.3
$71.5
$18.4
$7.6
$6.7
$3.0
$4.7
$24.7
$0.9
$(3.4)
$33.5
$(5) $15 $35 $55 $75 $95
SALARIES AND WAGES
PYRLL/FRINGE BENEFIT
PROFESSIONAL & ADMIN
OTHER OPERATING
UTILITIES
ASSET/CAPITAL OUTLAY
EQUIPMENT & CONTRACT
COST POOL
DEBT SVC EXPENDITURE
A87 COST PLAN REIMB.
TRANSFERS OUT
Millions
Expenditure Category
REVISED BUDGET ESTIMATED YEAR END ACTUALS
December 16, 2025
percent of the revised budget. Actual cost of repairs and maintenance was lower than budgeted.
Cost Pool – This category includes vehicle replacement, general liability, and Civic Center debt allocation. These costs are charged to departments monthly based on the budgeted allocation.
Asset/Capital Outlay – This category includes capital purchases and major facility and infrastructure upgrades. Estimated actual expenditures total $3.0 million, or 74 percent of the revised budget. This variance is primarily due to the timing of equipment replacement projects overseen by the Information Technology Department. A portion of the remaining budget will be carried over to FY 2025-26.
Debt Service – This category includes debt service payments according to the City’s debt service schedules and capital leases per the agreements. Any variance is due to the reclassification of rental expenses to capital lease expenses per the Governmental Accounting Standards Board (GASB) 87. GASB 87 provides guidance for lease contracts for non-financial assets, including vehicles, heavy equipment, and buildings.
Cost Plan Reimbursement – This category includes administrative overhead credits from non-General Fund programs to recover administrative costs for internal support departments, such as Human Resources, Finance, and Information Technology.
These costs are charged to non-General Fund programs monthly in accordance with the budgeted allocation. These transactions are currently being analyzed as part of the fiscal year-end closing process.
Transfers Out – This category includes transfers out from the General Fund to non- General Funds for operating subsidies and a portion of debt service.
Non-General Funds
Non-General Fund Revenues
Non-General Fund revenues collected are at 79 percent of the budgeted amounts, mainly due to pending multi-year grants. Details for major categories are in Table 7 and Attachment 1.
Table 7: Non-General Fund Revenues, FY 2024-25, Quarter 4
FUND TYPE
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
ESTIMATED
YEAR-END
ACTUALS
VARIANCE
Capital Improvement Funds 63,990,718 86,313,489 52,231,835 61% Debt Service Funds 16,161,500 16,161,500 16,334,501 101% Enterprise Funds 42,902,846 44,502,346 49,112,564 110% Housing Funds 2,702,120 2,718,720 1,939,000 71% Housing Authority Funds 4,676,806 4,676,806 3,959,067 85% Internal Service Funds 36,850,188 38,019,390 41,300,555 109% Other Operations Funds 24,015,680 25,213,708 17,695,242 70% Special Revenue Funds 62,708,434 87,053,132 56,964,597 65% TOTAL REVENUES 254,008,291 304,659,089 239,537,360 79%
December 16, 2025
Capital Improvement Funds – Estimated revenues are 61 percent of the budget. The variance is primarily due to full grant awards budgeted as revenues, actual revenue based on incurred expenditures, and pending grant reimbursements in Outside- Funded Services and Engineering Services Grants funds.
Debt Service Funds – Estimated revenues are 101 percent of the budget due to increased interest income in these funds.
Enterprise Funds – Estimated revenues are 110 percent of the budget, primarily due to increased charges for services revenue collections in the Wastewater fund.
Housing Funds – Estimated revenues are 71 percent of the budget, mainly due to lower than budgeted Developer Housing In-Lieu fee revenue.
Richmond Housing Authority (RHA) – Estimated revenues are 85 percent of the budget due to lower than budgeted operating transfer-in in RHA Nystrom Village. A major source of the variance is due to the reduced need for General Fund subsidy due to lower-than-budgeted expenditures in most categories of the fund.
Internal Service Funds – Estimated revenue is 109 percent of the budget due to increased interest income in these funds.
Other Operations Funds – Estimated revenues are 70 percent of the budget. The significant variance is due to grant-funded program revenues, where reimbursements are typically received after expenditures are incurred, and any remaining balances are carried over into the following year.
Special Revenue Funds – Estimated revenue is 65 percent of the budget. The main variance is due to various large multi-year grants such as the Transformative Climate Communities Grant, Encampment Resolution Funds Round 2 and Round 3 and Homekey Program. Revenues for these grants are realized as the expenditures are incurred throughout the grant periods, whereas the entire grant revenues are appropriated in the budget in the beginning of each grant period.
Non-General Fund Expenditures
Non-General Fund expenditures are 57 percent of the budget. Several Non-General Fund budgets contain capital and grant projects that span multiple years, and unspent budgets in these funds carry over to the following year until each respective project is complete. For budget-to-actuals expended by each fund, see Attachment 1. Non- General Fund budget-to-actual expenditures by fund type are shown in Table 8.
December 16, 2025
Table 8: Estimated Non-General Fund Expenditures FY 2024-25 Quarter 4
FUND TYPE
FY 2024-25
ORIGINAL
BUDGET
FY 2024-25
REVISED
BUDGET
ESTIMATED
YEAR-END
ACTUALS
VARIANCE
Capital Improvement Funds 69,582,572 114,709,634 45,596,574 40% Debt Service Funds 16,261,836 16,261,836 16,263,249 100% Enterprise Funds 76,617,418 95,720,227 48,226,712 50%
Housing Funds 5,821,825 6,098,867 1,879,976 31%
Housing Authority Funds 4,685,856 4,685,856 3,487,180 74% Internal Service Funds 42,736,426 47,087,951 41,832,970 89% Other Operations Funds 27,804,640 30,952,944 22,841,319 74% Special Revenue Funds 88,567,660 125,578,887 71,332,021 57% TOTAL EXPENDITURE 332,078,233 441,096,203 251,460,002
57%
Capital Improvement Funds – Estimated expenditures are 40 percent of the budget; the variance is due to projects spanning over multiple years, where the unspent balances are carried forward into the following year.
Debt Service Funds – Estimated expenditures are 100 percent of the budget. The Debt Service Funds include the Civic Center Bonds and Pension Obligation Bonds. Enterprise funds – Estimated expenditures are 50 percent of the budget. The variance is due to the timing of multi-year capital projects for Wastewater and the Port of Richmond. Any unspent balances are carried forward into the following year. Housing Funds – Estimated expenditures are 31 percent of the budget. This variance is due to fewer loans being issued under the Home Improvement Loan program in the Successor Agency Housing fund.
Richmond Housing Authority (RHA) Funds – Estimated expenditures are at 74 percent of the budget, mainly due to lower expenditures in various funds such as Nevin Plaza, Nystrom Village, and RHA Capital Fund.
Internal Service Funds – Estimated expenditures are 89 percent of the budget. The variance is due to the remaining equipment purchases being carried forward into the following year.
Other Operations Funds – Estimated expenditures are 74 percent of the budget.
Several grant-funded programs have multi-year grants, and any remaining grant balances will be carried forward into the following year.
Special Revenue funds – Estimated expenditures are 57 percent of the budget. The variance is primarily due to several large multi-year grants, including American Rescue Plan Act-funded projects, budgeted in this category, with remaining balances carried forward each year. The following large multi-year grants are budgeted in this category: Transformative Climate Communities, Encampment Resolution Fund, and Environmental Community Investment Agreement.
December 16, 2025
Quarter 4 Non-General Fund Budget Adjustments
At the end of FY 2024-25, City staff recommends several Non-General Fund budget adjustments to align with fiscal year-end actuals (see Table 9). Additional detail regarding these Non-General Fund adjustments is provided in Attachment 2.
Table 9: FY 2024-25 Quarter 4 Non-General Fund Budget Adjustments FUND Type Fund Fund Description Revenue Expenditures
Capital Improvement 1019 Road Maintenance and Rehabilitation - 36,426 Capital Improvement 2110 Impact Fee Parks/PW 7,584 940
Capital Improvement 2111 Impact Fee Traffic 43,232 4,662 Capital Improvement 2113 Impact Fee Fire 58,305 2,338
Capital Improvement 2114 Impact Fee Police 9,267 767
Capital Improvement 2115 Impact Fee Comm/Aquatic 53,619 3,671 Capital Improvement 2116 Impact Fee Open Park 170,551 13,734 Capital Improvement 2117 Impact Fee Library 49,143 3,810 Capital Improvement 2119 Impact Fee Storm Drainage 6,615 1,081 Capital Improvement 2120 Impact Fee Wastewater 10,300 496 Enterprise Fund 4006 Stormwater - 751,000
Enterprise Fund 4008 KCRT 72,037 -
Other Operations 1012 Hilltop Landscaping District 54,095 - Other Operations 1205 Employment & Training 294,755 -
Internal Services 5003 Equipment Services 2,904,273 2,904,273 Housing Authority 4405 RHA – Nystrom Village (216,861) - Housing Authority 4501 RHA – Central Office Cost Center 216,861 - Total 3,733,777 3,723,200
Total Unspent Funds
The City’s FY 2024-25 General Fund is projected to close with a $3.1 million deficit. To maintain the City Council-approved minimum General Fund reserve level of 21 percent, or $54.6 million, preliminary projections indicate that approximately $7.6 million in unspent funds is available to support City Council priorities. Final figures will be confirmed through the year-end audit and presented in the ACFR in early 2026.
Identified Expenditures Pending Appropriations
City staff recommend allocating approximately $3 million of the estimated $7.6 million in unspent funds for administrative adjustments, as shown in Table 10. This includes increased funding to cover cost escalations for fire apparatuses, increased General Fund subsidy for Employment & Training staffing costs, and additional subsidies to cover negative fund balances for Hilltop Landscape and Maintenance District and KCRT. Further detail regarding these General Fund adjustments is provided in Attachment 2.
December 16, 2025
Table 10: Estimated Unspent Funds Adjustments
Total Unspent Funds 7,578,856
Administrative Adjustments
Fire Trucks (Cost Escalation) 2,504,273
Employment & Training General Fund Subsidy 294,755
Hilltop Landscaping and Maintenance District General
Fund Subsidy (Negative Fund Balance) 54,095
KCRT General Fund Subsidy (Negative Fund Balance) 72,037 Muni-Code Recodification 66,555
Total Identified Expenditures Pending Appropriation 2,991,715
Remaining Unspent Funds 4,587,141
Remaining Unspent funds of approximately $4.6 million are available for City Council Goals and Priorities.
Proposed Funding Allocations for Remaining Unspent Funds
The City’s Capital Improvement Program (CIP) faces funding gaps driven by rising construction costs and material prices. To ensure critical infrastructure projects continue without interruption, City staff evaluated all current shortfalls based on safety urgency, grant deadlines, and community impact. Based on this review, City staff recommends allocating $4.6 million to close funding gaps for high-impact projects that are ready to proceed or face strict grant timelines. Approval of this funding ensures that essential safety upgrades, community amenities, and roadway improvements are not delayed.
The projects listed below focus resources on projects that meet the needs of the community, have clear grant or scheduling requirements, and are ready to proceed within the current fiscal year.
Key projects include:
Project Notes and Locations Budget
Shields-Reid
Community Center
Improvements
Additional scope was added to the existing project to meet the needs of the community
$100,000
13th Street Complete
Street
13th street from Pennsylvania Avenue Bridge to Costa
Avenue
$300,000
Bridge Preventative
Maintenance
Maintenance at multiple locations along Richmond
Parkway and Pennsylvania Avenue
$400,000
Streetlight Program
- Lighting
Improvements
Including Solar
Booker T. Anderson
Courts
Clinton Avenue
Hilltop Drive
Nicholl Tennis Courts
Potrero Avenue
Robert Miller Drive
Carlson Boulevard
Dornan Drive
Hoffman Boulevard
Parking on 27th St
Richmond Parkway
Seacliff Drive
$3,000,000
Parks and Open
Spaces Program
Play equipment upgrades citywide, including Boyd Park
and Rain Cloud Park
$800,000
Total $4,600,000
December 16, 2025
Approval of these allocations allows the City to advance as many high-priority projects as possible while maximizing the use of available funding.
Next Steps
City staff will work with our external auditors to complete the FY 2024-25 year-end audit and finalize the Annual Comprehensive Financial Report (ACFR). The year-end audit results and ACFR will be presented to the City Council in early 2026, along with final General Fund year-end results.
DOCUMENTS ATTACHED:
Attachment 1 – Estimated Fiscal Year 2024-25 General Fund and Non-General Funds Revenues and Expenditures
Attachment 2 – Fiscal Year 2024-25 Budget Adjustments
Attachment 3 – Resolution – Budget Adjustments for Fiscal Year 2024-25 and Fiscal Year 2025-26 Budget Appropriation
Attachment 4 – Presentation Fiscal Year 2024-25 Financial Report and Budget Adjustments