3/27/2025
1 RiversideCA.gov1
RiversideCA.govFY 2024/25 Second Quarter Financial Update City CouncilApril 8, 2025Finance Department
RiversideCA.gov2
•Overall, the City maintains a strong financial position•Significant uncertainty of future fiscal outlook remains–Tariffs–Immigration Policies–Other Federal Action•Recommend proactive measures pending additional revenue and economic dataFiscal Health and Outlook1 2 3/27/2025
2 RiversideCA.gov3
GENERAL FUND & MEASURE Z RESERVE BALANCESGeneral FundBalance(in milions)Policy Reserves$ 54.18 Emergency Reserve (15%)18.06 Contingency Reserve (5%)$ 72.24 TotalOther Reserves$ 30.24 Reserved for Section 115 Trust Contributions9.38 Infrastructure Reserve5.00 Technology Reserve16.63 Water GFT Escrow77.19 Section 115 Trust$ 138.44 Total$ 210.68 Total ReservesMeasure ZBalance(in milions)$ 37.90 Fund Balance*5.00 Policy Reserve$ 42.90 Total* Reflects projected fund balance as of the end of the second quarter* Measure Z fund balance is anticipated to be drawn down over the adopted five-year plan.
RiversideCA.gov4
GENERAL FUND & MEASURE Z OVERVIEWAdopted BudgetCouncil Approved/Pending Adjustments*Q2 Recommended AdjustmentsQ2 Recommended Cost Savings MeasuresFinal Adjusted Budget*Revenue/Transfers In 361,227,227$ (880,759)$ (4,844,363)$ 10,817,428$ 366,319,533$ Expenditure/Transfers Out 361,227,227 4,152,018 2,706,000 (1,765,712) 366,319,533Surplus/(Deficit) -$ (5,032,777)$ (7,550,363)$ 12,583,140$ (0)$ Revenue/Transfers In 84,515,000$ -$ (3,206,000)$ -$ 81,309,000$ Expenditure/Transfers Out 104,283,345 2,075,616 (2,256,806) (1,910,030) 102,192,125Surplus/(Deficit)**(19,768,345)$ (2,075,616)$ (949,194)$ 1,910,030$ (20,883,125)$ FY 2024/25 SummaryGeneral FundMeasure Z* Excludes carryovers and approved unobligated ARPA adjustments, which do not have a net impact the on surplus/deficit calculation.** Measure Z fund balance is anticipated to be drawn down over the adopted five-year plan. 3 4 3/27/2025
3 RiversideCA.gov5
GENERAL FUND & MEASURE Z REVENUE ADJUSTMENTSProperty Taxes $ 92.59 $ 92.59 $ 92.59 $ - 0.0%Sales Tax 93.84 93.84 91.93 (1.91) -2.0%Cannabis Tax 0.50 0.50 - (0.50) -100.0%Utility Users Tax 34.94 34.94 34.94 - 0.0%Transient Occupancy Tax 8.71 8.71 8.71 - 0.0%Franchise Fees 6.91 6.91 6.91 - 0.0%Licenses & Non-Developer Permits 11.96 11.96 11.96 - 0.0%Non-Development Charges for Services 12.04 12.04 12.04 - 0.0%Development Fees & Charges 8.46 8.46 8.46 - 0.0%General Fund Transfer 53.41 53.41 53.45 0.04 0.1%Measure Z Transfer 18.27 18.27 24.16 5.89 32.2%Other Revenues & Transfers In 19.61 18.73 21.17 2.45 13.1%Total Revenues & Transfers In $ 361.22 $ 360.34 $ 366.31 $ 5.96 1.66%Sales Tax $ 83.72 $ 83.72 $ 80.51 $ (3.21) -3.8%Interest Earnings 0.80 0.80 0.80 - 0.0%Total Revenues & Transfers In $ 84.52 $ 84.52 $ 81.31 $ (3.21) -3.8%Revenue CategoryAdopted BudgetGeneral Fund Measure Z Amended Budget 12/31/2024Year-End Projection$Change%Change RiversideCA.gov6
GENERAL FUND & MEASURE Z EXPENDITURE ADJUSTMENTSDoes not include approved carryovers and encumbrances from FY 2023/24. ExpenditureAmount(in millions)Adopted Budget $ 361.22 Supplementals Approved through Second Quarter 2.63 Supplementals Approved/Pending in Third Quarter 1.52 Police and Fire Overtime 3.50 Section 115 Trust Transfer Overpayment (0.79)Cost Savings Measures (1.77)Total Expenditures $ 366.31 General Fund ExpenditureAmount(in millions)Adopted Budget $ 104.28 Supplementals Approved through Second Quarter 0.21 Supplementals Approved/Pending in Third Quarter 1.86 Fire Overtime 0.50 Museum Debt Service Payments (2.91)Police Lateral Hiring Incentive 0.16 Cost Savings Measures (7.80)Transfer to General Fund 5.89 Total Expenditures $ 102.19 Measure Z5 6 3/27/2025
4 RiversideCA.gov7
ADDRESSING THE PROJECTED DEFICITIssueAmountIssueAmountUnappropriated Revenue and Interest $ 4,927.0 Homeless Outreach $ 100.0 Vacancy Savings 1,100.0 Tree Maintenance916.7 Various Parks Programs 1,000.0 Street Pavement Program83.3 Vehicle Replacement-Fire 2,000.0 Technology Improvements800.0 Vehicle Replacement-City Wide 1,600.0 Senior Rental Assistance Program500.0 Vehicle Replacement-Police 500.0 Senior Disabled Program200.0 Police Radio Savings 365.7 City Manager Professional Services300.0 Education Reimbursement 100.0 $ 14,492.7 Cost Savings Measures (General Fund and Measure Z)in thousandsTotal RiversideCA.gov8
•No significant revenue deviations that require adjustments•Overall, expenditures are projected to remain within the budgeted appropriation limits at fiscal year-end•Higher overtime and contractor costs are offset by vacancy savings•Reserve levels are sufficient to address budgeted deficitsENTERPRISE FUNDS7 8 3/27/2025
5 RiversideCA.gov9
STRATEGIC PLAN ALIGNMENT
HIGH PERFORMING GOVERNMENTCROSS-CUTTING THREADS
Equity
Innovation
Community Trust
Fiscal Responsibility
Sustainability and Resiliency
RiversideCA.gov10
That the City Council:1. Receive and provide input on the Fiscal Year 2024/25 SecondQuarter financial update;2. With at least five affirmative votes, authorize the Chief FinancialOfficer, or designee, to record mid-cycle budget adjustments,including supplemental appropriations, interfund transfers, and otherbudgetary entries in the amount of $254,423 of expenditure and$2,767,065 in revenue adjustments across various funds as detailed inthis report.RECOMMENDATIONS9 10 3/27/2025
6 RiversideCA.gov11
RECOMMENDATIONS101 - General Fund $ 5,973,065 $ 940,288 $ 5,032,777 110 - Measure Z -3,206,000 -4,166,836 960,836215 - Grants and Restricted Programs0 1,060 -1,060581 - Entertainment Fund 3,479,911 -3,479,911Citywide Total $ 2,767,065 $ 254,423 $ 2,512,642 Net Impacts to Fund BalanceMID-CYCLE BUDGET ADJUSTMENTSFund Revenues Expenditures11