Fiscal Year 2024-25Mid-Year Budget Review & Supplemental Appropriation Requests FEBRUARY 25, 2025
CITY COUNCIL
SELINA ANDREWS, FINANCE DIRECTOR
Fiscal Year 2024-25Mid-Year Budget Review & Supplemental Appropriation Requests Staff recommends that the City Council take the following actions regarding the Fiscal Year 2024-25 Mid-Year budget performance review:
Receive FY 2024-25 Mid-Year budget performance review; and Authorize budget adjustments as recommended in the budget performance review. 2 Financial Forecasting Model
3 Financial Forecasting Model
4 FY 2024-25 Mid-Year Budget Review
5 Current Salinas Rate
Who is taxed?
Fiscal Impact
Transient Occupancy Tax (TOT)
10%
Hotel guest
Low
Sales Tax (Measure G)
9.250%
(Measure G is one cent General Use tax)
Purchaser
High
Property Transfer
$1.65 per $1,000
Property seller
High
Utility Users Tax (UUT)
Telecom & Video 5%
Gas, Electricity & Water 6%
Telecom, electricity, gas & water ratepayer
Moderate
Business License Tax
Employee-based &
Gross receipts
Business owner
Moderate
Community Facilities District
N/A
Property owners
High
FY 2024-25 Mid-Year Budget Review
Operating funds are generally performing as expected, with a few exceptions While there is uncertainty, most indicators are relatively positive through the first half of the fiscal year and very modest growth is expected in the future Minor budget adjustments are recommended in operating funds The City is relatively well positioned entering the Fiscal Year 2025-26 Budget 6 Economic Conditions: Employment
7 Economic Conditions: Real Estate
Data Source: HdL Reports
8 General Funds Assessment
Revenue growth in the first six months of the fiscal year is trending on pace and is not anticipated to exceed budgeted levels by the end of fiscal year Expenditures currently tracking to end the fiscal year with limited to no savings Limited adjustments recommended at this time
Preliminary unaudited results of Fiscal Year 2024 estimate a minor increase in fund balance, which will be used to balance Fiscal Year 2025-26 budget 9 Recommended Supplemental Appropriations to General Funds 10 Questions?