TO: Philippe Eskandar, City Manager
FROM: Hillary Guirola-Leon, Finance Director
Mark Siegfried, Accounting Manager / Controller
DATE: April 25, 2025
SUBJECT: BUDGET SUBMISSION FOR FY 2025-26
FINANCE DEPARTMENT & NON-DEPARTMENTAL
FINANCE DEPARTMENT
YEAR-END SUMMARY (FY 2024-25 BUDGET VS ESTIMATED)
The Department is anticipated to end the fiscal year with a savings of $747 or -0.1% below the current budget. The primary reasons are listed below:
• Services and supplies are estimated to be $747 lower than budgeted as due to various daily operating expenses like postage and printing coming in lower than expected.
FY 2024-25 FY 2024-25 Bud. Vs Est. Bud. Vs Est.
Description Budget Estimated Diff $$ Diff %%
Personnel $ 623,611 $ 623,611 $ - 0.0%
Services & Supplies 1,419,982 1,420,729 747 0.1%
Total: $ 2,043,593 $ 2,044,340 $ 747 0.0%
FY 2025-26 PROPOSED BUDGET
Personnel
The Department’s Full Time Equivalent (FTE) will remain at 4.00 FTE, unchanged from the current budget.
Personnel proposed budget is $621,273 which represents a $2,338 or 0.4% decrease from current budget.
• This due to cafeteria benefits expected to decrease by $2,133 from the current year budget.
Services & Supplies
Services & Supplies proposed budget is $190,377 which represents a decrease of $1.2M or -
86.6% from current budget. The primary reasons for the decrease are due to the following:
• During FY 2024-25, the City sold $1M of Metro Prop A Funds to the City of Pasadena as the funds were subject to lapsing and being returned to Metro. This was a one-time expenditure and not occurring in FY2025-26.
• There was a decrease in Other Contract Services by $82,312 compared to FY2024-25. This is due to the City needing a Fee Study to be completed in FY2024-25 to update fees charged by the City. This Fee Study cost $30k and will not be needed in FY2025-26. The City also performed a Sewer Fee Study in FY2024-25 to help the City determine what sewer rates to charge citizens to help offset on-going sewer operations and maintenance costs as well as CIP projects needed in the near future. This study cost $60k.
NON-DEPARTMENTAL
YEAR-END SUMMARY (FY 2024-25 BUDGET VS ESTIMATED)
FY 2024-25 FY 2025-26 YOY Budget
YOY
Budget
Description Budget Proposed Diff $$ Diff %%
Personnel $ 623,611 $ 621,273 $ (2,338) -0.4%
Services & Supplies 1,419,982 190,377 (1,229,605) -86.6% Total: $ 2,043,593 $ 811,650 $ (1,231,943) -60.3%
The Department is anticipated to end the fiscal year with a savings of $54,809 or 1.4% below the current budget. The primary reasons are listed below:
• Savings in Personnel budget of $24k for OPEB annual contribution due to actual retirements.
• Savings in Services & Supplies budget of $30k due to Citywide IT Contract Services expected to be $26k lower than budgeted.
FY 2025-26 PROPOSED BUDGET
Personnel
In FY2025-26, the City will not be making annual contribution of $100k to the CERBT Trust to fund future OPEB costs.
Unfunded Accrued Liability
Non-Departmental proposed budget is $988,976, which is an increase of $149,111 from FY2024-
25. This increase of $149,111 is based on the actuarial calculations done by CalPERS.
Supplies & Supplies
FY 2024-25 FY 2024-25
Bud. Vs
Est.
Bud. Vs
Est.
Description Budget Estimated Diff $$ Diff %%
Personnel 300,000 276,330 $ (23,670) -7.9%
Unfunded Accrued Liability 839,865 838,872 (993) 0.0%
Services & Supplies 2,690,130 2,659,984 (30,146) -1.1%
Debt Service - - - 0.0%
Total: $ 3,829,995 $ 3,775,186 $ (54,809) -1.4%
FY 2024-25 FY 2025-26 YOY Budget
YOY
Budget
Description Budget Proposed Diff $$ Diff %%
Personnel 300,000 $ 189,500 $ (110,500) -36.8%
Unfunded Accrued Liability 839,865 988,976 149,111 17.8% Services & Supplies 2,690,130 2,078,201 (611,928) -22.7% Debt Service - - - 0.0%
Total: $ 3,829,995 $ 3,256,677 $ (573,318) -15.0%
Services & Supplies proposed budget is $2,078,201, which represents a $611,928 or 22.7% decrease from current budget. Additional details are provided below:
• An increase of $13,221 to cost center #101-08-44495-0000 (Property Tax Admin Fee) is due to an increase in the amount charged by the County to administer and process property tax payments for the City.
• A decrease of $646,256 to cost center #101-08-4950-0001 (Equipment Cost Allocation) as annual depreciation of equipment has not been budgeted as it is a non-cash item. • An increase of $303,355 to cost center #596-08-4356-3412 (Insurance Premiums JPIA) due to the CJPIA Insurance Premiums increasing 31% compared to the prior year. • A decrease of $261,277 to cost center #101-08-4376-2025 (2025 Windstorm Expenses) due to no operating costs related to the 2025 Windstorm carrying over into FY 2025-26.
Debt Service
The City has no Debt Service expenses in FY 2025-26 as the City’s Pension Obligation Bond matured in FY 2023-24.
ATTACHMENTS
A. Department Narrative (Purpose, Description, FY 2024-25 Accomplishments, FY 2025-26 Objectives, & Operational Dashboard)
B. Department Organizational Chart
C. Department Tie-Out Sheets
DEPARTMENT PURPOSE
The mission of the Finance Department is to create and sustain quality information dissemination, high standards of industry compliance, financial predictability, and fiscal sustainability.
DEPARTMENT DESCRIPTION
The Department is responsible for the preparation and administration of the City’s annual operating and capital budgets, long-range financial planning, accounting and analysis, debt management, cash management, collections, accounts receivable, accounts payable, and payroll.
The Department keeps and maintains books, accounts and a general accounting system for the City in accordance with applicable City and governmental accounting and auditing requirements, standards, and guidelines. The Department also manages the City’s information technology systems and manages any grants that the City receives.
FISCAL YEAR 2024-25 ACCOMPLISHMENTS
• Finalized the City’s Fiscal Year 2023-24 Audited Annual Comprehensive Financial Report (ACFR) with no material weaknesses or significant deficiencies • Received the Operating Excellence Award for the Fiscal Year 2024-25 Operating Budget from the California Society of Municipal Finance Officers • Received the Distinguished Budget Presentation Award for the Fiscal Year 2024-25 Operating Budget from the Government Finance Officers Association • Assisted the Police Department in implementing a new scheduling and timecard software to add efficiencies to the payroll process
• Submitted the City’s Fiscal Year 2023-24 ACFR to the Government Finance Officers Association for a Certificate of Achievement for Excellence in Financial Reporting Award • Filled vacancies in the positions of Finance Director and Account Clerk-Payroll • Hired consultant to perform a Citywide Fee Study
• Hired consultant to perform a Sewer Rate Study
FISCAL YEAR 2025-26 OBJECTIVES
• Implement new Citywide fees based on the Citywide Fee Study Update • Establish a financially sustained sewer system and funding mechanism necessary for ongoing capital maintenance • Evaluate revenue enhancement opportunities to ensure the City is able to provide for the long-term stability of services
• Ensure sales tax is reinvested in San Marino and controlled by the residents who pay it • Look for improved efficiencies through use of the City’s ERP system and other available software technology
• Obtain a “clean audit” for the seventh year
FINANCE DEPARTMENT
• Submit Fiscal Year 2025-26 Operating Budget to the Government Finance Officers Association for the Distinguished Budget Presentation Award as well as the California Society of Municipal Finance Officers for the Operating Excellence Award • Submit Fiscal Year 2024-25 ACFR to the Government Finance Officers Association for the Certificate of Achievement for Excellence in Financial Reporting Award
OPERATIONAL DASHBOARD
Description FY 2023-24
Total
FY 2023-24
Year to Date
(July – March)
FY 2024-25
Year to Date
(July – March)
Revenues $36,900,247 $21,120,553 $25,722,323
Expenses $34,715,657 $27,118,315 $31,497,415
COVID expenses $2,613 $2,283 $990
Overtime expenses $1,783,078 $1,420,535 $1,653,374
General Fund Balance* $20,673,202 $13,890,418 $15,050,258 Overall Cash Balance*
(in bank) $43,357,135 $38,348,721 $32,574,037
*Balance numbers are reported as the last balance recorded for the year or time period, not totals.
$1,284,376 $1,709,047
$1,084,946
$1,963,857
$1,686,714
$10,185,163
$4,615,023
$1,712,678
$1,480,520
$3,552,775 $2,808,824
$2,613,930
$3,761,125 $2,877,004
$3,538,244 $3,359,695 $2,988,705
$5,997,114
Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 FY 24-25 REVENUES AND EXPENSES
Revenues Expenses
$395,994
$173,099 $137,717
$178,413
$129,278 $130,610
$290,525
$120,849 $96,890
Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 FY 24-25 OVERTIME EXPENSES
Overtime Expenses
$18,487,834 $15,966,323
$11,092,470 $10,371,248 $9,140,785
$16,830,966 $17,227,229 $16,979,038 $15,050,258
$36,964,578 $35,175,659 $34,035,332 $31,883,773 $30,720,222 $38,464,755 $38,498,986 $37,958,424
$32,574,037
Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 FY 24-25 GENERAL FUND AND CASH BALANCE
General Fund Balance Overall Cash Balance (In Bank)
Finance Director
Accounting
Manager /
Controller
Account
Clerk
Account
Clerk
Finance Department
FY 2022-23 FY 2023-24 FY 2025-26
Actual Actual Budget Estimated Proposed
Full-Time
Finance Director 1.00 1.00 1.00 1.00 1.00
Accounting Manager/Controller 1.00 1.00 1.00 1.00 1.00
Account Clerk 2.00 2.00 2.00 2.00 2.00
Total Full-Time FTE 4.00 4.00 4.00 4.00 4.00
Total Part-Time FTE - - - - -
Department Total FTE 4.00 4.00 4.00 4.00 4.00
Expenditures by Type:
Personnel 624,558 541,104 623,611 623,611 621,273
Services & Supplies 336,487 361,915 1,419,982 1,420,729 190,377 Total by Type $ 961,045 $ 903,019 $ 2,043,593 $ 2,044,340 $ 811,650 Expenditures by Fund:
101 General Fund 840,666 742,551 879,593 880,340 801,150 207 Prop A Transit Funds 120,379 160,468 1,160,500 1,160,500 10,500 595 Workers Compensation Fund - - 3,500 3,500 -
Total by Fund $ 961,045 $ 903,019 $ 2,043,593 $ 2,044,340 $ 811,650 GL # Personnel
101-11-4001-0000 Full Time Salaries 462,614 396,174 487,562 487,562 495,197 101-11-4002-0000 Part Time Wages - - - - -
101-11-4004-0000 Overtime - - - - -
101-11-4006-0000 Medicare 6,662 5,543 7,070 7,070 7,180 101-11-4008-3080 Retirement-457 Plan 3,300 3,400 7,600 7,600 7,600 101-11-4008-6050 Retirement-PARS - - - - -
101-11-4008-6160 Retirement-PERS 91,090 85,044 45,404 45,404 40,953 101-11-4010-0000 Cafeteria Benefit 60,892 50,943 70,075 70,075 67,942 101-11-4013-0000 Auto Allowance - - 2,400 2,400 2,400
101-11-4016-0000 Retiree Medical Benefits (OPEB) - - - - - 595-11-4015-0000 Workers Comp - Current Employees - - 3,500 3,500 - Total Personnel $ 624,558 $ 541,104 $ 623,611 $ 623,611 $ 621,273 GL # Services & Supplies
101-11-4150-0000 Other Contract Services 62,603 135,903 164,617 171,396 82,305 101-11-4150-0500 Other Contract Services-IT 36,171 37,869 58,674 58,514 61,605 101-11-4204-0000 Books & Periodicals - - - - -
101-11-4316-0000 Equipment Repair & Maintenance 7,776 7,471 8,054 8,813 8,663 101-11-4332-0000 Fees to Outside Agencies 965 930 964 902 935 101-11-4376-0000 Materials & Supplies 4,166 2,211 4,102 3,516 3,748
FINANCE DEPARTMENT
FY 2024-25
Operating Budget Summary
Operating Budget Detail
Authorized Positions (Full-Time Equivalents)
FY 2022-23 FY 2023-24 FY 2025-26
Actual Actual Budget Estimated Proposed
FINANCE DEPARTMENT
FY 2024-25
101-11-4396-0000 Memberships & Dues 1,143 488 1,371 1,188 1,621 101-11-4398-0000 Mileage 54 57 300 100 300
101-11-4412-0000 Postage 1,569 6,000 9,000 8,200 8,500
101-11-4420-0000 Printing 4,972 5,244 5,000 4,230 4,750 101-11-4468-0000 Staff Development 1,964 2,265 3,300 2,670 3,300 101-11-4480-0000 Travel & Meetings 904 3,009 4,100 700 4,150 101-11-4500-1980 Utilities-Electricity 68,536 - - - -
101-11-4500-4950 Utilities-Natural Gas 4,349 - - - -
101-11-4500-9025 Utilities-Telecommunications 18,968 - - - - 101-11-4500-9460 Utilities-Water 1,968 - - - -
101-11-4950-0001 Equipment Cost Allocation - - - - -
207-11-4208-0750 Bus Transportation-Chamber - - - - -
207-11-4208-0500 Prop A Transfer - - 1,000,000 1,000,000 - 207-11-4208-1330 Bus Transportation-Dial a Ride 10,379 10,468 10,500 10,500 10,500 207-11-4208-8140 Bus Transportation-SMUSD Youth 110,000 150,000 150,000 150,000 - Total Services & Supplies $ 336,487 $ 361,915 $ 1,419,982 $ 1,420,729 $ 190,377 Total Operating Expenditures $ 961,045 $ 903,019 $ 2,043,593 $ 2,044,340 $ 811,650 FY 2022-23 FY 2023-24 FY 2025-26
Actual Actual Budget Estimated Proposed
Expenditures by Type:
Personnel 394,827 162,690 300,000 276,330 189,500
Unfunded Accrued Liability - - 839,865 838,872 988,976
Services & Supplies 1,106,348 1,328,365 2,690,130 2,659,984 2,078,201 Debt Service 552,034 574,888 - - -
Total by Type $ 2,053,209 $ 2,065,943 $ 3,829,995 $ 3,775,186 $ 3,256,677 Expenditures by Fund:
101 General Fund 1,295,925 1,490,855 2,853,672 2,799,611 1,976,999 204 CDBG Fund 1,709 200 - - -
245 American Rescue Plan Fund 203,541 - - - -
401 Debt Service Fund 552,034 574,888 - - -
596 General Liability Fund - - 976,323 975,575 1,279,678 Total by Fund $ 2,053,209 $ 2,065,943 $ 3,829,995 $ 3,775,186 $ 3,256,677 GL # Personnel
101-08-4016-0000 Retiree Medical Benefits (OPEB) * 191,286 162,690 300,000 276,330 189,500 101-08-4008-6161 Retirement-PERS (UAL) - - 839,865 838,872 988,976 245-00-4006-0000 Medicare 2,781 - - - -
245-00-4001-0000 ARPA Bonus 200,760 - - - -
Total Personnel $ 394,827 $ 162,690 $ 1,139,865 $ 1,115,202 $ 1,178,476 GL # Services & Supplies
101-08-4150-0000 Other Contract Services - - 8,100 6,750 7,200 101-08-4150-0500 Citywide IT Contract Services 209,754 260,146 280,917 254,676 260,015 101-08-4150-0750 Cell Phone Contract Services 44,539 48,514 53,230 48,505 53,000 101-08-4150-0775 City Hall Credit Card Fees 27,779 27,278 27,600 33,600 36,450 101-08-4324-0000 Parking Lot Lease-SMUSD 34,685 35,339 36,006 36,006 36,686 596-08-4356-3412 Insurance Premiums JPIA - 976,323 975,575 1,279,678 101-08-4376-0000 Materials & Supplies-COVID-19 14,631 1,305 1,000 1,320 1,320 101-08-4376-0500 IT Contract Services-COVID-19 157 - - - - 101-08-4376-2025 2025 Windstorm Expenses - - 261,277 261,277 - 101-08-4468-0000 Staff Development - 20,000 20,000 20,000 101-08-4495-0000 Property Tax Admin Fee (SB2557) 225,334 237,850 264,359 264,359 277,580 101-08-4500-1980 Utilities-Electricity - 70,702 87,859 89,750 84,500 101-08-4500-4950 Utilities-Natural Gas - 2,411 3,811 2,375 2,449
NON-DEPARTMENTAL
FY 2024-25
Operating Budget Summary
Operating Budget Detail
FY 2022-23 FY 2023-24 FY 2025-26
Actual Actual Budget Estimated Proposed
NON-DEPARTMENTAL
FY 2024-25
101-08-4500-9025 Utilities-Telecommunications - 12,644 13,596 12,935 13,323 101-08-4500-9460 Utilities-Water - 869 9,796 6,600 6,000 101-08-4950-0001 Equipment Cost Allocation ** 547,760 631,107 646,256 646,256 - 204-08-4150-0000 Other Contract Services 1,054 200 - - - 204-08-4399-0000 Non-Capitalized Equipment 655 - - -
Total Services & Supplies $ 1,106,348 $ 1,328,365 $ 2,690,130 $ 2,659,984 $ 2,078,201 401-00-4360-0000 Debt Service Interest Expense 57,034 29,888 - - - 401-00-4402-00000 Debt Service Principal Repayment 495,000 545,000 - - - Total Debt Service $ 552,034 $ 574,888 $ - $ - $ -
Total Operating Expenditures $ 2,053,209 $ 2,065,943 $ 3,829,995 $ 3,775,186 $ 3,256,677 Expense also includes $100k annual contribution to CERBT Trust Fund through FY 2024-25. No contribution budgeted in FY 2025-26. ** Note: Equipment Cost Allocation is a non-cash budget item for equipment depreciation. This budget changes year over year depending on what equipment over $5k was purchased and is depreciated over the estimated life of the equipment.
In prior years, the Equipment Cost Allocation was allocated to the respective Department that possesses the equipment. * Note: Retiree Medical Benefits (OPEB) is for Other Post Employment Benefit budget to pay for retiree medical cost benefits.