FY 2024-25
Mid-Year
Budget Update
February 18, 2025
1 Agenda
General Fund
• FY 2023-24 Actuals
• FY 2024-25 Mid-Year Updates
Revenues
Expenditures
General Fund Balance
Sewer Fund
FY 2024-25 Mid-Year Budget Amendment
FY 2023-24 Actuals
General Fund
General Fund
2023-24
Amended
Budget
2023-24
Mid-Year
Projection
2023-24
Actuals
(audited)
Total Revenues $159.3 $161.3 $170.0
Total Expenditures
(including transfer out) 176.5 169.5 169.9
Net ($17.2) ($8.0) $ 0.078
2023-24
Actuals
(adjusted)
$167.0
172.0
($5.0)
$3.0 million of
Mark-to-Market
Unrealized Gains
(non-cash adjustment)
$2.0 million of
Measure S funds
budgeted but not yet
transferred to CIP Fund
(in millions)
FY 2024-25 Mid-Year Updates
General Fund
2024-25
Adopted
Budget
2024-25
Current
Budget
2024-25
Mid-Year
Projection
Revenues 169.8$ 169.8$ 173.9$ Expenditures (including
transfers out) 180.4 183.9 180.3 Deficit (10.6)$ (14.1)$ (6.4)$ (in millions)
General Fund Revenues
Property Tax
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Estimates
PROPERTY TAX (IN MILLIONS)
$84 mil.
General Fund Revenues
Property Tax
General Fund Revenues
Property Tax in-lieu VLF (VLF)
a b c d = a - b + c
Fiscal Year City VLF entitlement City’s VLF shortfall VLF shortfall received (2-Year Delay) VLF Revenue
FY 2021-22 $13.7 million $1.9 million $0.5 million $12.3 million FY 2022-23 $14.9 million $4.1 million $5.7 million $16.4 million FY 2023-24 $15.6 million $6.6 million* $1.9 million $10.8 million FY 2024-25 $16.3 million $7.0 million* $4.1 million $13.5 million * The State has not yet committed to backfill the FY 2023-24 and 2024-25 VLF shortfalls.
General Fund Revenues
Sales Tax
$-
$5
$10
$15
$20
$25
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Estimates
SALES TAX (IN MILLIONS)
Local 1% Sales Tax (including Prop 172) Measure S Trendline General Fund Revenues
Real Property Transfer Tax (RPTT)
$0
$2
$4
$6
$8
$10
$12
$14
$16
RPTT (in millions)
RPTT 0.5% RPTT 1% (Measure CC)
General Fund Revenues
Other Revenues
• Business tax: $0.5 million lower due to anticipated tax apportionment adjustments. • Golf revenues: $0.2 million down due to temporary closure of the PAR 3 restaurant. • Investment earnings: up $1.0 million due to a high-interest rate market.
FY 2024-25 Mid-Year Updates
General Fund Revenues
Revenues
2024-25
Adopted
Budget
2024-25
Mid-Year
Projection
Change in $ Change in %
Property Tax 84.0$ 84.0$ -$ 0% Sales Tax 30.1 27.9 (2.2) -7% Real Property Transfer Tax 8.0 14.0 6.0 75% TOT 4.0 4.0 - 0% Interest Earnings 4.2 5.2 1.0 24% All Other 39.5 38.8 (0.7) -2% TOTAL 169.8$ 173.9$ 4.1$ 2% (in millions)
FY 2024-25 Mid-Year Updates
Proposed Budget Amendments
General Fund Revenues:
• Increase real property transfer tax revenue budget by $6.0 million; • Decrease sales tax revenue budget by $2.2 million;
• Increase investment earning budget by $1.0 million;
• Decrease business tax revenue budget by $0.5 million; and • Decrease golf revenue budget by $0.2 million.
FY 2024-25 Mid-Year Updates
General Fund Expenditures
Gneral Fund Expenditures (in
millions)
2024-25
Adopted
Budget
2024-25
Current
Budget
2024-25
Mid-Year
Projection
Change in $ Change in %
Salaries and Wages 56.1$ 56.6$ 55.6$ (1.0)$ -1.8% Benefits 23.5 23.5 23.0 (0.5) -2.1% Pension UAL 13.0 13.0 13.0 - 0.0% Non-Personnel Operating 40.1 40.6 38.5 (2.1) -5.2% SMC Fire and legacy cost 36.1 36.1 36.1 - 0.0% Transfer Out 11.6 14.1 14.1 - 0.0% TOTAL 180.4$ 183.9$ 180.3$ (3.6)$ -2.0% FY 2024-25 Mid-Year Updates
Proposed Budget Amendments
General Fund Expenditures:
• Increase City Clerk operating budget by $137,000 for election cost; • Increase Public Works operating budget by $224,000 to re-appropriate the unspent fund for wet weather preparation and make it available in FY 2024-25.
FY 2024-25 Mid-Year Updates
General Fund
2024-25
Adopted
Budget
2024-25
Current
Budget
2024-25
Mid-Year
Projection
Revenues 169.8$ 169.8$ 173.9$ Expenditures (including
transfers out) 180.4 183.9 180.3 Deficit (10.6)$ (14.1)$ (6.4)$ (in millions)
FY 2024-25 Mid-Year Updates
General Fund Balance
$-
$20
$40
$60
$80
$100
$120
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Estimate
ENDING BALANCE (IN MILLIONS)
$112 mil.
Sewer Fund (in millions)
19 Sewer Fund
2024-25
Amended
Budget
2024-25
Mid-Year
Projection
Variance
Total Revenues 91.9$ 95.8$ 3.8$ Total Expenditures 57.9 55.0 (2.9) CIP Expenditures 28.1 58.1 30.0 Net 5.9$ (17.4)$ (23.3)$
Unrestricted Fund Balance, Beginning 184.6 184.6 -$ Unrestricted Fund Balance, Ending 190.5$ 167.3$ (23.3)$ Upcoming Agenda Items
• March 17 – General Fund Reserve Policy Study Session
• April 21 – Fiscal Year (FY) 2025-26 Budget Study Session Operating Budget Preview
CIP Budget Preview
• June 2 – FY 2025-26 Proposed Budget (1st Public Hearing) • June 16 – FY 2025-26 Budget Adoption (2nd Public Hearing) Council Action
APPROVING MID-YEAR BUDGET ADJUSTMENTS FOR THE GENERAL FUND FOR FISCAL YEAR 2024-25
Approve the proposed budget amendments for the General Fund revenues. Approve the proposed mid-year budget amendments for the General Fund expenditures.
Q&A
Karen Huang
Finance Director
[email protected]
650-522-7110