Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: June 11, 2024
SUBJECT: FISCAL YEAR 2024-25 ANNUAL OPERATING BUDGET AND
CAPITAL IMPROVEMENT PROGRAM
DEPARTMENT: City Manager's Office
PRESENTER: Kenneth W. Striplin
RECOMMENDED ACTION
City Council and City Council acting as Successor Agency to the former Redevelopment Agency of the City of Santa Clarita conduct a public hearing on the proposed Fiscal Year 2024-25 Annual Operating Budget and Capital Improvement Program and schedule the budget for adoption at the June 25, 2024, City Council Meeting.
BACKGROUND
The Fiscal Year (FY) 2024-25 budget process is a six-month effort that began in January. In addition to staff preparation, the City Council Budget Committee, which is comprised of Mayor Smyth and Mayor Pro Tem Miranda, reviewed the proposed budget with the City Manager so that the City Manager can make a final recommendation to the entire City Council.
During the budget process, information about the City of Santa Clarita (City) budget was provided during multiple public meetings, allowing for public comment. On February 6, 2024, the City Council and Commissions held a Joint Budget Study Session to discuss the priorities and direction of the City’s budget and allow for public comment. On April 25, 2024, a publicly- noticed Budget Sub-Committee meeting was held to discuss the City’s recommended FY 2024- 25 budget. On May 7, 2024, the City Council and Commissions held a publicly-noticed Joint Budget Study Session to discuss the recommended FY 2024-25 budget and allow for public comment. The proposed draft budget was distributed on May 30, 2024, to the City Council. On June 4, 2024, during the Planning Commission meeting, the Planning Commission made a finding by minute action that the Draft FY 2024-25 Capital Improvement Program is consistent with the City’s General Plan.
Total Appropriations
The FY 2024-25 budget totals $342.4 million. This includes funding for the Capital Improvement Program, the Redevelopment Successor Agency, operations and maintenance, personnel, and debt services. When compared to the current year’s adopted budget, the proposed FY 2024-25 budget represents a 6.4 percent increase, equivalent to $20.6 million.
Projected Revenues
A significant part of the budget process is estimating revenues for the upcoming fiscal year. This process is critical, as appropriations are based on these projections. Several factors are considered to ensure accuracy in projections, including the state of the economy, historical trends, population projections/growth, and inflation. With this information, the City can best determine the revenue available for allocation.
For FY 2024-25, total revenue meets total expenditure appropriations. Additionally, for certain one-time capital projects, the fund balance is appropriated.
General Fund Revenues
The City’s largest fund is the General Fund, representing $149.2 million in total revenue. Sales tax is typically the City’s leading General Fund revenue source and is projected to increase 1.5 percent, from the current adopted budget, to $49 million.
General Fund Expenditures
The FY 2024-25 General Fund expenditures total $148.9 million. General Fund expenditures for FY 2024-25 include funding for operating departments, debt services, contingency, and transfers to other funds.
General Fund Operating Reserve
Reserves are a critical component of the budget because this is a funding source that can be counted on in case of an emergency or unforeseen opportunity. The operating reserve will remain at 20 percent of operating expenditures. For FY 2024-25, the City’s operating reserve will total $25.5 million.
Capital Improvement Program
The Capital Improvement Program (CIP) is a key component of the budget and is of vital importance to the community as a whole as it includes prioritized projects such as parks, buildings, paseos, trails, and street enhancements that improve the quality of life for residents in our community. Comprised of a variety of multi-year and multi-funded capital projects, the CIP for FY 2024-25 totals $95.8 million.
ALTERNATIVE ACTION
Other action as determined by the City Council and the Successor Agency to the former Redevelopment Agency.
FISCAL IMPACT
The Fiscal Year 2024-25 Budget totals $342.4 million, including $95.8 million for the Capital Improvement Program. The proposed budget is balanced.
ATTACHMENTS
Notice of Public Hearing
Draft Fiscal Year 2024-25 Budget (available in the City Clerk's Reading File)