FOR THE COUNCIL MEETING OF MAY 7, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Finance Director Xenia Bradford
SUBJECT: Review of the Financial Report for the Third Quarter Ending March 31, 2024, and Adoption of Resolutions Approving Third Quarter Amendments to the 2023-24 Budget
Description:
The City Council will receive and file the 2023-24 Third Quarter Financial Report and consider the adoption of a Resolution approving amendments to the 2023-24 budget.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATIONS:
1. Receive and file the Financial Report for the Third Quarter ending March 31, 2024; and
2. Adopt a Resolution approving Third Quarter amendments to the 2023 -24 Budget for personnel and operational changes.
BACKGROUND:
Four times each year, City staff completes a comprehensive analysis of City finances, including projected fund balances, revenues to date, departmental expenditures, encumbrances, and potential adjustments. This financial report summarizes the Third Quarter financial analysis.
Additionally, as part of the City’s budget process, staff presents to the City Council various operational changes in conjunction with the quarterly financial report.
DISCUSSION:
The Quarterly Financial Report for the Third Quarter Ending March 31, 2024 (Attachment A) provides an overview of the current economic outlook at the State and National levels; General Fund revenues, expenditures, projected fund balances; Measure U activity; and activity in the three Enterprise Funds. Though this information is not audited and does not 2 contain all the usual year-end adjustments, accruals, or disclosures, the information does provide a general picture of the City’s activity and the developing financial trends.
The Proposed Budget Amen dments (Attachment B) discuss the budget amendment requests for incorporation into the 2023-24 Budget.
Alternative(s)
A decision not to approve the budget amendments is an alternative to this recommendation. However, doing so will limit the ability to maintain required operational services.
Fiscal Considerations
If approved, the total fiscal impact of the proposed budget adjustments through the remainder of F iscal Year 2023-24 is $100,000 for the one -time equipment purchase allocation. In addition, there will be an ongoing annual cost for the Confidential Technician position of $97,700 per year. Both expenditures are funded by the General Fund.
Impact to the Community
The interim financial statement provides the community with an understanding of the financial activity of the City’s primary funds. The requested budget amendments will enable staff to maintain operations.
ATTACHMENTS
Attachment A: Quarterly Financial Report Third Quarter Ending March 31, 2024