FOR THE SPECIAL COUNCIL MEETING OF JUNE 3, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
SUBJECT: Presentation – Response to Questions Regarding Proposed Fiscal Year 2024-2026 Budget
The City Council will receive a presentation regarding questions submitted and the responses for the Proposed Fiscal Year 2024-2026 Budget. The public hearing date for adoption of the proposed Fiscal Year 2024-26 Biennial Budget will be on June 18, 2024.
BACKGROUND:
On May 21, 2024, the City Council held a public meeting to receive the Preliminary Fiscal Year (FY) 2024-26 Proposed Budget report t. The City Council requested another special meeting occur regarding the budget to address questions regarding the proposed programs, revenues and expenditures, before the budget is brought back for adoption on June 18, 2024.
DISCUSSION:
City Staff engaged in the development of the FY 2024-26 Biennial Budget, encompassing FY 2024-25 and FY 2025-26. The proposed budget is in alignment with the City Council's Goals and Priorities. The proposed budget presents funding for status quo levels of operating programs, including proposed budget amendments and proposed Capital Improvement Program and maintenance projects. As presented at the May 21, 2024 , Council Meeting the proposed budget totals $354.9 million in all operating funds in FY 2024-25 and $346.4 million in FY 2025-26. During the Preliminary Budget presentation, staff provided a number of recommendations to balance the budget and address long - term fiscal sustainability. The recommendations include balancing the FY 2024-25 budget with a one-time draw on the General Fund, Measure U, and Local Economic Augmentation Fund reserves in the amount of $20.8 million and reducing ongoing expenditures in the General Fund and Measure U to meet the City’s financial polic y of balanced budget by the end of FY 2024-25 where ongoing revenues shall be sufficient to fund ongoing expenditures. The recommendations also include setting reserve levels to ensure the City’s long -term fiscal sustainability and ability for the City to operate in emergency and economic downtown conditions.
City Council, needing more information to provide further direction, asked that a Special Meeting be established to ad dress questions before voting on the budget on June 18, 2024. City Councilmembers will submit a list of their currently identified questions in advance of that meeting to provide staff with time to prepare responses for the meeting.