COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Rebecca Campbell, Director of Finance
DATE: June 3, 2025
SUBJECT: Receive and File the Financial Report for the Third Quarter Ending March 31, 2025, and Adoption of a Resolution Approving Third Quarter Amendments
Description:
The City Council will consider receiving the Fiscal Year 2024-25 Third Quarter Financial Report and approving proposed budget amendments.
Environmental Notice: The activity is not a “Project” as defined under Sec tion 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Receive and file the Financial Report for the Third Quarter ending March 31, 2025; and
2. Adopt a Resolution approving Third Quarter Amendments to the Fiscal Year 2024- 25 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.
DISCUSSION:
The Quarterly Financial Report for the Third Quarter Ending March 31, 2025 (Attachment B) 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 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.
While the 2024-25 adopted budget sets forth the budget and approved programs for the fiscal year, from time to time the need to adjust the budget may occur. Through quarterly reports, City departments submit budget requests to Finance and the City Manager for 2 review. The budget amendments shown in Attachment C are recommended by the City Manager for approval. Reasons for the requested budget amendments are provided for each item within the attachment.
Fiscal Impact
The proposed budget amendments will result in the following increases and decreases in the financial position by fund.
1. Increase appropriations in the General Fund by $20,000 for the Public Works Department’s Homeless Safety/Quality of Life Project.
2. Increase appropriations in the Fleet Services Fund by $200,000 for the repairs and maintenance of a D8 Dozer and a D7 Dozer.
3. Increase appropriations in the Growth Mitigation Fund by $976,728 to finalize Reimbursement Agreement # K-PW 2025-007 to Betteravia Park, LLC.
4. Increase appropriations in the Transit Fund by $2,101,905 f or the purchase of five buses.
5. Reduce appropriations by $1,280,000 in the Quimby Act Subdivision -In-Lieu Fund and increase appropriations by $1,280,000 in the Growth Mitigation Fund for the Recreation & Parks Department’s Sports Complex Project.
6. Increase a llocation of one (1) Full -Time Lead Customer Service Technician position in the Water Fund for the Utilities Department’s Water Resources Division.
7. Increase appropriations by $12,800 in the Water Fund, $21,710 in the Wastewater Fund, $40,700 in the Solid Waste Collection Fund, and $21,710 in the Solid Waste Disposal Fund for the cost associated with configuring integrations between Workday and the Utilities Department’s Portalogic and Paradigm applications, between SpryPoint’s SpryIDM model and the Utilitie s Department’s Sensus meter reading application, between SpryPoint and Utilities Department’s Routeware application, between SpryPoint and the City’s Paymentus application, and for the addition of Single Sign -On (SSO) for SpryPoint.
Impact to the Community
The interim financial statement provides the community with an understanding of the financial activity of the City’s primary funds.
ATTACHMENTS
A. Resolution
B. Quarterly Financial Report Third Quarter Ending March 31, 2025 C. Proposed Budget Amendments