Mid-Year Budget Adjustment
CITY COUNCIL
JANUARY 28, 2025
PRESENTER:
ALAN ALTON, CHIEF FINANCIAL OFFICER
Background
October 22, 2024, Study
Session
Presented Forecast
showing significant deficit
Presented Budget
Reduction Strategy
Identified cuts to take
place immediately and as
part of FY 2025-26
budget development
2 Council Action
This Council Item involves three council actions:
Council action required to make FY 2024-25
reductions effective
Amend the FY 2024-25 to create a new position for
Water department
Appropriation to pay $50,000 member assessment
from Renewal Enterprise District (RED)
3 Department Reductions
OCTOBER 22, 2024, STUDY SESSION CURRENT LIST
4 One-Time Savings
PGE Funded Projects $9.2 million
Total One-time Savings $9.2 million
Ongoing Savings
Hiring Freeze $2.0 million
FY 24-25 Reductions (19 FTE) $2.6 million
FY 24-25 Ops Reductions $1.4 million
FY 25-26 Pos. Reductions (5 FTE) $1.0 million
FY 25-26 Ops Reductions $380,000
Total Ongoing Savings $7.4 million
Total Revised Reductions $16.6 million
One-Time Savings
PGE Funded Projects $9.2 million
Withdrawal Pension 115 Trust $12.0 million
Total One-time Savings $21.2 million
Ongoing Savings
Hiring Freeze $2.0 million
FY 24-25 Reductions (20 FTE) $3.3 million
FY 24-25 Ops Reductions $1.4 million
FY 25-26 Pos. Reductions (5 FTE) $1.0 million
FY 25-26 Ops Reductions $400,000
Total Ongoing Savings $8.2 million
Total Revised Reductions $29.4 million
Department Reductions
5* Adjustments to be made post election
Department Midyear Cut Cut % 2024-25 Budget
City Manager's Office 359,900.00 10.54% 3,415,943.65 City Attorney's Office 2,500.00 0.05% 4,883,549.28 Human Resources 202,435.00 4.08% 4,958,961.65 Finance 10,000.00 0.13% 7,715,900.95 Fire 900,000.00 1.54% 58,365,298.65
PED 457,590.00 2.27% 20,122,902.85
Rec & Parks 513,256.00 2.70% 18,999,506.55 TPW 1,191,605.00 4.41% 27,001,149.94
HCS 8,000.00 6.39% 125,206.99
Storm Water 40,000.00 5.01% 798,969.00 Police 160,502.00 0.20% 80,298,552.61 CIRO 211,368.00 17.70% 1,194,117.78
Department Position Reductions
6 Dept Key Description Amount
CMO 020101 1.0 FTE Clean Energy Manager 225,000 CMO 020101 1.0 FTE Administrative Technician – Confidential 134,900 HR/Risk 040101 1.0 FTE Organization Development & Training Manager 202,435 Fire 060200 4.0 FTE Firefighter/ Paramedic 900,000 Rec & Parks 090208 1.0 FTE Recreation Supervisor 138,328 TPW 100402 1.0 FTE Administrative Technician 132,000 TPW 100406 1.0 FTE Senior Admin Assistant 22,000 TPW 100503 1.0 FTE ** 153,000
TPW 100304 1.0 FTE Assistant Civil Engineer 43,000 TPW 100404 & 2@100403 3.0 FTE Civil Engineer Technician 99,000 TPW 100502 2.0 Skilled Maintenance Workers - Streets 210,000 Police 170601 1.0 FTE Field & Evidence Technician 160,502 CIRO 220101 1.0 FTE Marketing & Outreach Coordinator 211,368 Total FTE Reductions 2,631,533
FY 2024-25 Budget Reductions - Effective January 28, 2025 Department Operational Reductions
7 Dept Key Description Amount
CAO 0300000 Operational Expenditures 2,500 Finance Operational Expenditures 10,000 PED Professional Services 457,590
Rec & Parks 390403-5320 Pony Express Contract 178,000 Rec & Parks 090303 Temporary Groundskeeper 84,525 Rec & Parks 390307-5341 & 390309-5341 Aquatics and Howarth Park Concessions 56,203 Rec & Parks 3900009-XXXX ? Steele Lane Community Center 56,200 TPW 10% Reduction in light-duty Vehicles 198,596 TPW 100507-5320& 5321 10% Reduction in Facilities Services 120,854 TPW 100502-5341 Reduced Asphault/ Pothole Maintenance 114,374 TPW 100503-5341 Reduced Street Light Maintenance 98,781 HCS 340707-5341 (5K) 5347 (3K) Homeless Services Administration 8,000 Water Storm Water staffing costs 40,000 Total Operational Reductions 1,425,623
FY 2024-25 Budget Reductions - Effective January 28, 2025 Changes from Study Session
Position Reductions
Removed 4 FTE vacant TPW positions from cut list
1 FTE Electrician – Streets
2 FTE Skilled Maintenance Worker – Streets
1 FTE Maintenance Worker – Facilities
These positions were removed from the reductions as an emphasis is placed on maintaining the high-level of customer service achieved over the last two years Additionally, there is an ongoing assessment indicating that these positions typically experience a high turnover rate, often remaining vacant This situation underscores the need for thoughtful consideration in sustaining service quality while evaluating which roles should be filled to effectively address resident expectations and operational efficiency
8 Changes from Study Session
Recreation and Parks Reductions added back to budget:
Emergency Tree Removal Contract ($110,000). Proposed to cut portion of $260,000 contract, leaving $150,000 for emergency tree.
Resources would be reallocated to continue the improvements the City has made in managing overgrown weeds and enhancing aesthetics.
Tiny Tots ($20,849) and Youth sports programs including L’ i l Sluggers and L’ i l Kickers ($33,470). Per City Council direction from Study Session, adding amount back to budget and will look for outside funding source for program, or absorb in budget. 1.0 FTE Recreation Coordinator is needed in order to retain youth programming including City Booters, City Sluggers and the Tiny Tots program. Softball (net cost $9,278). Recreation restructuring program, and along with $50 increase in registration fees per softball team should be able to maintain program by reducing savings amount by $9,278.
9 Changes from Study Session
One Time reductions:
PERS Pension 115 Trust ($12 million). Initial proposal to withdraw the $12 million principal and earnings from Pension fund. Council provided direction not to withdraw funds at this time but could revisit in the future should General Fund operations require that action.
10 11
PG&E Funds Available
Department Description Amount
City Council Translation Services (Written and Oral) 402,091 Comm. Engagement Community Equity Capacity Building 34,846 Comm. Engagement Youth Promotores/Youth Council 50,000
Comm. Engagement DEI Spaces 57,860
Comm. Engagement Community Empowerment Plan 127,766
Fire Wildland Resiliency Planning "Response" 261,791
Fire Vegetation Management 2,000,000
HCS Down Payment Assistance 1,451,606
HR City Staff Equity Capacity Training 115,000
HR (DEI) SEED Equity Plan Prioritized Recommendations 150,000 PED Climate Action Plan Implementation 150,000
TPW Fire Station 5 Rebuild 500,000
TPW PGE Fire Damaged Pavement - Non-Reimbursable 542
TPW Fire Damaged Tree Removal Phase 2 82,407
TPW FEMA Fire Damage Fountaingrove 3,800,000
Total $9,183,909
One-Time Funds: PG&E Projects
Classification Change
Delete 1 vacant FTE Environmental Compliance Inspector III, and add 1 FTE Trucked Waste Program Coordinator
Net change in position is 0
Vacant Environmental Compliance Inspector III was approved as part of FY 2024-25 budget as a place holder while the Trucked Waste Program Coordinator position was created Position is mid-management and will coordinate the field and office work relative to the Trucked Waste Program and activities required by numerous regulatory permits and agencies
Position will also monitor discharges by waste haulers into the subregional wastewater treatment system
Position in Unit 18, Miscellaneous Mid-Management with annual salary range of $93,886 - $113,319
12 RED Member Assessment
In 2021, City loaned $10M to establish the Renewal Enterprise District (RED) This amount was matched by the County of Sonoma
At the same time, the City and County contributed $50,000 each to establish a General Fund reserve for the District
In February 2023, the RED requested a one-time member assessment of $50,000 to support basic operations, which was paid
In December 2024, the RED is requesting a one-time member assessment of $50,000 to support operations
Funding for this request is not currently appropriated; payment would come from the unassigned General Fund reserves
13 Fiscal Impact
Approval of the budget reductions in this item provide approximately $4.0 million in ongoing savings to the General Fund; and $9.2 million of one-time savings to increase the General Fund unassigned reserves
This item also identifies and affirms another $1.4 million in ongoing savings that will be implemented as part of the FY 2025-26 budget development The position change has no impact on the General Fund, and the cost differential of approximately $5,300 will be absorbed in Water budget for FY 2024-25, and included in future Water operating budgets
The $50,000 RED member assessment represents a one-time cost to the unassigned General Fund reserves.
14 Recommendation
It is recommended by Finance Department that the City
Council, by two resolutions: 1) amend the Fiscal Year (FY) 2024-25 general fund budget to make budget reductions as set forth in Exhibit A of the resolution; 2) amend the FY 2024-25 Salary and Classification plan to include a new classification of Trucked Waste Coordinator in Unit 18 – Miscellaneous Mid- Management; and 3) increase appropriations from the General Fund unassigned reserves by $50,000 to provide additional funding to the Renewal Enterprise District (RED).
15 Questions?
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