General Fund Financial
Update
Fiscal Year End 2024-25
LONG TERM FINANCIAL POLICY
AUDIT SUBCOMMITTEE
SEPTEMBER 25, 2025
VERONICA CONNER,
BUDGET & FINANCIAL ANALYSIS MANAGER
SCOTT WAGNER,
INTERIM CHIEF FINANCIAL OFFICER
Financial
Update
FY 2024-25
2 CFO Comments
General Fund Revenues
General Fund Expenditures
Operational Allocations
Questions
CFO Comments
Today’s presentation is a preview of October 21st City Council meeting Review preliminary FY2024-25 results
No cuts, service reductions or target amounts will be proposed at that meeting Request guidance for developing principles of FY2026-27 budget development and minimum reduction Prior Feedback from Committee
Targeted service and program perspective versus across-the-board cuts Provide weighting of costs- FTE’s across departments do not have the same cost Preliminary results of FY2024-25 will give greater understanding of what’s needed for FY2026-27 How are services and programs weighted for cuts
Development of tiers
Requested data and charts that are operationally focused showing how % of General Fund spending has changed over time
3 Department Financial Review
General Fund departments to give presentations to committee that include:
Budgetary results and actual expenditures for FY 2024-25 How personnel is allocated across programs and services Detailed expenditure reporting giving composition of professional services Summary of fees collected by the department and results Listing of programs and services
4 General Fund Revenues FY 2024-25
Results are unaudited & preliminary, but major revenue categories should not see change Property taxes performance remains strong outperforming budget by $1.6M Changes to business tax rates created $3.3M in additional tax revenue Sales tax underperformed budget by $6.6M
Occupancy tax came in $1.1M under budget despite an increase in rate Overall, major revenue categories came in $3.6M under budget These trends were accounted for during FY2025-26 budget development and adjustments were made 5 6
Operating Revenues Adopted Budget
+ Changes
Actual
Revenue
Over (Under)
Budget
Property taxes $39,068,300 $40,764,412 $1,696,112
Sales taxes 75,866,735 69,247,474 (6,619,261)
Utility Users tax 14,200,000 13,482,788 (717,212)
Other taxes 45,375,700 49,704,756 1,329,056
License and permits 3,181,000 2,889,067 (281,933)
Charges for services 26,727,653 27,709,234 981,581
Total $207,499,388 $203,807,730 ($3,611,657)
General Fund Operating Revenues
7 Other Taxes
Other Taxes Budget Actuals Over (Under)
Budget
VLF Swap 18,295,000$ 18,866,694$ 571,694$
Franchise Fees 12,230,700 11,631,265 (599,435) Motor Vehicle License Fees 200,000 280,747 80,747 Cannabis Industry Tax 1,900,000 2,065,572 165,572 Business Tax 4,750,000 8,018,506 3,268,506 Real Property Transfer Tax 4,000,000 2,989,251 (1,010,749) Occupancy Tax 7,000,000 5,852,721 (1,147,279) Total Other Taxes 48,375,700$ 49,704,756$ 1,329,056$ 8 Major General Fund Revenues
5-year Lookback
9 Major General Fund Revenue
5-year Lookback
160
170
180
190
200
210
220
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
Millions
General Fund Expenditures FY 2024-25
Results are unaudited & preliminary, could potentially increase General Fund coming in at budget or slightly above, we anticipate no turnback or savings
Mid-year actions impacting results:
$4M mid-year budget reduction, $2.6M in Salary and Benefits, $1.4M in Services and Supplies Hiring freeze
10 11
FY 2025-25 General Fund Expenditures
Expenditure Category Budget +
Changes YTD Actuals (Over) Budget Percent of
Total
Salaries & Benefits 165,233,760 166,219,190 (985,430) 76.1% Services & Supplies 53,128,744 52,205,308 923,436 23.9% Total 218,362,504 218,424,498 (61,994) 100.0% Final budget includes mid-year $4M reduction, $2.6M in Salaries and Benefits & $1.4M in professional Services 12 General Fund Operating Expenditures
Operating Expenditures Budget +
Changes
FY 24-25
Actuals
Percent of
Budget
City Council 1,371,463 1,455,929 106.16%
City Manager 3,318,991 2,811,474 84.71%
City Attorney 5,057,586 4,685,509 92.64%
Human Resources 4,778,764 3,855,903 80.69% Finance 7,889,387 7,562,333 95.85%
Comms & Intergovt Relations 1,781,767 1,377,325 77.30% Planning & Econ Development 19,746,875 17,963,009 90.97% Housing & Community Services 125,207 125,206 100.00% Recreation & Parks 18,558,194 18,610,761 100.28% Fire 57,748,949 59,412,496 102.88%
Police 80,571,388 80,416,605 99.81%
Public Works 26,219,989 26,672,423 101.73%
Water 780,984 703,836 90.12%
Non Departmental (9,587,042) (7,228,313) 75.40% Total Operating Expenditures 218,362,504 218,424,498 100.03% 13 Major General Fund Expenditure
5-year Lookback
160
170
180
190
200
210
220
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
Millions
14 Long Range Financial Forecast
Revenues
Transfers In
Total Revenues & TI
Expenditures
Transfers Out
Total Expenditures & TO
Surplus (Deficit) (33.5)
2.5 235.6
259.9
9.2 269.1
233.1
($22.9)
$230.6
251.6
9.0 $260.5
($29.9)
$227.0
240.4
9.5 $249.9
($8.1)
FY 26-27
$219.7
2.5 $222.2
230.0
9.3 FY 25-26
$215.1
2.5 $217.6
216.5
$239.3
($17.1)
9.2 $225.8
$215.3
220.2
8.4 $228.6
($13.3)
$224.5
2.5 FY 28-29
$228.1
2.5 FY 24-25
$213.0
2.3 FY 27-28 FY 29-30
General Fund Reserves FY 2024-25
We do not have reserve results at this time, but will present a preliminary calculation at the October 21st presentation to City Council Reserves factor in additional elements outside of operating budgets including:
Project spending, appropriations, grant activity and contract encumbrances Will include increases from actions like $9.2M in PG&E project funding released to reserves 15 16
Use of Reserves
General Fund Allocation of Budget Data
As requested, we have developed graphs detailing how budget in the General Fund has been allocated over time
This data does not include grant funding or special taxes (SAFER, Measure H – Fire Prevention, PSAP)
Data is separated as:
Public Safety (Police and Fire)
Police
Fire
Operational (PED, HCS, Public Works)
Administration (CMO, CAO, Finance, HR, CIRO)
17 18
47%
43%
36%
53%
57%
64%
0%
10%
20%
30%
40%
50%
60%
70%
2006-07 2016-17 2025-26
% of GF Budget
Fiscal Year
Percentage of GF Budget - Public Safety & Non-Public Safety Non-Public Safety GF Total Public Safety
19 20
21 22
14%
13%
10%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2006-07 2016-17 2025-26
% of GF Budget
Fiscal Year
Percentage of GF Budget
Adminstrative-Central Services
Questions & Discussion
23