FY 2024-25
Budget Study Session
Presentation to Budget Sub-committee
Karen Chang, Director of Finance
May 8, 2024
Agenda
FY 2024-25 Budget Overview
FY 2024-25 General Fund Proposed Budget
FY 2024-25 New
Request
Positions
Supplies & Services
FY 2024-25 Balancing Measures
Q & A
FY 2023-24 Year End Projections ($ Millions)
3 Description Target Amount
Revenues $146.0
Add: PO/CIP Budget rollover 12.4
Available Revenue Resources 158.4
Less: Expenditure (155.3)
Surplus / (Deficit) $3.1
Projected City Reserves (As of June 30, 2024) ($ Millions) 4 General Reserves (20% of Revenue) $27.0
Pension Stabilization Reserves 5.8
Infrastructure Reserves 4.4
Total Reserve Levels $37.2
Available Unassigned GF Fund Balance 25.6
Reserves & Surplus Fund Balance $62.8
Revenue Assumptions
1. Property Tax revenue – projected higher based on historical trend
2. Sales Tax revenue – projected higher based on consultant’s forecast
3. TOT, Franchise Tax & Permit Fee
– Modest increase (2-3%)
4. Department input updated
5. No ARPA funds
5 Expenditure Assumptions
1. Personnel Costs
‒ Include 3% COLA (~$3M)
‒ Increase in health care costs (Kaiser 17%, Blue Shield 7.9%) (GF~$1.3M) ‒ Pension cost increase (GF ~$2.1M)
2. Supplies & Services
- Use Base Line budget (FY 2023 + mid-year – one-time expenditures)
3. Interdepartmental Charges
– Stay flat
4. New Request
– Not approve unless it has no negative impact to GF
6 FY 2024-25 General Fund –
Revenues ($ Thousands) FY 2024-25 Budgeted Revenue –($136.1M) Revenue Type
FY 2023
Actual
FY 2024
Adopted
Budget
FY 2024
Adjusted
Budget
FY 2025
Proposed
Budget
% of Total
Projected
Revenue
Property Taxes $ 54,041 $ 47,980 $ 49,280 $ 50,200 37%
Sales Taxes 21,735 23,352 21,952 23,213 17%
Transient Occupancy Tax 16,735 14,910 14,000 14,500 11% Other Taxes 8,060 6,950 6,650 6,650 5%
Franchise Fees 5,241 4,600 4,600 6,200 5%
License & Permits 20,468 16,963 12,463 13,610 10%
Fines & Forfeitures 757 700 700 873 1%
Intergovernmental (Grants) 3,559 3,140 6,010 3,588 3%
Charges for Services 11,673 9,709 11,569 10,562 8%
Use of Money & Property (341) 3,940 4,450 4,455 3%
Other Revenues 353 338 338 283 0%
Transfers In 5,284 2,594 3,718 1,934 1%
PO/CIP Rollover - - 12,438 - 0%
ARPA - 4,987 4,987 - 0%
Total $ 147,565 $ 140,163 $ 153,155 $ 136,068 100%
FY 2024-25 General Fund –
Expenditures by Dept ($ thousands) - $147.5 M
DEPARTMENT
FY 2023
Actual
FY 2024
Adopted
Budget
FY 2024
Adjusted
Budget
FY 2025
Based Budget
FY 2025 New
RequestpayrollFY 2025 New
Request - SS
Cost Saving
Measures
FY 2025
Proposed
Budget
City Council $ 242 $ 269 $ 269 $ 296 $ 20 $ - $ (10) $ 306 City Clerk 1,028 1,265 1,265 1,243 - - (45) 1,198
City Treasurer 35 133 133 132 - 38 - 170
City Attorney 1,220 1,109 1,109 1,109 - 350 - 1,459
City Manager’s Office 3,820 4,931 5,221 4,553 40 - (702) 3,891 Finance Department 3,090 3,992 4,520 4,067 - - (185) 3,883 Non-Departmental* 9,357 1,894 1,894 1,894 - - - 1,894
Human Resources Dept. 2,221 2,885 2,995 2,832 - - (132) 2,700 Economic & Community Develop. 11,771 8,500 12,514 9,197 - 139 (763) 8,573 Fire Department 35,513 32,762 34,339 36,604 - 852 (821) 36,636 Police Department 36,283 36,838 36,952 39,155 63 710 (2,035) 37,893 Public Works Department 7,936 11,954 13,822 12,934 46 - (695) 12,285 Library Department 6,475 8,045 8,473 8,666 167 23 (397) 8,458 Parks and Recreation Dept. 20,503 24,675 27,394 27,164 268 40 (263) 27,209 CIP 689 900 4,376 900 - - - 900
TOTAL $ 140,183 $ 140,152 $ 155,276 $ 150,746 $ 604 $ 2,152 $ (6,048) $ 147,455 Information Technology $ 3,771 $ 4,443 $ 5,038 $ 4,369 $ - $ 122 $ (143) $ 4,321 FY 2024-25 General Fund –
Expenditures by Category
($Thousands) FY 2024-25 Budgeted Expenditure $147.5M)
Expenditures
FY 2023
Actual
FY 2024
Adopted
Budget
FY 2024
Adjusted
Budget
FY 2025
Based
Budget
FY 2025
New
Requestpayroll
Balancing
Measures
FY 2025 Proposed
Budget
% of Total
Expenditure
PAYROLL $ 103.50 $ 105.90 $ 106.80 $ 117.30 $ 0.60 $ (4.20) $ 113.80 78% SUPPLIES & SERVICES 27.00 23.30 33.20 22.50 2.20 (1.90) 22.80 15% CAPITAL OUTAY 0.20 - 0.90 - - - - 0%
INTERDEPARTMENTAL CHARGES 8.10 9.50 9.50 9.50 - - 9.50 6% TRANSFERS 1.40 1.40 4.90 1.40 - - 1.40 0.01
TOTAL 140.20 140.10 155.30 150.70 2.80 (6.10) 147.50 100% General Fund Summary- FY 2024-25 ($ millions)
10 Description Amount
PROJECTED REVENUES $136.1
PROJECTED EXPENDITURES (147.5)
Deficit ($ 11.4)
Budget Balancing Strategies ($ Millions)
11 Description Target Amount
FY 24-25 Deficit $ ( 11.4)
+ Measure W 3.0
+ Use of General Fund Reserve 8.4
RESULT BALANCED
New Payroll Requests (FY2024-25)
12 Departments FTE
Salaries and
Benefits
(General Fund)
Salaries and Benefits
Solid Waste
Reduction Fund)
City Council 0.00 20,000
City Manager 0.00 40,000
Library 1.45 166,584
Parks & Recreation 4.50 268,483
Police 0.00 62,510
Public Works -0.50 45,873 44,745
Grand Total 5.45 603,450 44,745
FY2024-25 NEW PAYROLL REQUESTS
Supplies & Services Requests (FY2024-25)- GF
13 Supplies & Services Requests (FY2024-25)- Other Funds 14 Cost Savings Measures Summary(FY2024-25)- GF
15 DEPARTMENT Cost Saving Measures
City Council (10,000)
City Clerk (44,685)
City Treasurer -
City Attorney -
City Manager’s Office (702,176)
Finance Department (184,630)
Non-Departmental* -
Human Resources Dept. (132,000)
Economic & Community Develop. (763,157)
Fire Department (820,574)
Police Department (2,034,709)
Public Works Department (694,890)
Library Department (397,470)
Parks and Recreation Dept. (263,380)
CIP -
TOTAL (6,047,671)
Information Technology (142,968)
Projected City Reserves (As of June 30, 2025) ($ Millions) 16 General Reserves (20% of Revenue) $27.0
Pension Stabilization Reserves 5.8
Infrastructure Reserves 3.6
Total Reserve Levels $36.4
Available Unassigned GF Fund Balance 17.2
Reserves & Surplus Fund Balance $53.6
Recommendation ($ Millions)
17 Description Target Amount
FY 24-25 Deficit $( 11.40)
+ Measure W 3.0
+ Use of General Fund Reserve
Unassigned Fund Balance 8.4
RESULT BALANCED
Next Step
Planned Meetings to Discuss Budget
– City Council Study Session: May 22, 2024
– City Council Adoption: June 12, 2024
18 QUESTIONS?
Q&A 4
19