FY 2024-25
Budget Study Session
Presentation to City Council
Karen Chang, Director of Finance
May 22, 2024
Agenda
FY 2023-24 Year End Update
FY 2024-25 General Fund Proposed Budget
FY 2024-25 New
Requests
Positions
Supplies & Services
FY 2024-25 Balancing Measures
Q & A
FY 2023-24 Year End Projections ($ Millions)
3 Description Target Amount
Revenues (excluding transfers) $137.3
Add: ARPA /Transfers In 8.7
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 net of
transfers $137.4M )
$27.0
Pension Stabilization Reserves 5.8
Infrastructure Reserves 4.4
Total Reserve Levels $37.2
Projected Unassigned GF Fund Balance 25.6
Reserves & Surplus Fund Balance $62.8
General Fund Summary- FY 2024-25 ($ Millions)
5 Description Amount
PROJECTED REVENUES $134.4
PROJECTED EXPENDITURES (145.2)
Deficit ($10.8)
Major changes in Revenue projection
1. Property Tax revenue – projected higher based on historical trend (Increase $1.0M)
2. Sales Tax revenue – projected higher based on consultant’s forecast (Increase $1.3M)
3. TOT, Franchise Tax & Permit Fee (Increase 1.4M)
- Includes one-time electronic billboard revenue
4. Fines & Forfeitures/Charges for Services ($0.6M)
- Includes Departments updated projection
5. No ARPA funds ($5M)
6 Major changes in Expenditure
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
2024 Adopted budget
Add: mid-year adjustment
Less: One-time expenditures
= Base Budget
3. Interdepartmental Charges
– No changes to operating funds’ allocation
– Use available fund balance from Internal Service Funds to absorb increased costs
4. New Approved Requests
– New requests covered
– 1) by additional revenues e.g. Grants; or
– 2) by increase in revenues; or
– 3) Offset by cost reduction measures
5. Expenditure Reduction (General Fund and IT Dept)
- Implement 5% cost reduction (Target at $6.9M)
7 FY 2024-25 General Fund – Revenues
($ Thousands)
Revenue Type
FY 2023
Actual
FY 2024
Adopted
Budget
FY 2024
Adjusted
Budget
FY 2025
Base
Budget
Major
Changes
FY 2025
Proposed
Budget
% of Total
Projected
Revenue
Property Taxes $ 54,041 $ 47,980 $ 49,280 $ 49,200 $ 1,000 $ 50,200 37.3% Sales Taxes 21,735 23,352 21,952 21,986 1,227 23,213 17.3% Transient Occupancy Tax 16,735 14,910 14,000 14,500 - 14,500 10.8% Other Taxes 8,060 6,950 6,650 6,650 - 6,650 4.9%
Franchise Fees 1 5,241 4,600 4,600 4,800 1,400 6,200 4.6% License & Permits 20,468 16,963 12,463 13,160 - 13,160 9.8% Fines & Forfeitures 757 700 700 723 151 873 0.6%
Intergovernmental (Grants) 3,559 3,140 6,010 3,464 (800) 2,664 2.0% Charges for Services 11,673 9,709 11,569 10,112 450 10,562 7.9% Use of Money & Property (341) 3,940 4,450 4,455 - 4,455 3.3% Other Revenues 353 338 338 283 - 283 0.2%
Transfers In 5,284 2,594 3,718 1,934 (273) 1,661 1.2%
PO/CIP Rollover - - 12,438 - - - 0.0%
ARPA - 4,987 4,987 - - - 0.0%
Total $ 147,565 $ 140,163 $ 153,155 $ 131,267 $ 3,155 $ 134,421 100% 1 Franchise Fee includes a one-time $1.4M electronic billboard revenue FY 2024-25 General Fund –
Expenditures by Dept ($ Thousands)
DEPARTMENT
FY 2023
Actual
FY 2024
Adopted
Budget
FY 2024
Adjusted
Budget
FY 2025 Base
Budget
Total New
Requests
Expenditure
Reduction
FY 2025
Proposed
Budget
City Council $ 242 $ 269 $ 269 $ 296 $ 20 $ (10) $ 306
City Clerk 1,028 1,265 1,265 1,243 74 (45) 1,272
City Treasurer 35 133 133 136 38 - 174
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 9,497 139 (763) 8,873 Fire Department 35,513 32,762 34,339 36,379 852 (821) 36,410 Police Department 36,283 36,838 36,952 39,455 773 (2,035) 38,193 Public Works Department 7,936 11,954 13,822 11,740 46 (695) 11,091 Library Department 6,475 8,045 8,473 9,039 190 (397) 8,831 Parks and Recreation Dept. 20,503 24,675 27,394 26,221 308 (263) 26,266 CIP 689 900 4,376 - - - -
TOTAL $ 140,183 $ 140,152 $ 155,276 $ 148,461 $ 2,830 $ (6,048) $ 145,243 -
Information Technology $ 3,771 $ 4,443 $ 5,038 $ 4,369 $ 122 $ (223) $ 4,268 FY 2024-25 General Fund –
Expenditures by Category
(Thousands) $145.2M
Payroll, 78%
Supplies &
Services, 15%
Interdepartment
Charge, 7%
Transfers, 0%
FY 2024-25 Expenditure by Category
FY 2024-25 Personnel Request Details
Departments
General
Fund
FTE count
Salary &
Benefit costs
Solid Waste
Reduction
Fund
FTE count
Salary &
Benefit costs
Total FTE
count
Total Salary
& Benefit
costs
City Council - $ 20,000 - $ 20,000
Elected-Salary change effective 12/2024 - 20,000 - 20,000 City Manager - 40,000 - 40,000
Reclass study for CMO staff - 40,000 - 40,000
Library 1.45 166,584 1.45 166,584
Literacy Services Assistant I - Hourly (x665) - Grant Funded 0.85 64,170 0.85 64,170 Literacy Services Coordinator (A445)- Grant Funded 0.60 102,414 0.60 102,414 Parks & Recreation 4.51 268,483 4.51 268,483
Recreation Leader II - Hourly (X365)-Grant Funded 0.25 13,113 0.25 13,113 Recreation Leader III - Hourly (X370)- Grant Funded 2.21 125,801 2.21 125,801 Recreation Leader IV - Hourly (X375)-Grant Funded 2.05 129,569 2.05 129,569 Police - 62,510 - 62,510
Police Lieutenant (M275) 1.00 381,170 1.00 381,170
Police Sergeant (C165) (1.00) (318,660) (1.00) (318,660) Public Works - 45,873 0.50 $ 44,745 0.50 90,618
Engineer- Associate (M115) (1.00) (241,174) (1.00) (241,174) Engineer- Senior (M340) 1.00 287,047 1.00 287,047
Office Specialist - Hourly (X415) 0.50 $ 44,745 0.50 44,745 Grand Total 5.95 $ 603,450 0.50 $ 44,745 6.45 $ 648,195 Supplies & Services Requests (FY 2024-25)
General Fund
12 Department General Fund
ATTORNEY
Adjust budget to align with services provided
$ 350,000
ATTORNEY Total $ 350,000
ECD
Holiday Decorations (50% reduction in current budget) $ 113,723 TDM Monitoring 25,000
ECD Total $ 138,723
Fire
Additional funds for ambulance billing $ 22,000
CMS cost reporting contractor 30,000
Funds to pay DHCS for PP-GEMT-IGT
(associated with revenue increase) 640,000
Increase in ambulance radio monthly charges 25,000
Plan check contractual services (covered by revenue) 135,000 Fire Total $ 852,000
Supplies & Services Requests (FY 2024-25)
General Fund
13 LIB
English as Second Language (ESL) State Library Grant
$ 23,000
LIB Total $ 23,000
P&R
Supplies, snack, field trips, entry fees- ELOP Grant
$ 40,000
P&R Total $ 40,000
PD
Contract out - Parking Enforcement $ 649,874
Mental Health Clinician (covered by Opiod settlement) 60,000 PD Total $ 709,874
TREASURER
Adjust budget to align with services provided by Investment advisor $ 38,000
TREASURER Total $ 38,000
Grand Total $ 2,151,597
Supplies & Services Requests (FY2024-25)
Other Funds
14 Department
Developer
Deposits
Asset
Seizure/
Opioid
Settlement
Sewer
Enterprise
Equipt
Replacement
Information
Technology
Public
Safety
Impact Fee
Commercial
Linkage Fee
Public ArtsIn-Lieu Grand Total
ECD $ 125,000 $ 500,000 $ 625,000
IT 120,000 120,000
P&R 63,500 63,500
PD 321,000 121,800 400,000 842,800
PW 812,960 812,960
Grand Total $ 125,000 $ 321,000 $ 812,960 $ 120,000 $ 121,800 $ 400,000 $ 500,000 $ 63,500 $ 2,464,260 Supplies & Services Requests (FY2024-25)
Other Funds
15 Department
Developer
Deposits
Asset
Seizure/
Opioid
Settlement
Sewer
Enterprise
Equipt
Replacement
Information
Technology
Public
Safety
Impact
Fee
Commercial
Linkage Fee
Public
Arts-InLieu Grand Total
ECD
Analysis of Labor Standards Impacts
on the Financial Feasibility of
Development Projects $ 30,000 $ 30,000
Anti Displacement Task Force 220,000 220,000
Expanded Objective Design Standards $ 125,000 125,000
Ongoing Property Acquisition Work 200,000 200,000
Administration of Anti Displacement
Task Force 50,000 50,000
ECD Total $ 125,000 $ 500,000 $ 625,000
IT
Computer Replacement 120,000 120,000
IT Total $ 120,000 $ 120,000
Supplies & Services Requests (FY2024-25)
Other Funds
16 Department
Developer
Deposits
Asset
Seizure/
Opioid
Settlement
Sewer
Enterprise
Equipt
Replacement
Information
Technology
Public
Safety
Impact Fee
Commercial
Linkage Fee
Public
Arts-InLieu Grand Total
P&R
Art Component for Oyster Point 60,000 60,000
Continuation of Rotating Solo Art
Exhibit-LPR 3,500 3,500
P&R Total $63,500 $ 63,500
PD
ALPR Cameras around the City 121,800 121,800
Mandated Radio Upgrade 125,000 400,000 525,000
Mental Health Clinician for SSF -100% 196,000 196,000
PD Total $ 321,000 $ 121,800 $ 400,000 $ 842,800
Supplies & Services Requests (FY2024-25)
Other Funds
17 Department
Developer
Deposits
Asset
Seizure/
Opioid
Settlement
Sewer
Enterprise
Equipt
Replacement
Information
Technology
Public
Safety
Impact Fee
Commercial
Linkage Fee
Public
Arts-InLieu Grand Total
PW
Bulk chemicals 299,000 299,000
Gas and electricity costs for sanitary
sewer pump stations 50,200 50,200
Gas and electricity costs for WQCP 65,860 65,860
NBSU Outfall diffuser cleaning and
testing (40,000) (40,000)
Polymer costs for operations at WQCP
423,500 423,500
Sanitary Sewer Overflow staff training
9,000 9,000
Waste disposal services cost increase -
WQCP 5,400 5,400
PW Total $ 812,960 $ 812,960
Grand Total $ 125,000 $ 321,000 $ 812,960 $ 120,000 $ 121,800 $ 400,000 $ 500,000 $63,500 $ 2,464,260 FY 2024-25 Expenditure Reduction Summary
General Fund
Department One-time Ongoing Grand Total
City Clerk $ (44,685) $ (44,685)
City Council (10,000) (10,000)
City Manager (303,922) (398,254) (702,176)
ECD (330,953) (432,204) (763,157)
Finance (149,890) (34,740) (184,630)
Fire (820,574) (820,574)
HR (32,000) (100,000) (132,000)
Library (260,590) (136,880) (397,470)
Park & Rec (263,380) (263,380)
Police (2,028,209) (6,500) (2,034,709)
Public Works (398,600) (296,290) (694,890)
Grand Total $ (4,632,803) $ (1,414,868) $ (6,047,671)
FY 2024-25 Expenditure Reduction Details
19 City Clerk $ (44,685)
Supplies/Services (44,685)
Allow limited training and staff development opportunities for staff (2,825) Reduce election outreach, eliminate candidate binder (25,860) Reduce printing of Municode publications (10,000)
Reduce purchase of office supplies and monitor expenses (2,000) Reduce staff development budget to only necessary certification training (4,000) City Council $ (10,000)
Supplies/Services (10,000)
Reduce District Outreach line item budget (10,000)
FY 2024-25 Expenditure Reduction Details
20 City Manager Amount
Personnel $ (395,712)
Freeze Administrative Assistant I (125,847)
Freeze- Management Analyst II (178,075)
Transfer- Promotores 2.0 FTE to ECD (91,790)
Supplies & Services (306,464)
Eliminate of Federal Lobbysist (103,096)
Reduce CMO's discretionary budget (90,262)
Reduce excess budget for City -wide newsletter (72,787) Align budget with YTD Trend (40,319)
FY 2024-25 Expenditure Reduction Details
21 ECD $ (763,157)
Personnel (313,157)
Buidling Official- Assistant (1.0 FTE) Freeze in FY2025 (210,602) Misc Hourly (1.0 FTE) - Eliminate position (51,366)
Planner - Senior (1.0 FTE) Freeze in FY2025 (120,351)
Research and Rehab Specialist PT (0.40 FTE) - Eliminate position (22,628) Transfer- Promotores 2.0 FTE from CMO to ECD 91,790
Supplies/Services (450,000)
BIO Conference/Holiday Decorations Reduction (Both scaled back by 50%) (150,000) Reduce Professional services (300,000)
FY 2024-25 Expenditure Reduction Details
22 Finance $ (184,630)
Personnel (149,890)
Delay in filling the Financial Analyst II position by 4 months (55,830) Delay in filling the Accounting Supervisor position by 4 months (60,560) Savings in underfilling the MA position with Accountant I (33,500) Supplies/Services (34,740)
Limit to essential travel for trainings and conferences, staff development- no overnight travel (15,000)
Reduce temporary staffing (8,840)
Reduce contractual services budget (8,500)
Reduce Rents and leases budget (2,400)
FY 2024-25 Cost Reduction Details
General Fund
23 Fire $ (820,574)
Personnel (713,985)
Defer hiring 3 paramedic/firefighters and promoting a Battalion Chief (298,090) Freeze MAI position (step 1) (164,564)
Freeze Safety Inspector Trainee (Hourly) (181,331)
Reduce Training Division Overtime (70,000)
Supplies/Services (106,589)
Reduce Clothing & Personal Expenditures (500)
Reduce IT Purchases in Other Depts. (10,000)
Reduce Maint. And Operation Equipment (5,000)
Reduce or delay purchase of some books and publications (2,942) Reduce or delay purchase of some office supplies (1,300) Reduce or delay purchase of some operating supplies in training and suppression (36,936)
Reduce Staff Development / succession planning in all divisions (36,250) Reduce Travel and Conference to only essential (6,000)
Reduce use or find other funding for postage (3,250)
Reduce use or find other funding for printed materials (4,411) FY 2024-25 Expenditure Reduction Details
24 HR $ (132,000)
Personnel (32,000)
Eliminate or reduce youth summer internships (32,000)
Supplies/Services (100,000)
Reduce Classification & Compensation Consultant (20,000) Reduce HR Sponsored Department Training (Leadership Academy) (20,000) Reduce Recruitment Supplies and Services (10,000)
Reduce Safety Training Consultant (20,000)
Reduce Staff development budget (3,000)
Reduce Travel/Conferences to essential (1,000)
Reduce Youth Summer Internship Consultants (26,000)
FY 2024-25 Expenditure Reduction Details
25 Library Amount
Personnel $ (258,590)
Delay in hiring Management Analyst II for 6 months (112,998) Reduce Part Time Library staff hours (145,592)
Supplies & Services (138,880)
Reduce library materials subscription/cut program costs (70,977) Reduce equipment maintenance costs (46,503)
Severely limit travel, conferences (10,900)
Align budget with YTD Trend (10,500)
FY 2024-25 Expenditure Reduction Details
26 Park & Rec $ (263,380)
Personnel (193,380)
Arborist Technician (1.0 FTE) (141,130)
Stationary Engineer (1.0 FTE)) (52,250)
Supplies/Services (70,000)
Cultural Activities Grant (10,000)
Eliminate Summer 2025 Field trips- budget line reduction (60,000) FY 2024-25 Expenditure Reduction Details
27 Police $ (2,034,709)
Personnel (2,028,209)
Communications Dispatcher (1.0 FTE) (149,899)
Miscellaneous Hourly (0.38 FTE) (50,772)
Parking Enforcement Officer (2.0 DTE) (262,666)
Police Officer (8.0 FTE); Police officer positions cannot be frozen due to minimum staffing and the need to provide continuous essential emergency services to the public. The vacancies will be replenished with new officers, but that will happen gradually (1,528,192)
Police Property/Evidence Asst (.48 FTE) (36,680)
Supplies/Services (6,500)
Investigative Database. Future cost savings. Service eliminated. (6,500) FY 2024-25 Expenditure Reduction Details
28 Public Works $ (694,890)
Personnel (296,290)
Public Works Maintenance Worker - Hourly (1.50 FTE) (131,496) Public Works Maintenance Worker - Senior (1.0 FTE) (164,794) Supplies/Services (398,600)
Eliminate back up street sweeping services. (62,100)
Purchase of one (1) Chevy Bolt (45,000)
Purchase of one (1) Roland RTW-640 64" Sign Printer. (41,500) Sewer Service Low Income Program (250,000)
Budget Balancing Strategies ($ Millions)
29 Description Target Amount
FY 24-25 Deficit $ ( 10.8)
+ Measure W (one-time) 3.0
+ Use of General Fund Reserve 7.8
RESULT BALANCED
Measure W Overview ($ Millions)
30 Estimated Fund Balance 6-30-2024 $10.8
Projected Revenue FY 2024-25 16.0
Projected Expenditures FY 2024-25 (13.4)
Net Surplus (Deficit) FY 2024-25 $2.6
Less: One-time transfer to General Fund (3.0)
Estimated Fund Balance 6-30-2025 $10.0
Projected City Reserves (As of June 30, 2025) ($ Millions) 31 General Reserves (20% of Revenue excluding
Transfer- $133M)
$27.0
Pension Stabilization Reserves 5.8
Infrastructure Reserves 4.9
Total Reserve Levels $37.7
Projected Unassigned GF Fund Balance at 7-1-
2024
25.6 Less: Use to balance FY 2024-25 Budget (7.8)
Projected Unassigned GF Fund Balance 6-30-25 17.8
Reserves & Surplus Fund Balance $55.5
QUESTIONS?
32