FY 2024-25
Operating Budget
Presentation to City Council
Karen Chang, Director of Finance
June 12, 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
Total 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 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 (145.4)
Deficit ($11.0)
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 Expenditures
1. Personnel Costs
‒ Include 3% COLA (~$3.0M) + Tentative Agreement –MOU (~$0.2M) ‒ 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 $6.9M)
7 FY 2024-25 General Fund
Revenues by Type ($ 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 $ 12 $ (10) $ 298
City Clerk 1,028 1,265 1,265 1,253 74 (45) 1,282
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 4,563 40 (702) 3,901 Finance Department 3,090 3,992 4,520 4,082 - (185) 3,897 Non-Departmental* 9,357 1,894 1,894 1,894 - - 1,894
Human Resources Dept. 2,221 2,885 2,995 2,840 - (132) 2,708 Economic & Community Develop. 11,771 8,500 12,514 9,514 139 (763) 8,889 Fire Department 35,513 32,762 34,339 36,389 852 (821) 36,421 Police Department 36,283 36,838 36,952 39,467 773 (2,035) 38,204 Public Works Department 7,936 11,954 13,822 11,753 46 (695) 11,104 Library Department 6,475 8,045 8,473 9,068 190 (397) 8,860 Parks and Recreation Dept. 20,503 24,675 27,394 26,303 308 (263) 26,349 CIP 689 900 4,376 - - - -
TOTAL $ 140,183 $ 140,152 $ 155,276 $ 148,667 $ 2,822 $ (6,048) $ 145,440 -
Information Technology $ 3,771 $ 4,443 $ 5,038 $ 4,375 $ 122 $ (223) $ 4,274 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 General Fund –
Expenditures by Category
($ Thousands) $145.4M
Payroll, 78%
Supplies &
Services, 15%
Interdepartment
Charge, 7%
Transfers, 0%
FY 2024-25 Expenditure by Category
FY 2024-25 Personnel Request Summary
Departments
General
Fund
FTE
Salary &
Benefit costs
Solid Waste
Reduction
Fund
FTE
Salary &
Benefit
costs Total FTE
Total Salary &
Benefit costs
City Council $ 12,000 $ 12,000
City Manager 40,000 40,000
Library 1.45 166,584 1.45 166,584
Parks & Recreation 4.51 268,483 4.51 268,483
Police - 62,510 - 62,510
Public Works - 45,873 0.50 44,745 0.50 90,618
Grand Total 5.95 $ 595,450 0.50 $ 44,745 6.45 $ 640,195 Supplies & Services Requests (FY 2024-25)
General Fund
13 Department
General
Fund
City Clerk $ 74,000
City Attorney 350,000
City Treasurer 38,000
ECD 138,723
Fire 852,000
Police 709,874
Library 23,000
Parks & Recreation 40,000
Grand Total $ 2,225,597
Budget Balancing Strategies ($ Millions)
14 Description Target Amount
FY 24-25 Deficit $ ( 11.0)
+ Measure W (one-time) 3.0
+ Use of General Fund Reserve 8.0
RESULT BALANCED
Measure W Overview ($ Millions)
15 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) 16 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 (8.0)
Projected Unassigned GF Fund Balance 6-30-25 17.6
Reserves & Surplus Fund Balance $55.3
Proposed Budget Appropriation –All Funds Summary ($ In Thousands) Resolution
General Fund Budget
Other Funds
GANN Appropriation Limit
QUESTIONS?
19