South San Francisco City Council
October 23, 2024

FY 2023-24
Preliminary Year End
FY 2024-25 Q1
Financial Review
Presentation to City Council
Karen Chang, Director of Finance
OCTOBER 23, 2024
Government Code
Section 54957.5 SB
343 Item Agenda:
10/23/2024 REG CC
Item 8
AGENDA
1 FY 2023-24 Financial Update
(Year End)
2 Reserve Status and Plan
3 FY 2024-25 Financial Update
(1st Quarter)
4 Q&A
22 General Fund Summary- FY 2023-24 ($ Millions)
3 Description Actual
Revenues $155.0
Expenditures (140.8)
Surplus $14.2
FY 2023-24 Year End 1
FY 2023-24 GF Budget review
4 FY 2023-24 Year End 1
Date Event
June 2023 Adopted Budget $140.2 million • Included a 1x $5M from American Rescue Plan Act (ARPA) • $3M attrition – GF
February 2024 Mid Year Update (Projected Deficit $2M)
June 2024 Year End Projection (Surplus $3.1M)
October 2024 Year End Projection (Surplus $14.2M)
FY 2023-24 General Fund Revenues
5 FY 2023-24 Year End 1
License & Permit
• $1.5 million
• Fire & Building
Property Tax
• $7 million
• RDA & ERAF
• County
Investment
Earnings
• $2.5 million
• High-Interest
Rate
Environment
FY 2023-24 General Fund Expenditures
6 FY 2023-24 Year End 1
Deferred Spending
• $11.7 million
• P.O. Rollovers
• CIP
Attrition
• $3 million
• Citywide GF
FY 2023-24 General Fund Revenues by Source
7 1
Property Tax
36%
Sales Tax
15%
Transient
Occupancy
Tax
10%
Other Tax
5%
Franchise Fees
4%
License and Permits
9%
Fines & Forfeitures
0%
Intergovernmental
4%
Charges for Services
8%
Use of Money & Property
5%
Other Revenues
0%
Transfers In
4%
FY 2023-24 Year End
FY 2023-24 General Fund Revenues
8 REVENUES FY 2022-23 FY2023-24
(in millions) Adjusted
Budget
Actuals
as of 6/30
Percentage
of Budget
Adjusted
Budget
Actuals
as of 6/30
Percentage
of Budget
Property Tax $45.8 $54.0 118% $49.3 $56.4 114%
Sales Tax 22.4 21.7 97% 22.0 23.6 107%
TOT 14.2 16.4 115% 14.0 14.9 106%
Licenses & Permits 19.4 20.5 106% 12.5 14.0 112%
Intergovernmental
(Grants) 4.3 3.6 84% 7.8 6.5 83%
Service Charges 8.3 11.7 141% 11.6 13.0 112%
All Other Revenues 16.7 14.0 84% 16.6 20.3 122%
Transfers In* 6.2 5.3 85% 9.0 6.3 70%
TOTAL $137.3 $147.2 107% $142.8 $155.0 109%
FY 2023-24 Year End 1
* Includes $5.0 million from American Rescue Plan Act (ARPA) FY 2023-24 General Fund Expenditures
9 Expenditures FY 2022-23 FY2023-24
(in millions) Adjusted
Budget
Actuals
as of 6/30
Enc / Proj
Carryover
% of
Budget
Spent
Adjusted
Budget
Actuals
as of 6/30
Enc / Proj
Carryover
% of
Budget
Spent
Payroll $100.2 $103.5 103% $106.8 $106.1 99%
Supplies & Services 31.0 27.0 8.7 115% 35.4 23.0 7.8 87% Capital Outlay 0.8 0.2 25% 0.9 0.2 22%
InterDept Charges 7.4 8.1 109% 9.5 10.2 107%
Transfers 4.5 1.4 3.8 115% 4.9 1.2 3.9 104%
TOTAL $143.9 $140.2 $12.5 106% $157.5 $140.7 $11.7 97%
FY 2023-24 Year End 1
FY 2023-24 GF Expenditures by Department
10 1
-$5 M
$0 M
$5 M
$10 M
$15 M
$20 M
$25 M
$30 M
$35 M
$40 M
Actual Encumbrance Capital Carryforward Budget Remaining FY 2023-24 Year End
Recap of GF FY 2023-24 Surplus
11 FY 2023-24 Year End 1
Revenue
• Higher than expected revenues ($12.2 M)
• actual included leverage of the 1x ARPA Fund
($5M)
Expenditure
• Attrition savings ($3M)
• Actual excluded deferred expenditures ($11.7M)
GF Fund Balances (As of June 30, 2024) (millions)
Reserve Status and Plan 2
12 Beginning Fund Balance 7-1-2023 $71.7
Revenues 155.0
Expenditures (140.7)
Total Fund Balance as of 6-30-2024 $86.0
Designated for Encumbrances (7.8)
Designated for Capital Projects (3.9)
Designated for ERP Replacement (6.0)
Designated for Land Held for Development (3.8)
General Fund Reserves (20% of Revenue) (29.7)
Unassigned General Fund Balance 6-30-24 $34.8
City Reserves (As of June 30, 2024) (millions)
Reserve Status and Plan 2
13 General Fund Reserves (20%) $29.7
Pension Stabilization Reserves 5.8
Infrastructure Reserves 6.7
Total Reserves $42.2
Available Unassigned GF Fund Balance 34.8
Combined Reserves & Surplus Fund Balance $77.0
FY 2022-23
Unassigned
• $21 M
FY 2023-24
Unassigned
• $34.8 M
Increase
• $13.8 M
Reserve Funds Balances FY 2019-2025
Reserve Status and Plan 2
14 Description FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 YE FY 2025
Budget
General Fund Reserve (20%) $24.4 $24.1 $21.9 $25.4 $28.5 $29.7 $29.7 Infrastructure Reserve 0.7 12.2 11.9 18.0 8.2 6.7 4.9
Pension Stabilization Reserve 5.5 5.5 5.5 5.5 5.6 5.8 5.8 Unappropriated GF Balance 11.1 17.0 17.9 12.3 21.0 34.8 26.8 Reserves Fund Balance $41.7 $58.7 $57.2 $61.3 $63.3 $77.0 $67.2 Priority Recommendation for GF Surplus ($14 M)
Setting aside $8 million to offset the City’s projected deficit for FY 2024-25 Using a portion to relieve the Measure W share of the deficit burden Allocating $2 million to the Pension Stabilization Reserve Allocating $1 million to address increasing legal liabilities in the Workers' Compensation Fund
Allocating $1.6 million to support the Vehicle Replacement Program Reserve Status and Plan 2
1A
1B
2 3
4 15
FY 2024-25 Q1 Financial
Update
Through September 30, 2024
Timeline
17 FY 2024-25 Q1 3
Date Event
October 2024 Q1 FY 2024-25 Financial Update
January /
February 2025 Q2 FY 2024-25 Financial Update (Mid Year) April 2025 Q3 FY 2024-25 Financial Update
May / June 2025 FY 2025-26 Proposed Budget
October 2025 Q4 FY 2024-25 Results
FY 2024-25 General Fund Revenues
18 REVENUES FY 2023-24 FY2024-25
(in millions) Adjusted
Budget
Actuals
as of 9/30
% of Rev
Received
Adjusted
Budget
Actuals
as of 9/30
% of Rev
Received
Property Tax $48.0 $0.0 0% $50.2 $2.9 6%
Sales Tax 23.4 2.3 10% 23.2 1.6 7%
TOT 14.9 2.4 16% 14.5 2.7 19%
Licenses & Permits 16.9 4.1 24% 13.2 3.0 23%
Intergovernmental
(Grants) 4.2 1.7 41% 2.8 1.1 40%
Service Charges 8.2 2.3 28% 8.5 2.6 30%
All Other Revenues 18.5 2.6 14% 20.5 2.0 10%
Transfers In 8.7 0.5 6% 4.7 0.0 0%
TOTAL $142.9 $15.9 11% $137.6 $15.9 12%
FY 2024-25 Q1 3
FY 2024-25 General Fund Expenditures
19 FY 2024-25 Q1 3
Expenditures FY 2023-24 FY2024-25
(in millions) Adjusted
Budget
Actuals
as of 9/30
% of
Budget
Spent
Adjusted
Budget
Actuals
as of 9/30
% of
Budget
Spent
Payroll 106.5 25.2 24% 113.4 27.0 24%
Supplies & Services 31.9 3.7 12% 22.2 4.1 18%
Capital Outlay 0.9 0.0 5% 0.0 0.0 0%
InterDept Charges 9.5 2.4 25% 9.5 2.4 25%
Transfers 4.9 0.1 3% 0.5 0.0 0%
TOTAL $153.7 $31.4 20% $145.6 $33.5 23%
QUESTIONS?
Q&A 4
20