FY 2024-25 Mid-Year
Financial Update
Presentation to City Council
Karen Chang, Director of Finance
FEBRUARY 12, 2025
AGENDA
1 FY 2024-25 Financial Update
(Mid-Year)
2 Reserve & Other Considerations
3 5-Year Projection
22 4 Q&A
GF Revenue and Expenditure Mid-Year Summary
FY 2024-25 Financial Update 1
3 Reserve for Encumbrances rollover $ 7.8
Adopted Budget Shortfall $(8.0)
- FY 2024-25 Net Budget Adjustments (8.1)
+ Mid-Year Revenue Adjustments 5.7
- Mid-Year Appropriation Requests (4.2)
Total Adjustments $(14.7)
FY 2024-25 Projected Deficit $ (6.9)
FY 2024-25 General Fund Adjusted Budget - Revenues
FY 2024-25 Budgeted Revenues = $139.1 million
Total Receipts through December 31 = $66.0 million (47%) 4 REVENUES FY 2023-24 FY2024-25 Recommended
(in millions) Adjusted
Budget
Actuals
as of
12/31/2023
Percent
of
Budget
Adjusted
Budget
Actuals
as of
12/31/2024
Percent
of
Budget
Mid-Year
Adjustments
Property Tax $48.0 $26.2 55% $50.2 $30.3 60% $6.9M $57.1M Sales Tax $23.4 $7.9 34% $23.2 $7.2 31% -2.0M 21.2M
TOT $14.9 $5.7 38% $14.5 $6.6 46% 0.3M 14.8M
Other Taxes $7.0 $2.1 30% $6.7 $2.4 36% 1.0M 7.7M
Franchise Fees $4.6 $1.3 28% $6.2 $1.4 23% 0.0M 6.2M
Licenses & Permits $16.9 $7.6 45% $13.2 $6.2 47% 0.5M 13.6M Intergovernmental $4.4 $2.3 53% $3.7 $1.9 50% 0.6M 4.3M Service Charges $8.2 $4.7 57% $8.5 $5.4 64% 0.2M 8.7M All Other Revenues* $7.0 $3.0 42% $7.6 $4.1 54% 1.2M 8.9M Transfers In $8.7 $0.8 9% $5.3 $0.5 10% -3.0M 2.3M
TOTAL $143.1 $61.5 43% $139.1 $66.0 47% $5.7M $144.8M FY 2024-25 Financial Update 1
* Includes Fines & Forfeitures, Inter-Fund Admin Charge, Use of Money & Property, and Other Revenues.
FY 2024-25 Mid-year Revenue Adjustment Summary
5 FY 2024-25 Financial Update 1
Requests by
Department:
(in thousands)
YES (ONGOING) YES (One-time) Total Requests
Non-Dept GF $5,900 $(1,460) $4,440
ECD - (985) (985)
FIRE - 1,345 1,345
PW-ENG - 860 860
Total GF $5,900 $(240) $5,660
Measure W $(1,500) - $(1,500)
Additional GF Revenue Mid-year Request
Economic and Community Development ($985,000)
‒ Building Permit Fee Decrease $(1,000,000)
‒ Donations for Bio Conference 2025 15,000
Fire Department $1,345,000
– Paramedic Service Fee Increase $195,000
– Fire Plan Check Fee 600,000
– Mutual Aide Support Reimbursement 550,000
Public Works $860,000
– Engineering Permit Fee $860,000
6 FY 2024-25 Financial Update 1
FY 2024-25 General Fund Adjusted Budget - Expenditures
FY 2024-25 Budgeted Expenditures = $155.2 million
Total Expenditures through December 31 = $66.7 million (43%) 7 EXPENDITURES FY 2023-24 FY2024-25 Recommended
(in millions) Adjusted
Budget
Actuals
as of
12/31/2023
Percent
of
Budget
Adjusted
Budget
Actuals
as of
12/31/2024
Percent
of
Budget
Mid-Year
Adjustments
City Attorney $1.1 $0.5 48% $1.5 $0.8 56% $0.8M $2.3M City Clerk 1.3 0.5 37% 1.3 0.5 39% 0.1M 1.4M
City Council 0.3 0.1 49% 0.3 0.1 32% 0.0M 0.3M
City Manager 5.0 1.7 33% 3.9 1.5 38% 0.4M 4.3M
City Treasurer 0.1 0.1 42% 0.2 0.0 22% 0.0M 0.2M
Finance 4.5 1.5 33% 4.3 1.6 36% (0.1)M 4.2M
Human Resources 3.0 1.2 41% 3.0 1.4 47% 0.0M 3.0M
Non-Expense/Dept 1.9 1.1 57% 2.2 1.4 65% 0.0M 2.2M
FY 2024-25 Financial Update 1
FY 2024-25 General Fund Adjusted Budget - Expenditures
8 EXPENDITURES FY 2023-24 FY2024-25 Recommended
(in millions) Adjusted
Budget
Actuals
as of
12/31/2023
Percent
of
Budget
Adjusted
Budget
Actuals
as of
12/31/2024
Percent
of
Budget
Mid-Year
Adjustments
ECD $12.4 $5.3 43% $11.6 $4.1 35% $0.1M $11.7M
Fire 33.6 19.9 59% 37.1 17.9 48% 1.0M 38.1M
Library 8.3 3.9 48% 9.0 3.5 39% 0.0M 9.0M
Parks & Rec 27.1 11.5 42% 28.6 11.4 40% 0.9M 29.5M
Police 37.0 20.2 55% 38.3 17.4 46% 0.0M 38.3M
Public Works 13.8 4.8 35% 13.4 4.9 37% 1.0M 14.4M
CIP 4.4 0.3 8% 0.7 0.0 1% 0.0M 0.7M
Total $153.9 $72.7 47% $155.2 $66.7 43% $4.2M $159.5M FY 2024-25 Financial Update 1
FY 2024-25 Mid Year Expenditure Request Summary
9 FY 2024-25 Financial Update 1
Funding Sources
(thousands) (ongoing) (one-time) Total
General Fund $1,212* $3,020 $4,232
Measure W - (3,000) (3,000)
Information Technology 40 - 40
Total $1,252 $20 $1,272
*Includes utilities
Additional GF Appropriations Request
City Attorney $800,000
– Litigation Expenses $765,000
– Labor Negotiation 35,000
City Clerk $79,000
– Election ballot measure for November election $79,000 City Manager’s Office $360,000
– Abandoned/Derelict Vessel Removal $150,000
– Unfreeze of Administrative Assistant I position 60,000 – Bond Counsel for Community Facilities District development 150,000 Economic & Community Development $75,000
‒ Bio 2025 increase back to original budget $75,000
10 FY 2024-25 Financial Update 1
Additional GF Appropriations Request
Finance ($90,000)
– Reallocate Bond Counsel original budget to CMO ($90,000) Fire Department $950,000
– Contracts for Fire Plan Reviews (offset by higher revenue) $400,000 – Overtime due to mutual aide support (offset by reimbursement) 550,000 Human Resources $40,000
– Additional contract services $40,000
11 FY 2024-25 Financial Update 1
Additional GF Appropriations Request
Library $38,000
– Grand Library Wireless Access Point Replacement $6,000 – Peninsula Libraries Automated Network service increase 18,000 – LPR Digital media software renewal 4,000
– Envisionware maintenance and upgrades 7,000
– Patron Chromebook management software 3,000
– Unfreeze 0.69 part-time hourly FTEs with no fiscal impact in FY2024-25, as there is sufficient salary savings in the Library to fund this increase.
Positions:
o 0.20 FTE - Library Assistant I
o 0.25 FTE - Library Clerk
o 0.09 FTE - Librarian II
o 0.06 FTE - Librarian I
o 0.04 FTE - Library Page
o 0.05 FTE - Office Specialist
12 FY 2024-25 Financial Update 1
Additional GF Appropriations Request
Parks & Recreation $17,000
– Uniforms - budget amount has not been adjusted to account for inflation. $17,000
Public Works $860,000
– Contracts for Public Works Plan Reviews (offset by revenue) $860,000 Utilities $1,103,000
– Parks and Recreation $895,000
– Public Works 175,000
– Economic and Community Development 17,000
– Police 16,000
– Library 1,200
– City Manager (1,200)
13 FY 2024-25 Financial Update 1
Additional Non-GF Mid-Year Request
1. Measure W Sales Tax Fund (101) ($1,500,000)
‒ Elimination of Transfer Out to the General Fund ($3,000,000) ‒ Decrease in budgeted sales tax revenue,
which aligns with the City’s sales tax consultant’s
revised projection 1,500,000
2. Information Technology Internal Service Fund (785) $40,000 – Overtime Budget $14,000
– Standby Pay Budget 26,000
14 FY 2024-25 Financial Update 1
FY 2024-25 Mid Year Expenditure Request Summary – Other Funds 15 FY 2024-25 Financial Update 1
Funding Source
(in thousands) Electric/Gas Water Total
West Park Maint Dist 3 $13.0 $44.0 $57.0
Stonegate Ridge Maint 1.0 5.0 6.0
West Park Maint Dist 1&2 2.0 4.0 6.0
Special Tax Levy B (CFD) 0.0 111.0 111.0
Sewer Enterprise Fund 657.0 0.0 657.0
Parking District Fund 160.0 1.0 161.0
Storm Water Fund 4.0 0.0 4.0
Total $837.0 $165.0 $1,002
Ongoing Utilities
Mid-Year Capital Improvement Plan (CIP) Request
1. Linden Park (Existing project pk2305) $2,000,000
16 FY 2024-25 Financial Update 1
Funding Amount
(in thousands)
Current Funding
Fed Grant – Land & Water Conservation Fund 830
State Grant - State of CA Budget Act 3,200
Park Land Acquisition Impact Fee 1,000
Park Land Construction Impact Fee 300
Sub-Total Current Funding 5,330
Proposed Increase
Park Land Construction Impact Fee 1,000
Developer Contributions 1,000
Sub-Total Proposed Funding 2,000
Total 7,330
The increase covers construction costs with the expectation that the contract for construction will be awarded in FY2024-25.
Mid-Year Capital Improvement Plan (CIP) Request
2. Willow Gardens Park (New project) $300,000
‒ Funding Sources:
$300,000 Park Construction Fund (806)
‒ Upgrades and improvements to playlots at Willow Gardens Park. 17 FY 2024-25 Financial Update 1
Projected GF Revenue and Expenditure Summary
Reserve & Other Considerations 2
18 Reserve for Encumbrances rollover $ 7.8
Adopted Budget Shortfall $(8.0)
- FY 2024-25 Net Budget Adjustments (8.1)
+ Mid-Year Revenue Adjustments 5.7
- Mid-Year Appropriation Requests (4.2)
Total Adjustments $(14.7)
FY 2024-25 Projected Deficit $ (6.9)
Projected GF Unassigned F/B (As of June 30, 2025)
Reserve & Other Considerations 2
19 Available Unassigned GF Fund Balance (FY 24) $34.8
FY 2024-25 Projected Deficit (6.9)
Available GF Fund Balance (FY 25) $27.9
Financial Analysis – 5 Year Projection
5 Year Projection 3
20 Revenues &
Expenditures
(in thousands)
2025
Adopted
Budget
2025
Projected
2026
Forecast
2027
Forecast
2028
Forecast
2029
Forecast
Total Revenue $137,421 $152,580 $147,105 $150,906 $154,862 $158,865 Total
Expenditures 145,441 159,465 157,428 162,533 167,530 173,712 Surplus/(Deficit) $ (8,020) $ (6,886) $(10,323) $(11,627) $(12,668) $(14,847) 5 Year Projection - Assumptions
5 Year Projection 3
21 FY 2025 Adopted- Included $3M from Measure W; Implement 5% (~$6.0M) expenditure reduction;
FY 2025 Projected - Removed $3M from Measure W; includes preliminary midyear adjustment FY 2026 Forecast -2.75% Revenue & expenditures; 10% medical; projected UAL; 5% attrition continue
FY 2027 Forecast – 2.75% Revenue & Expenditures; 7% medical; projected UAL; 5% attrition continue
FY 2028-2029 Forecast – 2.75% Revenue & Expenditures; 7% medical; projected UAL; 5% attrition continue;
QUESTIONS?
Q&A 4
22