FY 2024-25Annual Budget Public HearingJune 18, 2024 Item 16.3 Budget Overview
Budget Process Key Dates •Council Strategic Priority Feb 21& Goal Setting Session•Proposed Budget Released May 15•Budget Study Session June 5•Public Hearing June 18 Budget Development•Council goal setting – February 2024•Long-Range Financial Plan Updates •Long-term solvency •Department Funding Requests•Prioritizing position and service demands within available resources
Issues and Influences•Uncertainty in the economy•General Fund Revenues / Recession Cycles•Inflation & increases in the cost of providing the same level of service•Retention and Recruitment•Competitive labor market•Labor Negotiations•Funding needs exceed funding capacity•Plan for future CalPERS cost increases Citywide ExpendituresTotal = $956 million [Page B-14]
Utilities20%
Police19% Insurance and Benefits - Internal Service Funds19%Fire9%Public Works8%Administration6%Community Services4%Economic Development4%Community Development2%Capital Projects Funds3%Non-Departmental4%Debt Service Funds2% Citywide Expenditures[Page B-8]FY 2023-24 FY 2024-25Department Budget Budget ChangeUtilities 204,765,409$ 194,163,014$ (10,602,395)$ Police 168,002,953 186,308,925 18,305,972 Insurance and Benefits 158,404,763 183,403,854 24,999,091 Public Works 67,954,465 76,893,790 8,939,325 Fire 76,083,743 86,144,140 10,060,397 Administration 43,604,770 52,919,382 9,314,612 Capital Projects Funds 54,518,890 25,482,395 (29,036,495) Community Services 43,762,383 36,713,090 (7,049,293) Economic Development 33,482,968 38,694,208 5,211,240 Non-Departmental 30,313,141 34,521,621 4,208,480 Debt Service Funds 18,566,331 19,787,511 1,221,180 Community Development 12,705,158 20,644,274 7,939,116 912,164,974$ 955,676,204$ 43,511,230$ Citywide RevenuesTotal = $873 million [Page B-16]
Utilities20%
Insurance and Benefits - Internal Service Fund21%Public Works6%Community Services3%Fire3%Administration2% Community Development2%Economic Development2%Police2%Non-Department35%Capital Projects Funds1%Debt Service Funds1% Budget Highlights•Expanded Services•Other new adds on page A-5•New Positions Citywide Positions Summary[Page B-5]•12 positions added and 60 police positions reprogrammed towards recruitment and retention during FY 2023-24•31 new proposed positions3 Fire Captains1 OVP Admin Aide I2 Fire Fighter Engineers2 ASD Procurement Specialist1 PW Program Manager III1 ASD Senior Budget Analyst1 CSD Recreation Assistant – Aquatics1 ASD Admin Analyst I2 CSD Circulation Assistant II1 IT SR GIS Analyst1 CDD Engineering Technician I1 IT Systems Analyst I2 MUD Senior Electrical Technicians1 IT Technology Support Specialist II2 MUD Plant Maintenance Workers1 Police Mail Courier1 MUD Public Works Inspector2 Police Animal Services Officer1 MUD Water Systems Operator1 Police Telecommunicator1 MUD Water Systems Supervisor1 Police Admin Aide II1 MUD Junior Engineer Authorized Full-time Positions
Five-Year Capital Plan by Category - $1.4 Billion
GENERAL GOVERNMENT$398.7 27%
TRANSPORTATION$779.1 54%
UTILITIES$281.4 19%Five-year 2024-29 CIP Projects by categoryTotaling $1.4 billion(dollars in millions)
GENERAL GOVERNMENTTRANSPORTATION
UTILITIES
General Fund
General Fund ExpendituresTotal = $ 328.3 Million[Page C-1] Police54%Fire20%
Administration8%Public Works7%Community Services2%Economic Development3%Capital Improvements2%Debt Service3%Other Programs1% General Fund RevenuesTotal = $ 320.5 Million [Page C-2] Sales Tax39%Property Taxes24%
Utility Users Tax14%Program Revenues6%Franchise Tax6%Business License Tax6%Interfund Reimbursements3%Other Taxes1%Investment Proceeds1% General Fund Balance[Page C-3]FY 2023-24 FY 2024-25 %Projected Proposed Variance VarianceBeginning Available Balance $61,447,389 $73,666,688Projected Total Revenues 320,261,614 320,483,471 221,857 0.1%Projected ExpendituresEmployee Services 183,867,624 217,308,936 33,441,312 18.2%Other Services 52,739,978 68,110,418 15,370,440 29.1%Materials & Supplies 6,586,645 8,037,185 1,450,540 22.0%Other Expenses 2,933,777 5,203,097 2,269,320 77.4%Capital Outlay 399,049 1,606,600 1,207,551 302.6%Loan Repayments 9,061,425 8,887,050 (174,375) -1.9%255,588,498 309,153,286 53,564,788 21.0%Transfer Out (18,169,666) (19,126,535) (956,869) 5.3%Fund Balance Restrictions (34,284,152) - Net Annual Activity 12,219,299 (7,796,349) Estimated Ending Balance $73,666,688 $65,870,339 General Fund ReservesDollars in ThousandsReserve Targets Proposed Target at 6/30/23 Proposed Target at 6/30/24 Change Priority IWorking Capital 48,300$ 54,720$ 6,420$ (16.67% of Adopted Expenses)Known Contingencies 74,000 93,280 19,280 Priority II - Risk-Based Reserves 80,800 89,000 8,200 203,100 237,000 33,900 FY 2022-23 FY 2023-24Projected Reserve Funding Year End Projected Working Capital $ 48,300 $ 54,720 Known Contingencies 68,000 93,280 Risk-Based Reserves 10,800 10,800 Total Balance for Reserves at June 30 $ 127,100 $ 158,800 Long-Range Financial Plan with FY 2024-25 Proposed Budget[Page C-10]
Recommended Actions•City Council Budget Resolution:•Adopt FY 2024-25 Annual Budget•Approve 2024-2029 Capital Improvement Plan•Approve FY 2024-25 Fee Schedule•Other administrative actions•Adopt FY 2024-25 Successor Agency Budget - $7.5 million•Adopt FY 2024-25 Parking Authority Budget - $7.9 million QUESTIONS?