1 .0 FTE is
expected to remain unfilled through the end of the fiscal year. Based on currently approved recruitment requests, this department is projected to generate $348
,
000
in budgetary savings.
Communications and Information Technology (CIT)
Department
The CIT Department has a total of
8 .0 FTE vacancies, of which
1 .0 FTE is
expected to remain unfilled
by the end of the fiscal year. Based on currently approved recruitment requests, this department is projected to generate $380,000
in budgetary savings.
Finance Department
The Finance Department has a total of 3.0 FTE vacancies,
and all are expected to
be
fill
ed
by the end
of the fiscal year. Based on currently approved recruitment requests, this department is projected to generate $147,000 in budgetary savings.
Fire
Department
The Fire Department has a total of 15.5 FTE vacancies,
of which
3 .0 FTE is expected to remain unfilled
by the end of the fiscal year. Based on currently approved recruitment requests, this department is projected to generate $884,000 in budgetary savings.
General Services
Department
The General Services
Department
(excluding seasonal/recurrent positions) has a total of
5 .0 FTE
vacancies,
of which
2.0 FTE are expected to remain unfilled through the end of the fiscal year.
Based
on currently approved recruitment requests, this department is projected to generate $ 264,000
in
budgetary savings.
Police Department
The Police Department has a total of
72 .0 FTE vacancies
, of which
17 .0 FTE
are expected to remain
unfilled by the end of the fiscal year. Based on currently approved recruitment requests,
the police
department is projected to generate $ 955,000 in budgetary
salary
savings after approximately $1.8
million of
transfers to professional services , funding additional crossing guard and parking enforcement services, computing
and
reporting modernization services, additional officer body - worn cameras,
and replacement vehicle outfitting
. It is important to note that Council recently
approved a new Enhanced Recruitment and Retention
Incentive Pilot
program,
which is reflected in
the projected expenditures.
251
36 Public Works Department
The Public Works Department has a total of
21.5 FTE vacancies, of which
7 .0 FTE are expected to
remain unfilled by the end of the fiscal year. Based on currently approved recruitment requests , Public Works is projected to generate $116
,
000
in budgetary
salary
savings after the budget
transfers
to
professional services to
fund
emergent
traffic light repair
s
and
tree
trimming
.
General Fund-Operating Fund
Non
-Wage (Materials) Expenditures by
Department
Non-wage expenditures (materials) account for
27.2 %
of General Fund -Operating Fund
expenditures budget. The table above summarizes these expenses by department. Compared to the Mid-Year of the previous year, non
-
wage expenditures have decreased by
$
3.8 million. As of
December 31, 2024,
$
45.0 million or 57.6
%
of the FY24-25 budgeted expenditures had been used,
compared to
$
48.8 million or 62.5
%
during the same period in FY23-24. The decrease is primarily due to reduced contributions from Non-Departmental to the City’s
CEPPT Section 115 Fund
by $10.4
million. After excluding Non -Departmental activity, the adjusted rate o f non-wage departmental expenditure as of
December
31, 2024, is 41.2%, compared to 41.5% as of December 31, 2023. Overall, non-wage expenditures are expected to generate
a surplus
of $
463,000.
City Manager’s
Office
The City Manager's Office is currently projecting a
surplus
of $85,000, primarily due to higher-than-
anticipated costs associated with
legal
services and consulting expenditures. It is important to note that the department has
received
non-wage budget from Non -Departmental to address the
budgetary deficit in the previous quarter.
Community Services
The Community Services Department is currently projecting a surplus of $
136,000,
reflecting
refinements to projections across the Parks, Recreation, and Library Services . Projections include
Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
Projected % of
Budget
City Council 382,509$ 163,380$ 42.7% 389,766$ 161,808$ 41.5% 372,238$ 17,528$ 95.5% City Manager 1,752,766
700,100
39.9% 2,468,569
874,788
35.4% 2,383,484
85,085
96.6%
City Attorney 455,085
198,397
43.6% 463,397
96,732
20.9% 412,879
50,518
89.1%
City Clerk 416,208
67,908
16.3% 538,021
106,806
19.9% 534,531
3,490
99.4%
City Treasurer 47,346
21,759
46.0% 149,527
22,079
14.8% 122,062
27,465
81.6%
Finance 1,953,898
548,742
28.1% 1,731,895
556,245
32.1% 1,737,385
(5,490)
100.3%
Human Resources 911,689
428,356
47.0% 1,246,103
420,071
33.7% 1,075,480
170,623
86.3%
Civil Service 442,779
194,321
43.9% 402,053
66,111
16.4% 336,587
65,466
83.7%
Community Development 1,265,740
426,856
33.7% 1,439,694
482,437
33.5% 1,290,654
149,040
89.6%
CIT 2,796,704
1,478,934
52.9% 3,354,824
1,538,466
45.9% 3,327,551
27,273
99.2%
General Services 3,702,412
1,672,025
45.2% 4,770,582
2,347,089
49.2% 4,702,694
67,888
98.6%
Non-Departmental 22,184,930
25,606,334
115.4% 11,864,487
17,716,744
149.3% 12,762,683
(898,196)
107.6%
Police 13,560,635
5,732,514
42.3% 16,107,991
6,628,383
41.1% 15,906,008
201,983
98.7%
Fire 9,159,636
3,675,709
40.1% 12,228,457
5,548,373
45.4% 12,124,293
104,164
99.1%
Public Works 10,382,669
4,211,653
40.6% 11,683,628
4,697,430
40.2% 11,423,958
259,670
97.8%
Community Services 8,610,529
3,672,059
42.6% 9,358,242
3,763,359
40.2% 9,221,886
136,356
98.5%
Total Expenses 78,025,535$
48,799,047$
62.5% 78,197,236$
45,026,921$
57.6% 77,734,373$
462,863$
99.4%
Prior Year FY23-24 Current Year FY24-25
252
37 adjustments to program contingencies and accounting for timing of various professional services and materials purchases.
Finance
Department
The Finance Department is
projecting
a deficit of ($5,500), attributed to various consulting services required for rate and fee studies, as well as tax revenue recovery initiatives.
Fire Department
The Fire Department projects a $104,000 surplus, primarily due to lower fuel
and
material costs ,
partially
offset by
increased
expenses for
vehicle parts and maintenance
. Mid-year expenditures are
$1.9 million higher than the previous year, driven by increased contributions to Self -Insurance for Workers’ Compensation claims, which were already accounted for in the FY24-25 budget.
Human Resources
The Human Resources Department anticipates a $171,000 surplus, attributed to a reduction in projected investigation services costs based on year-to-date trends.
Non-Departmental
Non-Departmental expenditures are projected to exceed the budget by
approximately
$898,000,
primarily due to a $624,000 reduction in Indirect Cost Reimbursements and a $288,000 decrease in bond leaseback payment reimbursements, resulting from lower-than-anticipated salary projections.
Police Department
The Police
Department’s amended non -wage budget
includes
approximately $1.8 million
in
transfers from
salar
y savings to
professional services
, funding additional crossing guard and parking
enforcement services, computing and reporting modernization,
additional body
-worn cameras,
and
replacement vehicle outfitting. The department anticipates a
$
202,000 non-wage surplus, primarily
due to lower-than-budgeted legal
services fees
based on year-to-date trends.
Public Works
Department
The Public Works Departmen t’s amended non-wage budget includes $394
,000 of transfers from
salary savings to professional services , funding
emergent traffic light repairs and tree trimming
services. The department anticipates a $260,000 surplus, primarily due to effective cost management of contracts and material acquisitions, along with
lower
fleet replacement contributions due to
delays in the delivery of select replacement vehicles.
253
38 General Fund-Measure SST Fund Mid-Year Results
The General Fund-Measure SST Fund (Measure SST Fund) is a sub-fund within the overall structure of the
General Fund
as reported in the Annual Report.
The Measure SST Fund separately accounts for
the 0.50% transaction and use tax (sales tax) approved by Torrance voters in June 2022. This measure, titled Safe , Strong Torrance, included four main funding priorities:
(1)
Quality of Life;
(2)
Fiscal Sustainability;
(3)
Deferred Maintenance & Community Services/Programs; and
(4)
Emergency
Responsiveness. City Council approved the budgeted use of these funds and authorized the newly established Measure SST Committee
(Committee) to provide public oversight . The Committee will ensure funds are utilized in accordance
with
the spending plans approved by City Council
and
annually
review
the Measure SST Fund’s completed financial audits.
General Fund-Measure SST Fund
Revenues
and
Expenditures
by Classification
As of
December 31
, 2024, the Measure SST Fund realized revenues of
$
8.3 million, achieving
33.2 %
of the
FY24
-25 budget, compared to
$
8.4 million or 36.4% for the same
period
in the year prior. As
shown in the table above, it is projected that a total of
$25.5 million will be recognized by fiscal
year
-
end, exceeding
budgeted estimates
by
$
300,
000
or
1. 2%.
Based on the analysis provided by the City’s third -party consultant, Hinderliter de Llamas & Associates (HdL)
,
Measure SST remittances have been approximately 43% of the Bradley Burns
sales
tax remittances for the trailing twelve months. The budget will continue to
be adjusted to better
align
with projected actuals in future budget
cycles
.
On the expenditure
side
, the Measure SST Fund realized expenditures of
$
19.9 million or 72.2
%
of
the FY24-25 budget, compared to $12.7 million or 55.2% for the same period in the year prior .
Currently, it is projected that the
expenditure
budget will generate a budget surplus of $1.1 million
due to
the timing of
$346,000
of IT hardware and
software
purchases, and $727
,
00 allocated for
homeless
ness
reduction efforts in
Torrance
. The City has been able to identify various grant funding Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Taxes 23,002,688$ 8,477,489$ 36.9% 25,345,116$ 8,328,634$ 32.9% 25,421,325$ 76,209$ 100.3% Use of Money and Property 25,000 (93,603) -374.4% (177,850) 19,264 -10.8% 45,300 223,150 -25.5% Total Revenues 23,027,688$ 8,383,886$ 36.4% 25,167,266$ 8,347,898$ 33.2% 25,466,625$ 299,359$ 101.2% Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Materials, Supplies & Maintenance 855,500$ -$ 0.0% 727,398$ -$ 0.0% -$ 727,398$ 0.0% Professional/Contract Services 859,500 96,052 11.2% 876,500 108,735 12.4% 530,989 345,511 60.6% Capital Acquisitions 110,000 - 0.0% - - 0.0% - - 0.0% Other Operating Transfers Out 21,202,688 12,618,833 59.5% 25,891,226 19,753,144 76.3% 25,891,226 - 100.0% Total Expenses 23,027,688$ 12,714,885$ 55.2% 27,495,124$ 19,861,879$ 72.2% 26,422,215$ 1,072,909$ 96.1% Revenues Less Expenditures -$ (4,330,999)$ (2,327,858)$ (11,513,981)$ (955,590)$ 1,372,268$ Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
254
39 sources to mitigate the need to use general fund re sources to support the homelessness reduction efforts. Overall, it is
anticipated
that this fund will operate at a
$
956,000
fiscal year-end deficit when
comparing projected revenues against projected expenditures. It is important to note that this fund’s budget was originally adopted with a deficit of $2.3 million due to planned use of fund balance to support the City’s Capital Improvement Plan.
255
40 General Fund-Restricted/Assigned Fund Mid-Year Results The General Fund -Restricted/Assigned Fund (Restricted/Assigned Fund) is a series of sub-funds within the overall
structure
of the
General Fund
as
reported in the City’s Annual Report.
This
fund
separately track s balances under the different areas that are deemed restricted by the source or assigned for a particular purpose. It should be noted that
this does not include the City’s
Unassigned
(Reserve)
Fund
.
For example,
there are
multiple replacement funds that were created by the City to set aside
funding
each year for
planned
future equipment purchases. This helps smooth
spending
across multiple
years and creates a dedicated
source
for these different replacement activities
, which include:
•
Defibrillator Replacement Fund
•
Drone/ALPR Replacement Fund
•
IT
Replacement Fund
In addition to the
above
-mentioned
replacement funds, the Restricted/Assigned
Fund
also includes
the City’s CalPERS
CEPPT
Section 115 Fund and Cable’s various Public, Educational, and Governmental Access (PEG)
Funds
.
General Fund-Restricted/Assigned Fund
Revenues
and
Expenditures
by
Classification
As of
December 31
, 2024, the
Restricted
/Assigned Fund realized revenues of
$
13.9 million, achieving
104.7
%
of the
FY24
-25
revenue
budget. During the same period ending
December 31, 2023
, the City
realized $25.2
million in revenues, representing
97.8 %
of the
FY23
-24 revenue budget.
This
variance
was largely driven by the $13
.
0 million reduction in contribution to the City’s CEPPT Section 115 Fund. Overall, it is projected that revenues in this fund will total $ 14.1 million by fiscal year -end, exceeding
budget by
$
0.8 million or
6.4%.
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
Projected % of
Budget
Use of Money and Property 458,058$ 1,165,247$ 254.4% 598,058$ 1,369,299$ 229.0% 1,556,610$ 958,552$ 260.3% Operating Transfers In 25,305,368
24,030,102
95.0% 12,642,772
12,490,767
98.8% 12,526,491
(116,281)
99.1%
Total Revenues 25,763,426$
25,195,349$
97.8% 13,240,830$
13,860,066$
104.7% 14,083,101$
842,271$
106.4%
Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
Projected % of
Budget
Professional/Contract Services 256,172$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Debt Service 15,200
8,633
56.8% 15,000
14,654
97.7% 15,000
-
100.0%
Capital Acquisitions 879,710
41,848
4.8% 1,800,204
596,850
33.2% 1,743,578
56,626
96.9%
Other Expenditures 28,800
16,727
58.1% 28,500
28,391
99.6% 28,500
-
100.0%
Other Operating Transfers Out 662,203
-
0.0% -
-
0.0% -
-
0.0%
Total Expenses 1,842,085$
67,208$
3.6% 1,843,704$
639,895$
34.7% 1,787,078$
56,626$
96.9%
Revenues Less Expenditures 23,921,341$
25,128,141$
11,397,126$
13,220,171$
12,296,023$
898,897$
Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
256
41 As of December 31, 2024 , the Restricted/Assigned Fund has incurred expenditures of $ 640,000 , representing 34.7
%
of the
FY24
-25
budget. In comparison, for the same period in
FY23
-24, the City
spent $67
,000
or 3.6% of the
FY23
-24
budget. Capital Acquisitions classification is higher than the prior year due to
purchase of various computer equipment
, as the projected expenditures for the
Restricted/Assigned Fund primarily involve the purchase of essential computer and data communication equipment. Overall, it is expected that revenues will exceed expenditures by
$1
2.3 million
by the end of the fiscal year.
257
42 General Fund-Unassigned Fund (Reserves) Mid-Year Results The General Fund-Unassigned Fund (Reserve Fund) is a sub-fund within the overall structure of the General Fund
which
does not qualify for the restricted/assigned category
as reported
in the City’s
Annual Report. The Reserve Fund includes the Economic
Anomaly
and Litigation categories which
help plan for economic downturns , allows the City to set
aside funds for natural disasters such as
earthquakes, and to ensure financial stability during times of need. The Other Unrestricted category pertains to the fund balances
of the
General Fund
-Operating Fund and the
Measure
SST Fund. The
table below
provides a summary of the overall budget for this sub
-fund.
General Fund-Unassigned Fund
Revenues
and
Expenditures
by Classification
As shown in the summary table, the Reserve Fund realized revenues of
$
5.0 million, achieving
100
.0
% of budget through the Mid-Year of FY24-25
.
This represents contributions from the General
Fund-Measure SST Fund. The Reserve Fund also realized expenditures of
$5.0 million
, achieving
100
.0%
of budget through the
Mid
-Year of FY24-25
due to Operating Transfers
Out
to the General
Fund-Operating Fund to help
maintain
a balanced budget and support planned increases in public safety salaries and benefits to address
two
of the City’s
Areas of Focus
pertaining to labor relations.
It
is important to note that
the nature of the Reserve Fund is unique
in that
funds
are
often
set
aside
to plan
for
the City’s
future
needs during economic downturns, and large sums of expenditures can occur in a given fiscal year to ensure the City maintains a balanced General Fund-Operating Fund budget.
General Fund-Unassigned Fund
Balance
Summary
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Operating Transfers In 4,802,423$ 2,401,212$ 50.0% 5,000,000$ 5,000,000$ 100.0% 5,000,000$ -$ 100.0% Total Revenues 4,802,423$
2,401,212$
50.0% 5,000,000$
5,000,000$
100.0% 5,000,000$
-$
100.0%
Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Other Operating Transfers Out -$ -$ 0.0% 5,000,000$ 5,000,000$ 100.0% 5,000,000$ -$ 100.0% Total Expenses -$
-$
0.0% 5,000,000$
5,000,000$
100.0% 5,000,000$
-$
100.0%
Revenues Less Expenditures 4,802,423$
2,401,212$
-$
-$
-$
-$
Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
Unassigned Fund Balance
Beg Bal -
FY22-23
Additions/
(Uses)
End Bal -
FY23-24
Projected
Additions/
(Uses)
Proj End Bal
FY24-25
Reserve Fund - Economic Anomaly 8,081,847$ 4,802,423$ 12,884,270$ -$ 12,884,270$ Reserve Fund - Litigation -
-
-
-
-
Other Unassigned 55,338,393
10,526,798
65,865,191
2,349,062
68,214,253
Total 63,420,240$
15,329,221$
78,749,461$
2,349,062$
81,098,523$
258
43 As shown in the table above, the City's unassigned reserve balance is projected to total $ 81.6 million at fiscal year-end. This represents an excess of
$
24.1 million above the City’s adopted fiscal policy,
which sets a target unassigned fund balance of at least
20%
of the General Fund -Operating Fund's
approved expenditure appropriations, or approximately
$
57.5 million based on the
currently
approved expenditure appropriation
.
As of October 2023,
The State Auditor’s
High
-
Risk Dashboard was discontinued. However, the City
continues to monitor its reserve balances as one of our
Key Performance Indicator
s. The State
Auditor’s High
-
Risk Dashboard previously recommended maintaining reserves greater than nine months of operating costs,
or
75% of the General Fund -Operating Fund’s current expenditure appropriation, which would amount to
$215.
6 million. To be considered "Low-Risk" designation,
reserves should equal at least
six
months of operating costs, or
50%
of the current appropriation,
or
$143.8
million
. In the future, staff may recommend adjustments to the City’s fiscal
policy to further
strengthen fiscal resilience.
259
Mid-Year Budget Review Report
INTERNAL SERVICE FUNDS
260
44 Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one City department to other departments and to other governmental units on a cost -reimbursement basis.
The City currently has two Internal Service Funds:
(1)
Self
-Insurance;
and
(2)
Fleet Services.
Self-Insurance Fund Mid-Year Results
The Self-Insurance Fund is a sub-fund used to finance and account for City expenditures associated with n on-litigated claims, l iability claims and settlements, w orkers’ compensation cases , and unemployment insurance
p
ayments.
Self-Insurance
Fund
Revenues
and
Expenditures
by
Classification
As of
December
31, 2024, the City has received
$
11.8 million or 50
.0%
of the FY24 -25 budgeted
revenues, compared to $10.7
million or 51.9% in the prior year. The $1.1 million increase in revenues is attributed to higher budgeted contributions to the Self -Insurance Fund, aimed at addressing its underfunded position, an identified Area of Focus . Overall, revenues are projected to come in approximately
on
budget
by year
-
end.
Regarding expenditures , $10.2
million or 43.3
%
of FY24-25
budgeted expenditures have been
spent, compared to
$
10.3 million or 36.1
%
in the prior year. While the expenditure amount is
consistent with last year, the higher percentage has been
spent due to a
smaller budget for actuarial
adjustments budgeted in the current year. The Professional/Contract Services
classification is
higher than the prior year due to the timing of an
annual invoice
paid.
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Charges for Services 20,668,500$ 10,601,492$ 51.3% 23,659,000$ 11,819,450$ 50.0% 23,642,570$ (16,430)$ 99.9% Other Revenues -
122,364
0.0% -
13,622
0.0% 14,650
14,650
0.0%
Operating Transfers In -
-
0.0% -
-
0.0% -
-
0.0%
Total Revenues 20,668,500$
10,723,856$
51.9% 23,659,000$
11,833,072$
50.0% 23,657,220$
(1,780)$
100.0%
Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
j
% of
Budget
Salaries and Employee Benefits 1,022,902$ 417,257$ 40.8% 1,083,179$ 454,286$ 41.9% 888,486$ 194,693$ 82.0% Materials, Supplies & Maintenance 25,725
2,827
11.0% 24,000
2,434
10.1% 22,800
1,200
95.0%
Professional/Contract Services 660,030
62,536
9.5% 505,000
246,179
48.7% 496,275
8,725
98.3%
Training, Travel & Membership Dues 8,500
5,751
67.7% 11,600
2,496
21.5% 10,815
785
93.2%
Liabilities, Settlements & Insurance 18,344,252
9,706,370
52.9% 18,654,469
9,354,785
50.1% 17,781,921
872,548
95.3%
Utilities -
283
0.0% 750
236
31.5% 599
151
79.9%
Interdepartmental Charges 228,527
102,959
45.1% 235,890
114,459
48.5% 198,284
37,606
84.1%
Bad Debts and Other Losses 8,200,000
-
0.0% 3,000,000
-
0.0% 3,000,000
-
100.0%
Other Operating Transfers Out 4,354
2,178
50.0% -
-
0.0% -
-
0.0%
Total Expenses 28,494,290$
10,300,161$
36.1% 23,514,888$
10,174,875$
43.3% 22,399,180$
1,115,708$
95.3%
Revenues Less Expenditures (7,825,790)$
423,695$
144,112$
1,658,197$
1,258,040$
1,113,928$
Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
261
45 The City transitioned to a third -party claims’ administrator for workers' compensation claims in FY22-23
, which has
improved processing times and overall claims management . In FY23 -24, the
actuarial adjustment was recorded for
$
(1.3 million) , while in FY22 -23 it was recorded for $(4.2 million), and in FY21-22 it was recorded at $8.2 million. For FY24-25, due to uncertainty, it is currently projected at the budgeted amount of $3.0 million . Staff is working with the actuary to finalize the report later in the year, and it will be reflected
a
t
year
-end.
The Self -Insurance Fund has one vacant Claims Technician position, which is expected to remain unfilled through the end of the fiscal year, resulting in an estimated budgetary savings of $ 195,000.
Overall,
the fund
is
projected to result in a
$1.
3 million
surplus at year
-end.
262
46 Fleet Services Fund Mid-Year Results
The City’s Fleet Services Fund is comprised of multiple sub-funds, including the Fleet Services Fund- Operating Fund and the
Fleet Services
Fund-Replacement Fund, which are used to fi nance and
account for the maintenance, repair, and replacement of the City’s vehicular assets. However, it should be noted
that this fund
does not
include the replacement of the City’s
Sanitation, Sewer,
Water, and Transit
vehicular assets
.
Fleet Services
Fund
Overall Revenue
s
and Expenditure
s
As shown above, the Fleet Services Fund’s
overall
revenues have increased when compared with the
year prior.
As of
December 31
, 2024
, a total of
$6.5 million or 48.5% of the FY24-25 revenue budget
ha
s
been collected.
During the same period ending
December 31
, 2023
, the City realized
$
5.1 million
in revenues, representing
42.5 %
of the
FY23
-24 revenue budget.
On the expenditure side,
this fund
realized overall expenditures of
$
4.4 million
, achieving
49.8 % of
the FY24-25 budget as of
December 31
, 2024. During the same period ending December 31, 2023, the City expended $4.1 million or 45.4
%
of the
FY23
-24
expenditure budget. Overall, it is projected that
revenues will exceed expenditures by $ 4.4 million by fiscal year-end. This will be examined in more detail in the following sections.
Amended
Budget
July-December
Actuals
Budget
Realized
Amended
Budget
July-December
Actuals
Budget
Realized
Annual
Projected Total
Projected
Surplus/(Deficit)
j
% of
Budget
Total Revenues 12,121,697$ 5,149,764$ 42.5% 13,339,999$ 6,466,194$ 48.5% 13,100,140$ (239,859)$ 98.2% Total Expenses 8,954,537
4,067,327
45.4% 8,940,680
4,448,582
49.8% 8,720,699
219,981
97.5%
Rev. Less Exp. 3,167,160$
1,082,437$
4,399,319$
2,017,612$
4,379,441$
(19,878)$
Prior Year FY23-24 Current Year FY24-25
263
47 Fleet Services Fund -Operating Fund Revenue s and Expenditure s by Classification
When examining the Fleet Services
Fund
-Operating Fund, we get a better sense of day -to-day
operations. As of
December 31
, 2024
,
the Fleet Services
Fund
-Operating Fund
realized re
venues
of
$2.9 million or 42.6
%
of the
FY24
-25
revenue budget. During the same period ending
December
31,
2023
, the City realized
$
2.4 million in revenues, representing
36.2 %
of the
FY23
-24 revenue budget.
This year -over-year increase is primarily due to
continued efforts
in adjusting
labor rate
s charges
citywide
to cover the
full
costs
of
maintenance
.
In the
FY22
-23 budget, labor rates were increased by 85
%
, then increased another 40% during the
second half of FY23-24
.
Fleet Services has improved its financial performance by filling vacancies, which has led to an increase in billable hours and allowed the department to more effectively meet its budget. Staff will continue to monitor the department closely to assess wheth er labor rate adjustments are necessary. As of December 31, 2024
, it is projected that revenues
in the
Charges for
Services
classification will realize a shortfall of $
610,000
.
On the expenditure side, the Fleet Services
Fund
-Operating Fund realized expenditures of
$
3.7 million, achieving
51.1 % of the
FY24
-25
expenditure budget as of
December
31 , 202
4. During the
same period ending December 31, 2023, the City expended
$
3.4 million or 46.2% of the FY23
-
24 expenditure budget. The increase in
Interdepartmental Charges
and decrease in
Material,
Supplies & Maintenance was primarily due to
reclassification o
f rental charges for the fleet
warehouse. Salaries and Employee Benefits increased as the vacancy rate has improved from 7.0 FTE to 2.5 FTE as of December 31, 2023 and 2024, respectively. The Fleet Services
F
und has 2.5 FTE
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Use of Money and Property (28,196)$ (53,515)$ 189.8% (28,196)$ (42,076)$ 149.2% (61,250)$ (33,054)$ 217.2% Charges for Services 6,693,324
2,464,328
36.8% 6,896,676
2,971,037
43.1% 6,286,720
(609,956)
91.2%
Total Revenues 6,665,128$
2,410,813$
36.2% 6,868,480$
2,928,961$
42.6% 6,225,470$
(643,010)$
90.6%
Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Salaries and Employee Benefits 3,822,706$ 1,512,492$ 39.6% 3,984,551$ 1,896,286$ 47.6% 3,848,601$ 135,950$ 96.6% Materials, Supplies & Maintenance 1,517,195
679,433
44.8% 777,487
328,622
42.3% 765,741
11,746
98.5%
Materials Reimbursements -
-
0.0% (500,000)
(203,852)
40.8% (500,000)
-
100.0%
Parts, Fuel & Lubricants Purchases 2,938,693
1,114,077
37.9% 3,213,628
1,446,958
45.0% 3,148,312
65,316
98.0%
Parts, Fuel & Lubricants Contra (2,938,693)
(1,114,077)
37.9% (3,210,628)
(1,446,958)
45.1% (3,148,312)
(62,316)
98.1%
Professional/Contract Services 241,570
72,641
30.1% 205,334
170,466
83.0% 206,133
(799)
100.4%
Training, Travel & Membership Dues 51,809
6,075
11.7% 54,075
3,272
6.1% 51,500
2,575
95.2%
Depreciation and Amortization 1,000
325
32.5% 2,379
487
20.5% 2,375
4 99.8%
Liabilities, Settlements & Insurance 16,880
-
0.0% 16,880
-
0.0% 16,880
-
100.0%
Utilities 2,730
1,733
63.5% 2,600
184
7.1% 2,600
-
100.0%
Interdepartmental Charges 1,065,142
476,879
44.8% 2,237,427
1,102,244
49.3% 2,218,069
19,358
99.1%
Debt Service -
-
0.0% -
-
0.0% -
-
0.0%
Capital Acquisitions -
-
0.0% 54,208
32,492
59.9% 54,208
-
100.0%
Other Operating Transfers Out 674,580
662,994
98.3% 353,263
344,032
97.4% 353,262
1 100.0%
Total Expenses 7,393,612$
3,412,572$
46.2% 7,191,204$
3,674,233$
51.1% 7,019,369$
171,835$
97.6%
Revenues Less Expenditures (728,484)$
(1,001,759)$
(322,724)$
(745,272)$
(793,899)$
(471,175)$
Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
264
48 vacancies, for which 1.0 FTE is expected to be filled by the end of the fiscal year . Based on currently approved recruitment requests, this
department is projected to generate $136,000 in budgetary savings. Other Operating Transfers Out decreased due to reduced contribution to the Fleet Services Capital Fund related to
the Capital Improvement Plan.
Overall, the Fleet Services Fund-Operating Fund is projected to operate at a $794
,000 deficit
at fiscal
year-end.
Another main component of the
overall
Fleet Services Fund is the
Fleet Services Fund
-Replacement
Fund which is responsible for collecting the charges assessed to departments for the replacement costs of vehicles and accounts for expenditures made to replace these vehicles.
Fleet Services
Fund
-Replacement Fund Revenues and Expenditures by Classification
As shown in the table above,
r
evenue
s
collected within these sub -funds have increased relative to budget when compared to the year prior. As of
December 31
, 2024
, a total of
$
3.5 million or 54.7%
of FY24-25
budgeted revenues have been collected. During the same period ending
December 31
,
2023
, the City realized
$
2.7 million in revenues, representing
50.2 %
of the
FY23
-24 revenue budget.
The increase
from prior year
is mainly due to
increased contributions
from departments of $
440,000
and
allocated investment earnings of $271,000
.
On the expenditure side, the Fleet Services Fund-Replacement Fund
realized expenditures of
$774,000
, achieving
45.3 %
of the
FY24
-25
expenditure budget as of
December 31
, 2024. During the
same period ending December 31 , 202 3, the City expended
$
655,000 or 41.9% of the
FY23
-24
expenditure budget. The Fleet Services Fund -Replacement Fund is projected to operate at surplus of $5.2 million at year-end, and it is
projected that
$
26.6 million worth of vehicles will be purchased
and capitalized for depreciation in future budget
cycles
.
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Use of Money and Property 5,376,105$ 2,702,801$ 50.3% 6,391,055$ 3,413,275$ 53.4% 6,746,670$ 355,615$ 105.6% Other Revenues 80,464 36,150 44.9% 80,464 123,958 154.1% 128,000 47,536 159.1% Total Revenues 5,456,569$ 2,738,951$ 50.2% 6,471,519$ 3,537,233$ 54.7% 6,874,670$ 403,151$ 106.2% Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Depreciation and Amortization 1,468,460$ 654,755$ 44.6% 1,709,637$ 774,349$ 45.3% 1,701,491$ 8,146$ 99.5% Capital Acquisitions 13,549,099 1,314,300 9.7% 26,588,249 5,669,362 21.3% 26,588,249 - 100.0% Asset Contra Account (13,456,634) (1,314,300) 9.8% (26,548,410) (5,669,362) 21.4% (26,588,410) 40,000 100.2% Total Expenses 1,560,925$ 654,755$ 41.9% 1,749,476$ 774,349$ 44.3% 1,701,330$ 48,146$ 97.2% Revenues Less Expenditures 3,895,644$ 2,084,196$ 4,722,043$ 2,762,884$ 5,173,340$ 451,297$ Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
265
Mid-Year Budget Review Report
ENTERPRise funds
266
49 Enterprise Funds
Enterprise Funds are used to account for fee - supported business activities operated by the City. The net activity of these funds
provides
working capital for maintenance and betterment of the
equipment and fixed assets of the business. This section of the
report
will cover these enterprise
funds alphabetically.
Airport Fund Mid-Year Results
The Airport Fund accounts for airfield operations and leasing of commercial property outside of the airfield.
Airport
Fund Revenues and Expenditures by Classification
As of
December 31
, 2024, a total of
$
11.3 million or 61.6
%
of FY24-25
budgeted revenues have been
collected. During the same period ending
December 31
, 2023
, the City realized
$8.8 million or 51.7%
of FY23-24 budgeted revenues. Overall, it is projected that the revenue budget will operate at a surplus at year-end of $3.2 million. This is driven by surpluses from miscellaneous revenues of $ 2.0 million
related to litigation reimbursements
,
rental income of
$
0.7 million
,
and
investment earnings
of $0.5
million
.
On the expenditure side, the
Airport
Fund realized expenditures of
$
10.3 million or 57.2% of the
FY24-25
budget as of
December 31
, 2024. During the same period ending
December 31
, 2023, the
City expended
$
7.2 million or 42.2
%
of the FY23-24
expenditure budget . The Professional/
Contract Services classification is lower than the prior
year
primarily due to less legal services cost
related to litigation efforts on the airport property in the current year.
T
he Other Operating
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Use of Money and Property 341,485$ 314,589$ 92.1% 482,000$ 555,961$ 115.3% 982,460$ 500,460$ 203.8% Charges for Services 16,433,244
7,861,763
47.8% 17,360,326
8,511,933
49.0% 18,043,530
683,204
103.9%
Other Revenues 250,000
629,653
251.9% 500,000
2,224,012
444.8% 2,541,260
2,041,260
508.3%
Total Revenues 17,024,729$
8,806,005$
51.7% 18,342,326$
11,291,906$
61.6% 21,567,250$
3,224,924$
117.6%
Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Salaries and Employee Benefits 1,514,167$ 663,342$ 43.8% 1,556,604$ 688,098$ 44.2% 1,472,086$ 84,518$ 94.6% Materials, Supplies & Maintenance 199,928
33,412
16.7% 144,887
32,924
22.7% 140,474
4,413
97.0%
Professional/Contract Services 4,595,914
2,074,960
45.1% 2,543,300
324,054
12.7% 2,454,447
88,853
96.5%
Training, Travel & Membership Dues 10,815
391
3.6% 11,923
8,323
69.8% 11,023
900
92.4%
Depreciation and Amortization 283,250
130,290
46.0% 260,582
135,255
51.9% 269,156
(8,574)
103.3%
Utilities 207,699
97,425
46.9% 220,946
112,849
51.1% 214,434
6,512
97.1%
Interdepartmental Charges 724,441
400,692
55.3% 624,115
289,479
46.4% 570,629
53,486
91.4%
Bad Debts and Other Losses 15,000
-
0.0% 15,000
-
0.0% 15,000
-
100.0%
Other Operating Transfers Out 9,444,431
3,769,616
39.9% 12,580,785
8,673,533
68.9% 13,889,113
(1,308,328)
110.4%
Total Expenses 17,010,181$
7,170,128$
42.2% 17,958,142$
10,264,515$
57.2% 19,036,362$
(1,078,220)$
106.0%
Revenues Less Expenditures 14,548$
1,635,877$
384,184$
1,027,391$
2,530,888$
2,146,704$
Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
267
50 Transfers Out classification is higher than the p rior year due to increased litigation reimbursement s received and decreased legal costs as mentioned above
, which
led to
the increase in Operating
Transfers Out to General Fund as the reimbursement and legal costs
relate to
the
non-aeronautical
division’s operation.
Additionally,
the increase in the Other Operating Transfers Out was also caused by the
hi
gher transfers to Airport Capital Fund projects in the current year
.
Overall, the Airport
Fund is projected to operate at a
$
2.5 million
surplus.
The Airport Fund
has
2.0 FTE vacancy
for Airport Worker, which are expected to be filled by the end of the fiscal year. Based on currently approved recruitment requests, this department is projected to generate $85
,
000
in budgetary savings.
268
51 Sanitation Fund Mid-Year Results
The City’s Sanitation Fund is comprised of multiple sub -funds, including the Sanitation Fund- Operating Fund and the
Sanitation
Fund-Vehicle Replacement Fund,
and
accounts for the refuse,
recycling, and green waste programs
as well as
the maintenance and replacement of vehicles used
within the Sanitation Division of the Public Works Department. This fund is supported by user fees and operating transfers from the General Fund -Operating Fund to support the senior discount program. Additionally,
City
Council approved a series of annual
rate increases over a five
-
year period,
which began July 1, 2023
with
fees increasing by 16% and by 9% annually starting July 1, 2024 through
June 2028.
Sanitation
Fund
Overall Revenues and Expenditures
As shown in the summary table above, the
Sanitation
Fund overall realized revenues of
$
7.6 million,
achieving 40.3% of the FY24-25
revenue budget as of
December 31, 2024
. During the same period
ending December 31, 2023, this fund realized $6.6 million in revenues, representing
40.9 % of the
FY23-24
revenue budget.
On the expenditure side,
the Sanitation
Fund
overall
realized
expenditures of
$
7.8 million
or
39.1 %
of the
FY24
-25
expenditure budget as of
December 31
, 2024. During the same period ending
December 31, 2023, the City
expended
$8.2 million or 40.5% of the
FY23
-24
expenditure budget.
Overall, it is projected
that
this fund
will
operate at a
$1.5 million
surplus at
fiscal year
-end.
This will
be examined in more detail in the following sections.
Amended
Budget
July-December
Actuals
Budget
Realized
Amended
Budget
July-December
Actuals
Budget
Realized
Annual
Projected Total
Projected
Surplus/(Deficit)
j
% of
Budget
Total Revenues 16,156,401$ 6,610,318$ 40.9% 18,918,815$ 7,628,936$ 40.3% 20,373,226$ 1,454,411$ 107.7% Total Expenses 20,155,560 8,157,469 40.5% 20,062,665 7,839,750 39.1% 18,883,590 1,179,075 94.1% Rev. Less Exp. (3,999,159)$
(1,547,151)$
(1,143,850)$
(210,814)$
1,489,636$
2,633,486$
Prior Year FY23-24 Current Year FY24-25
269
52 Sanitation Fund -Operating Fund Revenues and Expenditures by Classification
When examining the
Sanitation Fund -Operating Fund , we
get a
better sense of the day -to-day
operations. As of
December 31
, 2024, a total of
$
6.5 million or 39.1% of FY24-25
budgeted revenues
have been collected. During the same period ending December 31 , 2023
, the City realized
$
5.6 million in revenues, representing 39.4%
of the
FY23
-24 revenue budget. This is primarily due to
the
annual rate increase approved by City Council . Overall, it is projected that the revenue budget will operate at a surplus at year-end of $1.4
million
.
On the expenditure side,
this fund
realized expenditures of $7.4 million or 38.8
%
of the
FY
24-25
expenditure budget as of
December 31
, 2024. During the same period ending
December 31
, 2023, the
City expended
$
7.7 million or 40.6
%
of the FY23-24
expenditure budget. When comparing at
classification level,
the
Interdepartmental Charges related to self -insurance contributions decreased due to the recalculation of the Sanitation Division’s contributions to the Self -Insurance Fund. On the other hand,
the
Materials, Supplies & Maintenance classification showed
an
increase
in year
-
to-date actuals, which is primarily due to
the increase in
the fleet labor hours.
The Sanitation Fund has 3.0 FTE vacancies for Sanitation Equipment Operator, of which 2.0 FTE are expected to remain unfilled through the end of the fiscal year.
Based on currently approved
recruitment requests, this department is projected to generate $444,000 in budgetary savings.
Overall, the Sanitation
Fund’
s operating fund is projected to
operate at
a
$
25,000
deficit.
To address
this operating deficit, City Council approved a series of rates increases using the Proposition 218 Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Licenses, Fees and Permits - - 0.0% - 2,483 0.0% 38,000 38,000 0.0% Use of Money and Property (20,950)
(95,396)
455.4% (261,000)
(146,950)
56.3% (253,850)
7,150
97.3%
Charges for Services 13,927,864
5,516,542
39.6% 16,467,469
6,428,195
39.0% 17,838,770
1,371,301
108.3%
Other Revenues 50,000
39,966
79.9% 125,000
54,809
43.8% 109,620
(15,380)
87.7%
Operating Transfers In 351,768
175,884
50.0% 382,321
191,163
50.0% 382,321
-
100.0%
Total Revenues 14,308,682$
5,636,996$
39.4% 16,713,790$
6,527,217$
39.1% 18,076,861$
1,363,071$
108.2%
Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
j
% of
Budget
Salaries and Employee Benefits 4,127,511$ 1,980,106$ 48.0% 4,716,434$ 2,077,067$ 44.0% 4,272,626$ 443,808$ 90.6% Salaries and Benefits Reimb. -
(116)
0.0% -
(4,224)
0.0% -
-
0.0%
Materials, Supplies & Maintenance 3,599,132
1,170,811
32.5% 3,886,729
1,470,419
37.8% 3,742,514
144,215
96.3%
Materials Reimbursements (50,000)
(45,823)
91.6% (150,000)
(50,381)
33.6% (150,000)
-
100.0%
Professional/Contract Services 4,977,374
1,508,363
30.3% 5,022,008
1,558,542
31.0% 4,782,365
239,643
95.2%
Training, Travel & Membership Dues 33,471
803
2.4% 82,300
41,795
50.8% 65,975
16,325
80.2%
Depreciation and Amortization 45,930
22,889
49.8% 227,337
25,274
11.1% 50,548
176,789
22.2%
Liabilities, Settlements & Insurance 68,083
41,330
60.7% 60,000
3,640
6.1% 57,000
3,000
95.0%
Utilities 3,990
753
18.9% 4,190
785
18.7% 3,590
600
85.7%
Interdepartmental Charges 3,272,232
1,574,497
48.1% 2,067,676
962,196
46.5% 1,998,950
68,726
96.7%
Debt Service 90,000
-
0.0% 90,000
-
0.0% 90,000
-
100.0%
Capital Acquisitions -
-
0.0% 25,000
-
0.0% 25,000
-
100.0%
Asset Contra Account -
-
0.0% (25,000)
-
0.0% (25,000)
-
100.0%
Bad Debts and Other Losses 98,860
97,014
98.1% 52,860
31,732
60.0% 52,860
-
100.0%
Other Operating Transfers Out 2,766,174
1,376,569
49.8% 3,134,975
1,331,812
42.5% 3,134,975
-
100.0%
Total Expenses 19,032,757$
7,727,196$
40.6% 19,194,509$
7,448,657$
38.8% 18,101,403$
1,093,106$
94.3%
Revenues Less Expenditures (4,724,075)$
(2,090,200)$
(2,480,719)$
(921,440)$
(24,542)$
2,456,177$
Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
270
53 hearing process through June 2028 as mentioned above . The goal of these rate increases is to reverse the structural deficit and rebuild reserves to sufficient levels
by June 2028.
Sanitation
Fund
-Vehicle
Replacement
Fund
Revenues and Expenditures by Classification
The Sanitation Fund-Vehicle Replacement Fund
receives
contributions from the Sanitation Fund-
Operating Fund to purchase vehicles. It is also where current vehicles are depreciated each month.
The funds
transferred
during FY24-25
are to fund the future purchase of vehicles through vehicle replacement charges.
As shown in the summary table above, the
Sanitation
Fund-Vehicle Replacement Fund realized
revenues of
$
1.1 million or 49.9
%
of the
FY24
-25
revenue budget as of
December 31
, 2024
. During
the same period ending December 31, 2023
, this fund realized
$
1.0 million in revenues, representing
52.7 %
of the
FY23
-24 revenue budget.
On the expenditure side, this fund realized expenditures of
$
391,000 or 45.0
%
of the
FY24
-25
expenditure budget as of December 31, 2024. During the same period ending
December 31
, 2023, the
City expended
$
430
,000
or 38.3% of the
FY23
-24
expenditure budget. Overall, it is projected that
revenues will exceed expenditures by
$1.
5 million at fiscal year-end.
The projection above
i
ncludes
the purchase of
four
(4)
CNG
Refuse Collection Trucks as
approved by Council on December 6, 2022
;
and four (4) CNG Refuse Collection Trucks as approved by Council on
November 28, 2023
; and
five (5)
CNG Refuse Collection Trucks as approved by Council on November 19, 2024
.
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Use of Money and Property 396,539$ 212,253$ 53.5% 555,000$ 344,445$ 62.1% 608,340$ 53,340$ 109.6% Operating Transfers In 1,451,180 761,069 52.4% 1,650,025 754,791 45.7% 1,650,025 - 100.0% Total Revenues 1,847,719$ 973,322$ 52.7% 2,205,025$ 1,099,236$ 49.9% 2,258,365$ 53,340$ 102.4% Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Depreciation and Amortization 1,122,803$ 430,273$ 38.3% 868,156$ 391,093$ 45.0% 782,187$ 85,969$ 90.1% Capital Acquisitions 7,893,460 446,737 5.7% 9,357,966 - 0.0% 9,357,966 - 100.0% Asset Contra Account (7,893,460) (446,737) 5.7% (9,357,966) - 0.0% (9,357,966) - 100.0% Total Expenses 1,122,803$ 430,273$ 38.3% 868,156$ 391,093$ 45.0% 782,187$ 85,969$ 90.1% Revenues Less Expenditures 724,916$ 543,049$ 1,336,869$ 708,143$ 1,476,178$ 139,309$ Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
271
54 Sewer Fund Mid-Year Results
The Sewer Fund supports the maintenance and improvement of the City’s sewer system, as well as the upkeep and replacement of vehicles used by the Sewer Division within the Public Works Department. It includes multiple sub-funds, such as the Sewer Fund-Operating Fund and the Sewer Fund-Vehicle Replacement Fund, which are funded primarily through sewer discharge fees.
To ensure continued investment in the City’s sewer infrastructure, the City Council approved a series of annual sewer rate increases from January 2023 through December 2027. Additionally, the fund receives support from user fees and transfers from the Gene ral Fund-Operating Fund to help fund the senior discount program.
Sewer
Fund
Overall
Revenues and Expenditures
As
of
December
31 , 2024, the Sewer Fund generated
$3.6 million
in revenue or
41.8 % of the FY24-25
budget, compared to
$3.4 million
or
39.8 %
for the same period in FY23
-24.
On the expenditure side, the fund
is operating
closely to plan
, incurring $3.1 million in expenses or
52.9% of the FY24 -25 budget as of December 31, 2024. This represents a decrease from the
$4.5
million or 65.4% spent during the same period in FY23 -24. Overall, the fund is projected to end the fiscal year with a
$2.9 million
surplus, which will be analyzed in further detail in the following sections.
Amended
Budget
July-December
Actuals
Budget
Realized
Amended
Budget
July-December
Actuals
Budget
Realized
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Total Revenues 8,622,923$ 3,432,521$ 39.8% 8,616,082$ 3,597,715$ 41.8% 8,473,369$ (142,713)$ 98.3% Total Expenses 6,891,511 4,504,853 65.4% 5,823,593 3,082,699 52.9% 5,545,203 278,390 95.2% Rev. Less Exp. 1,731,412$
(1,072,332)$
2,792,489$
515,016$
2,928,166$
135,677$
Prior Year FY23-24 Current Year FY24-25
272
55 Sewer Fund -Operating Fund Revenues and Expenditures by Classification
The Sewer Fund-Operating Fund provides insight into the day -to-day operations of the City’s sewer system. As of December 31, 2024, the fund has collected
$3.4 million
in revenue or 42.7% of the FY24
-
25 budget, compared to
$2.9 million
or 37.9% for the same period in FY23 -24. The increase is primarily due to the annual rate
adjustment
approved by the City Council.
Overall
, staff expect the
total projected revenue to be lower than budget by
$143,000
.
On the expenditure side, the fund has spent
$3.0 million
or 53.1% of the FY24
-
25 expenditure budget,
as of December 31, 2024. This is a decrease from
$4.5 million
or 66.4% of the budget during the same
period in FY23-24, primarily due to a $1.4 million reduction in transfers to the Vehicle Replacement and Capital Project Funds. Overall, the Sewer Fund-Operating Fund is projected to end the year with a
$2.5 million
surplus.
The S ewer Fund has
1 .0 FTE vacancies for
Wastewater Technician
, which
is
expected to remain
unfilled through the end of the fiscal year. Based on currently approved recruitment requests, this department is projected to generate $184
,000 in budgetary savings.
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
j
% of
Budget
Use of Money and Property 216,234$ 124,987$ 57.8% 590,000$ 258,973$ 43.9% 468,730$ (121,270)$ 79.4% Charges for Services 7,495,161
2,787,837
37.2% 7,315,073
3,131,654
42.8% 7,333,800
18,727
100.3%
Other Revenues 13,556
14,298
105.5% 50,000
4,396
8.8% 10,000
(40,000)
20.0%
Operating Transfers In 22,212
11,106
50.0% 34,347
17,172
50.0% 34,347
-
100.0%
Total Revenues 7,747,163$
2,938,228$
37.9% 7,989,420$
3,412,195$
42.7% 7,846,877$
(142,543)$
98.2%
Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Salaries and Employee Benefits 1,702,959$ 881,901$ 51.8% 1,956,558$ 871,274$ 44.5% 1,772,486$ 184,072$ 90.6% Materials, Supplies & Maintenance 332,840
152,849
45.9% 348,642
131,358
37.7% 309,521
39,121
88.8%
Materials Reimbursements -
(190)
0.0% -
(929)
0.0% (2,183)
2,183
0.0%
Professional/Contract Services 623,677
147,422
23.6% 509,250
135,725
26.7% 485,000
24,250
95.2%
Training, Travel & Membership Dues 10,447
374
3.6% 15,246
121
0.8% 14,250
996
93.5%
Depreciation and Amortization 1,127
-
0.0% -
-
0.0% -
-
0.0%
Utilities 68,917
33,617
48.8% 97,557
29,453
30.2% 92,841
4,716
95.2%
Interdepartmental Charges 765,634
364,316
47.6% 744,053
346,094
46.5% 713,672
30,381
95.9%
Capital Acquisitions 6,906
-
0.0% 25,000
-
0.0% 25,000
-
100.0%
Asset Contra Account (4,700)
-
0.0% (25,000)
-
0.0% (25,000)
-
100.0%
Bad Debts and Other Losses 36,459
30,486
83.6% 20,000
10,863
54.3% 20,000
-
100.0%
Other Operating Transfers Out 3,172,145
2,849,265
89.8% 1,917,662
1,457,056
76.0% 1,917,662
-
100.0%
Total Expenses 6,716,411$
4,460,040$
66.4% 5,608,968$
2,981,015$
53.1% 5,323,249$
285,719$
94.9%
Revenues Less Expenditures 1,030,752$
(1,521,812)$
2,380,452$
431,180$
2,523,628$
143,176$
Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
273
56 Sewer Fund -Vehicle Replacement Fund Revenues and Expenditures by Classification
The Sewer Fund-Vehicle Replacement Fund
receives contributions
from the Sewer Fund -Operating
Fund to purchase vehicles and to record monthly depreciation of current vehicles. Transfers made in FY24
-
25 will fund future vehicle replacement costs. As of December 31, 2024, the fund has generated $163,000
in revenue or 25.9% of the FY24 -25 budget. This compares to
$494,000
or
56.4%
during the same period in FY23
-24.
On the expenditure side, the fund incurred $102,000
in expenses or 47.4% of the FY24 -25
expenditure budget as of December 31, 2024. This represents an increase from
$45,000
or 25.6%
of
the budget for the same period in FY23 -24, due to higher depreciation expenses related to newly acquired vehicles.
Overall, the fund is projected to end the year with a
$380,000
surplus. This projection includes the
purchase of two CNG Vactor Sewer Cleaner Trucks, one CNG Ramjet Jet Rodder Truck, two Ford F - 350 Dump Trucks (approved by Council on December 20, 2022), and one Ford F -450 Crane Truck (approved by City Manager appropr
iation).
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Use of Money and Property 63,615$ 45,028$ 70.8% 109,000$ 50,241$ 46.1% 83,830$ (25,170)$ 76.9% Operating Transfers In 812,145 449,265 55.3% 517,662 112,279 21.7% 517,662 - 100.0% Total Revenues 875,760$ 494,293$ 56.4% 626,662$ 162,520$ 25.9% 601,492$ (25,170)$ 96.0% Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Depreciation and Amortization 175,100$ 44,813$ 25.6% 214,625$ 101,684$ 47.4% 221,954$ (7,329)$ 103.4% Capital Acquisitions 2,518,276 - 0.0% 4,398,355 1,338,196 30.4% 4,398,355 - 100.0% Asset Contra Account (2,518,276) - 0.0% (4,398,355) (1,338,196) 30.4% (4,398,355) - 100.0% Total Expenses 175,100$ 44,813$ 25.6% 214,625$ 101,684$ 47.4% 221,954$ (7,329)$ 103.4% Revenues Less Expenditures 700,660$ 449,480$ 412,037$ 60,836$ 379,538$ (32,499)$ Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
274
57 Transit Fund Mid-Year Results
The Transit Fund finances and manages the City’s fixed -route transit system and the Torrance Community Transit Program, ensuring efficient and reliable transportation services for the community.
Transit
Fund Revenues and Expenditures by Classification
As of December 31, 2024, the City has collected
$18.9 million
in Transit Fund revenues, representing
53.5% of the FY24 -25 budget. This
represents
a decline from the
$22.3 million
or 60.0% collected
during the same period in FY23-24
.
The decrease is mainly due to a reduction in Intergovernmental revenue, partially offset by increase s in Charges for Services and Use of Money and Property
. Year
-
to-date receipts in the Intergovernmental category have decreased by
$3.9 million
, largely driven by
lower
receipts
from
LA Metro
for
Measure
M and
Measure
R
funding
.
The Transit Department currently has
$29.9 million
in unspent Federal Transit Administration grants
dating back to 2009, along with an additional
$7
4.2 million
in unspent grants from other sources.
On the expenditure side, the Transit Fund has incurred
$18.3 million
in expenses or 44.2% of the
FY24-25 budget as of December 31, 2024. This is an increase from the
$15.7 million
or 40.7% spent
during the same period in FY23 -24, primarily due to higher
expenses
in the
Salaries and Employee
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
j
% of
Budget
Use of Money and Property 1,029,127$ 672,720$ 65.4% 1,718,000$ 879,908$ 51.2% 1,556,330$ (161,670)$ 90.6% Intergovernmental 31,869,767
19,678,385
61.7% 29,545,571
15,782,925
53.4% 27,461,000
(2,084,571)
92.9%
Charges for Services 1,326,028
469,683
35.4% 940,001
691,609
73.6% 1,519,330
579,329
161.6%
Other Revenues 30,000
8,957
29.9% 30,000
736
2.5% 1,100
(28,900)
3.7%
Operating Transfers In 3,000,000
1,509,000
50.3% 3,000,000
1,512,000
50.4% 3,000,000
-
100.0%
Total Revenues 37,254,922$
22,338,745$
60.0% 35,233,572$
18,867,178$
53.5% 33,537,760$
(1,695,812)$
95.2%
Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Salaries and Employee Benefits 22,491,793$ 9,053,070$ 40.3% 23,152,327$ 10,239,751$ 44.2% 21,476,616$ 1,675,711$ 92.8% Materials, Supplies & Maintenance 2,665,113
1,370,689
51.4% 3,593,905
1,436,728
40.0% 3,768,214
(174,309)
104.9%
Materials Reimbursements (250,000)
(77,658)
31.1% (250,000)
(41,513)
16.6% (250,000)
-
100.0%
Parts, Fuel & Lubricants Purchases 1,384,991
714,631
51.6% 1,811,250
602,209
33.2% 1,725,000
86,250
95.2%
Parts, Fuel & Lubricants Contra (1,384,991)
(714,631)
51.6% (1,811,250)
(602,209)
33.2% (1,725,000)
(86,250)
95.2%
Professional/Contract Services 2,356,063
718,770
30.5% 3,358,586
1,160,937
34.6% 3,505,444
(146,858)
104.4%
Training, Travel & Membership Dues 159,022
47,369
29.8% 125,037
50,684
40.5% 120,570
4,467
96.4%
Depreciation and Amortization 3,964,089
1,365,675
34.5% 3,238,219
1,241,744
38.3% 2,567,379
670,840
79.3%
Liabilities, Settlements & Insurance 217,639
102,330
47.0% 217,639
-
0.0% 217,639
-
100.0%
Utilities 144,845
60,062
41.5% 233,466
112,776
48.3% 233,453
13 100.0%
Interdepartmental Charges 6,666,292
3,050,075
45.8% 7,172,359
3,505,191
48.9% 6,816,586
355,773
95.0%
Capital Acquisitions -
-
0.0% 50,000
30,144
60.3% 47,500
2,500
95.0%
Asset Contra Account -
(71,859)
0.0% (50,000)
-
0.0% (50,000)
-
100.0%
Other Operating Transfers Out 76,578
38,286
50.0% 630,954
587,516
93.1% 630,954
-
100.0%
Total Expenses 38,491,434$
15,656,809$
40.7% 41,472,492$
18,323,958$
44.2% 39,084,355$
2,388,137$
94.2%
Revenues Less Expenditures (1,236,512)$
6,681,936$
(6,238,920)$
543,220$
(5,546,595)$
692,325$
Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
275
58 Benefits and Professional/Contract Services due to the accelerated timing of major software subscriptions
and
dial-a-lift services.
The Transit Fund has
27. 3 FTE vacancies, of which
6.5 FTE are expected to remain unfilled through
the end of the fiscal year. Based on currently approved recruitment requests, this department is projected to generate $
1.7 million
in budgetary savings. Overall, the Transit Fund is projected to end the year with a
$5.5 million
deficit.
276
59 Water Fund Mid-Year Results
The Water Fund consists of multiple sub -funds, including the Water Fund -Operating Fund and the Water Fund-Vehicle Replacement Fund, which manage water fees to support the City’s water system and maintain Water Division vehicles within the Public Works Depa rtment. The City Council approved annual water rate increases over five years, with rates rising by 6.5% on January 1, 2025, and 2026, and by 6% on January 1, 2027, 2028, and 2029. The fund is also supported by user fees and operating transfers from the General Fund-Operating Fund to fund the senior discount program.
Water
Fund
Overall Revenues and Expenditures
As outlined in the summary table, the Water Fund generated $27
.3 million
in revenue as of
December 31, 2024, representing 49.7
%
of the FY24-25 revenue budget. In comparison, revenue for the same period in
FY23
-
24 totaled
$
22.7 million
or
41. 5%
of that year’s budget.
On the expenditure side, the Water Fund incurred
$
26.3 million in expenses or
50.6 %
of the FY24-25
expenditure budge
t
as of
December 31
, 2024. For the same period in FY23-24, expenditures reached $31.1
million or 55.1
% of the budget. Overall, the fund is projected to close the fiscal year with a $10.4
million surplus
, which will be analyzed further in the following sections.
277
60 Wat er Fund -Operating Fund Revenues and Expenditures by Classification
A closer look at the Water Fund -Operating Fund provides insight into its daily operations. As of December 31, 2024, the fund generated
$
27.0 million in revenue, representing
49.7 % of the FY24-25
revenue budget. In comparison, revenue for the same period in FY23 -24 totaled
$
22.5 million or
41.4 % of that year’s budget. Within the
Charges for Services
category, revenues increased by
$4.1
million or 18.9% year -over-year. This is
primarily due to higher potable
and reclaimed water
consumption at the Torrance Ref inery, as well as increase
d
consumption to all other customers .
Potable water consumption at the Refinery rose by
31.4 %
coupled with a 2.1% higher average
rate
,
while non-Refinery potable water consumption increased by
6.1 % with a comparable average rate
through December 31,
2024,
when compared to prior year
.
Reclaimed water at the Refinery
had
a
10.5% rate increase, partially offset
by declined
consumption
by 0.4%
.
On the expenditure side, the fund recorded $26.2 million in expenses or 50.6
% of the FY24
-25
expenditure budget as of December 31 , 2024. This represents a decrease from the
$
31.1 million or
55.1 % spent during the same period in FY23
-24, primarily due to a
$7.1 million
reduction in
Operating Transfers Out . The prior year included transfers to the Water Capital Fund project to implement automated meter reading. On the other hand,
Water Supply Costs
have increased
compared to the prior year, primarily to supply the higher residential and commercial customer and Refinery’s demand for potable water, as well as an increase of reclaimed water purchased from West 278
61 Basin Municipal Water District, which correlates with the increase in the sales of reclaimed water at the Refinery mentioned above.
The Water Fund has
4 .0 FTE vacancies, for which all positions are expected to remain unfilled by the end of the fiscal year. Based on approved
recruitment requests this department is projected to
generate $ 554,000 in budgetary savings. Overall, the Water Fund-Operating Fund is projected to operate at a
$
10.1 million surplus, primarily driven by the projected increase in
Charges for
Services
mainly
from
Re
finery
potable water.
Wat
er
Fund
-Vehicle
Replacement
Fund Revenues and Expenditures by Classification
The Water Fund -Vehicle Replacement Fund receives contributions, primarily
from the Water Fund
-
Operating Fund to finance vehicle purchases and record monthly asset depreciation. Transfers in FY24-25 are allocated for future vehicle acquisitions through replacement charges.
As of December 31, 2024, the fund generated
$235,000
in revenue, representing 48.1% of the FY24 -
25 budget, compared to $202,000
or
44.1 % of budget for the same period in FY23
-24.
On the expenditure side, the fund recorded
$
69,000
in expenses or 47.9% of the FY24-25 budget as
of December 31, 2024, compared to $60,000
or 40.6% of
FY
23 -
24 budget for the same period in FY23-
24. Overall, revenues are projected to exceed expenditures by
$
354,000
at fiscal year -end. This
projection includes the purchase of two (2)
Ford F -350 trucks with Pacific Body Utility Bodies,
approved by the Council on December 20, 2022.
Revenues
Amended
Budget
July-December
Actuals
Budget
Received
Amended
Budget
July-December
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Use of Money and Property 60,014$ 34,009$ 56.7% 84,000$ 52,716$ 62.8% 93,580$ 9,580$ 111.4% Operating Transfers In 396,808 167,619 42.2% 404,217 182,123 45.1% 398,063 (6,154) 98.5% Total Revenues 456,822$ 201,628$ 44.1% 488,217$ 234,839$ 48.1% 491,643$ 3,426$ 100.7% Expenses
Amended
Budget
July-December
Actuals
Budget
Expended
Amended
Budget
July-December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/(Deficit)
% of
Budget
Depreciation and Amortization 147,465$ 59,922$ 40.6% 143,646$ 68,782$ 47.9% 137,568$ 6,078$ 95.8% Capital Acquisitions 934,867 - 0.0% 774,109 - 0.0% 774,109 - 100.0% Asset Contra Account (934,777) - 0.0% (774,109) - 0.0% (774,109) - 100.0% Total Expenses 147,555$ 59,922$ 40.6% 143,646$ 68,782$ 47.9% 137,568$ 6,078$ 95.8% Revenues Less Expenditures 309,267$ 141,706$ 344,571$ 166,057$ 354,075$ 9,504$ Prior Year FY23-24 Current Year FY24-25
Prior Year FY23-24 Current Year FY24-25
279
ATTACHMENT 1
Community Development
FY24-25
Adopted Budget
(06/04/24)
FY24-25 Proposed
Increase/
(Decrease)
FY24-25
Mid-Year
Proposed Budget
General Fund
Expenditure Increase/
(Decrease)
Total
Fiscal
Impact
Planning Associate 9.00 (1.00) 8.00 (120,208) (120,208) Senior Planner* - 1.00 1.00 120,208 120,208 Total 9.00 - 9.00 -$ -$ *Used Salary Costing for Planning Associate
Community Development
FY24-25
Adopted Budget
(06/04/24)
FY24-25 Proposed
Increase/
(Decrease)
FY24-25
Mid-Year
Proposed Budget
General Fund
Expenditure
Increase/
(Decrease)
Total
Fiscal
Impact
Planning Associate 9.00 (1.00) 8.00 (120,208) (120,208) Senior Planner* - 1.00 1.00 120,208 120,208 Total 9.00 - 9.00 - $ - $ *Used Salary Costing for Planning Associate
280