FY 2024-25 Adopted
Budget Presentation
Rekha Nayar, Finance Director
January 28, 2025
1 Agenda
• What is a budget
• Citywide Budget
• General Fund Revenue
• General Fund Expenditure
• Measure P
• Adopted Budget All Funds Revenue &
Expenditures
• CIP
• Five Year Projection & Fund Balance
Trends
• Budget Development & Assumptions
2 What is a budget?
3 What is a budget?
• Expected approved revenues and approved
expenditures for the upcoming fiscal year.
• Allocates city funds for various services and projects • It provides transparency & accountability, allowing
residents to see how their tax dollars are being utilized 4 Charter Requirements
• Per Section 701City Manager must submit a proposed
budget to City Council 45 days prior to the start of the fiscal year.
• Per Section 702 City Council is required to publish a summary of the proposed budget in the newspaper
and hold a public hearing no less than two weeks after
publication.
– Council shall adopt a budget no later than the last
day of the current fiscal year
– If adoption fails, the current fiscal year
appropriation will apply on a month-to-month
basis until adoption of full fiscal year.
Budget Process FY 2024-25
• March 11-15: Meet w/Depts to review baseline budget
• March 18:
– Depts submit budget asks
– City Council Goal Setting
• April 8-9:
– Staff creates proposed budget
• May 15:
– Delivered FY 24/25 Proposed budget to Council
(step 1)
– Uploaded Proposed budget to City’s Website
• May 30: Budget Workshop Special Council Meeting
• June 11: Public hearing of proposed budget for council adoption (step 2) for July 1st implementation.
Annual Budget
Kickoff
February
Council Goal
Setting
March
Budget
Workshop
May 30
Public Hearing
and Adoption
June 6
Implementation
July 1st
Midyear Budget
January
Adopted Budget page 19
5 Citywide Budget
6 Adopted Budget Overview (including
Measure P)
7 Adopted FY2024-25 All Funds Revenue Budget: $298.9 Million Adopted FY2024-25 All Funds Expenditure Budget: $284.88 Million Total Full Time Equivalent Positions: 682
Other Funds: Mare Island, Landscape District, Corp Yard, Housing, and Self Insurance Adopted Budget page 50 & 55
FTE page 35-49
FY 2024-25 FTE
551.35
565.5
587
629
647
681 680 681 682
408.86 418
433
470.5 482.5
507 504 505 506
300
400
500
600
700
800
FY 16-17
Amended
FY 17-18
Amended
FY 18-19
Amended
FY 19-20
Amended
FY 20-21
Amended
FY 21-22
Amended
FY 22-23
Amended
FY 23-24
Amended
FY 24-25
Proposed
City-Wide General Fund
Adopted Budget page 35-49
8 General Fund Revenue
9 General Fund Revenue FY 2024-25 Adopted
(excluding Measure P)
*Other: TOT, Franchise Tax, Property Transfer Tax, Water Rights, Rentals & Discovery Kingdom Adopted Budget page 70-84
10 Total with
Measure P:
$152.43M
Sales Tax Dollar Distribution
(including Measure P)
Category Rate
State General Fund 3.9375%
County Portion 2.4375%
City of Vallejo Portion 2.8750%
Total Sales Tax 9.2500%
Adopted Budget Page 80 & 228
11 Property Tax Dollar Distribution
Adopted Budget page 223
12 General Fund Expenditure
13 General Fund Expenditure
FY 2024-25 Adopted
(excluding Measure P)
14 Adopted Budget page 86
General Fund Expenditure by Classification
FY 2024-25 Adopted (Excluding Measure P)
Adopted Budget page 85
15 (In Millions) Adopted
FY 2024-25
Expenditures
Salaries $ 63.59
Benefits:
Pension (normal cost & unfunded liability) 34.26
Other Benefit Costs 17.06
Projected Vacancy Savings (6.65)
Compensation-Related Increase 1.08
Vehicle maintenance/replacement 4.34
Utilities 2.14
Services and Supplies 13.25
Bonds, Leases and Other Costs 1.67
Infrastructure/Capital Maintenance,
including streeets 4.07
General Liability 10.29
Citywide Overhead (10.82)
Total $ 134.29
Fiscal Year 2024-25 Police Department
(General Fund)
Adopted Budget page 130-138
16 Fiscal Year 2024-25 Other Funds
managed by Police Department
17 • Administrative Fund #601(K9 Services) – Page 197
• Asset Seizure Program Fund #139 – Page 212
• Traffic Offender VETO Fund #140 – Page 212
• Supplemental Law Enforcement Grant Fund #151 – Page 212 Fiscal Year 2024-25 Fire Department
(General Fund)
Adopted Budget page 107-112
18 Fiscal Year 2024-25 Public Works
Department (General Fund)
Adopted Budget page 107-112
19 Fiscal Year 2024-25 Other Funds
managed by Public Works Department
20 • Marina Fund #415 - Page 159-160
• Vallejo Parking Station Fund #431 - Page 161-162
• Mare Island CFD Fund #112, 113 & 114 – Page 180
o Building, street, bridge, grounds & infrastructure
maintenance project
• Fleet Maintenance/Replacement Fund #501 & #502 – Page 185-186
• Gas Tax Fund #133 – Page 187-188
• Landscape Maintenance District – Page 189-194
• Hazmat Fund #143 (Hazardous Waste) – Page 198
• Outside Funded Services Fund #129 (Developer Deposit
Fees) – Page 198
• State Land Commission Fund #134 – Page198
Fiscal Year 2024-25 P&DS Department
(General Fund)
Adopted Budget page 123-129
21 • Outside Funded Services Fund #129 (Developer Deposit Fee) – Page 198 Fiscal Year 2024-25 Administration
Departments (General Fund)
Adopted Budget page 87
22 Fiscal Year 2024-25 Other Funds
managed by Administration Departments
23 • (IT) - Fiber Fund #432 – Page 154-156
• (EDD) - Golf Fund #425 – Page 157-158
• (EDD) - Mare Island Programs – Page 179-180
• (EDD) - McCune Collection Fund #603 – Page 198
• (Finance) - Debt Services – Page 209-210
• (Risk) - Risk Management (Self Insurance) – Page 213-215 • (CAO) - NLP Nuisance Abatement Fund #147 – Page 198
• (Various) - Outside Funded Services Fund #129 – Page 198 Fiscal Year 2024-25 Water Enterprise Fund
Adopted Budget page 171
24 Fiscal Year 2024-25 Housing Fund
Adopted Budget page 205-207
25 Housing
(In Millions) FY 24-25
Adopted
City Funds
Fund 101 Community Development Block Grant (CDBG) $ 1.01 Fund 102 HOME Investment Partnership 0.56
Fund 103 Neighborhood Stabilization Program 0.01
Total City Funds 1.58
Housing Authority
Fund 121 Admin Program (Salaries & Service/Supplies) 3.34 Fund 122 Operating Reserve -
Fund 123 Voucher Program 19.66
Fund 124 Housing Development -
Fund 126 Affordable Housing 0.03
Total Housing Authority Funds $ 23.02
Measure P
26 Measure P Expenditures
27 Adopted Budget page 81
Defibrillator Replacements for Fire Department
Security Services
Extreme Weather Centers
Navigation Center
Graffiti Removal Equipment
Streetlight repair/expansion
Dumping Prevention
Council Support and Outreach
Community Grants (for 2 year period)
Firefighter Academy
Maintain Emergency Medical Response
Maintain Crime Prevention
Address Homelessness
Address Blight
Address Dumping
Youth Priorities
Total: $4.03M
Adopted Budget All Funds
Revenue & Expenditures
28 Adopted Budget Revenue by Source
(including Measure P)
Adopted Budget page 50
29 Adopted Budget Expenditure All Funds
(including Measure P)
Adopted Budget page 55
30 CIP
31 FY 24-25 CIP: Overview
32 • CIP Purpose
– Establishes current year transportation, water, and facility Capital Improvement Budget
– Provides a funding guide for prioritization of projects to accomplish community goals over the next five years
• General Plan Conformance Requirement
– State law (Government Code Sections 65103(c) and 65401) FY 24-25 CIP: Prioritization Criteria
33 • Elimination of potentially hazardous or unsafe
conditions and potential liability
• Compliance with regulatory requirements and
mandates
• Replacement of high-maintenance, inefficient or
ineffective infrastructure
• Preservation of existing assets
• Improvement to services to the public
• Stimulation of the local economy and elimination of
blighted conditions
• Support of General Plan priorities
FY 24-25 CIP: Funding
34 Projects identified in the CIP are funded through a variety of mechanisms
• Grants
– Federal, State, Regional
• Gas Taxes & Road Funding
– Highway Users Tax Act (HUTA)
– Road Maintenance Rehabilitation Account (RMRA) /
Senate Bill 1 (SB1)
• General Fund, Fees, and more
Approval of funding toward projects is authorized as part of the City’s Budget Process.
Five Year Projection
& Fund Balance Trends
35 General Fund Five Year Forecast
(excluding Measure P)
Adopted Budget page 63-64
36 Five Year Assumptions
• Revenue: Prepared individually for each revenue
source. See page 73-77 in the Adopted book for
additional information.
• Expenditure:
– Utilities: Average 5% increase
– Service & Supplies: 2% increase
– Bonds, Leases & Other Cost: Actual costs
from bond issue documents & repayment
schedule
– Infrastructure/Capital Maintenance,
including streets: Funding for Participatory
Budget, street & building and budgeted flat out
years
37 General Fund Balance including Unassigned
Trends
38 Refer Pg iv of 2023 ACFR
Budget Development
& Assumptions
39 Budget Development & Assumptions
40 • Salaries: Annual costs calculated per authorized position using council-approved salary schedules.
Vacant positions are budgeted at step 3 of the salary schedule. • Projected Salary Savings: Assumed 9% vacancy savings of total authorized salaries and benefits.
Budget Development & Assumptions
41 • Pension Funding: City makes two contributions to CalPERS (Unfunded Accrued Liability and Normal Cost).
• Normal Cost: represents the annual cost of service accrual for the upcoming fiscal year for active employees. Year-end budget-to-actual delta is transferred to the PARS trust account as per previous council direction.
• Unfunded Liability: is the amortized dollar amount needed to fund past service credit earned for members who are currently receiving benefits, active members, and for members entitled to deferred benefits, as of a valuation date. Payments are made annually, maximizing a 3% discount which is transferred to the PARS trust account annually. • PARS trust is reported as 'Restricted Fund Balance,’.
Budget Development & Assumptions
42 • Worker's Compensation & General Liability: Costs calculated as a percentage of payroll, based on actuarial funding recommendation and five-year claim history per department. • Anticipated Compensation Increase: Budgeted at 3.5% for agreements expiring by June 30, 2024.
• Fleet Replacement: Costs based on a five-year average replacement schedule, updated annually. • Fleet Maintenance: Budgeted based on prior year expenses and anticipated inflationary costs. • Risk Self-Insurance:
o Funded at 80% confidence level
o Estimated liability for the program:
General Liability $14.97M
Workers’ Compensation $18.66
• Accrued Leave (Compensated Absences)
o Pay-go funding: General Fund budget is $500K
• Budget Carryovers: Encumbered appropriations, funds for uncompleted capital, participatory budgeting, and grant projects are carried forward to the next fiscal year. Unencumbered appropriations lapse at year end.
Conclusion
• The FY 2024-25 Adopted Budget Book provides a detailed overview of the City of Vallejo's financial plans & priorities. • The budget reflects a commitment to public safety,
infrastructure improvements, and community
development while adhering to budgetary controls.
43 CONTACT(S)
Rekha Nayar: [email protected]
Florita Cruz: [email protected]
44 Broadway Project
Monthly Update
Gillian Haen, Assistant City
Manager
Natalie Peterson, Assistant to
the City Manager
Broadway Project
• 47 Permanent Supportive
Housing Units (studios)
• 1 manager unit
• Community room
• Courtyard
• On-site wrap around services
• Partners:
– Developer: Firm Foundation
– Operator: Shelter Inc.
Property
• Location: 1937 Broadway Street
• Site currently under construction
85% completed
• Ownership – Firm Foundation
currently owns site (through
construction)
• City of Vallejo – will own project
once construction is completed
Timeline
• May 2022 – awarded Homekey
Grant
• June 2022 – Council accepted
grant and amended budget
• September 19, 2022 –
Construction started
• September 24, 2024 – Measure P
and City ARPA Funds Allocated by
Council
• TCO – anticipated end of March
2025
– Full occupancy within 90 days
of completion
Project Funding
Funding Source Amount
State of CA – Homekey $11,621,866
City of Vallejo American Rescue Plan Act (ARPA) $192,740 Solano County American Rescue Plan Act (ARPA) $3,000,000 City of Vallejo American Rescue Plan Act (ARPA) #2 $200,000 State of CA – Infill Infrastructure Grant Program (IIG) $2,559,656 Wells Fargo Grant* $90,000
Low and Moderate-Income Housing Asset Fund (LMIHAF) Fund $3,300,000 City of Vallejo American Rescue Plan Act (ARPA) #3 $3,270,335 Measure P Loan Funding $2,879,665
Total Funding $27,114,262
* Funding allocated directly to Firm Foundation
Update on Funding
• Total Funding Secured:
$27,114,262
• Funding Spent: $22,885,745
• Remaining Funding: $ 4,228,517
• Remaining Funding is anticipated
to complete the construction of
the project at the current
construction schedule*
• Cost per unit- ~$550k
– Statewide average: $800k per
unit
– Solano County average: $664k
per unit
*pending items
outside of City or
Developer’s control
Construction Status
• Under Construction – 85% complete
• Anticipated to receive TCO – end of March
– Weather delays: 9 days through February -
4/11 TCO projected (not counting March
Weather as it is not available yet)
– Fires in SoCal are unknown timeline factor
regarding PGE connection
• Remaining Items – highlighted in the
construction schedule (in agenda packet)
**Unknown Risk: Weather and Fires in SoCal on PG&E permanent power – still unknown how this may affect the timelines. Staff will keep Council updated as information becomes available
CONTACT(S)
Gillian Haen, Assistant City
Manager
[email protected]
Response to Questions from Councilmembers Regarding the January 28, 2025 Council Agenda 1 Consent 8C – Payment of Claims: November 2024 Could you please provide more information regarding the topic below? Can you also provide the original resolution? Response: The information provided in the SR is required as per our municipal code 2.02.360 D: 2.02.360 - Payment of claims. “D. The check register shall be ratified by the city council at a regular city council meeting. An aPidavit of the finance director shall be attached to the check register certifying its accuracy. ” Finance department generates the report that complies all the payments made monthly and provides it to council for ratification. This is a standing consent item that is brough to council every month. Consent Item 8E– On-Call Co-Op Purchase Agreement with United Rentals Could you please provide more information regarding the topic below? Can you also provide the original resolution? Response: City departments often utilize rental companies for a variety of equipment that we may not have or equipment that is not available for use because they are undergoing repair. Some equipment could be generators, lifts, compressors, specialized tools, and more. The City has an agreement with the cooperative purchasing program Sourcewell, that competitively awards contracts on behalf of its participating agencies (Vallejo being one of them). In September 2024, the City entered into a contract with United Rentals, which is within the signing authority of the City Manager. To date, $100,000 has been spent or is encumbered and the need for additional rental for Public Works and Water Departments will be over the $100,000 threshold so we are required to request Council approval. There is no original resolution as the original contract was approved at the City Manager level. You may review the contract and the draft resolution for the amendment, in the item attachments at https://vallejoca.portal.civicclerk.com/event/3110/files/report/5225 We try our best to explain the need and our proposed requests in our staW reports, and we attach all necessary back up documents as required. I apologize if anything was unclear. Thank you for reaching out so that we could provide you with the information you need.