FISCAL YEAR 2024-2025
MID-YEAR BUDGET REVIEW
Finance Department – City of Victorville
February 18, 2025
2 OBJECTIVES
The Mid-Year Budget Review plays a crucial role in ensuring the City's financial stability by providing an opportunity to:
Evaluate the financial status of the General Fund, Measure P Fund, Other Governmental Funds, and Enterprise Funds as of December 31, 2024
Approve necessary budget adjustments to ensure a more accurate financial picture of the current fiscal year's budget Identify and address any potential shortfalls or issues early in the year
Provide clear and up-to-date financial information to the City Council and the public to promote transparency
Shift funding to meet changing priorities and emerging needs Use updated financial data to guide decisions for the remainder of the year
Show the community that the City is managing its finances responsibly and effectively
Brief Mid-Year Budget overview of the current Fiscal
Year’s budget performance
Mid-Year Budget Comparison (Citywide)
Summary of proposed budget adjustments (Revenues
and Expenditures)
Highlight key revenue and expenditure adjustments
General Fund and Measure P reserve levels
Impact of the adjustments
Conclusion
3 OVERVIEW
MID-YEAR BUDGET OVERVIEW
FY 2024-2025
Citywide Adopted
Budget
Revised
Budget
Actuals
Through
12/31/2024
% Received
/Expended
Revenues $354,524,440 $361,654,062 $151,100,983 42%
Expenditures $377,874,602 $456,052,571 $129,595,604 28% General Fund Adopted
Budget
Revised
Budget
Actuals
Through
12/31/2024
% Received
/Expended
Revenues $101,023,995 $101,065,518 $43,252,393 43%
Expenditures $105,201,604 $107,009,469 $51,701,924 48%
4 MID-YEAR BUDGET OVERVIEW
FY 2024-2025 (CONT.)
Measure P Adopted
Budget
Revised
Budget
Actuals
Through
12/31/2024
% Received
/Expended
Revenues $33,383,408 $37,083,408 $14,506,186 39%
Expenditures $37,337,430 $55,765,553* $16,255,159 29%
5 • Revised expenditures include the following:
• $12 million in reserves for the buildout of the new police station • $1.55 million in reserves for Fire apparatus replacement
MID-YEAR BUDGET COMPARISON
Citywide FY 2024-25
Revised Budget
Requested
Increase /
(Decrease)
Mid-Year
Proposed Budget
Revenues $361,654,062.00 $2,973,106.64 $364,627,168.64
Expenditures (O&M) $320,391,995.00 $4,789,701.87 $325,181,696.87 Surplus / (Deficit) $41,262,067.00 $(1,816,595.23) $39,445,471.77 Capital Improvements $135,660,576.00 $(1,559,827.00) $134,100,749.00 Revenues Over Total
Expenditures
$(94,398,509.00) $(256,768.23) $(94,655,277.23)
6 PROPOSED REVENUE ADJUSTMENTS
Departments FY 2024-2025
Revised Budget
Requested
Increase/(Decrease)
Mid-Year
Proposed Budget
General Fund (100)
Code Comp. /Animal Control $830,000.00 $16,620.87 $846,620.87 Building /Business License $3,112,000.00 ($173,500.00) $2,938,500.00 City Manager / City Clerk $350.00 $9,575.00 $9,925.00
Engineering $943,500.00 $697,000.00 $1,640,500.00
Community Services $1,215,257.00 $13,028.00 $1,228,285.00 Planning $218,000.00 $68,230.73 $286,230.73
Police $3,194,327.00 $90,000.00 $3,284,327.00
All Other Departments $91,552,084.00 $0.00 $91,552,084.00 General Fund Total $101,065,518.00 $720,954.60 $101,786,472.60 7 PROPOSED REVENUE ADJUSTMENTS (CONT.)
Departments FY 2024-2025
Revised Budget
Requested
Increase/(Decrease)
Mid-Year
Proposed Budget
Measure P (Fund 105)
Building $1,044,100.00 $71,300.00 $1,115,400.00
Facilities $118,800.00 $0.00 $118,800.00
Fire $0.00 $0.00 $0.00
Measure P $30,229,000.00 $0.00 $30,229,000.00
Planning $1,674,356.00 ($629,356.00) $1,045,000.00
Police $4,017,152.00 $0.00 $4,017,152.00
Measure P Fund Total $37,083,408.00 ($558,056.00) $36,525,352.00 8 PROPOSED REVENUE ADJUSTMENTS (CONT.)
Departments FY 2024-2025
Revised Budget
Requested
Increase/(Decrease)
Mid-Year
Proposed Budget
Other Governmental Funds
Building $650,000.00 $0.00 $650,000.00
Economic Development $5,826,774.00 $0.00 $5,826,774.00
Engineering $19,310,991.00 $13,000.00 $19,323,991.00
Internal Services (Finance/IT) $719,482.00 $0.00 $719,482.00 Fire $160,000.00 $0.00 $160,000.00
Community Services $2,380,000.00 $0.00 $2,380,000.00
Police $106,650.00 $0.00 $106,650.00
Public Works $9,706,888.00 $125,799.00 $9,832,687.00
Other Governmental
Funds Total $38,860,785.00 $138,799.00 $38,999,584.00
Other Governmental Funds: 111,120,200,201,202,205,220,221,230,233,240,241,242,250,277,303,350- 360,370,611,612,660 9 PROPOSED REVENUE ADJUSTMENTS (CONT.)
Departments FY 2024-2025
Revised Budget
Requested
Increase/(Decrease)
Mid-Year
Proposed Budget
Enterprise Funds
Airport $28,538,931.00 ($108,960.28) $28,429,970.72
Finance $11,092,647.00 $0.00 $11,092,647.00
Public Works $28,661,911.00 $221,000.00 $28,882,911.00
Solid Waste $30,356,151.00 $660,475.00 $31,016,626.00
VMUS $29,183,001.00 $0.00 $29,183,001.00
Water $56,811,710.00 $1,898,894.32 $58,710,604.32
Enterprise Funds Total $184,644,351.00 $2,671,409.04 $187,315,760.04 Citywide Revenue Total $361,654,062.00 $2,973,106.64 $364,627,168.64 Enterprise Funds: 410-414,416,419,420-423,425-428,450,452,455,457 10 HIGHLIGHTS OF REVENUE
ADJUSTMENTS
Increase in General Fund Engineering revenue by
$697,000 reflecting the current level of development
activity
Increase in General Fund Police Towed Vehicles
Administration Fee revenue by $90,000
Increase in General Fund Animal License revenue by
$10,000
Decrease in General Fund revenue for Plumbing Permit
Fees ($40,000), Electrical Permit Fees ($45,000), and
Mechanical Permit Plan Check Fees ($45,000)
Decrease in Measure P revenue by $558,056
11 Increase in Special Revenue Funds in the amount of $138,799
Increase in Water Fund (Fund 410) revenue by
$1,418,662.32
Increase of $417,000 in revenue for Industrial Wastewater Treatment Plant (IWWTP) Capacity Charge (Fund 416)
and Water Capacity Charges (Fund 414)
Increase of $881,475 in Solid Waste Management (Funds 425-426) revenues
Decrease of $108,960 in Southern California Logistics Airport (Fund 450) revenue
12 HIGHLIGHTS OF REVENUE
ADJUSTMENTS (CONT.)
PROPOSED EXPENDITURE
ADJUSTMENTS
Departments FY 2024-2025
Revised Budget
Requested
Increase/(Decrease)
Mid-Year
Proposed Budget
General Fund (100)
Code Comp. /Animal Control $1,457,229.00 ($85,572.64) $1,371,656.36 Building /Business License $2,546,766.00 $14,427.36 $2,561,193.36 City Manager / City Clerk $3,057,585.00 $16,509.63 $3,074,094.63 Engineering $353,133.00 $69,713.68 $422,846.68
Community Services $12,409,666.00 $245,257.08 $12,654,923.08 Planning $2,167,038.00 $156,174.59 $2,323,212.59
Int. Services (Finance/IT/HR) $20,774,655.00 $123,209.28 $20,897,864.28 Fire $16,675,359.00 $2,229,831.65 $18,905,190.65
Public Works $4,025,138.00 $25,040.00 $4,050,178.00
All Other Departments $43,542,900.00 $0.00 $43,542,900.00 General Fund Total $107,009,469.00 $2,794,590.63 $109,804,059.63 13 PROPOSED EXPENDITURE
ADJUSTMENTS (CONT.)
Departments FY 2024-2025
Revised Budget
Requested
Increase/(Decrease)
Mid-Year
Proposed Budget
Measure P (Fund 105)
Code Comp. /Animal Control $6,563,136.00 $0.00 $6,563,136.00 Building $964,013.00 ($46,700.00) $917,313.00
Capital $27,103,760.00 $33,600.00 $27,137,360.00
City Manager $449,767.00 ($6,423.93) $443,343.07
Community Services $2,540,046.00 $74,343.68 $2,614,389.68 Fire $5,415,273.00 $21,470.00 $5,436,743.00
Information Technology $74,000.00 $28,000.00 $102,000.00 Measure P $7,814,605.00 $0.00 $7,814,605.00
Planning $1,903,964.00 $0.00 $1,903,964.00
Police $2,642,634.00 $0.00 $2,642,634.00
Solid Waste $294,355.00 $0.00 $294,355.00
Measure P Total $55,765,553.00 $104,289.75 $55,869,842.75 14 PROPOSED EXPENDITURE
ADJUSTMENTS (CONT.)
Departments FY 2024-2025
Revised Budget
Requested
Increase/(Decrease)
Mid-Year
Proposed Budget
Other Governmental Funds
Building $320,554.00 $0.00 $320,554.00
Capital $22,829,941.00 $143,000.00 $22,972,941.00
Economic Development $4,492,736.00 $70,317.55 $4,563,053.55 Engineering $7,722,103.00 ($87,287.33) $7,634,815.67
Finance $470,139.00 $0.00 $470,139.00
Information Technology $308,412.00 $0.00 $308,412.00
Parks $118,288.00 $0.00 $118,288.00
Police $9,709.00 $0.00 $9,709.00
Public Works $10,412,907.00 $168,397.97 $10,581,304.97
Other Governmental
Funds Total $46,684,789.00 $294,428.19 $46,979,217.19
Other Governmental Funds: 111,120,200,201,202,205,220,221,230,233,240,241,242,250,277,303,350- 360,370,611,612,660 15 PROPOSED EXPENDITURE
ADJUSTMENTS (CONT.)
Departments FY 2024-2025
Revised Budget
Requested
Increase/(Decrease)
Mid-Year
Proposed Budget
Enterprise Funds
Airport $23,939,766.00 ($61,403.21) $23,878,362.79
Capital $81,745,096.00 ($1,736,427.00) $80,008,669.00
Economic Development $273,745.00 $2,946.84 $276,691.84
Engineering $3,888,395.00 ($61,551.85) $3,826,843.15
Finance $14,757,524.00 $370,000.00 $15,127,524.00
Public Works $19,483,822.00 $242,881.65 $19,726,703.65
Solid Waste $28,373,451.00 ($20,322.00) $28,353,129.00
VMUS $24,575,113.00 ($9,878.74) $24,565,234.26
Water $49,555,848.00 $1,310,320.61 $50,866,168.61
Enterprise Funds Total $246,592,760.00 $36,566.30 $246,629,326.30 Citywide Expenditure Total $ 456,052,571.00 $ 3,229,874.87 $ 459,282,445.87 Enterprise Funds: 410-414,416,419,420-423,425-428,450,452,455,457 16 Increase in General Fund Fire Department
expenditures by $2,229,831.65
Increase in General Fund Parks expenditures by
$132,616.10
Increase in General Fund Information Technology
Contract Services by $155,321.06
Increase Measure P expenditures by $104,289.75
Increase in Special Revenue Fund expenditures by
$294,428.19
17 HIGHLIGHTS OF EXPENDITURE
ADJUSTMENTS
Decrease in Water Capacity Charges (Fund 414) capital expenditures by $1,312,467
Decrease in Water Fund (Fund 410) capital
expenditures by $455,460
Decrease in Reclaimed Water Fund (Fund 413)
Contract Services expenditures by $200,000
Increase in Water Fund (Fund 410) expenditures by
$608,469
Increase in Solid Waste Management (Funds 425-427)
expenditures by $251,007.80
Decrease in Southern California Logistics Airport (Funds 450-457) expenditures by $61,403.21
18 HIGHLIGHTS OF EXPENDITURE
ADJUSTMENTS (CONT.)
SUMMARY OF PERSONNEL CHANGES
19 Personnel Changes Number of Positions Financial Impact Positions Deleted 16 ($895,876.49)
Positions Added 9 $66,801.51
Title Changes 2 $0.00
Net Impact 7 ($829,074.98)
Details provided in agenda item for Benefits Resolution No. 25-010 and Employee Salary Schedule
GENERAL FUND & MEASURE P
RESERVE LEVELS
20 IMPACT OF ADJUSTMENTS
Support Strategic Goals: Ensures that resources are
aligned to meet the City's strategic goals efficiently and effectively
Align with Operational Needs: Adjusts the budget to
reflect the current operational needs of various
departments, promoting smoother day-to-day operations
Address Increased Service Demands: Allows the City to meet the growing demand for services and programs,
ensuring continued responsiveness to the community
Maintain Fiscal Balance: Keeps revenues and
expenditures on track to achieve the City's budgetary
goals, helping to maintain financial stability throughout the year
21 CONCLUSION
While the General Fund is currently experiencing deficit spending, reserves and the City's overall financial position remains strong.
The Enterprise Funds are exceeding expectations with an increase in revenue over expenditures in the amount of $2,634,842.74. This positive performance significantly contributes to the City's overall financial stability.
Ongoing monitoring and potential adjustments throughout the remainder of the fiscal year will be essential to ensure long-term financial sustainability.
Additionally, the City continues to actively explore new revenue sources to support the community, maintain fiscal stability, and secure resources for future needs.
22 THANK YOU
QUESTIONS?
23