FY 25/26 Mid cycle financial Review
June 16,2025
Budget cycle
Adopt 2 Year Budget – FY 24/25 & 25/26 (June 2024)
24/25 surplus – ($4.5)
25/26 surplus– ($4.8)
1st Budget Review – FY 24/25 (Mid Year - April 2025)
Project Revenues & Expenditures for both budget years
2nd Budget Review – FY 25/26 (Mid Cycle - June 2025)
Report revenue/expenditure changes from Mid-Year
Request revisions for Year 1 & 2
Focuses on General Fund & other funds requiring revisions 3rd Budget Review – FY 25/26 GF Only (Mid Year - May 2026) Re-project GF Revenues & Expenditures for Year 2 (FY 25/26)
Changes from Mid-Year Forecast
FY 24/25 – No changes in projection
FY 25/26 – Increased projections for property tax, health costs & allocations FY 26/27 to 28/29
Utility Increases – water, gas and electric costs
Technology Increases –new systems being implemented which will have higher maintenance fees Employee Benefit Increases – forecast is conservative
Health – based on prior years usage/cost
PERS –Costs are calculated off of prior two years actuals and investment earnings.
Workers Compensation - based on claims which are unknown Liability Increases – forecast assumes a slight increase Property Insurance - City is switching insurance providers for City owned properties.
General liability - higher number of claims over past couple of yrs
5 year GF projections
Conservative Forecast:
No Recession
Continued Growth in revenues
No higher-than-normal benefit increases for PERS, Health, Works Comp No changes in wages beyond 26/27 MOU
No new State/Fed mandates or funding reductions
FY 24/25 Additional appropriations
Staff recommends to appropriate additional funds for the following project:
Riverway Sports Park Soccer fields fence ($1.0 million) - The project budget is $1.5 million and potential bidders informed staff that the amount is significantly low for the fencing which includes wrought iron around the parameters, chain link throughout the fields, and relocating irrigation.
This appropriation increases the budget to $2.5 million.
SURPLUS & EMERGENCY RESERVES POLICY
All surpluses be deposited into Emergency Reserve to maintain fund at a maximum 30% of operating expenditures.
Remaining surplus be deposited into the Civic Center/Public Safety Reserve Fund for future buildings 1-time monies & land sales be deposited into the Civic Center/Public Safety Reserve Fund for future buildings
SURPLUS
Current Policy – Surplus will be deposited into the Civic Center/PS Fund bringing the projected available total to $9.5 million.
This policy can be changed at anytime. However, FY 24/25 must be changed no later than Sept. 1, 2025 Policy Changes - Previous policies were based on setting aside funds for large projects:
Riverways Sports Park
East Regional Park Land Acquisition
Recreation Park Stadium Improvements
198 Open Space Land Acquisition
Surplus can be split amongst several projects based on a percentage, if desired
Upcoming Budget Process
FY 26/27 & 27/28 Budget
QUESTIONS
Staff Recommends:
Appropriate $1.0 million for the Sports Park Fence Project; and Start the Surplus Policy Discussion
Recommended Motion
Green = Policy level met