Agenda Item No. 09
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Phillip White, Director of Finance
Ryan Blackerby, Deputy Director of Finance
FOR: City Council Meeting of September 23, 2024
SUBJECT: Fiscal Year 2024 & Fiscal Year 2025 Budget Adjustment Report — September 2024 RECOMMENDATION:
That the City Council:
1. Approve the Budget Adjustments Requiring Council Approval (Attachments 1, 3 and 5); and
2. Receive and file the Staff Approved Budget Adjustments (Attachments 2 & 4).
BACKGROUND/DISCUSSION:
Staff may, on a quarterly and as -needed basis, present a variety of budget adjustments requiring the approval of the City Council. These changes include an explanation and justification for each transaction. This report includes adjustments that have been identified by monitoring department budgets, as an attachment to the report. Adjustments are segregated by fund and department as appropriate.
In addition, the report will also include, as an attachment, a summary of any budget adjustments approved by staff, consistent with the authority levels that were approved and delegated by Council in the City's Budget Policy (Resolution 2024-25).
Procurements near the end of the fiscal year can create challenges with budget maintenance.
Purchases ordered based on FY24 budget but not delivered until the subsequent fiscal year are systematically blocked from being paid in FY24 because the authorizing budget has lapsed. The attached documents detail the "rollover" budget adjustments being requested.
Attached to this report are Rollover Budget Adjustments Requiring City Council's Approval (Attachment 1), FY24 Budget Adjustments Requiring City Council's Approval (Attachment 3), and FY25 Budget Adjustments Requiring City Council's Approval (Attachment 5). Also, you will find budget adjustments authorized under staff authority for each FY24 (Attachment 2) and FY25 (Attachment 4).
FISCAL IMPACT:
The fiscal impact of each item is indicated within the attachment(s).
Attachment(s):
1. Rollover Budget Adjustments Requiring City Council's Approval
2. Staff Approved Budget Adjustments — FY24
3. FY24 Budget Adjustments Requiring City Council's Approval
4. Staff Approved Budget Adjustments — FY25
5. FY25 Budget Adjustments Requiring City Council's Approval Approved by:
ATTACHMENT 1
City Council, September 23, 2024
Budget Adjustment Report
Attachment 1
Rollover Budget Adjustments
Decreasing in FY24 and Increasing in FY25
General Fund
• A budget adjustment is necessary to increase the Information Technology capital outlay budget (General Fund Capital Replacement) by $22,865 in FY25 for a purchase of a rack server authorized and budgeted in FY24, but not delivered until FY25. A compensating decrease in the FY24 budget is being requested as well. • A budget adjustment is necessary to increase the YPAC operating expense budget by $19,612 in FY25 for the purchase of guardrails and other supplies authorized and budgeted in FY24, but not delivered until FY25. A compensating decrease in the FY24 budget is being requested as well.
• The clean up and repair of damage caused by Tropical Storm Hilary was budgeted at $4.6M during FY24. Actual costs incurred through the end of FY24 were $2.5M and an updated estimate of remaining costs to be incurred in FY25 is $1.5M. Accordingly, we are requesting a rollforward of the budget with a FY24 downward budget adjustment of $1.5M and a corresponding increase in the FY25 budget. The revised estimate for total project costs is currently $4M. Additionally, the City has been awarded a grant for 75% of eligible costs. That grant is expected to be received later in FY25.
Public Safety Fund / Fire Fund
• A budget adjustment is necessary to increase the Fire Services Division operating expense budget in the Public Safety Fund by $2,490 in FY25 for a repair and maintenance purchase that was initiated out of the FY24 budget, but for which the payment will not be able to post until FY25. A compensating decrease in the Fire Services Division of the Fire Fund in the FY24 budget is being requested as well.
Miscellaneous Special Revenue
• A budget adjustment is necessary to increase the General Services Division (annual project N10031) capital outlay expense budget in FY25 by $56,772 for the purchase of Kubota Tractors authorized and budgeted in FY24, but not received until FY25. This is a grant funded expense, and a compensating decrease in the FY24 budget is being requested as well.
Information Technology ISF
• A budget adjustment is necessary to increase the Information Technology operating expense budget in FY25 by $12,664 for the purchase of a Smartnet Renewal authorized and budgeted in FY24, but not realized until FY25. A compensating decrease in the FY24 budget is being requested as well.
City Council, September 23, 2024
Budget Adjustment Report
Attachment 1
A budget adjustment is necessary to increase the Information Technology operating expense budget in FY25 by $7,517 for the purchase of Veeam subscription renewals authorized and budgeted in FY24, but not realized until FY25. A compensating decrease in the FY24 budget is being requested as well.
ATTACHMENT 2