Item No. 5
AGENDA REPORT
DATE: March 24, 2025
TO:
FROM: Phil White, Director of Finance
Honorable Mayor and City Council
SUBJECT: FY25 Budget Adjustment — City Manager Separation Payments RECOMMENDATION:
That the City Council approve a FY25 Budget adjustment to the General Fund in the amount of $372,000 and authorize staff to execute payments related to the separation agreement.
BACKGROUND/DISCUSSION:
The City's FY25 Budget was established as the spending plan for the City and adopted by the City Council in June 2024. The adopted budget must be amended by the City Council for any activity during the fiscal year that will result in costs that exceed the adopted spending plan. In the City Manager Department, costs associated with the Separation and Release of Claims Agreement (Agreement) dated March 10, 2025 is such an item. Accordingly, staff is recommending amending the FY25 Budget. Additionally, staff is recommending that the City Council authorize staff to execute the following payments totaling $371,703.14:
➢ Settlement Pay pursuant to section 4.a. of the Agreement $ 279,045.97 ➢ Leave Balances pursuant to section 7 of the Agreement $ 91,657.17 A copy of the executed Agreement is available in the Document Center of the City's website http://coydocs.yucaipa.gov/WebLink/DocView.aspx?id=53 6734&dbid=0&repo=Yucaipa.
The Finance Committee meeting agenda on March 19, 2025 included this item.
FISCAL IMPACT:
The recommendations result in an increase in budgeted salary and benefit expenditures in the City Manager Department of the General Fund of $372,000.
Approved by.
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