DATE: February 19, 2025
TO: Council Budget and Finance Committee
FROM: Assistant City Manager
SUBJECT
FY 2024-25 Mid-Year Budget Review and Five-Year General Fund Financial Model Update
RECOMMENDATION
That the Council Budget and Finance Committee reviews and provides comments on the FY 2024-25 Mid-Year Budget Review and Five-Year General Fund Financial Model Update.
SUMMARY
This report presents the mid-year review of the FY 2024-25 Adopted Budget, and an update to the Five-Year General Fund Financial Model (model) presenting proposed changes and projected year-end results based on current trends and data. While staff considers the entire City budget in its mid-year review, this report focuses primarily on the General Fund.
Proposed FY 2024-25 mid-year expenditures net a total increase of $1.56 million in General Fund expenses. Table 1 details the key changes in General Fund expenditures related to previous City Council authorized and approved appropriations and carryforwards and Table 2 details proposed new FY 2024-25 mid-year requests:
Table 1: Previous Council Authorized and Approved General Fund Appropriations & Carryforwards
|
Previous Council Approved Appropriations & Carryforwards |
FY 2024-25 Impact ($) |
|
Appropriations |
$1,185,183 |
|
Carryforwards |
$3,640,787 |
|
Previous Council Approved Appropriations Subtotal |
$4,825,970 |
Table 2: Proposed New FY 2024-25 General Fund Mid-Year Requests
|
Mid-Year Request (NEW) |
FY 2024-25 Impact ($) |
|
Retired Annuitant for District-based election development |
$14,470 |
|
Personnel Expenses |
$14,470 |
|
Print cost and notices for the transition to District-based elections and the 2024 Presidential Election |
$50,001 |
|
Consulting services for the transition to District-based election |
$54,985 |
|
Registrar of Voter’s invoice for the 2024 Presidential Election |
$331,487 |
|
Reduction of Cost Allocation from Special Revenue to the General Fund |
$167,575 |
|
Additional consulting services inspection fees and plan check for services |
$500,000 |
|
Vehicle procurement for new Development Services staff |
$46,000 |
|
Repair and replace a ladder on a ladder truck through Seagrave |
$400,000 |
|
Non-Personnel Expenses |
$1,550,048 |
|
Mid-Year Requests (NEW) Subtotal |
$1,564,518 |
|
|
|
|
TOTAL GENERAL FUND EXPENSES |
$1,564,518 |
General Fund revenues are expected to exceed the originally projected FY 2024-25 amount by $10.4 million. Changes in revenue projections are detailed in Table 3 of the report. Key changes in the General Fund revenues are as follows:
Table 3: General Fund Revenues
|
GENERAL FUND REVENUE ADJUSTMENTS |
FY 2024-25 IMPACT ($) |
|
Projected increase in Property Tax |
$1,250,000 |
|
Projected increase in Sales Tax |
$1,796,000 |
|
Projected increase in Utility User Tax |
$3,000,000 |
|
Projected increase in Franchise Fees |
$1,156,000 |
|
Projected decrease in Real Estate Property Transfer Tax |
($2,000,000) |
|
Projected increase in Business License Tax |
$300,000 |
|
Projected increase in Rental Inspection Income |
325,000 |
|
Projected increase in Other Revenue |
570,000 |
|
One-time allocation from unallocated ARPA funds |
$4,018,911 |
|
TOTAL GENERAL FUND REVENUE ADJUSTMENTS |
$10,415,911 |
If mid-year requests are approved as proposed, in addition to the revised use of reserves for FY 2024-25, the FY 2024-25 Revised Budget would result in an increase of $67,000 in projected General Fund Reserves for FY 2024-25.
This report provides an overall update to the City’s Five-Year General Fund outlook which includes the revised use of General Fund reserves.
ATTACHMENTS
Attachment I Staff Report