DATE: March 6, 2024
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
FY 2024 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 Mid-Year Budget Review and Five-Year General Fund Financial Model Update.
SUMMARY
This report presents the mid-year review of the FY 2024 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 mid-year expenditures net a total increase of $17.9 million in General Fund expenses. Of this amount, $14.9 million is related to previously authorized and approved appropriations, and proposed FY 2024 mid-year expenditure adjustments totaling a net increase of $1.99 million, and $1.0 million for the previously approved commitment to the Employee Home Loan Pilot Program. Table 1 and Table 2 below detail the key changes in General Fund expenditures related to previous Council authorized and approved appropriations, and proposed new FY 2024 mid-year requests:
General Fund revenues are expected to exceed the originally projected FY 2024 amount by $10.1 million. Changes in revenue projections are detailed in Table 3 of the report. Key changes in the General Fund revenues are as follows:
The total change to the FY 2024 Adopted Budget is an increase of $17.9 million. Of that amount, $8.3 million is related to operational expenses, with $9.6 million in appropriations related to authorized loans to Hayward Economic Development Corporation ($8.6 million), and loans for the Employee Home Loan Pilot Program ($1.0 million).
If mid-year requests are approved as proposed, in addition to the previously approved appropriations, the FY 2024 Revised Budget would result in $12.9 million projected use General Fund Reserves for FY 2024.
This report provides an overall update to the City’s Five-Year General Fund outlook.
ATTACHMENTS
Attachment I Staff Report
Attachment II General Fund Long Range Financial Model Update