TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. Subject
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Fiscal Year 2024-2025 General Fund Budget Balancing Proposal.
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2. Summary
The Fiscal Year 2024-2025 General Fund budget balancing proposal is being presented for consideration by the City Council as directed by the City Council’s Budget Ad-Hoc Committee.
3. Recommended Action
recommendation
Provide direction on the proposed budget reduction(s) to be included in the Fiscal Year 2024-2025 budget.
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4. Fiscal Impact
A reduction to the Fiscal Year 2024-2025 General Fund budget.
5. Strategic Plan Goals
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly
6. Discussion and Background
To address the Fiscal Year 2024-2025 (FY25) General Fund budget deficit of $19.1 million, the City Council established a Budget Ad-Hoc Committee (Committee). The Committee directed all departments to propose budget and service reductions as well as any potential revenue enhancements for consideration. Being presented is a citywide General Fund reduction of approximately $12.9 million, of which $6.0 million is available immediately, on-going revenue of $3.1 million, and one-time revenue of $5.7 million. If all proposed reductions and revenues are approved, the operating deficit for FY25 is estimated at $2.3 million. Staff is seeking direction from the City Council on how to proceed to finalize the City’s FY25 budget.
7. ATTACHMENTS
• A - FY25 Proposed Revenue Enhancements
• B - FY25 Proposed Expenditure Reductions
• C - FY25 Commissions/Committees