TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. Subject
title
Fiscal Year 2024-25 Proposed Budget Amendment No. 1.
body
2. Summary
On June 25, 2024, the City Council adopted the Fiscal Year 2024-25 budget with a projected operating deficit of almost $8.0 million. Per City Council direction, and additional staff recommendations, staff is proposing an additional $1.3 million in budget reductions to the Fiscal Year 2024-25 budget.
3. Recommended Action
recommendation
1. Approve the $1.3 million in additional proposed budget reductions.
2. Approve the position changes for Fiscal Year 2024-25.
3. Provide staff with direction on any additional reductions to the Fiscal Year 2024-25 budget.
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4. Fiscal Impact
Upon approval of the budget reductions, the General Fund total expenditures for Fiscal Year 2024-25 is approximately $154.8 million. Any additional direction for budget amendments provided by the City Council will be brought forward for approval at a future date.
5. Strategic Plan Goals
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
b: Analyze future fiscal needs and potential revenue opportunities.
c: Provide appropriate reserves.
6. Discussion and Background
Background:
The City Council adopted the Fiscal Year 2024-25 (FY25) budget on June 25 and directed staff to continue collaborating with the Budget Ad Hoc Committee to identify additional budget reductions. The FY25 adopted budget includes almost $4.1 million in budget reductions, over $4.2 million of additional revenues, of which $3 million is one-time monies.
Tonight, staff is proposing an additional $1.3 million in budget reductions as a result of City Council direction and City Manager recommendation. This reduction includes:
|
Description |
Amount |
|
Part-time staff for special events |
$45,500 |
|
Tree lighting decorations |
16,000 |
|
Movies in the Park |
9,200 |
|
Concerts in the Park |
26,700 |
|
Veteran’s Day |
2,245 |
|
Treats in the Streets |
14,141 |
|
Tree Lighting Ceremony |
55,425 |
|
Special event supplies and overtime |
136,483 |
|
Holding additional full-time vacancies |
917,031 |
|
Total Additional Reductions |
$1,315,493 |
In addition, the FY25 adopted budget included costs associated with staffing changes as illustrated in Attachment B.
Approval of the proposed FY25 budget amendment will reduce the projected operating deficit to $6.7 million, down $1.3 million from the original estimate of $8.0 million. The following is the updated FY25 General Fund’s fiscal position.
|
Fiscal Year 2025 |
1-time |
Recurring |
Total |
|
Proposed Revenues (1st budget study session) |
$0 |
$144,006,541 |
$144,006,541 |
|
Additional Revenues |
0 |
1,201,000 |
1,201,000 |
|
Transfers In (CR&R) |
3,000,000 |
0 |
3,000,000 |
|
Total Adopted Revenues |
3,000,000 |
145,207,541 |
148,207,541 |
|
Proposed Expenditures (1st budget study session) |
0 |
161,236,003 |
161,236,003 |
|
Changes from 1st budget study session |
-960,000 |
0 |
-961,030 |
|
Budget Reductions (6/25 budget adoption) |
0 |
-4,074,242 |
-4,074,242 |
|
Proposed Reductions (7/23) |
|
-1,315,493 |
-1,315,493 |
|
Transfers Out |
0 |
0 |
0 |
|
Total Revised Expenditures |
-960,000 |
155,846,268 |
154,885,238 |
|
Revised Operating Surplus/(Deficit) |
$3,960,000 |
-$10,638,727 |
-$6,677,697 |
7. ATTACHMENTS
• Attachment A - FY25 Budget Reductions
• Attachment B - FY25 Position Changes