Action on FY 2024/25 Budget Year-End Report and Approval of Related Budget Amendments

Summary

The City Council is acting on the FY 2024/25 year-end budget report and approving related amendments for FY 2025/26. The General Fund demonstrated strong financial performance in FY 2024/25, with $33.0 million (10.0%) more revenue and $14.7 million (4.4%) less expenditure than budgeted. Conversely, Capital Improvement Program funds experienced significant underspending, with $444.9 million (63.1%) less expenditure than budgeted.

Approved amendments for FY 2025/26 include substantial reallocations and increases to various reserves. The General Fund's Unrestricted Beginning Fund Balance increases by $41.3 million. Key transfers from the General Fund include $13.0 million to the Capital Projects Reserve for future capital budgets, $4.6 million to the Pension Trust Reserve (bringing it to 8% of unfunded liability), and $1.3 million to the Budget Stabilization Reserve (reaching its 25% target).

Significant capital investments are also being made, such as $20.35 million transferred to the Public Buildings Capital Fund for a new Civic Center Campus Future Needs/Relocation project, and $1.0 million for Measure I Bond Projects Furniture, Fixtures and Equipment. Departmental funding includes $274,000 for Fire Department vehicle purchases and $350,000 for Commerce/Peddlers Plaza maintenance.

Enterprise Funds see major adjustments, with the Electric Utility Fund increasing its Operations and Maintenance, Rate Stabilization, and Infrastructure Reserves by a combined $56.0 million, and the Sewer Utility Fund transferring $3.1 million to the Special Liability Insurance Fund for a settlement. Additionally, the Police Operating Grant Trust Fund carries over $584,338 for the Abandoned Vehicle Abatement program and $179,693 from Seized Asset Funds.

Citizen Impact

These budget adjustments and reallocations mean no new taxes or fees for residents. The city's financial stability is strengthened through increased reserves, which can help mitigate future economic uncertainties. Significant funding is directed towards future capital projects, including a new Civic Center Campus, utility infrastructure upgrades, and improved public safety resources like new Fire Department vehicles and Police Department programs.

Confidence

high