FROM:
Finance
SUBJECT:
Title
Fiscal Year 2024-25 First Quarter Budget Status Report
End
RECOMMENDATION:
Recommendation
Approve the recommended Fiscal Year 2024-25 First Quarter Budget adjustments.
End
COUNCIL GOALS:
• Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
• Operate in a businesslike manner by correcting problems immediately.
• Practice sound fiscal management by producing timely and accurate financial information.
• Practice sound fiscal management by living within our means while investing in the future.
• Practice sound fiscal management by fully funding liabilities and reserves.
• Practice sound fiscal management by developing long-term funding and debt management plans.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by utilizing Measure-I Funds wisely.
DISCUSSION:
The City’s budget is an important policy document, serving as the annual financial plan that identifies the spending priorities for the organization. Quarterly budget status reports are developed and presented to the City Council to provide the most current information on the financial activities of the City upon which to base decisions. Additionally, quarterly reports assist City departments in communicating their financial operations throughout the fiscal year including any program changes and significant impacts to their annual budgets, as well as gauging the City’s budget plan as compared to actual revenue and expenditures. This report includes requested departmental budget adjustments and preliminary year-to-date actuals through Quarter 1 of Fiscal Year 2024-25, covering the period through September 30, 2024.
The current citywide Fiscal Year 2024-25 budget is comprised of a total of 200 funds including the General Fund, Other General Funds (10 funds), Special Revenue Funds (135 funds), Enterprise Funds (5 funds), Capital Project Funds (36 funds), a Debt Service Fund, an Internal Service Fund, and Other Agency Funds (11 funds). The current total citywide Fiscal Year 2024-25 budget (excluding other agency funds) includes total uses (expenditures and transfers out) for all City funds of $369.2 million and total sources (revenues and transfers in) of $383.7 million. The Recommended Budget includes an increase in total sources of $4.8 million for a total of $388.5 million and an increase in total uses of $25.4 million for a total of $394.5 million.
2024-25 Budget
All City Fund
GENERAL FUND
The current Fiscal Year 2024-25 General Fund Operating Budget includes total uses of $171.0 million and total sources of $169.1 million. The Recommended Budget includes an increase in total sources of $310,098 for a total of $169.4 million and an increase in total uses of $2.9 million for a total of $173.9 million.
2024-25 Budget
General Fund (Fund 101)
Notable Changes
• Revenue Adjustments - a increase in revenues of $211,280 primarily from the DEA task force reimbursement claims and Omnitrans security agreement. Also, a $98,818 transfer in from Fund #110 for FY23-24 salary savings.
• One-time Requests - Increase appropriations in various operating accounts of $668,282 to fund one-time expenditures and operating transfers out. Notable requests include:
o City Admin - Increase in appropriations of $10,500 for business summit expenses.
o Human Resources - Increase in appropriations of $21,500 for HR Intern.
o Finance - Transfer out to Facilities Maintenance Fund #103 for various FY23-24 expenditures.
o Public Works & Engineering
• Increase appropriations of $21,700 for Bill Martin scoreboard replacement.
• Increase appropriations of $72,000 for Sierra and Summit traffic calming bollard cones.
• Recurring Requests - Increase appropriations in various operating accounts of $39,520 to fund recurring expenditures primarily due to Eddie Baily auditing services, additional security at City Council meetings, and for the Transunion online investigation tool.
Fund Balance Analysis
The recommended 2024-25 ending fund balance of $58.4 million reflects an increase of $7.6 million. Included in the fund balance of are total operating reserves of $35.9 million (which reflects 25% of recurring annual expenditures.
The recommended ending fund balance reserves and designations are revised as follows:
• Future Projects & Reserves - increase in the future projects & reserves balance of $7.6 million for a total of $8.1 million due to the requested one-time use of fund balance as described above and reserves for revenue uncertainties.
2024-25 Budget
General Fund Balance
OTHER GENERAL FUNDS
Other General Funds includes a total of 10 funds which are funded by the General Fund for services that support the City’s general operations. The most notable funds include City Technology, Facility Maintenance, Self-Insurance, Retiree Medical Benefits, and General Fund Operating Projects.
The current 2024-25 Other General Funds Operating Budget includes total uses of $32.4 million and total sources of $37.7 million. The Recommended Budget includes an increase in total sources of $540,082 for a total of $38.2 million and an increase in total uses of $701,137 for a total of $33.1 million.
2024-25 Budget
Other General Funds
Notable Changes
• City Technology - Increase appropriations of $120,000 for security cameras at South Fontana Sports Park.
OTHER CITY FUNDS
Other City Funds includes a total of 178 funds which Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds.
The current 2024-25 Other City Funds Operating Budget includes total uses of $165.7 million and total sources of $176.9 million. The Recommended Budget includes an increase in total sources of $4.0 million for a total of $180.9 million and an increase in total uses of $21.8 million for a total of $187.5 million.
2024-25 Budget
Other City Funds
Notable Changes
• Special Revenue Funds - Decrease in fund balance of $7.1 million primarily due to:
o Federal Asset Seizure (Fund 223)
• Increase appropriations of $1.7 million for PD airship equipment purchase.
• Increase appropriations of $650,000 for PD automated license reader.
• Increase appropriations of $385,000 for PD drone project.
o ARPA - City (Fund 302)
• Increase appropriations of $202,872 to carryover unused FY23/24 org funding to be spent in FY24/25.
o CFD #1 Southridge Village (Fund 401)
• Increase appropriations of $150,000 for backstop footings at Veteran’s Park
• Capital Project Funds - Decrease in fund balance of $7.2 million primarily due to:
o Capital Improvement (Fund 602) - Increase appropriations of $4.5 million of carryover FY23-24 QWR1 grant budget Downtown Property Acquisition Funds.
o Storm Drain (Fund 622) - Increase appropriations of $1.0 million for Courtplace additional contingency.
o Sewer Expansion (Fund 623) - Increase appropriations of $170,000 for Courtplace additional contingency.
• Enterprise Funds - Decrease in fund balance of $297,582 primarily due to:
o Stage Red (Fund 720)
• Increase appropriations of $250,200 for carryover funding for FY23-24 Stage Red ASM Global operating agreement.
ORGANIZATIONAL CHANGES
There are no organizational changes listed in the 2024-25 First Quarter Budget Status Report.
FISCAL IMPACT:
The fiscal impact associated with this item is summarized below and details are provided in the First Quarter Budget Status Report.
The General Fund projected ending fund balance reflects a net increase of $7.6 million to a total of $58.7 million because of prior year operations and the net impact of the recommended budget adjustments.
MOTION:
Approve staff recommendation.