Title
Staff Report for FY 2023-24 Year-End and 2024-25 Budget Amendment of One-Time Appropriation of Unspent Funds for the General Fund
Staffreport
COUNCIL PRIORITY
* Fiscal Sustainability and Transparency
SUMMARY AND RECOMMENDATIONS
Staff recommend that the City Council Finance Committee review the FY 2023-2024 year-end financials and provide feedback with direction to staff on the proposal to be forwarded to City Council for the one-time appropriation of $915,936 in unspent funds.
BACKGROUND
The City Council approves annual budgets based on the best revenue and expenditure information available several months prior to the adoption of budget appropriation. The City Council initially approved the FY 2023-2024 budget on May 15, 2023, as part of the City's biennial budgeting process that covers two fiscal years. As a result, budget adjustments are periodically necessary for circumstances that arise and require additional budget appropriations. The City Council has approved various budget amendments since July 2023, including a mid-cycle adjustment to the biennial budget that was approved on May 20, 2024.
ANALYSIS
FY 2023-2024 ended with a General Fund unspent budget balance of $915,936. These available funds are primarily from stronger-than-projected revenues led by better than planned Property Tax ($1.6M), Sales Tax ($1.0M), Utility Users Tax ($1.5M), and investment income ($2.7M). These gains were offset by lower than estimated Property Transfer Tax (-$4.4M) for a favorable year-end revenue total that exceeded the Adjusted Budget by $4,690,249. Expenditures were closer to budget, coming in $0.5M under budget. Additionally, on November 4, 2024 Council approved a reappropriation of unspent FY 2023-2024 funds of $4,284,526 to carryover into FY 2024-2025 for previously approved Council initiatives still in progress. As outlined in Attachment A, when year-end revenue and expenditure position, as well as funds approved to carryover are considered, FY 2023-2024...
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