TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Libby Bretthauer, Financial Services Manager
Julie Bondarchuk, Financial Controller
Marcelo Serrano, Budget & Financial Analyst
SUBJECT:Title
Presentation of the Fiscal Year 2024-2025 Proposed Operating Budget (Finance Director Charelian).
(Estimated Time: 45 Mins.)
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council receive this report on the Proposed Operating Budget for Fiscal Year (FY) 2024-2025, including updated Financial Policies, and provide direction.
FISCAL IMPLICATIONS:
The Proposed Budget for FY 2024-2025 includes revenues and expenditures for all of the City's Funds. The document includes sufficient funding for ongoing operations as well as scheduled projects in the Capital Improvements Plan (CIP).
The FY 2024-2025 General Fund Proposed Budget has a projected surplus of $508,264.
Revenue
$98,993,155
Expenditures
$98,993,155
FY 2024-2025 Proposed Budget Surplus
$ 508,264
The City's current Financial Policy reserve is 20% of operating expenditures, or about $19.5 million in FY 2024-2025, which is greater than the Government Finance Officers Association (GFOA) recommendation of "no less than two months (17%) of regular general fund operating revenues or regular general fund operating expenditures." In addition, the City Council has set aside $4.0 million as an "Economic Uncertainty" reserve to use at its discretion.
After taking into account the projected operating surplus of $508,264 and net transfers out from the General Fund totaling nearly $4.1 million, the General Fund Unreserved Fund Balance is estimated to be $5.6 million at the end of FY 2024-2025. These funds may be drawn upon for one-time projects and initiatives or, if necessary, transfers to other funds.
The FY 2024-2025 Proposed Bud...
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