City Council

12F. APPROVE THE BUDGET ADJUSTMENTS PROPOSED FOR THE MID-YEAR\nBUDGET UPDATE FOR FISCAL YEAR 2024/25\nDuring the course of the fiscal year, it is often necessary to adjust estimated revenues\nand expenditure appropriations in various program areas, projects, and funds. Revenue\nfor all City funds is increasing by $1.1 million and expenditure for all City funds is\ndecreasing by $815,662. Half of the revenue increase ($617,915) is to adjust investment\nincome due to increased interest earned from the City’s investment portfolio. In Fiscal\nYear 2023/24, the City earned over $2.4 million in interest income. This trend has\ncontinued through the first half of the current fiscal year. All of the proposed changes to\nthe Fiscal Year 2024/25 Adopted Operating Budget, including detailed explanations, are\npresented in Attachment A.\nGeneral Fund estimated revenues are increasing by $1.4 million, and General Fund\nestimated expenditures are increasing by $1.5 million resulting in a net reduction in fund\nbalance of $91,446. As a result, the General Fund’s revised available fund balance is\nexpected to be $34.6 million by June 30, 2025. The General Fund’s estimated fund\nbalance for June 30, 2025, was $32.4 million when the City’s budget was originally\nadopted last year. The primary reason why the revised balance of $34.6 million is higher\nthan $32.4 million from when the City’s budget was originally adopted is due to the actual\nfund balance as of June 30, 2024, being better than staff’s projections due to actual\nrevenues exceeding the final budget and actual expenditures being lower than the final\nbudget.\nIn addition, the proposed budget adjustments include a reduction in the City’s Capital\nImprovement Program (CIP) by $1.4 million to reflect project savings from completed\nprojects as well as updated engineer’s estimates for existing projects (Attachment E).\nRECOMMENDED ACTION:\n1. City Council find that this item is not subject to California Environmental Quality Act\n(“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities\nof governments that will not result in direct or indirect physical changes in the\nenvironment); and\n2. Approve the City’s personnel staffing plan to add one limited term full time Code\nEnforcement Officer position; and,\n3. Approve the proposed budget adjustments summarized in Attachment A.\nMarch 25, 2025