City Council

12. YEAR-END UPDATE FOR FISCAL YEAR 2024-2025 This report provides the City Council with an update of the Fiscal Year 2024-2025 preliminary operating results based on actual year-end revenues and expenditures. General Fund operating revenues are approximately $3 million higher than the amended budget, whereas General Fund expenditures are approximately $2.6 million lower than the amended budget. Therefore, instead of ending the year with a $1.3 million deficit, the year ended with a $4.4 million surplus. The General Fund reserves, excluding impact of the Navy North Hangar Fire Incident, are expected to be at $35 million as of June 30, 2025 (or 38% of the General Fund’s total recurring operating expenditure). This reserve level exceeds the City Council’s target reserve policy of 20%. Recommendation: It is recommended that the City Council: 1. Receive and file this report; 2. Approve revenue budget and expenditure appropriation of $2,500,000 for the Navy North Hangar Fire incident above-ground cleanup work authorized under the seventh amendment to the Navy's Co-Operative Agreement; 3. Approve supplemental appropriations incurred to operate various City programs and services identified in this report; and 4. Approve appropriations to carryover for purchases identified in this report. Fiscal Impact: There are sufficient revenues or reserves in respective funds to fund the supplemental appropriations and carryover appropriations identified in this report.