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HomeMy WebLinkAboutFin Preliminary Citywide Proposed Budget for Fiscal Year 2024-25____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: June 3, 2024 Disposition: Received report related to the Preliminary Citywide Proposed Budget for Fiscal Year 2024-25 and provide direction to staff to inform preparation of the Final Proposed FY 2024-25 Budget for adoption at the City Council meeting of June 17, 2024 Agenda Item No: 6.a Meeting Date: June 3, 2024 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Prepared by: Paul Navazio, Finance Director Shawn Plate, Finance Manager Van Bach, Accounting Manager City Manager Approval: ___________ TOPIC: PRELIMINARY CITYWIDE PROPOSED BUDGET FOR FISCAL YEAR 2024-25 SUBJECT: PRELIMINARY CITYWIDE PROPOSED BUDGET AND PROPOSED CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2024-25 RECOMMENDATION: Receive report related to the Preliminary Citywide Proposed Budget for Fiscal Year 2024-25 and provide direction to staff to inform preparation of the Final Proposed FY 2024-25 Budget for adoption at the City Council meeting of June 17, 2024. SUMMARY: This report presents the preliminary proposed citywide budget for Fiscal Year (FY) 2024-25. This item represents the next step in the development of the City’s FY 2024-25 budget and is intended to provide the City Council with the opportunity to preview the overall proposed budget as well as specific funding recommendations prior to staff preparing the final FY 2024-25 Proposed Budget for adoption by the City Council at their meeting of June 17th. The budget is both a spending plan for the City’s available financial resources and the legal authority for City departments to spend these resources for public purposes. It is through these resources that programs and services are provided and capital investments are made to meet the needs of the community. As a result, in addition to considering the constraints imposed by current and projected resources available to meet these needs, the annual budget and multi-year capital plan are aligned with the City Council’s Goals and Objectives as well as fiscal policies approved by the City Council. To balance these objectives, the budget supporting ongoing operations and service levels must be funded largely through recurring revenues, while one-time projects and capital investments PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 2 are funded through a combination of recurring and one-time funding sources as well as available fund balances identified for specific projects and initiatives. Another primary objective of the budget development process is to ensure the sustainability of City programs and services through the three- to five-year planning horizon to ensure that service levels and community needs can continue to be met in the future, an that the FY 2024-25 budget does not compromise the City’s long-term fiscal condition. The Preliminary Proposed FY 2024-25 All Funds budget reflects expenditure appropriations of $210,813,072, including operations ($164,190,503), capital ($33,410,763) and transfers ($13,211,806). This level of expenditure appropriations, representing an increase of 7.8% over the original FY 2023-24 adopted budget, is supported through a combination of FY 2024-25 revenues ($177,317,039), transfers ($13,211,806) and available fund balances ($20,284,227). The Preliminary Proposed FY 2024-25 budget supports an authorized staffing level of 416.34 full- time equivalent positions, unchanged from the FY 2023-24 Final Budget (and representing a net reduction of 9.72 FTE when compared to the FY 2023-24 Adopted Budget). The Preliminary Proposed FY 2024-25 General Fund budget reflects recommended appropriations of $112,291,757, supporting ongoing General Fund operational expenditures as well as selected one-time funding needs and transfers. This level of appropriations is supported through projected FY 2024-25 revenues of $103,790,510 as well as use of available one-time assigned fund balance of $8,501.247. Expenditures for City programs and services supported by the General Fund are proposed to increase by 4.3% (excluding transfers) over the levels provided for in the FY 2023-24 Adopted Budget. Overall, the appropriations included in the Preliminary Proposed FY 2024-25 budget, as presented herein, are within the City’s constitutional GANN spending limit. This report will focus on the following key areas: 1) Update on FY 2023-24 revenues and expenditures through Q3 (March 31, 2024) 2) Preliminary Proposed Budget for FY 2024-25 a) All Funds Summary b) General Fund c) Selected Other Funds 3) Proposed Capital Improvement Program Budget for FY 2024-25 A separate companion staff report was presented to the City Council at their meeting of May 20th that provided a status update on progress toward the City Council’s 2023-25 Goals and Objectives across Policy Focus Areas and City Service Areas. The Preliminary Proposed FY 2024-25 Budget is intended to allocate available resources to advance key initiatives and projects aligned with the City Council stated priorities, while maintaining service levels for baseline city programs, services, and operations. ANALYSIS: CURRENT BUDGET - FISCAL YEAR 2023-24 THIRD QUARTER UPDATE PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 3 All Funds Table 1 provides current year (FY2023-24) revenue and expenditure results through the third quarter of the fiscal, ending March 31, 2024. • All Funds revenues through the third quarter were recorded at $117.65 million which represented 68.1% of the amended budget of $172.68 million. • All Funds expenditures for the same period were recorded at $130.33 million, or 61.5% of the amended FY 2023-24 budget of $211.95 million. Table 1: All Funds Revenue and Expenditure Results (through 3/31/24) General Fund Revenues: The original FY 2023-24 budget, adopted on June 5, 2023, projected $100.0 million in revenues. The Mid-Year Budget Update presented on March 4, 2024, projected year-end General Fund revenues of $102.97 million. • Revenue results through the third quarter of the fiscal year were recorded at 461.6 million, or 61.6% of the approved budget. • Based on results through the third quarter, year-end General Fund revenue projections have been updated to $103.56 million, or 3.5% above the FY 2023-24 adopted budget figure. • Current year revenues continued to show favorable variances in property tax, interest earnings, and transient occupancy (Hotel) tax receipts, while sales tax and transfer tax revenues are slightly below budgeted levels. Expenditures: The FY 2023-24 adopted budget reflected expenditure appropriations of $100.0 million. The current amended FY 2023-24 General Fund budget stands at $104.47 million, reflecting supplemental appropriations for capital projects approved by the City Council, primarily matching funds for the Pickleweed Park Improvement Project grant. • Expenditures through the third quarter of the fiscal year were recorded at $71.67 million, or 68.6% of the amended budget. All Funds Adopted Budget FY 2023-24 Amended Budget FY 2023-24 Actual Results Through 3/31/24 % of Amended FY2023-24 Budget Revenues 167,575,656 170,857,209 116,616,641 68.3% Transfers in 1,827,461 1,827,461 1,030,439 56.4% Total Resources 169,403,117 172,684,670 117,647,080 68.1% Expenditures 193,400,751 205,306,716 124,232,326 60.5% Transfers out 2,207,000 6,644,483 6,094,483 91.7% Total Appropriations 195,607,751 211,951,199 130,326,809 61.5% Net Results (26,204,634) (39,266,529) PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 4 • Based on these results, year-end General Fund expenditures are projected at $98.77 million, or $5.69 million (5.5%) below the amended budget. • Consistent with the results presented in the Mid-Year Budget Update, these budgetary savings stem almost entirely from personnel cost savings due to the number of vacancies across all city departments. Operating results: The projected year-end General Fund revenue and expenditure results combine to yield a net $9.34 million increase in fund balance as of June 30, 2024. This represents a slight increase ($0.20 million) over the year-end projections presented in the Mid-Year Budget Update. Table 2: FY 2023-24 General Fund Results and Projections The projected year-end fund balances in excess of reserve levels established by City Council policy represent resources available for re-appropriation to address priority one-time funding needs and represent a significant portion of the available budget flexibility within the context of the FY 2024-25 budget and updated multi-year Capital Improvement Plan. Specific funding recommendations related to use of available fund balances are contained in the discussion of the Preliminary Proposed FY 2024-25 Budget. PROPOSED FISCAL YEAR 2024-25 CITYWIDE BUDGET CITY COUNCIL’S GOALS AND OBJECTIVES In 2023, the City Council adopted formal two-year Goals and Objectives covering FY 2023-24 and FY 2024-25. The adopted City Council Goals and Objectives serve as an important foundation for the development of the annual budget by identifying priority policy areas as well as specific projects and initiatives identified as deliverables within each focus area. One of the primary objectives throughout the annual budget process is to identify and allocate staff and financial resources, to the extent available, to advance these goals and objectives while also providing for ongoing baseline City services, programs, and operations. The City Council’s Goals and Objectives are summarized in this section to support alignment of the FY 2024-25 Proposed Budget with workplan milestones established for FY 2024-25. Four Key Policy Focus Areas General Fund Adopted Budget FY 2023-24 Amended Budget FY 2023-24 Actual Results Through 3/31/24 % of Amended FY2023-24 Budget Projected Year- End Results Revenues 98,189,598 98,189,598 60,591,904 61.7%101,733,272 3,543,674 3.6% Transfers in 1,827,461 1,827,461 1,030,439 56.4%1,827,461 - 0.0% Total Resources 100,017,059 100,017,059 61,622,343 61.6%103,560,733 3,543,674 3.5% Expenditures 97,834,123 97,820,841 65,573,374 67.0%92,127,365 (5,693,476) -5.8% Operating Transfer out 2,207,000 6,644,483 6,094,483 91.7%6,644,483 - 0.0% Total Appropriations 100,041,123 104,465,324 71,667,857 68.6%98,771,848 (5,693,476) -5.5% Net Result (24,064) (4,448,265) 4,788,885 9,237,150 Variance PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 5 • Economic Growth: Building our economy to be stronger and more resilient. • Housing & Homelessness: Creating new housing, keeping people in their homes, and using a “Housing First” model. • Diversity, Equity, Inclusion & Belonging (DEIB): Working to create equitable outcomes for all, while addressing systemic racial injustices. • Sustainability, Climate Change & Disaster Preparedness: Reducing greenhouse gas emissions while mitigating and adapting to climate change. Five City Service Areas A. Neighborhood and Economic Vitality: Create and preserve a healthy economy and sustain vibrant neighborhoods, Downtown, and other business areas. B. Quality of Life: Serve and strengthen community relationships by providing literary, artistic, recreational, and cultural experiences for all residents and improving resident engagement and governmental transparency. C. Public Safety: Prevent and respond to emergencies through essential facility improvements and community and organizational emergency readiness. D. Public Assets: Improve and preserve public assets by sustaining effective levels of core infrastructure while reducing traffic congestion by expanding bicycle, pedestrian, and transit options. E. Foundational Services: Sustain organizational viability and exemplary service through short and long-term financial success, organizational excellence and succession planning, and technology to improve efficiency and service levels. FY 2024-25 BUDGET HIGHLIGHTS  Citywide Budget: The total proposed FY 2024-25 expenditure budget for the City is $210,813,072. These appropriations are supported by FY 2024-25 revenue and other sources projected at $190,528,845, as well as by fund balances retained from previous periods for capital projects and priority initiatives (Attachment 1, Exhibit I). The proposed FY 2024-25 appropriations reflect all new funding appropriations proposed for operations, capital projects and debt service. These appropriations do not include current year funding that is anticipated to be carried-forward to FY 2024-25 through roll-over of year-end encumbrances as well as carry-over of unencumbered capital project funding that will require separate City Council action early in the new fiscal year.  General Fund Budget: The proposed FY2024-25 General Fund budget includes recommended appropriations of $112,291,757 representing an increase of $12.3 million over the prior year’s adopted budget. The proposed General Fund budget is supported by estimated General Fund revenues ($101,282,204), transfers in ($2,508,306), and available fund balance ($8,501,247). Summary of Funding Recommendations General Fund The City’s General Fund supports most of the major services to residents and businesses (such as police, fire suppression and prevention, planning, building, library, parks, streets, engineering, traffic enforcement, cultural programs and administration). The General Fund appropriations for FY 2024-25 total approximately $112.3 million. These appropriations comprise $102.0 million of operating expenditures, $10.3 million in transfers to other funds. PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 6 Table 3 summarizes the information provided in Exhibit II and presents the proposed FY 2024-25 budget with a comparison to the projected FY 2023-24 budget. The table presents the year-over- year change in revenues and expenses, as these are key metrics. Table 3: Comparison of FY 2023-24 Adopted and FY 2024-25 Proposed General Fund Budget Revenues and transfers available to support the FY 2024-25 General Fund budget are projected to be $3.77 million higher than the FY 2023-24 adopted budget, but slightly below the projected General Fund revenue estimate of $103.7 million. This is mainly due to conservative projected growth in major revenue items such as property tax and transient occupancy tax, a small projected decrease in sales and use taxes as well as one-time revenues included in the current year budget. The Proposed FY 2024-25 Budget operating expenditures within the General Fund represent an increase of $4.2 million (4.3%) over the prior year’s adopted budget. The majority of this increase is due to funding compensation costs resulting from new collective bargaining agreements anticipated to be reached with all of the City’s represented and unrepresented bargaining groups. These new collective bargaining agreements are anticipated to result in an increase in personnel costs of approximately $4.5 million, offset by $2.0 million in salary savings (due to vacancy factor) being built into the FY 2024-25 budget. PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 7 The FY 2024-25 Proposed budget includes a limited amount of new expenses, which are listed below. Many of these expenses are related to the increasing cost of providing services, including increased costs of water, power, fleet management, dispatch services, and technology upgrades. General Fund FY 24-25 New Expenditure Recommendations Recurring: • Board and Commission Stipends $ 50,000 City Manager / Council • Translation & Interpretation Services $ 50,000 City Manager / Council • Axon Contract (Renewal) $275,000 Police • Utilities / City Facilities $ 61,000 Public Works • Marin Fire Dispatch Agreement $ 65,323 Fire $501,323 One-Time: • Public Records Act Requests $100,000 City Clerk / City Attorney • County Admin Fee - MCSTOPP $ 50,000 Public Works • Encampment Clean-up $ 90,000 Public Works • Parks Maintenance (irrigation/trees, etc.) $ 250,000 Public Works • Fleet / Fuel $ 65,000 Public Works • Fleet / State-Mandated Testing Equip $ 13,000 Public Works • Fleet / Outside Repairs $ 20,000 Public Works • Flock Safety Contract $ 57,500 Police $ 645,500 In addition, the FY 2024-25 Proposed Budget includes recommending transfers out of the General Fund to support other funds (i.e., liability, capital, vehicle/equipment replacement funds), that have been historically underfunded, totaling $10.3 million to support programs and services funded through various special revenue, capital and internal service funds as well as allocation of available General Fund fund balance previously assigned for specific purposes, as follows: Operating Transfers: • Recreation Revolving Fund $2,420,000 • Measure E Projects 353,000 Use of Prior Period Funds (Fund Balance): • Liability / Self-Insurance Fund $2,000,000 • Capital Projects Fund 2,000,000 • Capital Fund – Storm Water projects 935,000 • Capital Fund – Paving Streets/Roads 1,000,000 • Vehicle Replacement Fund 1,000,000 • Fire Equipment Replacement Fund 250,000 • Police Equipment Replacement Fund 250,000 Finally, an additional $1.5 million in available fund balances is proposed for appropriation within the FY 2024-25 Proposed general Fund budget for the following priority initiatives: Use of Prior Year Funds (Fund Balance): • Enterprise Resource Planning Project (Tyler Technologies) $1,000,000 PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 8 • Racial Equity Initiatives 500,000 The appropriations are supported by $101.3 million in projected revenues and transfers from other funds. The $2.51 million of transfers include: • $650,000 from Gas Tax Fund to reimburse street maintenance personnel costs • $500,000 from Parking Services Fund to cover administrative support costs • $680,313 from Employee Benefits Fund for Pension Obligation Bond debt service • $700,000 from Cannabis Fund to support costs associated with the City’s SAFE Team program Revenue Trends and Assumptions: Property Tax: Property taxes (secured) are currently projected to increase by 5.3 percent over the original FY 2023-24 budget, to a total of $26.7 million. The increase is primarily due to growth in the overall property tax roll as well as an increase in the excess Educational Revenue Augmentation Fund (ERAF) payments and incorporates the estimated impact of State budget proposal to re-allocate a portion of excess ERAF payments to support charter schools. Property tax-related revenues account for 30 percent of the City’s General Fund revenues. Sales and Transaction & Use Tax: Sales and use taxes are projected to remain mostly stable with a small decrease over the next fiscal year. Staff are projecting recurring sales tax revenues to remain relatively flat from FY 2023- 24 to FY 2024-25 at $25.25 million. Sales taxes account for approximately 26 percent of the City’s General Fund revenues. Revenues from the Measure E Transactions & Use Tax, which applies to most local retail sales, are estimated to increase slightly to $14.52 million. Consistent with the direction provided by the City Council in May of 2014, the additional one-quarter percent sales tax revenues provided by Measure E, effective April 1, 2014 through March 31, 2034, are dedicated to funding major construction and improvements to public safety facilities (also referred to as the San Rafael Essential Facilities project). Measure E revenues account for about 15 percent of the City’s General Fund revenues. Revenues from the Measure R Transactions & Use Tax are projected to generate $4.8 million and represent about 5 percent of the City’s General Fund revenues. Altogether, sales and use taxes comprise 46 percent of the City’s General Fund revenues. Other General Fund Revenues: Other revenues (including Business Tax, Transient Occupancy Tax, development fees, permits, and charges for services) are projected to show a modest increase of 3.2 percent when compared to the prior year’s budget. The major contributors to this increase in year-over-year revenues are interest earnings, Transient Occupancy Tax receipts and franchise fee payments. Expenditure Trends and Assumptions: The expenditure growth reflected in the FY 2024-25 Proposed budget stems primarily from increased personnel costs anticipated as a result of new collective bargaining agreements. These PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 9 increases are a direct result of a concerted effort to enhance the City’s recruitment and retention efforts in an exceptionally competitive labor market. General Fund budgeted contributions to the Marin County Employees Retirement Association (MCERA) are projected to increase by $600,000, or 3.3 percent, compared to the previous year. Overall, a slight decrease in employer contribution rates for FY 2024-25 are offset by increases in pensionable compensation resulting from anticipated collective bargaining agreements. In FY 2022-23, the City Council approved a one-time transfer of $1.1 million to the Employee Retirement Internal Service Fund to ensure continuity of programs over the long-term. The fund is adequately supported at this time and staff are not proposing an additional transfer for FY 2024-25. Pension expenses across all funds are budgeted at $24.58 million representing approximately 25 percent of total citywide personnel budget. Other Funds Highlights Special Revenue Funds These funds have restricted uses based on their respective sources. While several special revenue funds are generally entirely self-supporting, many also require varying levels of contribution from the City’s General Fund in order to support programs, services and projects. The following section presents FY2024-25 Proposed Budget highlights: EMS/Paramedic Fund The Emergency Medical Services/Paramedic Fund has planned expenditures of $9.6 million for the upcoming fiscal year, supported by $9.6 million in revenues of which $5.3 million, or 59 percent, comes from the Paramedic Tax. The balance of the funding of this activity comes primarily from third-party recovery for emergency medical response and transport services. As of April 17, 2023, tax rates have reached their tax ceiling for all participating areas impacted by the Paramedic Services Special Tax. The FY 2024-25 Proposed Budget reflects the incremental cost of the agreement to transition to the new consolidated Marin County Fire Dispatch model. The EMS/Paramedic fund includes an additional $106,500 representing 27% of year one costs, with the balance covered by the General Fund. The EMS/Paramedic Fund is projected to retain $2.2 million in unallocated fund balance on June 30, 2025. This balance serves as an operational reserve. Funds not needed for the operations reserve are used to fund capital improvements that directly support the delivery of emergency medical transport services. Cannabis Business Tax Fund The City’s Cannabis Business Tax is also reported in a special revenue fund. San Rafael has several licensees in active commerce. The City anticipates the receipt of $225,000 in cannabis business tax revenues for the FY 2024-25, of which the fund will incur $170,385 in qualifying expenses. Revenues are projected to remain well below results from prior years due to challenging market conditions for cannabis businesses and the temporary two-year decrease in the local cannabis tax rate for delivery retail permits from 4 percent to 2 percent enacted by the City Council on November 7, 2022. The fund has historically carried a fund balance of prior year PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 10 savings to allocate to new projects. On January 17, 2023, the City Council approved the use of cannabis tax revenues to support the pilot of the City’s Specialized Assistance for Everyone (SAFE) team. A transfer of $700,000 from the Cannabis Fund to the General Fund is included in the FY 2024-25 Proposed Budget to cover majority of contract costs for SAFE. Measure A - Open Space The Measure A Open Space Program was renewed by voters in June 2022. Funding for this program is primarily provided by a nine-year, county-wide sales tax that is managed by the County of Marin, with the City providing discretionary contributions as needed. A total of $937,500 is being proposed to be expended during the year to fund project initiatives, which would include the following projects: • $52,500 for the Terra Linda Park and Community Center Enhancement Plan. Previously, the City allocated $150,000 of Measure A funding to this project in FY 2023-24. This additional funding will support topographic survey work to better inform the planning project already underway. • $725,000 for construction of the playground at Peacock Gap Park and affiliated pathway and accessibility improvements. • $60,000 to install interim play equipment at Boyd Park. • $100,000 for a Trails Existing Condition & Feasibility Study. This project was proposed in the FY 2023-24 Measure A Work Plan, however due to competing priorities the work has not yet begun on this study. Staff anticipate this project will be completed in FY 2024-25 as part of an Open Space Management and Wildfire Mitigation planning project. Measure D – Library Parcel Tax Measure D, the successor library parcel tax to Measure C, is entering its eighth year. This special revenue source has successfully expanded service levels relative to those established under Measure C (the previous library parcel tax). The purpose of the tax is to “augment the capacity of the City of San Rafael to provide quality library services to its residents.” Measure D provides for expanded book and periodical purchases, including e-books; funds events and classes for all ages, and provides supplementary technology supplies. Capital reserves were established under Measure C (previous library parcel tax) for facility-related uses. The FY 2024-25 Proposed Budget includes $670,000 in funding augmentations in Measure D funding supporting Library services itemized below. These augmentations support work to be performed at the Main Branch Library and the related costs of temporary relocation during construction activities. • Temporary Location (rental) for Main Branch $100,000 • Operational Assessment and Temporary Operations 50,000 • Automated Materials Handling / shelving / furniture 400,000 • Library program supplies 10,000 • Digital Services 20,000 Recreation Revolving Fund The FY 2024-25 Proposed Budget includes appropriations totaling $4.93 million which is supported through recreation program revenues of $2.25 million and a operating transfer from the PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 11 General Fund of $2.42 million. General Fund support to the Recreation Revolving Fund reflects an increase of $220,000 (10%) over the level of support provided in the current year budget, due to program costs increases that exceed the increase in program revenue as provided per the Master Fee Schedule (wherein fee increases are capped at 2.4%, based on the applicable Bay Are CPI index). Staff will be evaluating possible adjustments to fees to ensure program revenues continue to meet cost-recovery targets. Childcare Fund The Childcare Fund is proposed to include expenditure appropriations of $3.30 million for FY 2024-25 supported by program revenues of $3.20 million and use of $98,000 in available fund balance. While the Childcare Fund generally operates under full-cost recover, personnel cost for FY 2024-25 are expected to exceed the program revenues tied to fee increases established in Master Fee Schedule approved by the City Council on December 19, 2022. A modest fee adjustment will be required to maintain full cost-recovery for the fee-supported Childcare program. Measure C – Marin Wildfire Prevention Activities supported by the Measure C – Wildfire Prevention Fund are funded by a ten-year parcel tax managed by the Marin Wildfire Prevention Authority, a Joint Powers Authority (MWPA). The City of San Rafael is expected to receive $3.35 million in revenues to support coordinated wildfire prevention including early detection, warning and alerts; reducing vegetation; ensuring defensible space around homes, neighborhoods and critical infrastructure; and improving disaster evacuation routes/procedures. Included in this funding allocation is $1.35 million representing CORE MWPA programs administered by the City of San Rafael and reimbursed by the MWPA. Grants - Homelessness The FY2024-25 Proposed Budget includes appropriations totaling $1.08 million to support efforts to address the impacts of homelessness. These funds represent state funding (Sen. McGuire) and County of Marin matching funds allocated to the City for specific programs and initiatives including case management services, encampment management and clean-up, as well as funding to evaluate feasibility of developing interim housing for unhoused individuals. The City anticipates accessing additional funding (up to $6.2 million) from the State’s Encampment Resolution Funding (ERF-3) grant program, pending final allocations of grant funds awarded to the County of Marin. The City remains dependent on State and County funding to address homeless-related programs and projects. Other significant funds within the Special Revenue category include Gas Tax and Storm Water Funds. The spending plans for these funds were developed in conjunction with the Capital Improvement Program. In the absence of a dedicated funding source to support Storm Water Fund maintenance and capital needs, the General Fund has been required to support these activities totaling $935,000 in the FY 2024-25 Proposed Budget. Appropriations for new CIP projects are included in the Proposed Budget and discussed in the Capital Improvement Plan section of this report. Enterprise Funds Parking Fund PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 12 The Parking Fund is a self-sustaining enterprise fund whose revenues are dedicated to parking services. Currently, parking operations are funded via parking fees and fines, and fund balance is the only resource with which to cover capital improvements. The FY 2024-25 Proposed budget for this fund is $4.79 million, inclusive of operating transfers, supported by $4.8 million in revenues. The Parking Fund appears to have successfully rebounded from the negative effects of the pandemic and reflects a slight increase in fund balance for the new fiscal year. Internal Service / Capital Equipment Replacement Fund These funds are used to manage services that are delivered within the organization. For example, computer replacement, employee benefits, workers compensation, general liability, capital replacement, technology replacement and vehicle replacement are funded via internal charges to the funds that utilize these respective services. The following reflects highlights of the FY 2024- 25 Proposed Budget within selected Internal Service Funds: Building Maintenance Fund • HVAC Deferred Maintenance, Janitorial Contracts and $200,000 Fire Safety Security Improvements Vehicle Replacement Fund • Vehicle Replacements per Replacement Schedule $221,439 Technology Fund The FY 2024-25 Proposed Budget includes the following technology investments in the new fiscal year: • Increased annual software support costs $401,152 • Implementation of new Technology Projects 565,000 • Infrastructure Enhancement Projects 670,000 • ERP Implementation 588,054 • Human Resources Process Automation 84,000 Police Equipment Replacement Fund • Canine Training $ 30,000 • Police Operations Vehicle 247,000 Liability / Self Insurance Fund • Increased funding for Insurance Premiums and $ 845,000 Insurance Pool contributions • Increased funding for claims/settlements 1,500,000 Capital Improvement Program (CIP) The CIP is a multi-year planning tool used to identify and implement the City’s capital needs over a three-year period. As part of the annual budget process, staff updated the muti-year CIP for FY 2024-25 through FY 2026-27. The first year, FY 2024-25, of the updated plan informs the new capital budget appropriations to be included as part of the FY 2024-25 Adopted Budget. See PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 13 Attachment 2. In addition, as part of the fiscal year-end process which concludes in early Fall, staff will be seeking City Council authorization to carry-forward capital project appropriations for projects funded in the current fiscal year, to the extent that these funds are required to complete projects currently in process. Funding approved for carry-over into the new fiscal year will supplement the capital project funding approved with the FY 2024-25 Adopted Budget. The annual update of the multi-year Capital Improvement Plan involves several steps: 1) Starting with the review of the latest Council-approved multi-year capital plan for currently active and previously planned projects, and updating project cost estimates and funding sources, as appropriate. 2) The capital plan is then updated to reflect new projects. These may include projects previously identified as “unfunded,” projects identified through various master plans, projects supporting infrastructure projects being undertaken by other agencies, and projects requested by the broader community. 3) The updated list of capital improvement projects is then evaluated based on established ranking criteria, with the highest-ranked projects being included in the multi-year plan within the constraints of funding availability and staff capacity. 4) Projects that are not reflected in the updated multi-year capital plan are retained on the list of infrastructure needs as either “future year” or “unfunded” projects. The resulting CIP planning document summarizes the City’s planned capital and infrastructure improvement projects, including estimated cost, funding sources, and ranking scores following analysis and coordination with other City departments to ensure that all department needs are represented. Project selection and priority is based on recommendations by a working group representing various City departments and existing planning documents to accommodate high priority needs, which focused on life/safety, maintenance and repair, equity, community and City Council input, and other factors. The CIP is intended to provide a comprehensive three-year project list for the City’s known capital and infrastructure needs. The general categories within the CIP are as follows: • Annual Programs: Annual programs are comprised of a variety of activities, including routine operation and maintenance of city infrastructure, maintenance of fleet vehicles, implementation of smaller projects and small budget projects that need immediate attention, development of concept designs to support the pursuit of grant funding, and low to medium level planning efforts. • Building/Facilities: City-owned properties include buildings (e.g., City Hall, libraries, recreation centers, etc.) and facilities (e.g., pump stations), parking garages and lots. • Parks: Park infrastructure and facilities including playgrounds, recreation equipment, and restrooms. • Storm Drain: Storm drain systems include conveyance of storm drainage, catch basins, manholes, and the City’s twelve stormwater pump stations. • Transportation: Streets improvements including construction, resurfacing, and maintenance of existing roadways, intersections, and bicycle and pedestrian facilities, PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 14 such as bike lanes and sidewalks. This category also includes streetlight, traffic-related, and traffic signal improvements, which include enhancements that increase traffic flow and capacity, improve circulation, and expand bicycle and/or pedestrian thoroughfare beyond the existing facilities in place (e.g., new multi-use pathways and the expansion of existing sidewalks). Proposed FY 2024-24 Capital Improvement Project Highlights The proposed Capital Improvement projects listed below have been included in the City’s Infrastructure and Transportation Work Plan that was reviewed at the City Council meeting on May 20, 2024 and will be considered by the City Council for adoption at the June 17th Council meeting. 1. Citywide Bicycle and Pedestrian Plan 2. Citywide Building and Facilities Plan 3. Citywide Storm Drain Plan 4. Vision Zero Action Plan 5. Childcare Portable Building Replacement (Pickleweed) 6. Pickleweed Branch Library Redesign 7. Peacock Gap Park Playground Improvements 8. Pickleweed Park Enhancement & Field Renovation 9. Large Trash Capture Projects – 5 locations (Marin Countywide Stormwater Pollution Prevention Program) 10. Canal Active Transportation Experience Improvements 11. Fourth St/Miracle Mile at Second Street and West Cresent Drive 12. Lincoln Avenue Safety Improvements 13. San Rafael Canal Crossing 14. South Merrydale Road – Civic Center Connector Pathway The following table summarizes the funds that provide the majority of resources available to support the City’s Capital Improvement Program (CIP): Table 3: CIP Funding Sources Fund # Fund Name Description 205 Stormwater Fund Established to fund stormwater maintenance, programs, and improvements throughout the City. Fund #205 receives annual revenues from the City’s Stormwater Activity Fee (Municipal Code Chapter 9.40). 206 Gas Tax; Measure AA; Senate Bill 1 Funds; Traffic Mitigation Fee The Gas Tax is revenue collected and subsequently distributed by the State of California based on a percentage tax on each gallon of gas purchased in San Rafael. Gas Tax may be used for capital projects or maintenance on local streets, roads, traffic, and bicycle/pedestrian facilities. Additionally, local sales tax, passed by voters in 2018 as Measure AA, contributes to a portion of this fund for roadway improvement projects. This fund also includes revenue from the Refuse Regulatory Fee and Construction Impact Fee. Traffic Mitigation Fees are charged to a developer in connection with the approval of a private land development project with the purpose of offsetting or subsidizing public improvements made necessary by the private development. The City utilizes Traffic Mitigation Fees for circulation‐related projects identified in the General Plan. PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 15 Fund # Fund Name Description 241 Measure A Measure A is a nine‐year ¼ percent Transactions and Use Tax managed by the County of Marin and re-approved by voters in June 2022. The tax is restricted to care for parks and open spaces. The Department of Library and Recreation prepared the Measure A work plan for FY 2024-25 based on the recommendations provided in the 2023 Citywide Parks and Recreation Master Plan and through consultation with the Parks and Recreation Commission. 401 Capital Improvement Fund The Capital Improvement Fund is funded primarily through the City’s General Fund and provides discretionary funding support for capital projects that lack a dedicated funding source as well as projects where either a local match or supplemental funding is required. Transfers from the General Fund to the Capital Improvement Fund stem primarily from available year-end fund balances in excess of the City’s reserve policy requirement. 420 Essential Facilities Fund The Essential Facilities Fund was established by the City Council in order to allocate one- third ($0.25) of the City’s Measure E ($0.75) Transaction and Use Tax receipts to support capital investments to replace or renovate essential facilities supporting public safety operations. 603 Building Maintenance The Building Maintenance Fund supports routine maintenance and capital projects associated with the City’s buildings, parks and other facilities. The Building Maintenance Fund is an internal revenue fund, which means General Fund monies are the sole source of revenue. While a majority of the FY 2024-25 CIP projects are grant-funded (approximately $14.7 million), the respective grant match and non-grant funded projects are paid for through Funds 205 (Stormwater), 206 (Gas Tax/Traffic Mitigation), 241 (Parks Measure A), 401 (Capital Improvement) and 603 (Building Maintenance). Funds 205, 206, and 603 also have their respective operating budget which consists of expenses related to maintenance of infrastructure, equipment purchasing, miscellaneous contractual services, annual programs, and other non- project related work. After deducting the operating budget from the total available funding in Fund 206, approximately sixteen percent of the projected FY 2024-25 revenues are not budgeted and remains as reserves in the fund balance to provide a buffer for unanticipated expenses which may arise mid-year. The Stormwater Fund (205) and Building Maintenance Fund (603) do not include additional reserves beyond the available fund balance. As has been noted in prior year CIPs, the long-term capital and infrastructure improvement needs for City-owned property, parks, and drainage far exceed the available revenues each year. Therefore, a considerable number of projects are identified as real capital and infrastructure needs (and maintained on the CIP project list) but are categorized as “unfunded”. City staff continue to actively pursue grant funding, congressional earmarks, and other infrastructure funding sources. Many of these funding sources require a local funding match. If the City’s effort to obtain grant funding is successful, the projects with secured funding will be re-evaluated for their ranking on the CIP projects list. As a part of the annual CIP, the Department of Public Works also recaps major projects completed in the prior fiscal year (July 1, 2023 – June 30, 2024), including but not limited to: 1. FY 2023-24 Corrugated Metal Pipe Replacement 2. North San Rafael Pavement Maintenance project 3. Rotary Manor Culvert Replacement 4. Grand Ave Cycle Track 5. Southern Heights/Pearce Retaining Wall PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 16 6. Third St Safety Improvements 7. Third St Rehabilitation 8. Spinnaker Point/Baypoint Dr Parking Striping 9. Bryn Mawr Storm Drain Replacement 10. Albert Park Fence Installation Projects pending completion include: 1. San Quentin Pump Station Reconstruction 2. B Street Culvert Replacement 3. Downtown Library Modernization 4. Canal Neighborhood Parking Striping 5. Los Gamos Dr Striping Phase 2 6. Annual Traffic Signal Backup Battery Replacement 7. Annual Sidewalk Repair Summary of FY2024/25 Proposed Capital Improvement Program Budget Category FY 2024-25 Annual Programs – Capital * $5,632,723 Buildings / Facilities Buildings $1,437,287 Library $4,357,059 Recreation $250,000 Sub-Total Facilities $6,207,059 Parks $9,417,500 Transportation $10,511,828 Stormwater $1,641,653 *TOTAL $33,410,763 Funding Sources FY 2024-25 General Fund / Capital $9,215,000 Storm Water Fund $1,376,653 Gas Tax Fund $15,011,838 Measure A $937,500 Library Revolving Fund $4,357,059 Traffic Mitigation Fund $100,000 Building Improvement Fund $2,412,713 TOTAL $33,410,763 *Figures exclude operations and maintenance costs reflected in Annual Programs shown in Attachment 2. Status of Pension Funding PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 17 The City’s Pension Funding Policy requires that the Finance Director and City Manager report on the status of pension funding as part of the annual budget adoption process. The most recent pension actuarial valuation was prepared as of June 30, 2023, and approved by the MCERA Board in February 2024. This valuation was used to determine the contribution rates for FY 2024-25. The composite rate for the City of San Rafael will be 55.83 percent, a 0.93 percent decrease from the current rate of 56.76 percent. The budgeted pension contribution for FY 2024- 25 provides full funding for the required contribution. The rate for public safety employees decreased from 69.44 percent to 68.90 percent, a decrease of 0.54 percent. The rate for miscellaneous employees decreased from 44.37 percent to 43.08 percent, a decrease of 1.29 percent. The valuation also reported an unfunded actuarial liability of $115 million for the City, representing a funded ratio of 83.1 percent. MCERA’s investment target (discount rate) remained at 6.75 percent during the measurement period. The City has dedicated a portion of its employee retirement reserve to buffer the impact of any unexpected increases. This reserve, which is projected to total $1.7 million at the end of FY 2023-24, is also used to accumulate payments for debt service on the $4.5 million pension obligation bonds issued in 2010 and for optional, supplementary payments to MCERA. Status of Other Postemployment Benefit (OPEB) Funding (Retiree Healthcare) The City’s OPEB Funding Policy was adopted on September 18, 2017. The policy cites the City’s goal of fully funding the Actuarially Determined Contribution (ADC) each year. The budgeted OPEB contribution for FY 2023-24 provides full funding for the required contribution. The contribution is based on an investment target (discount rate) of 6.25 percent. The most recent actuarial valuation, as of June 30, 2023, reports $27 million in plan assets offset by $47.8 million in actuarially accrued liabilities, leaving an unfunded actuarial liability of $20.8 million. The City’s ADC for FY 2024-25 is $2.8 million. General Fund Balance and Reserves Under the proposed FY 2024-25 budget, staff is recommending updating the City’s General Fund Reserve Policy from 10% to 15% of operating expenditures. The FY 2024-25 proposed budget would result in achieving this increased reserve level totaling $15.27 million, as of June 30, 2025. The increased reserve level is intended to better align with best practices (the Government Finance Officers’ Association recommends 17%), as well as policy reserve levels established by several comparable agencies. In addition, the recommended reserve level is intended to be allocated as follows: • Economic Uncertainty – 5% (to buffer against volatility in revenues during economic downturns/recessions) • Emergency Reserve – 10% (to provide from unexpected/unplanned expenditures) In addition, the City’s capital reserve is proposed to be increased from $600,000 to $1,000,000 as part of the FY 2024-25 Proposed Budget. This reserve serves as a buffer against unanticipated capital projects needed that may require supplemental support from the General Fund. The updated General Fund reserve policy being prepared for City Council consideration at the meeting of June 17, 2024 includes the following components: • Recommended reserve policy levels at 15% PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 18 • Allowable Uses of reserve balances • Process for restoration of reserve balances (when used) • Policy guidelines for allocation of year-end excess fund balance (exceeding reserve policy levels). Based on the projections and recommendations contained in the FY 2024-25 Proposed Budget, the General Fund budget is effectively balanced with ongoing revenues supporting ongoing appropriations. As noted in this report, a significant allocation of available fund balances ($8.59 million) is proposed to be either transferred to various special revenue and capital project funds and or appropriated in the budget year for priority one-time projects and expenses. STAFFING The FY 2024-25 Proposed Budget recommends maintaining authorized staffing levels at 416.34 Full-Time Equivalent positions. This staffing level is consistent with the adjusted FY 2023-24 staffing levels, reflective of adjustments approved by the City Council since adoption of the FY 2023-24 budget, which authorized a total of 426.06 positions. Through the process of developing the Proposed FY 2024-25, the Human Resources Department implemented the following classification adjustments as warranted to provide for effective management and delivery of City services. 1) Public Works a. The Deputy Director position has been retitled to a Deputy Public Works Administrative Director with the goal of providing strategic oversight and leadership of the Department of Public Works administrative activities. This position will lead, direct and implement cross departmental programs and projects and provide highly complex staff assistance to the Public Works Director. b. Create a new classification of Operations & Maintenance Superintendent in order to provide holistic oversight of all operations & maintenance activities across facilities, streets, parks, and fleet functional areas. This position is distinguished from the Operations & Maintenance Manager in that the manager is responsible for the overall administrative direction of the operations division, while the Superintendent oversees the operations of these programs through subordinate single-division supervisors. 2) Digital Services & Open Government a. Retitle the Civic Design Manager classification to Civic Engagement Manager to highlight the position’s focus on developing and builimanaging the City's comprehensive civic engagement programs and overseeing community engagement projects and processes. The job description has been updated to more accurately reflect the work performed and the salary range will remain the same therefore there is no cost associated with this change. These changes will not result in an increased cost or additional positions, as the changes will be covered through existing vacancies and internal promotions. FISCAL IMPACT: The preliminary Fiscal Year 2024-25 budget has been prepared for all funds. Funding sources are sufficient to support the preliminary spending plans presented. There is no fiscal impact associated with acceptance of this report. PRELIMINARY FISCAL YEAR 2024-25 PROPOSED BUDGET / Page: 19 RECOMMENDATION: Receive report related to the Preliminary Citywide Proposed Budget for Fiscal Year 2024-25 and provide direction to staff to inform preparation of the Final Proposed FY 2024-25 Budget for adoption at the City Council meeting of June 17, 2024. ATTACHMENTS: 1. Summary of FY 2024-25 Preliminary Proposed Budget a. Exhibit I – FY 2024-25 All Funds Proposed Budget (Revenues, and Expenditures) with comparison to FY2023-24 Adopted Budget b. (Revenues and Expenditures by Fund c. Exhibit II – FY 2024-25 General Fund Proposed Budget (Revenues, and Expenditures) with comparison to FY2023-24 Adopted Budget d. Exhibit III – FY 2024-25 Proposed Budget (Revenues and Expenditures by Fund) e. Exhibit IV – Summary of FY 2024-25 Authorized Staffing (Full-Time Equivalents) 2. Proposed Capital Improvement Program Budget Summary: FY 2024-25 ALL FUNDS PROPOSED BUDGET FY 2024-25 Revenues and Expenditures EXHIBIT I FY23-24 Adopted Budget FY24-25 Proposed Budget % Change $ Change REVENUES & OTHER SOURCES Taxes 89,695,156$ 92,203,844$ 2.8% 2,508,688$ Licenses and Permits 2,855,788 2,950,488 3.3% 94,700 Fines and Forfeitures 2,639,740 2,703,400 2.4% 63,660 Use of Money 532,248 4,316,047 710.9% 3,783,799 Intergovernmental 21,030,007 34,257,592 62.9% 13,227,585 Charges for Services 20,539,268 21,895,413 6.6% 1,356,145 Other Revenues 26,080,350 18,990,255 -27.2% (7,090,095) Transfers In 6,029,561 13,211,806 119.1% 7,182,245 TOTAL SOURCES 169,402,117$ 190,528,845$ 12.5%21,126,728$ EXPENDITURES AND OTHER USES Expenditures by Department Finance 3,623,005 4,106,626 13.3% 483,621 Non-Departmental 10,678,383 11,971,375 12.1% 1,292,992 City Manager/City Council 3,602,499 4,925,600 36.7% 1,323,101 City Clerk 581,169 783,037 34.7%201,868 Digital Service 6,181,966 7,293,970 18.0% 1,112,004 Human Resources 12,846,036 15,447,709 20.3% 2,601,673 Parking 3,873,776 4,207,107 8.6% 333,331 City Attorney 1,327,403 1,452,736 9.4% 125,333 Community Development 9,233,460 8,671,825 -6.1% (561,635) Police 28,517,599 29,611,936 3.8% 1,094,337 Fire 35,594,756 38,515,080 8.2% 2,920,324 Public Works 54,273,508 49,769,988 -8.3% (4,503,520) Library 9,141,598 9,763,573 6.8% 621,975 Recreation 9,117,457 9,855,741 8.1% 738,284 Economic Development 927,704 1,224,963 32.0%297,259 Transfers out 6,029,561 13,211,806 119.1% 7,182,245 TOTAL USES 195,549,881$ 210,813,072$ 7.8%15,263,191$ NET OPERATING RESULTS (26,147,764)$ (20,284,227)$ -22.4%5,863,537$ Expenditure Category FY23-24 Adopted Budget FY24-25 Proposed Budget % Change Salaries 53,680,487$ 56,841,038$ Fringe Benefits 42,521,368 42,928,249 Sub-Total Personnel 96,201,855$ 99,769,287$ 3.7% 3,567,432$ Services 34,009,594 56,284,093 65.5%22,274,499 Supplies 3,793,381 4,150,738 9.4%357,357 Utilities/Communications 2,770,214 3,077,950 11.1%307,736 Other 3,371,644 4,203,810 24.7%832,166 Debt Service 5,390,815 5,603,882 4.0%213,067 Assets Purchased 34,834,776 14,522,998 -58.3%(20,311,778) Internal Service Charges 9,148,042 9,988,508 9.2%840,466 Transfers 6,029,561 13,211,806 119.1%7,182,245 Total Appropriations 195,549,881$ 210,813,072$ 7.8%15,263,191$ GENERAL FUND FY 2024-25 PROPOSED BUDGET Revenues and Expenditures EXHIBIT II FY23-24 Adopted Budget FY24-25 Proposed Budget % Change $ Change REVENUES & OTHER OPERATIONAL SOURCES Taxes Property Tax and related 25,351,496$ 26,698,822$ 5.3%1,347,326 Sales Tax 25,414,990 25,253,524 -0.6%(161,466) Sales Tax -Measure E 14,487,000 14,520,000 0.2%33,000 Sales Tax -Measure R 4,829,000 4,840,000 0.2%11,000 Franchise Tax 4,270,000 4,700,000 10.1%430,000 Business Tax 2,602,000 2,600,000 -0.1%(2,000) Transient Occupancy Tax 3,100,000 3,900,000 25.8%800,000 Other Agencies CSA #19 Fire Service 2,515,788 2,591,262 3.0%75,474 VLF Backfill 7,000,000 7,560,009 8.0%560,009 Other Agencies (Prop 172, Owner Prop Tax, State Mandate, Other agencies)1,853,633 1,557,133 -16.0%(296,500) Other Revenues Permits & Licenses (building, electrical, encroachment, use, alarm)2,855,788 2,950,488 3.3%94,700 Fine & Forfeitures (traffic, vehicle, etc.)212,740 203,400 -4.4%(9,340) Interest & Rents (investment earnings, rents, etc.)456,900 1,069,558 134.1%612,658 Charges for Services (includes dev't fees and plan review)2,645,764 2,480,008 -6.3%(165,756) Other Revenue (damage reimbursements, misc income)594,500 358,000 -39.8%(236,500) Sub-total: Revenues 98,189,599$ 101,282,204$ 3.1%3,092,605$ TRANSFERS IN Assessment District reimbursements from Gas Tax 650,000 650,000 0.0%- from Parking Services Fund - Admin. cost 497,148 477,993 -3.9%(19,155) from Cannabis Fund - SAFE Team 700,000 0.0%700,000 from Employee Retirement Fund - POB debt payment 680,313 680,313 0.0%- Sub-total: Transfers In 1,827,461$ 2,508,306$ 37.3%680,845$ TOTAL SOURCES 100,017,060$ 103,790,510$ 3.8%3,773,450$ EXPENDITURES AND OTHER OPERATIONAL USES Expenditures by Department Finance 3,033,755 2,628,380 -13.4%(405,375) Non-Departmental 10,678,384 11,843,287 10.9%1,164,903 City Manager/City Council 3,247,605 3,945,027 21.5%697,422 City Clerk 581,169 783,037 34.7%201,868 Digital Service 1,949,021 2,209,402 13.4%260,381 Human Resources 724,561 720,095 -0.6%(4,466) City Attorney 1,211,301 1,330,633 9.9%119,332 Community Development 6,686,645 6,436,280 -3.7%(250,365) Police 26,818,491 28,207,683 5.2%1,389,192 Fire 23,570,766 24,372,630 3.4%801,864 Public Works 15,125,015 15,399,570 1.8%274,555 Library 3,392,971 3,494,392 3.0%101,421 Economic Development 814,456 662,841 -18.6%(151,615) Sub-total: Expenditures 97,834,140$ 102,033,257$ 4.3%4,199,117$ OPERATIONAL TRANSFERS OUT to Recreation Fund - Operating support 2,207,000 2,420,000 9.7%213,000 to Essential Facilities Fund - Measure E 353,500 0.0%353,500 to Liability Fund 2,000,000 0.0%2,000,000 to Capital Improvement Fund - Pickleweed 2,000,000 0.0%2,000,000 to Capital Improvement Fund - Stormwater 735,000 0.0%735,000 to Stormwater 250,000 0.0%250,000 to Gas Tax 1,000,000 0.0%1,000,000 to Vehicle Replacement Fund 1,000,000 0.0%1,000,000 to Police Equipment Replacement Fund 250,000 0.0%250,000 to Fire Equipment Replacement Fund 250,000 0.0%250,000 Sub-total: Transfers Out 2,207,000$ 10,258,500$ 364.8%8,051,500$ TOTAL USES 100,041,140$ 112,291,757$ 12.2%12,250,617$ NET OPERATING RESULTS (24,080)$ (8,501,247)$ (8,477,167)$ Expenditure Category FY23-24 Adopted Budget FY24-25 Proposed Budget % Change Salaries 38,657,208$ 41,305,774$ Fringe Benefits 29,916,522 29,790,481 Sub-Total Personnel 68,573,730$ 71,096,255$ 3.7%2,522,525$ Services 11,741,521 11,849,929 0.9%108,408 Supplies 1,312,842 1,451,992 10.6%139,150 Utilities/Communications 1,596,150 1,888,650 18.3%292,500 Other 1,238,871 1,505,815 21.5%266,944 Debt Service 5,248,727 5,326,792 1.5%78,065 Assets Purchased 122,776 - -100.0%(122,776) Internal Service Charges 7,999,523 8,913,824 11.4%914,301 Transfers 2,207,000 10,258,500 364.8%8,051,500 Total Appropriations 100,041,140$ 112,291,757$ 12.2%12,250,617 FY2024-25 PROPOSED BUDGET REVENUES AND APPROPRIATIONS BY FUND EXHIBIT III CITY OF SAN RAFAEL 346,929.00 346,929.00 298,012.00 updated 5/3/24 Total Total Total FY 2024-25 PROJECTED BUDGET Est.Actual Operating Operating Capital June 30, 2025 FUND FUND June 30, 2024 and Capital Transfers Total Transfers to Total Projected # NAME Balance Revenue In Resources Budget Budget Other Funds Appropriations Balance GENERAL OPERATING FUNDS: 001 General Fund Available Balance $31,301,991 $101,282,204 $2,508,306 $103,790,510 102,033,257 - 10,258,500 112,291,757 $22,800,744 218 General Plan Special Revenue Fund 1,522,038 647,275 - 647,275 1,151,725 - - 1,151,725 1,017,588 SPECIAL REVENUE & GRANT FUNDS: 205 Storm Water Fund 166,938 1,901,912 360,000 2,261,912 503,365 1,376,653 - 1,880,018 548,832 206 Gas Tax 7,776,741 15,415,546 1,250,000 16,665,546 1,500,000 15,011,838 760,000 17,271,838 7,170,449 207 Development Services 3,282 - - - - - - - 3,282 208 Child Care 159,756 3,210,550 - 3,210,550 3,302,759 - - 3,302,759 67,547 210 Paramedic/EMS 2,808,914 8,986,714 - 8,986,714 9,609,534 - - 9,609,534 2,186,094 216 Cannabis 845,492 269,627 - 269,627 170,385 - 700,000 870,385 244,734 217 State Lands Fund 435,745 56,352 - 56,352 - - - - 492,097 222 Recreation Revolving 362,712 2,285,712 2,420,000 4,705,712 4,932,194 - - 4,932,194 136,230 223 Household Haz. Waste Fund 527,641 - - - 527,641 - - 527,641 - 228 Hazardous Materials Fund 55,251 - - - - - - - 55,251 234 Pt. San Pedro A.D. Maintenance Portion 149,781 156,233 - 156,233 183,186 - - 183,186 122,828 235 Baypoint Lagoons L & L Assessment District 240,105 34,206 - 34,206 212,700 - - 212,700 61,611 236 Loch Lomond CFD #10 816,006 57,181 - 57,181 18,855 - - 18,855 854,332 237 Loch Lomond Marina CFD #2 985,045 257,915 - 257,915 135,030 - - 135,030 1,107,930 240 Parkland Dedication 359,989 14,350 - 14,350 - - - - 374,339 241 Measure A Open Space 1,175,053 566,197 - 566,197 3 937,500 - 937,503 803,747 242 Measure C Wildfire Prevention 1,672,290 3,356,061 - 3,356,061 4,269,472 - - 4,269,472 758,879 495 Low and moderate Income Housing Fund 1,776,284 10,564 - 10,564 85,770 - - 85,770 1,701,078 LIBRARY AND FALKIRK: 214 Library Revolving 4,342,099 109,343 - 109,343 42,392 4,357,059 - 4,399,451 51,991 215 Library Special Assessment Fund 1,001,792 1,212,962 - 1,212,962 1,869,730 - - 1,869,730 345,024 Library Fund 5,343,891 1,322,305 - 1,322,305 1,912,122 4,357,059 - 6,269,181 397,015 PUBLIC SAFETY: 200 Abandoned Vehicle 9,471 85,000 85,000 170,000 179,067 - - 179,067 404 202 Asset Seizure 3,704 - - - - - - - 3,704 204 Crime Prevention 7,573 - - - - - - - 7,573 230 Youth Services - Police 67,890 19,050 - 19,050 40,043 - - 40,043 46,897 Public Safety Fund 88,638 104,050 85,000 189,050 219,110 - - 219,110 58,578 TRAFFIC AND HOUSING: 243 Affordable Housing in lieu 2,611,941 1,091,630 - 1,091,630 - - - - 3,703,571 245 Housing & Parking In-lieu 369,359 13,574 - 13,574 - - - - 382,933 246 East S.R. Traffic Mitigation 1,005,965 639,954 - 639,954 440,000 100,000 250,000 790,000 855,919 Traffic & Housing Mitigation Funds 3,987,266 1,745,158 - 1,745,158 440,000 100,000 250,000 790,000 4,942,424 GRANT: 201 A.D.A.. Access Projects - - - - - - - - - 260 Pickleweed Childcare Grant 381,358 651,240 - 651,240 683,288 - - 683,288 349,310 281 Public Safety Grants 522,321 300,000 - 300,000 472,445 - - 472,445 349,876 283 Grant-Other 461,672 1,977,500 - 1,977,500 2,346,021 - - 2,346,021 93,151 Grant Funds 1,365,351 2,928,740 - 2,928,740 3,501,754 - - 3,501,754 792,337 SPECIAL REVENUE & GRANT FUND TOTAL 31,102,171 42,679,373 4,115,000 46,794,373 31,523,880 21,783,050 1,710,000 55,016,930 22,879,614 CONSOLIDATED FUNDS https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/24-25/7-Council FY24-25/Fund Sums FY25_Exhibit I 2024.05.20 FY2024-25 PROPOSED BUDGET REVENUES AND APPROPRIATIONS BY FUND EXHIBIT III CITY OF SAN RAFAEL 346,929.00 346,929.00 298,012.00 updated 5/3/24 Total Total Total FY 2024-25 PROJECTED BUDGET Est.Actual Operating Operating Capital June 30, 2025 FUND FUND June 30, 2024 and Capital Transfers Total Transfers to Total Projected # NAME Balance Revenue In Resources Budget Budget Other Funds Appropriations Balance CONSOLIDATED FUNDS ASSESSMENT DISTRICTS: Var. Assessment District Projects 298,722 - - - - - - - 298,722 ASSESSMENT DISTRICT TOTAL 298,722 - - - - - - - 298,722 CAPITAL PROJECT FUNDS: 401 Capital Improvement 8,012,141 4,421,955 2,735,000 7,156,955 100,000 9,215,000 - 9,315,000 5,854,096 405 Open Space Acquisition 119,248 4,767 - 4,767 - - - - 124,015 406 Bedroom Tax 142,339 5,642 - 5,642 - - - - 147,981 407 Parks Capital Projects 21,861 - - - - - - - 21,861 420 Measure E - Public Safety Facilities 2,418,016 147,645 353,500 501,145 - - - - 2,919,161 CAPITAL PROJECT FUND TOTAL 10,713,604 4,580,009 3,088,500 7,668,509 100,000 9,215,000 - 9,315,000 9,067,113 ENTERPRISE FUND: 501 Parking Services 206,341 4,807,330 - 4,807,330 4,232,367 - 562,993 4,795,360 218,311 ENTERPRISE FUND TOTAL 206,341 4,807,330 - 4,807,330 4,232,367 - 562,993 4,795,360 218,311 INTERNAL SERVICE FUNDS: 227 Sewer Maintenance - 3,574,639 - 3,574,639 3,574,639 - - 3,574,639 - 600 Vehicle Replacement 5,056,268 1,540,159 1,000,000 2,540,159 221,439 - - 221,439 7,374,988 601 Technology Replacement 3,668,422 2,782,895 - 2,782,895 4,400,168 - - 4,400,168 2,051,149 602 Fire Equipment Replacement 1,057,572 173,494 250,000 423,494 131,000 - - 131,000 1,350,066 603 Building Improvement 5,296,922 2,177,147 - 2,177,147 200,000 2,412,713 - 2,612,713 4,861,356 604 Employee Benefits 727,252 790,328 - 790,328 586,788 - - 586,788 930,792 605 Liability Insurance 1,962,024 2,994,258 2,000,000 4,994,258 6,691,549 - - 6,691,549 264,733 606 Workers Compensation Insurance 950,126 3,241,777 - 3,241,777 3,528,289 - - 3,528,289 663,614 607 Dental Insurance 580,691 682,644 - 682,644 495,000 - - 495,000 768,335 608 Radio Replacement 686,440 467,091 - 467,091 410,000 - - 410,000 743,531 609 Telephone/Internet 180,817 693,786 - 693,786 684,400 - - 684,400 190,203 611 Employee Retirement 1,775,012 100,565 - 100,565 4,000 - 680,313 684,313 1,191,264 612 Retiree Health Benefit OPEB 236,852 3,944,963 - 3,944,963 3,660,000 - - 3,660,000 521,815 613 Police Equipment Replacement 404,722 59,675 250,000 309,675 407,000 - - 407,000 307,397 INTERNAL SERVICE FUND TOTAL 22,583,121 23,223,421 3,500,000 26,723,421 24,994,272 2,412,713 680,313 28,087,298 21,219,244 TRUST AND AGENCY FUNDS: 712 Library Fiduciary 527,179 97,427 - 97,427 - - - - 624,606 714 Pt. San Pedro Assessment District 199,035 - - - 155,002 - - 155,002 44,033 TRUST & AGENCY FUND TOTAL 527,179 97,427 - 97,427 155,002 - - 155,002 668,639 - COMBINED FUNDS TOTAL 98,454,201 177,317,039 13,211,806 190,528,845 164,190,503 33,410,763 13,211,806 210,813,072 78,169,974 LESS: INTERFUND TRANSFER (13,211,806) (13,211,806) (13,211,806) (13,211,806) LESS: INTERNAL SERVICE CHARGES (18,065,730) (18,065,730) (18,065,729) (18,065,729) NET TOTALS FY 2024-25 98,454,201 159,251,309 - 159,251,309 146,124,774 33,410,763 - 179,535,537 78,169,974 https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/24-25/7-Council FY24-25/Fund Sums FY25_Exhibit I 2024.05.20 CITY OF SAN RAFAEL Authorized Positions EXHIBIT IV Adopted After Mid-Yr Final Proposed Departments 2023-2024 2023-2024 2023-2024 2024-2025 Regular Community Development 23.00 1.00 24.00 24.00 Community Services 56.90 (12.92) 43.98 43.98 City Attorney 3.50 1.00 3.50 3.50 City Clerk 2.00 2.00 2.00 City Manager/Council 11.56 2.00 13.56 13.56 Economic Development (Move to CDD)1.00 1.00 2.00 2.00 Finance 11.00 (1.00) 10.00 10.00 Fire 82.00 82.00 82.00 Library 21.96 21.96 21.96 Management Services 28.63 (1.00) 27.63 27.63 Police 93.00 93.00 93.00 Public Works 49.00 49.00 49.00 SRSD 17.00 17.00 17.00 Sub - Total Regular Positions 400.55 (9.92) 389.63 389.63 Change from previous year Fixed Term Community Development 1.00 1.00 1.00 City Manager/Council 1.00 - 1.00 1.00 Community Services 1.51 (0.80) 0.71 0.71 Economic Development (former RDA)1.00 (1.00) - - Finance 1.00 1.00 1.00 Fire 11.00 11.00 11.00 Library - - - Management Services 4.00 1.00 5.00 5.00 Police - 1.00 1.00 1.00 Public Works 4.00 4.00 4.00 SRSD 1.00 1.00 2.00 2.00 Sub - Total Fixed-Term Positions 25.51 0.20 26.71 26.71 Total Budgeted Positions 426.06 (9.72) 416.34 416.34 Authorized, unbudgeted - extended absence/no cost - - - Total Authorized Positions 426.06 416.34 416.34 General Notes: The above-authorized positions are presented as full-time equivalent employees (FTE's) based on various workweek hours as negotiated in employee agreements. The totals by department reflect a combination of full- time or permanent part-time, or fixed term positions that are entitled to all or pro-rated benefits in accordance with the negotiated agreements for employees or individuals who are under contract. The totals reflected above, or in the detail department program sections, do not include temporary or seasonal employees that are utilized for short-term or specific reasons during the year. https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/24-25/2-Authorized Positions/_Budgeted Positions FY24-25 Sub-Category Project Title Fund FY 2024-25 FY 2025-26 FY 2026-27 Bike / Pedestrian Citywide Bicycle and Pedestrian Plan Support Program 246 $ 100,000 $ 100,000 $ 100,000 Bike / Pedestrian Road Safety Implementation Program 206 $ 500,000 $ 500,000 $ 500,000 Buildings Facilities Maintenance Program 603 $ 2,000,000 $ 2,000,000 $ 2,000,000 Parks Park and Landscape Maintenance Program 001 $ 1,208,000 $ 1,210,000 $ 1,210,000 Sidewalk City-Led Sidewalk Repair Program (Non-Reimbursable)206 $ 250,000 $ 150,000 $ 150,000 Sidewalk Sidewalk Repair Program (Resident Reimbursement)206 $ 300,000 $ 450,000 $ 450,000 Storm Drains Corrugated Metal Pipe Replacement Program 205 $ 220,000 $ 220,000 $ 220,000 Storm Drains Stormwater System Maintenance Program 205 $ 720,000 $ 720,000 $ 720,000 Streets Maint Minor Street Repairs & Maintenance Program 001 $ 658,500 $ 660,000 $ 660,000 Streets Maint Pavement Maintenance Program 206 $ 3,000,000 $ 2,500,000 $ 2,500,000 Streets Maint Public Hillside Monitoring & Maintenance Program 206 $ 250,000 $ 250,000 $ 250,000 Traffic Signal Traffic Signal and Street Lighting Program 206 $ 500,000 $ 500,000 $ 500,000 Other Fleet Management Program 001 $ 743,000 $ 750,000 $ 750,000 Other Grants Procurement Program 001 $ 100,000 $ 200,000 $ 200,000 Other Permit and Technical Assistance Program 001 $ 350,500 $ 250,000 $ 250,000 Other Regional Partnership and Project Assistance Program 001 Total $ 10,900,000 $ 10,460,000 $ 10,460,000 Funding by Applicant Annual Programs ATTACHMENT 2FY 2024-PROPSED BUDGET CAPITAL IMPROVEMENT PLAN Sub-Category Project Title Fund Prior Years' Appropriated Funding FY 2024-25 FY 2025-26 FY 2026-27 3-YR Total Park Boyd Park Interim Playground Equipment 241 $ - $ 60,000 $ 60,000 Park Peacock Gap Park Playground 241 $ 145,005 $ 725,000 $ 870,005 Park Pickleweed Park Enhancement 401 $ 814,341 $ 8,480,000 $ 9,294,341 Park Terra Linda Park and Community Center Enhancement Plan 241 $ - $ 52,500 $ 52,500 Trails Trails Existing Conditions & Feasibility Study 241 $ - $ 100,000 $ 100,000 Park Oleander Park Playground Repairs 241 $ - $ - $ - Tennis Court Freitas Park Tennis Court Resurfacing 241 $ - $ - $ - Tennis Court Peacock Gap Park Tennis Court Resurfacing 241 $ - $ - $ - Park Gerstle Park Playground Improvements 241 $ - $ - $ - Total Parks $ 959,346 $ 9,417,500 $ - $ - $ 10,376,846 Parks Sub-Category Project Title Fund Prior Years' Appropriated Funding FY 2024-25 FY 2025-26 FY 2026-27 3-YR Total ParkBoydy In odnBtaeny nBParkBoydy InBiemInlygamy In uEqBpB2E4 B1B B$-6uu-$00B B1B B2,q-EEEB B1B B,-2E$-$00B oyIgrBcgd nl G y57 8eBoyIgrBcgd nBPwdn uEqBpB2E4 B1B B004-0E0B B1B BhB B1B Bu6E-EEEBB1B B3u4-0E0B oyIgrBcgd nl oyIgrBcgd nB9d nyendnmeBTnL gInrenydwBGIrkw dnmeBdn8B Pegr yy nC uEqBpB2E4 B1B BhB B1B BuqE-EEEB B1B BuqE-EEEB sgdlxBGdkyage 06EBGdndwBParkBoydy InBsgdlxBGdkyage uEq B1B BhB B1B B0uE-EEEB B1B B,4q-EEEBB1B B4-40q-EEEB sgdlxBGdkyage &egnegBParkBoydy InBsgdlxBGdkyage uEq sgdlxBGdkyage Fb Sgdnm lmIBParkBoydy InBsgdlxBGdkyage uEq B1B BhB B1B Bu$6-E4EB B1B Bu$6-E4EB sgdlxBGdkyage iIll BParkBoydy InBsgdlxBGdkyage uEq B1B BhB B1B B36-EEEB B1B B4-q,$-EEEBB1B B4-3q3-EEEB sgdlxBGdkyage ie87II8BO75BsgdlxBGdkyage uEq B1B BhB B1B B423-320B B1B Bu-EE6-EEEBB1B Bu-4qq-320B sgdlxBGdkyage odnBtaeny nBParkBoydy InBsgdlxBGdkyage uEq B1B BhB B1B B6u-EEEB B1B B4-,3q-EEEBB1B B4-6q$-EEEB ParkBoydy In &egnegBParkBoydy InBsgdlxBGdkyageBRParkBoydy InBakCgd8elf uEq B1B B233-233B B1B BhB B1B B$-2qE-EEEB B1B B$-643-233B sIydwBoyIgrBcgd nl B1B B4q-4$E-qEuB B1B B4-324-3q0B B1B B$-2qE-EEEB B1B B3-q33-EEEBB1B B0E-62,-4qqB Sub-Category Project Title Fund Prior Years' Appropriated Funding FY 2024-25 FY 2025-26 FY 2026-27 3-YR Total ParkBroyd IrkBnteimlgeutEkimParkBroymqipktni2ioum4lrn1ki$iiB-60, mcm mG57000m mcm m87,007000m mcm m87,G57000m ParkBroyd ruw$rBimParkBroydmtoBmhtnrkruridmlkto 60, mcm m3m mcm m,007000m mcm m,007000m 9rEetew Tg$oug$om9rEetewmLgBieorCturgo G8s mcm m,x87&,8m mcm mG760F7G6xm mcm m,70007000m 9rEetew lrn1ki$iiBmPetonIm9rEetewmqiBidryo G8s mcm mG587G80m mcm m87&sF7&x0m mcm mG70007000m qineiturgo Sub-Category Project Title Fund Prior Years' Appropriated Funding FY 2024-25 FY 2025-26 FY 2026-27 3-YR Total Bike / Pedestrian Canal Alliance Mid-Block Crossing Enhancement 206 $ - $ 325,000 $ 125,000 $ 450,000 Bike / Pedestrian Citywide Bicycle & Pedestrian Plan Update 206 $ - $ 250,000 $ 250,000 Bike / Pedestrian San Rafael Canal Crossing Project 206 $ 50,000 $ 1,575,000 $ 2,350,000 $ 3,975,000 Bike / Pedestrian South Merrydale Road – Civic Center Connector Pathway (aka Rafael Meadows Safe Crossing Pathway Project) 206 $ 50,000 $ 1,222,228 $ 1,946,772 $ 3,219,000 Streets B Street Culvert Replacement & Resurfacing 206 $ 648,803 $ 70,000 $ 718,803 Streets Bellam Blvd Off-Ramp Improvements (City R/W surface)206 $ - $ 575,000 $ 575,000 Streets Canal Active Transportation Experience Improvements 206 $ - $ 1,280,500 $ 5,419,700 $ 6,700,200 Streets Fourth St/Miracle Mile at Second St and West Crescent Dr 206 $ 241,900 $ 4,754,100 $ 4,996,000 Streets Lincoln Avenue Safety Improvement Project 206 $ - $ 310,000 $ 310,000 Streets Vision Zero Action Plan 206 $ - $ 150,000 $ 150,000 Bike / Pedestrian B Street Phase 2 Improvements 206 $ - $ - $ - Bike / Pedestrian BPMP Rank-1: Project D-1 Downtown East-West connection: Feasibility study 206 $ - $ - $ - Bike / Pedestrian BPMP Rank-5: Project B-6 Class I on both sides Freitas from Montecillo to Del Presidio. Or bi-directional 6 foot wide sidewalks 206 $ - $ - $ - Bike / Pedestrian Fourth Street bike connection - Grand to transit center 206 $ - $ - $ - Bike / Pedestrian Multi-Use Path Civic Center Station to Northgate 206 $ - $ - $ 1,800,000 $ 1,800,000 Bike / Pedestrian North-South Greenway Tamalpais Avenue: 4th to Mission (LRSP, BPMP Rank-6: Project D-2) 206 $ - $ - $ 4,000,000 $ 4,000,000 Bike / Pedestrian Woodland Ave Ped Improvements 206 $ - $ - $ - Streets BPMP - Bellam Blvd - Andersen to Baypoint 206 $ - $ - $ - Streets BPMP - Bellam Blvd - Andersen to Baypoint [Environmental Clearance] 206 $ - $ - $ - Streets Canal St Powerline Undergrounding 206 $ - $ - $ 6,300,000 $ 6,300,000 Streets Lincoln Ave Bridge Repairs 206 $ - $ - $ - Streets Lincoln Avenue Rehabilitation 206 $ 20,000 $ - $ 100,000 $ 3,000,000 $ 3,120,000 Streets Second Street Multi-Modal Improvements 206 $ 50,000 $ - $ 630,000 $ 680,000 Total Transportation $ 1,060,703 $ 10,511,828 $ 7,871,772 $ 7,769,700 $ 23,836,200 Transportation