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HomeMy WebLinkAboutFin FY 2024-25 First Quarter Budget Update____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: November 18, 2024 Disposition: Accepted the fiscal year (FY) 2024-25 First Quarter Budget Update presenting revenue and expenditure results through the first quarter of the current fiscal year (through September 30, 2024) (Attachment A); and, authorized amendments to the FY 2024-25 budget representing unencumbered carry-over appropriations for specified purposes, totaling $1,080,148, as presented in Attachment B Agenda Item No: 5.a Meeting Date: November 18, 2024 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Prepared by: Paul Navazio, Finance Director City Manager Approval: ______________ TOPIC: FY 2024-25 FIRST QUARTER BUDGET UPDATE SUBJECT: FY 2024-25 FIRST QUARTER BUDGET UPDATE: REVENUE AND EXPENDITURE RESULTS FOR THE QUARTER ENDING SEPTEMBER 30, 2024 RECOMMENDATI4ON: 1)Accept the fiscal year (FY) 2024-25 First Quarter Budget Update presenting revenue and expenditure results through the first quarter of the current fiscal year (through September 30, 2024) (Attachment A). 2)Authorize amendments to the FY 2024-25 budget representing unencumbered carry-over appropriations for specified purposes, totaling $1,080,148, as presented in Attachment B. BACKGROUND: This agenda item presents the first quarter budget update report summarizing revenue and expenditure results through the first quarter of the fiscal year (FY) 2024-25. This is largely an informational report providing periodic updates of financial results relative to the approved budget. Attachment 1 provides a summary of FY 2024-25 first-quarter revenue and expenditure results, organized as follows: Table 1 – All Fund Revenues, by Fund Type Table 4 – General Fund Revenues Table 2 – All Fund Expenditures by Fund Type Table 5 – General Fund Expenditures by Category Table 3 – All Fund Expenditures by Dept. Table 6 – General Fund Expenditures by Dept. Table 7 – All Fund revenues, by Fund Table 8 – All Fund Expenditures by Fund A Mid-Year (second quarter) Budget Update is planned for February 2025 to include revenue and expenditure results through the first half of the fiscal year (December 31, 2024) as well as updated revenue and expenditure projections through the remainder of the fiscal year. The Mid-Year Budget SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 Update serves to inform budget adjustments, as necessary, as well as inform the development of the City’s FY 2025-26 budget. A third quarter budget update is planned for May 2025, coinciding with the City Council’s consideration and review of the City’s Proposed FY 2025-26 budget. The First Quarter Budget Update report was previewed with the Finance Subcommittee (Mayor Kate, Vice Mayor Hill) at their November 12, 2024 meeting. DISCUSSION: Highlights of the FY 2024-25 Q1 results (Summarized in Attachment A): •All Funds revenues through the first quarter of FY 2024-25 were $27.15 million or 13.9% of the amended revenue budget of $195.56 million (see Attachment A). •All Funds expenditures through the first quarter of FY 2024-25 totaled $48.45 million. This, combined with an additional $29.59 million in encumbrances related to executed contracts and purchase orders, represents a total of 34.2% of the amended expenditure budget of $228.26 million (see Attachment A). •General Fund revenues through the first quarter of FY 2024-25 totaled $8.65 million, or 8.3% of the approved budget of $103.79 million. o General Fund revenues through the first quarter reflect the fact that the first Property Tax payments (from the County) and Sales Tax payments (from the State) are not received until the second quarter of the fiscal year. o Most other General Fund revenues are initially tracking at, or above, the expected budget through the first quarter of the fiscal year. •General Fund expenditures through the first quarter of FY 2024-25 were at $30.91 million. Combined with encumbrances of $3.05 million, this represents a combined commitment of $30.2% of the adjusted budget of $112.58 million. o Through the first quarter, results across most expenditure categories are tracking within budget. Personnel costs are trending slightly below budget due to ongoing vacancies in selected departments. o Departmental expenditures appear to be within budget, accounting for selected professional services contracts that reflect as encumbered appropriations as of the end of the first quarter. •The following table summarizes activity for the FY 2024-25 Capital Improvement Plan (CIP) budget through the first quarter of the fiscal year: FY 2024-25 Capital Improvement Plan Expenditures By Fund SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 •Through the first quarter of the fiscal year, capital project expenditures were $1.72 million, or 0.4% of the amended FY 2024-25 capital budget, which provides for amended appropriations totaling $42.88 million. •The amended budget of $42.88 million reflects the original adopted budget of $33.26 million, as well carry-over appropriations of $9.22 million (representing encumbrances related to contracts and purchase orders entered into in the prior fiscal year), as well as a budget augmentation of $400,000 approved by the City Council since approval of the original budget. FY 2023-24 Unencumbered Carry-Over Requests (Attachment B): This First Quarter Budget Update includes a recommended City Council action authorizing the re- appropriation of $1,080,148 in funding included in the prior year’s budget for specific projects and expenditures for which no purchase order or contract was issued prior to the end of the fiscal year. As such, City Council action is requested to amend the FY 2024-25 budget to reflect these funds' re- appropriation for the intended purpose. The requested FY 2023-44 Carry-Over appropriations are summarized below and detailed in Attachment B to this report: Fund Amount Description 206 – Gas Tax $ 98,000 Sidewalk Shaving Multi-Year Contract 283 – Grants (Other) 200,000 Marin Housing – Program Admin. 420 – Essential Facilities 24,489 Fire Station 54 – Security / Fence 600 – Vehicle Replacement 757,659 FY 23-24 Vehicle Replacements Total FY 2023-24 Carry-Over $1,080,148 FISCAL IMPACT: This agenda item provides financial results through the first quarter of the fiscal year as measured against the approved FY 2024-25 adjusted budget, which provides for authorized expenditure appropriations of $228.26 million supported by budgeted revenues of $195.56 million as well as the use of available fund balances, across all funds. The approved FY 2024-25 General Fund budget provides for expenditure appropriations of $112.50 million supported by projected revenues of $103.79 million along with available fund balance. This staff report also includes a recommendation authorizing amendments to the FY 2024-25 budget to reflect the carry-over of unencumbered appropriations from the FY 2023-24 budget totaling $1,080,148 across all funds. These appropriations reflect funding provided for in the prior fiscal year for specific purposes that remained unexpended and unencumbered at year-end, for which City Council-approved funding is required to complete planned work within the current fiscal year. Fund Name of Fund Adopted Budget FY24-25 FY23-24 Encumbered Carry-Over Budget Augmentations Adjustment Budget FY25 Project Expenditure Thru Sept FY25 205 Stormwater Fund 1,126,653$ 4,313,361$ 5,440,014$ 231,770$ 206 Gas Tax Fund 15,011,838 3,156,245 400,000 18,568,083 1,111,080 214 Library Fund 4,357,059 369,531 4,726,590 117,717 241 Measure A Open Space 937,500 102,692 1,040,192 24,961 246 Traffic Mitigation 100,000 225,065 325,065 93,768 283 Grant Fund-Other 104,033 104,033 401 Capital Improvement Fund 9,215,000 160,297 9,375,297 86,935 420 Measure E Public Safety Facility 100,000 758,961 858,961 39,918 603 Building Maintenance Fund 2,412,713 27,060 2,439,773 12,741 33,260,763 9,217,244 400,000 42,878,007 1,718,890 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 RECOMMENDED ACTION: Staff recommends that the City Council: 1)Accept the FY 2024-25 First Quarter Budget Update presenting revenue and expenditure results through the first quarter of the current fiscal year (through September 30, 2024) (Attachment A). 2)Authorize amendments to the FY 2024-25 budget representing unencumbered carry-over appropriations for specified purposes, totaling $1,080,148, as presented in Attachment B. ATTACHMENTS: A.FY 2024-25 Q1 Budget Update - summary results through 9/30/24 B.Recommended FY 2023-24 Unencumbered Carry-Over Appropriations ATTACHMENT A FY 2024-25 Q1 Budget Update Table 1 FY 2024-25 All Fund Revenues by Fund Type • All Funds revenues through the first quarter of FY 2023-24 were $25.56 million or 14.4% of the amended revenue budget of $176.97 million. Table 2 FY 2024-25 All Fund Expenditures by Fund Type • The Adjusted FY2024-25 budget reflects budget amendments totaling $17.12 million following adoption of the original Adopted Budget. These budget amendments include: o Carry-over of FY 2023-24 encumbered appropriations totaling $14.47 million across all funds related to contracts and purchase orders executed in the prior fiscal year. These carry-over appropriations are authorized via the budget Resolution No. 15309, approved by the City Council on June 17, 2024. o Additionally, since the adoption of the FY2024-25 budget, the City Council has authorized the following budget augmentations, totaling $2.46 million:  Homeless Program – $2,256,400 ERF3 and Earmark funding (Special Revenue Grants Fund-283), approved by the City Council on 8/19/24, and Fund Type Adopted Budget FY25 Adjusted Budget FY25 Actual Thru Sep FY25 % Budget General Fund 103,790,510$ 103,790,510$ 8,647,862$ 8.3% Special Revenue Funds 51,029,044 56,032,081 5,539,016 9.9% Capital Funds 7,679,073 7,679,073 2,887,886 37.6% Enterprise Funds 4,807,330 4,807,330 1,126,807 23.4% Internal Service Funds 23,148,781 23,148,781 8,951,813 38.7% Fiduciary Funds 97,427 97,427 1,234 1.3% Grand Total 190,552,164$ 195,555,201$ 27,154,618$ 13.9% Fund Type Adopted Budget FY25 Adjusted Budget FY25 Actual Thru Sep FY25 Encumbrances Budget % General Fund 112,291,594$ 112,584,602$ 30,914,490$ 3,018,527$ 30.1% Special Revenue Funds 59,657,513 74,110,369 8,993,253 15,097,358 32.5% Capital Funds 9,500,770 10,420,028 129,711 8,654,649 84.3% Enterprise Funds 4,795,356 4,982,073 1,097,916 188,808 25.8% Internal Service Funds 24,721,214 25,941,246 7,157,216 2,602,551 37.6% Fiduciary Funds 167,872 217,872 153,300 - 70.4% Grand Total 211,134,318$ 228,256,190$ 48,445,887$ 29,561,894$ 34.2%  Street Pavement Management Program - $400,000 from available fund balance (Special Revenue Gas Tax Fund-205), approved by the City Council on 8/19/24. • All Funds expenditures through the first quarter of FY 2024-25 totaled $48.45 million. This, combined with an additional $29.56 million in encumbrances related to executed contracts and purchase orders, represents a total of 34.2% of the amended expenditure budget of $228.26 million. Table 3 FY 2024-25 All Fund Expenditures by Department • All Departments are tracking well within budget through the first three months of the fiscal year. epartment Adopted Budget FY25 Adjusted Budget FY25 Actual Thru Sep FY25 Encumbrances Budget % 10 - Finance 3,371,622$ 3,496,942$ 1,207,084$ 56,110$ 36.1% 12 - City Manager/City Council 4,938,466 8,128,069 1,442,699 1,547,704 36.8% 13 - City Clerk 783,036 783,036 157,063 - 20.1% 14 - Management Services 28,192,084 29,156,190 7,787,151 1,211,418 30.9% 15 - City Attorney 1,452,734 1,458,435 279,591 5,702 19.6% 16 - Comm. & Econ. Developme 10,596,784 11,364,096 1,363,565 1,468,885 24.9% 31 - Police 29,886,706 30,159,390 7,351,473 329,652 25.5% 33 - Fire 38,340,304 40,802,405 9,409,401 1,885,805 27.7% 44 - Public Works 54,423,545 53,302,427 6,747,986 13,316,457 37.6% 51 - Library 9,763,436 10,133,103 1,330,193 1,042,770 23.4% 66 - Community Services 7,155,728 18,602,223 2,274,430 8,100,838 55.8% 99 - Non-departmental 22,229,875 20,869,875 9,095,252 596,553 46.4% Grand Total 211,134,318$ 228,256,190$ 48,445,887$ 29,561,894$ 34.2% Table 4 FY 2024-25 General Fund Revenues • General Fund revenues though the first quarter of FY 2024-25 totaled $8.64 million, or 8.3% of the approved budget of $103.79 million. o General Fund revenues through the first quarter reflect the fact that the first Property Tax payments (from the County) and Sales Tax payments (from the State) are not received until the second quarter of the fiscal year. o Most other General Fund revenues are initially tracking at, or above, the expected budget through the first quarter of the fiscal year. Revenue Category Adopted Budget FY25 Adjusted Budget FY25 Actual Thru Sep FY25 Budget % Taxes 1101 - Property Tax (Current Se 20,946,795$ 20,946,795$ -$ 0.0% 1102 - Property Tax [Current Un 392,519 392,519 - 0.0% 1104 - Supplemental Tax 250,000 250,000 4,267 1.7% 1107 - E.R.A.F.3,300,000 3,300,000 5,620 0.2% 1110 - Franchise Fee: Refuse 3,000,000 3,000,000 524,866 17.5% 1111 - Sales & Use Taxes 25,253,524 25,253,524 2,087,853 8.3% 1112 - Franchise Tax 1,700,000 1,700,000 - 0.0% 1113 - Transient Occupancy Tax 3,900,000 3,900,000 454,230 11.6% 1115 - Business License Tax 2,600,000 2,600,000 88,847 3.4% 1116 - Measure S - Use Tax (TU - - 8 0.0% 1117 - Measure E - Use Tax (TU 14,520,000 14,520,000 1,276,558 8.8% 1121 - Property Transfer Tax 1,500,000 1,500,000 334,656 22.3% 1124 - Unitary Tax 309,508 309,508 - 0.0% 1129 - Measure R - Use Tax (TU 4,840,000 4,840,000 425,335 8.8% 1150 - Business License Tax (Pr - - - 0.0% Taxes Total 82,512,346$ 82,512,346$ 5,202,240$ 6.3% 2X00 - Licenses & Permits 2,950,488 2,950,488 806,819 27.3% 3300 - Citation Collections 130,000 130,000 22,588 17.4% 3400 - Fines & Forfeitures 73,400 73,400 18,727 25.5% 4400 - Use Of Money 1,069,558 1,069,558 1,066,241 99.7% 5500 - Intergovernmental 11,708,404 11,708,404 480,212 4.1% 6000 - Charges For Services 10,000 10,000 - 0.0% 6300 - Development Fees 1,831,094 1,831,094 419,375 22.9% 6600 - Project Review Fees 501,814 501,814 70,569 14.1% 6700 - False Alarm Fees 137,000 137,000 23,869 17.4% 6800 - Duplication Costs 100 100 208 208.0% 6900 - Business Tax Processing - - 125 0.0% 7700 - Other 358,000 358,000 84,812 23.7% 7900 - Transfers 2,508,306 2,508,306 452,076 18.0% Grand Total 103,790,510$ 103,790,510$ 8,647,862$ 8.3% Table 5 FY 2024-25 General Fund Expenditures By Category • General Fund expenditures through the first quarter of FY 2024-25 stand at $30.91 million. Combined with encumbrances of $3.02 million, this represents a combined commitment of $30.1% of the adjusted budget of $112.58 million. o Through the first quarter, results across most expenditure categories are tracking within budget. Personnel costs are trending slightly below budget due to ongoing vacancies in selected departments. o Departmental expenditures appear to be within budget, accounting for selected professional services contracts that reflect as encumbered appropriations as of the end of the first quarter. Table 6 FY 2024-25 General Fund Expenditures By Department Expenditure Category Adopted Budget FY25 Adjusted Budget FY25 Actual Thru Sep FY25 Encumbrances Budget % 8100 - Salaries & Wages 41,305,632$ 41,305,769$ 9,882,589$ -$ 23.9% 8300 - Fringe Benefits 29,790,461 29,790,460 6,938,223 - 23.3% 9200 - Services 11,849,929 12,090,120 2,440,977 2,566,741 41.4% 9300 - Supplies 1,451,992 1,445,117 314,119 129,078 30.7% 9400 - Utilities/Communication 1,888,650 1,888,650 466,609 - 24.7% 9500 - Other 1,505,815 1,565,371 762,596 322,708 69.3% 9600 - Debt Services 5,326,792 5,326,792 640,047 - 12.0% 9700 - Assets-Purchase/Cost - - - - 0.0% 9900 - Transfer Out & Internal Srv Charges 19,172,323 19,172,323 9,469,330 - 49.4% Grand Total 112,291,594$ 112,584,602$ 30,914,490$ 3,018,527$ 30.1% Department Adopted Budget FY25 Adjusted Budget FY25 Actual Thru Sep FY25 Encumbrances Budget % 10 - Finance 2,628,376$ 2,703,696$ 459,189$ 56,110$ 19.1% 12 - City Manager/City Council 3,945,024 4,497,833 1,245,001 691,668 43.1% 13 - City Clerk 783,036 783,036 157,063 - 20.1% 14 - Management Services 2,929,496 2,961,696 689,272 - 23.3% 15 - City Attorney 1,330,632 1,336,333 265,380 5,702 20.3% 16 - Comm. Development 7,099,118 6,666,430 1,102,253 268,885 20.6% 31 - Police 28,482,449 28,755,133 7,135,483 136,172 25.3% 33 - Fire 24,097,856 24,728,519 6,052,290 202,468 25.3% 44 - Public Works 15,399,565 15,755,748 3,813,788 857,568 29.6% 51 - Library 3,494,254 3,494,390 901,531 203,402 31.6% 99 - Non-departmental 22,101,787 20,901,787 9,093,239 596,553 46.4% Grand Total 112,291,594$ 112,584,602$ 30,914,490$ 3,018,527$ 30.1% Table 7 FY 2024-25 Revenues By Fund Table 8 FY 2024-25 Expenditures By Fund ATTACHMENT B FY2023-24 Unencumbered Carry-Over Appropriations Dept Description Amount Account # DPW Sidewalk Shaving Program 98,000 206-44-48002-9270 Sub-total Fund 206 (Gas Tax)98,000$ CED Marin Housing - Program Administration 200,000 243-16-28001-9270 Sub-total Fund 283 (Grants- Other)200,000$ DPW Fire Station #54- Security / Fence 24,489 420-44-99005-9751 Sub-total Fund 420 (Essential Facilities)24,489$ DPW Replacement Vehicle #139 (FA#001555)27,206 600-44-46001-9720 DPW 2 Ambulances per CC auth. 8/21/23 603,300 600-44-46001-9720 Outfitting 2 Ambulances per CC auth. 8/21/23 53,516 600-44-46001-9720 DPW Outfitting Veh#246 (FA#002396)29,339 600-44-46001-9720 DPW Outfitting Veh#14 (FA#002400)30,928 600-44-46001-9720 DPW Veh 277-15 FA#002213 6,649 600-44-46001-9720 DPW Veh #275-15 FA002207, #275-23 FA#002409 6,720 600-44-46001-9720 Sub-total Fund 600 (Vehicle Relacement)757,659$ Total FY 2023-24 Carry-over Appropriations 1,080,148$