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Home My WebLink AboutFin FY 2024-25 Mid-Year Budget Update and Personnel Changes PPTFiscal Year 2024-25 Mid-Year Budget Update FY2024-25 Mid-Year Budget Update - Recommendations Staff recommends that the City Council: 1)Accept the fiscal year 2024-25 Mid-Year Budget Update presenting revenue and expenditure results through the second quarter of the current fiscal year (through the accounting period ended December 31,2024),and Authorize Mid-Year Budget supplemental budget appropriations totaling $672,411 across selected funds,and 1)Adopt the resolution authorizing amendments to Salary Schedules to reflect fiscal year 2024-25 Mid-Year Personnel Changes,and appropriating funding for a new position supporting the Sustainability Division.(Attachment C). FY 2024-25 Mid-Year Budget Update –All Funds o Note:staff is monitoring potential impacts of Executive Orders affecting federal funding. FY 2024-25 Mid-Year Budget Update –General Fund FY 2024-25 Mid-Year Budget Update –General Fund Consistent with the City’s updated General Fund Reserve Policy priorities for allocation ofavailableyear-end fund balance include: •Unfunded Liabilities •Contributions to Liability /Self-Insurance Fund set-aside •Contributions to Vehicle/Equipment Replacement Fund •Deferred Maintenance Needs •Priority one-time projects supporting City Council Goals and Objectives FY2024-25 General Fund Revenues Attachment A –Table 4 •General Fund Revenues. Major contributors to the projected favorable result for General Fund revenues Interest Earnings (Use of Money), Business License Taxes and Licenses and Permits. All other major General Fund revenues categories combine to yield year-end projections largely consistent with budget estimates. •Business License Tax -Revenues are projected to end the year at $2.8 million or $200,000 above budget, while •Transient Occupancy (Hotel) Tax -Revenues are projected to fall $237,000 below the budget estimate of $3.90 million. •Other revenue sources -Trending somewhat above budget estimates through the first half of the fiscal year include: •Franchise Fees ($100,000) •Property Transfer Tax ($100,000) and •Licenses and Permits ($200,000). FY2024-25 General Fund Expenditures Attachment A –Tables 5 & 6 •The single largest contributor to General Fund expenditures projected to be under budget is personnel costs savings resulting from the vacancies across all City departments. •General Fund Personnel Costs are projected to end the year $1.53 million (or 2.6%) below the FY 2024-25 budget of $70.85 million. •By comparison, last fiscal year personnel costs ended the year $5.54 million under budget. •This year’s projections falling closer in line with the FY2024-25 budget can be attributable to: •Lower vacancy rates as the city continues to fill vacant positions across all departments, •The inclusion in the budget of salary savings based on a nominal 3.5% vacancy rate. •Current vacancies represent approximately 5% of positions, compared to 10-12% vacancy rates experienced over the past few fiscal years ecommended FY2024-25 Mid-Year upplemental Budget Appropriations aff is recommending Council approval of selected budget amendments totaling $672,411 ross various funds (non-General Fund) -See Attachment B pplemental FY 2024-25 budget appropriations reflect new funding, address unanticipated penditures as well as correct selected FY 2024-25 approved budget appropriations. Y2024-25 Mid-Year Budget Update ersonnel Changes umber of personnel changes are recommended as part of the City's recruitment and retention ategy: The workforce has significantly changed since the pandemic with many remote work only options available in other industries, resulting in high vacancy rates, which have made it more difficult in past years to accomplish the City Council’s goals and objectives. n order to stay competitive and hire top talent, these adjustments are necessary, and they align with our overall approach to increase compensation of the City’s workforce as was accomplished in he last round of collective bargaining. Additionally, it is costly to train new employees and then lose employees to other agencies The proposed changes will increase the City’s ability to retain employees and continue building the capacity to provide the more responsive and highest quality services to our community. Y2024-25 Mid-Year Budget Update ersonnel Changes e proposed personnel changes recommended for approval with this agenda item result in a modest budget impact of $86,700. This net incremental cost will be absorbed within existing FY 2024-25 budget appropriations through projected salary savings across impacted departments. A supplemental budget appropriation of $44,500 is being requested to fund current year incremental cost of the new staff position within the Sustainability Division,which will be fully reimbursed by Marin Sanitary Service. nualized increased costs are estimated at $389,600,offset by funding reimbursements (from Marin nitary Service)of $178,000,resulting in a net cost of $211 ,600,primarily within the General Fund. •Departments are being required to absorb costs within their respective operational budgets, •As such,there are no ongoing incremental costs reflected in the FY 2025-26 budget as a result of these personnel changes. Y2024-25 Mid-Year Budget Update - ecommendations aff recommends that the City Council: Accept the fiscal year 2024-25 Mid-Year Budget Update presenting revenue and expenditure results through the second quarter of the current fiscal year (through the accounting period ended December 31,2024),and Authorize Mid-Year Budget supplemental budget appropriations totaling $672,411 across selected funds,and Adopt the resolution authorizing amendments to Salary Schedules to reflect fiscal year 2024-25 Mid-Year Personnel Changes,and appropriating funding for a new position supporting the Sustainability Division.(Attachment C).