HomeMy WebLinkAboutFin Fiscal Yar 2024-25 Unaudited Results and Budget Amendments____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 09/02/2025
Disposition: Resolutions 15455, 15456
Agenda Item No: 7.d
Meeting Date: September 2, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio, Finance Director City Manager Approval: ______________
TOPIC: FISCAL YEAR 2024-25 UNAUDITED RESULTS AND BUDGET AMENDMENTS
SUBJECT: YEAR-END BUDGET UPDATE AND RESOLUTIONS AUTHORIZING AMENDMENTS
TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR (FY) 2024- 25 FOR THE
PURPOSES OF CONFIRMING AUTHORIZED APPROPRIATIONS AND TRANSFERS
AND AUTHORIZING AMENDMENTS TO THE FY 2025-26 BUDGET TO REFLECT
CARRY-OVER OF AVAILABLE UNENCUMBERED FY 2024-25 APPROPRIATIONS
FOR SPECIFIED PURPOSES, TOTALLING $14,262,684
RECOMMENDATION:
1)Accept the report presenting preliminary, Fiscal Year (FY) 2024-25 unaudited financial results for
the fiscal year ended June 30, 2025;
2)Adopt a resolution adopting amendments to the City of San Rafael budget for Fiscal Year
2024-25 for the purpose of confirming authorized appropriations and transfers (Attachment 1);
and
3)Adopt a resolution authorizing amendments to the City of San Rafael budget for Fiscal Year
2025-26 to reflect carry-over of available unencumbered FY2024-25 appropriations for
specified purposes totaling $14,262,684 (Attachment 2).
BACKGROUND:
This agenda item presents preliminary, unaudited, financial results for the fiscal year ended June 30,
2025. Staff are actively in the process of completing the fiscal year-end accounting close and are
reviewing revenue and expenditure activity within the General Fund, Special Revenue Funds, Capital
Funds, and other restricted funds. This review has identified the need for additional year-end budget
adjustments for which City Council approval is requested.
In addition, as part of the fiscal year-end process, staff have identified specific unencumbered FY 2024-
25 budget appropriations for which City Council action is requested to carry -over these appropriations,
effectively amending the FY 2025-26 adopted budget. These unencumbered carry-over appropriations
are limited to funding approved by the City Council in the prior fiscal year that are required to support
planned projects or activities in the new fiscal year, and for which no purchase orders or contracts were
executed before the end of the fiscal year to otherwise encumber these funds.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:
Preliminary (Unaudited) FY 2024-25 Revenue and Expenditure Results
All Funds
Table 1 provides a summary of preliminary, unaudited FY 2024-25 revenue and expenditure results
through the fourth quarter of the fiscal year, ending June 30, 2025.
•All Funds revenues through June 30, 2025, were recorded at $187.21 million, which represents
95.7% of the amended budget of $195.60 million.
•All Funds expenditures and encumbrances for the same period were recorded at $200.63 million,
or 86.3% of the amended FY 2024-25 budget of $232.46 million.
•This agenda item includes a recommendation for the City Council to authorize the carry -over of
available unencumbered FY 2024-25 appropriations totaling $14,262,684, effectively re-
appropriating these funds in FY 2025-26, for specified purposes.
Table 1: All Funds Revenue and Expenditure Results (through 6/30/25)
(*) Note: Year-end expenditures include actual expenditures ($187,394,196) plus encumbrances
($13,230,936).
General Fund
Revenues: The original FY 2024-25 budget, adopted on June 17, 2024 (Resolution No. 15309), projected
$103.79 million in revenues. Updated revenue projections through the third quarter (presented to the City
Council on May 19, 2025) were $104.29 million.
•General Fund revenues (unaudited) through June 30, 2025, were recorded at $106.21 million, or
2.3% above the adopted budget.
•Year-end General Fund revenues results represent an increase of $2.42 million over the adopted
budget, and $1.92 million over projections assumed in the development of the FY 2025-26 budget.
This result is attributable to relatively strong fourth quarter sales tax receipts, permit fee revenues,
as well as continued favorable interest earnings.
All Funds
Adopted Budget
FY 2024-25
Amended
Budget
FY 2024-25
Unaudited Year-
End Results*
(as of 6/30/25)
% of Amended
FY2024-25
Budget
Revenues 177,317,039$ 182,367,444$ 174,529,544$ 95.7%
Transfers in 13,211,806 13,228,386 12,676,477 95.8%
Total Resources 190,528,845$ 195,595,830$ 187,206,021$ 95.7%
Expenditures 210,813,072$ 219,232,828$ 187,948,655$ 85.7%
Transfers out 13,211,806 13,228,386 12,676,477 95.8%
Total Appropriations 210,813,072$ 232,461,214$ 200,625,132$ 86.3%
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Expenditures: The FY 2024-25 adopted budget provided expenditure appropriations of $112.29 million.
The current amended FY 2024-25 General Fund budget stands at $112.86 million, reflecting
supplemental appropriations for capital projects approved by the City Council, primarily matching funds
for the Pickleweed Park Improvement Project grant.
•Expenditures and encumbrances through the fourth quarter of the fiscal year were recorded at
$110.77 million, or 98.1% of the amended budget.
•Year-end General Fund expenditures are generally in line with expenditures assumed in the
development of the FY 2025-26 budget, when accounting for the recommendation included in this
agenda item requesting authorization to carry-over $1.40 million in unencumbered General Fund
budget appropriations.
•Consistent with the Quarter 3 Budget Update presented to the City Council on May 19th, personnel
expenditures ended the fiscal year almost exactly on budget. Non-personnel expenditures
(supplies and services) contribute to the projected year-end expenditures coming in under budget.
Operating results: The preliminary, unaudited General Fund revenue and expenditure results combine to
yield a net $4.56 million drawdown of fund balance as of June 30, 2025. This represents a decrease of
$4.51 million compared to the amended budget, and $2.95 million compared to the year-end projections
assumed in the development of the FY 2025-26 budget.
This result, though favorable, suggests that there will be significantly limited General Fund flexibility to
address one-time needs on a going forward basis, when compared to year-end General Fund results
over the last several fiscal years.
Table 2: FY 2024-25 General Fund Results (through 6/30/25) and Year-End Projections
(*) Note: Year-end expenditures include actual expenditures ($110,553,601) plus encumbrances
($215,676).
General Fund
Adopted
Budget FY
2024-25
Amended Budget
FY 2024-25
Unaudited Year-
End Actuals Encumbrances Available
Personnel 70,910,871 70,796,229 70,824,866 28,637
Non-Personnel 41,195,500 42,068,614 39,728,735 215,676 (2,124,203)
Totals 112,106,371 112,864,844 110,553,601 215,676 (2,095,567)
General Fund Adopted Budget
FY 2024-25
Amended
Budget
FY 2024-25
Projected Year-
End Results
(as of 5/19/25)
Unaudited Year-
End Results*
(as of 6/30/25)
Revenues 101,282,204$ 101,282,204$ 102,382,517$ 1,100,313$ 1.1%104,246,481$ 2,964,277$ 2.9%
Transfers in 2,508,306 2,508,306 1,908,306 (600,000) -23.9%1,959,434 (548,872) -21.9%
Total Resources 103,790,510$ 103,790,510$ 104,290,823$ 500,313$ 0.5%106,205,915$ 2,415,405$ 2.3%
Expenditures 102,033,257$ 102,606,344$ 101,542,034$ (1,064,310)$ -1.0%100,510,777$ (2,095,567)$ -2.0%
Operating Transfer out 10,258,500 10,258,500 10,258,500 - 0.0%10,258,500 - 0.0%
Total Appropriations 112,291,757$ 112,864,844$ 111,800,534$ (1,064,310)$ -0.9%110,769,277$ (2,095,567)$ -1.9%
Net Result (8,501,247)$ (9,074,334)$ (7,509,711)$ 1,564,623$ (4,563,362)$ 4,510,972$
Variance Variance
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
FY 2024-25 Year-End Budget Adjustments/Corrections – (Attachment 1)
Staff are in the process of completing the accounting close for the fiscal year ended June 30, 2025, and
are reviewing the revenues and expenditure activity in the General Fund, Special Revenue funds, and
other special purpose funds. This review has identified the need for additional budget adjustments for
which City Council action is requested.
The purpose of these amendments is to formally authorize the appropriations supporting expenditures
and transfers required in certain funds to fulfill their respective purposes and functions through June 30,
2025. City Council approval of the proposed resolution provides formal authority to incorporate
adjustments as part of the final FY 2024-25 budget, summarized as follows:
Details of the proposed budget amendments are reflected in Attachment 1 to this report and described
as follows:
Abandoned Vehicle Abatement (Fund 200)
Transfers-In
• Amendment to reflect the transfer of $11,000 from the Parking Fund (501) to cover the negative
fund balance. Fund expenditures exceeding revenues have depleted available fund balance and
require a supplemental year-end transfer from the Parking Fund.
Parking (Fund 501)
Transfers-Out:
• Amendment to reflect the transfer of $11,000 to the Abandoned Vehicle Abatement Fund (200)
to cover negative fund balance. Fund expenditures exceeding revenues have depleted available
fund balance within the Abandoned Vehicle Abatement Fund and require a supplemental year-
end transfer from the Parking Fund.
Employee Benefits (Fund 604)
• Amendment to increase expenditure appropriations with the Employee Benefits Fund (6054) by
$678,500 to unbudgeted expenditures, primarily attributable to payout of accrued leave balances
for employees who separate from the City during FY 2024-25.
Revenues
Fund Amended Budget Resources Transfers-In Revised Budget
200 Abandoned Vehicle Abatement 179,067$ 11,000$ 190,067$
Total Revenue Adjustments -$ 11,000$
Expenditures
Fund Amended Budget Appropriations Transfers-Out Revised Budget
501 Parking Fund 4,982,073$ 11,000$ 4,993,073$
604 Employee Benefits Fund 600,362 678,500 1,278,862
Total Expenditure Adjustments 678,500$ 11,000$
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
FY 2024-25 Unencumbered Carry-Over Requests - (Attachment 2)
This staff report includes a recommended City Council action to approve a resolution authorizing re-
appropriation of $14,262,684 in funding included in the prior year budget for specific projects and
expenditures for which no purchase order or contract was issued before the end of the 2024-25 fiscal
year. As such, City Council action is requested to amend the FY 2025-26 budget (approved under
Resolution No. 15422) to reflect re-appropriation of these funds for the purpose intended. Of this amount,
$3,559,719 represents carry-over appropriations supporting operational projects and initiatives, and
$10,702,965 represents carry-over appropriations supporting capital projects approved in the prior fiscal
year. The requested FY 2024-25 Carry-Over appropriations are summarized in Exhibit A (Attachment 2).
FISCAL IMPACT:
The recommended year-end adjustments to the FY 2024-25 amended budget would authorize a transfer
of $11,000 from the Parking Fund (501) to the Abandoned Vehicle Abatement Fund (604) to cover
expenditures that otherwise would result in a negative ending fund balance within Fund 604.
The recommended amendments to the FY 2025-26 approved budget, representing a carry-over of
available unencumbered budget appropriations (for specified purposes), would effectively increase FY
2025-26 budget appropriations by $14,262,684 across several funds. Of this amount, $3,559,719
represents carry-forward of operating budget appropriations, including $1,402,273 in General Fund
appropriations, $53,000 in Library Special Assessment Fund (215) appropriations, $250,000 in
Affordable Housing Trust Fund (243) appropriations, $1,425,000 in Encampment Reduction Fund (ERF-
3) Grant Fund (283) appropriations, and $429,446 in Technology Fund (601) appropriations.
A total of $10,702,965 in unencumbered appropriations supporting capital improvement project s
budgeted in FY 2024-25 would amend the FY 2025-26 capital budget, including $100,000 within the
Stormwater Fund (205), $6,700,000 within the Gas Tax (206) Fund, $1,800,720 within the Library Fund
(214), $6,455 within the Measure A - Open Space Fund (241), $674,790 within the Capital Fund (401),
and $1,421,000 within the Buildings Fund (603).
While the unencumbered carry-over appropriations supporting capital improvement projects budgeted in
FY 2024-25 effectively augments the FY2025-26 capital budget appropriations of $15,958,204 adopted
by the City Council on June 2, 2025, staff would note that since adoption of the FY2025 -26 budget, the
Federal Department of Transportation has rescinded $1,940,000 in grant funds that had been award to
the City through the Neighborhood Access and Equity Program Grant, supporting the South Merrydale
Road- Civic Center Connector Pathway Project.
OPTIONS:
The City Council has the following options to consider on this matter:
1.Adopt the resolutions.
2.Adopt the resolutions with modifications.
3.Direct staff to return with more information.
4.Take no action.
RECOMMENDED ACTION:
1)Accept the report presenting preliminary, Fiscal Year (FY) 2024-25 unaudited financial results for
the fiscal year ended June 30, 2025;
2)Adopt a resolution adopting amendments to the City of San Rafael budget for Fiscal Year
2024-25 for the purpose of confirming authorized appropriations and transfers (Attachment 1);
and
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
3)Adopt a resolution authorizing amendments to the City of San Rafael budget for Fiscal Year 2025-
26 to reflect carry-over of available unencumbered FY2024-25 appropriations for
specified purposes totaling $14,262,684 (Attachment 2).
ATTACHMENTS:
1.Resolution authorizing amendments to the FY 2024-25 budget
2.Resolution authorizing amendments to the FY 2025-26 budget to reflect carry-over of
unencumbered FY 2024-25 budget appropriations, for specified purposes.
a.Exhibit A – List of Unencumbered Carry-Over Appropriations
Attachment 1
RESOLUTION NO. 15455
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ADOPTING AMENDMENTS
TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2024-25 FOR THE
PURPOSE OF CONFIRMING AUTHORIZED APPROPRIATIONS AND TRANSFERS
WHEREAS, the City Council approved Resolution No. 15309 adopting the fiscal
year (FY) 2024-25 budget; and
WHEREAS, the City Council approved other actions during the year to authorize
spending; and
WHEREAS, as part of the fiscal year-end closing process, staff has reviewed
and analyzed actual revenues, expenditures, and transfers through June 30, 2025, has
identified a need for additional budget adjustments, and has submitted its analysis and
recommendations in a report to the City Council; and
WHEREAS, after examination and due consideration, the City Council has
accepted the same report and recommendations.
NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council, that
Resolution No. 15309 for fiscal year 2024-25 is further amended to authorize the
following adjustments to resources and appropriations to selected funds:
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a special meeting of the
Council of said City on Monday, the 2nd day of September 2025 by the following vote, to
wit:
AYES:
NOES:
ABSENT:
Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
Councilmembers: None
Councilmembers: None
__________________________
LINDSAY LARA, City Clerk
Attachment 2
RESOLUTION NO. 15456
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING
AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2025-
26 TO REFLECT CARRY-OVER OF AVAILABLE UNENCUMBERED FY2024-25
APPROPRIATIONS FOR SPECIFIED PURPOSES TOTALING $14,262,684
WHEREAS, the City Council approved Resolution No. 15422 adopting the fiscal
year (FY) 2025-26 budget; and
WHEREAS, Resolution No. 15422 provided authorization to carry-over
encumbered appropriations from FY 2024-25 and reappropriate these funds in FY
2025-26 to be used solely to pay for the remaining portion of commitments stemming
from executed contracts and purchase orders, as of June 30, 2025; and
WHEREAS, Resolution No. 15422 further provided that authorization to carry-
over unencumbered FY 2024-25 appropriations supporting capital projects and one-
time operational expenses for which contracts or purchase orders were not executed as
of June 30, 2025, would be subject to future City Council action; and
WHEREAS, as part of the fiscal year-end closing process, staff has reviewed
and analyzed available unencumbered FY 2024-25 budget appropriations that were
approved for specific capital projects and operational initiatives, and for which funding is
needed to support these workplan activities within the current fiscal year, and has
submitted its analysis and recommendations in a report to the City Council; and
WHEREAS, after examination and due consideration, the City Council has
accepted the same report and recommendations.
NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council, that
Resolution No. 15422 approving the citywide budget and Capital Improvement Budget
for FY 2025-26 is hereby further amended to authorize the following supplemental
budget appropriations totaling $14,262,684, representing carry-over of available
unencumbered FY 2024-25 appropriations, requested for specific purposes (Exhibit A).
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a special meeting of the
Council of said City on Monday, the 2nd day of September 2025 by the following vote, to
wit:
AYES:
NOES:
ABSENT:
Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
Councilmembers: None
Councilmembers: None
__________________________
LINDSAY LARA, City Clerk
Exhibit A
FY 2024-25
Unencumbered Carry-Over Appropriations
Amount
Fund Dept. Description Operating Capital Fund Totals
001 Clerk Stipends $ 30,000
DPW Miovision Contract 104,000
Non-Dept'l. Enterprise Resource Planning (ERP) Implementation 812,125
Community Well-Being and Inclusive Engagement
Initiatives
456,148
Sub-Total General Fund (001) - FY2025/26 (Fund #101)* $ 1,402,273
205 DPW Stormwater FY24-25 CIP Projects $ 100,000
Sub-Total Stormwater Fund (205) $ 100,000
206 DPW Streets/Roads FY24-25 CIP Projects $ 6,700,000
Sub-Total Gas Tax Fund (206) $ 6,700,000
214 Lib/Rec Pickleweed Branch Library Project $ 1,800,720
Sub-Total Library Fund (214) $ 1,800,720
215 Lib/Rec Pickleweed Library Project (Lockers) $ 53,000
Sub-Total Library Special Assessment Fund (215) $ 53,000
241 Lib/Rec Boyd Park Improvements $ 6,455
Sub-Total Measure A - Open Space Fund (241) $ 6,455
243 CEDD Marin Housing Authority 200,000
Outside Legal Counsel support 50,000
Sub-Total Affordable Housing In-Lieu Fund (243) $ 250,000
283 CM Encampment Resolution Fund (ERF-3) Grant 1,425,000
Sub-Total Grant Fund (283) 1,425,000
401 DPW Capital Fund CIP Projects $ 674,790
Sub-Total Capital Fund (401) $ 674,790
601 DGS Enterprise Infrastructure/Software $ 124,315
Council Chamber Upgrades 221,131
UKG - Human Resources Management 84,000
Sub-Total Technology Fund (601) - FY2025/26 (Fund #612)* $ 429,446
603 DPW Building Fund Capital Projects $ 1,421,000
Sub-Total Building Fund (603) - FY2025/26 (Fund #611)* $ 1,421,000
$ 3,559,719 $ 10,702,965 $ 14,262,684
* Selected Funds have been assigned new Fund #'s for FY2025/26 due to Chart of Accounts update in new ERP Financial System