Agenda No. 11.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | September 16, 2025 |
| Department: | Finance |
| Subject: | Ordinance 25-T-038 - Authorizing an amendment to the Fiscal Year 2024-2025 Budget (S.Gonzalez/J.Walters) |
BACKGROUND
The City's Fiscal Year (FY) 2024-2025 Budget was adopted with Ordinance 24-T-150. The budget outlines how the city will spend its annual revenues to best serve the community. The budget can be modified by council authorization when necessary throughout the year. As previously directed, staff will try to limit the number of budget adjustments that come to council throughout the year by bundling different budget requests together in one adjustment ordinance. This adjustment will adjust the budgets of multiple departments as needed, including to fund projects as previously authorized by the City Council. This adjustment will be for multiple departments.
This adjustment will move funds between departments as well as recognize additional sales taxes and fees to balance specific line items in the budget.
The Police Budget would increase by $546,959.00 due to lower than expected vacancy rates and funding the remaining portion of the School Resource Officers approved in Ordinance 25-T-016. With the pay adjustments in FY 2023-24, police has seen much lower vacancy rates, being able to fill positions faster and reduce turnover. The budget was created with old trends in place which reduced the Police personnel budget from full year-round employment to an amount based on historic trends. This year beat those trends and the adjustment will be evaluated for an update over the next year.
The City Council Budget would increase by $90,000.00 due to the higher election costs incurred from the special elections and run-off election. The City had 3 different elections in this fiscal year that were not budgeted. This includes the normal November election, the special December Election and the run-off in January.
The Pools Budget would increase by $42,000.00 for the utility and repair costs incurred. Additional repairs were required above the normal budget. The water utility budget was also over due to these issues.
The Finance Budget would increase by $6,000.00 for investment management fees incurred with higher levels of investment. Additional funds were invested with Hancock Whitney who serves as an Investment Advisor for the City to increase returns. Fees are based on the amount invested, causing higher fees in this fiscal year.
The City would increase the Building Maintenance Division Budget by $20,000.00 for repair and maintenance supplies used in the fiscal year. Additional maintenance was done throughout the year including Library Carpet Cleaning, baby changing stations, and inspections for potential building issues.
The Projects/Transfer Out Budget would increase by $248,292.00 for the remaining General Fund portion allocated for the Pedestrian Routes and Sidewalk Project funded by a combination of grants, debt, and General Fund contribution. This was the sidewalk and road improvements done to Live Oak Road. Staff has finished its review of expenditures and ensured all pending grant payments to the City were received. The General Fund portion was originally funded from a previous year's Park Budget but had not been moved while staff waited to finish their review of final expenditures.
Offsetting some of the increases, the Legal Services Budget would be reduced $10,000.00 to match actual expenditures and other reductions from Public Affairs Budget $15,000.00 for personnel, the Engineering Budget $8,835.00 for personnel, and the Streets Budget $40,000.00 for personnel vacancy.
Offsetting the remainder of the increase, staff proposes to recognize an additional $879,416 of sales taxes that came in over the original estimates. May, July, and August sales taxes received from the State were much higher than originally estimated. After review, staff determined these higher amounts were due to large one-time investments being made by existing business and would not be new recurring monthly contributions. These one-time amounts were high enough for the City to meet its budget in June, making the final quater of the fiscal year sales taxes be above what was expected. While some of these funds would cover other revenue shortfalls, such as property taxes, staff proposes to use $879,416 to fund the additional expenditures in this budget adjustment.
The Parks Budget would increase by $55,000.00 for lower than expected personnel vacancy and recognize an additional $55,000.00 in fees related to 4th of July Jubilee proceeds, Senior Center Meals, BVYA and SYSA utility payments, and recreation programs to offset the increase.
These expenditures and revenues were included in the 5-year forecast done in coordination with the FY 2025-26 Budget and Tax Rate planning and are in line with those estimates.
This adjustment will move funds between departments as well as recognize additional sales taxes and fees to balance specific line items in the budget.
The Police Budget would increase by $546,959.00 due to lower than expected vacancy rates and funding the remaining portion of the School Resource Officers approved in Ordinance 25-T-016. With the pay adjustments in FY 2023-24, police has seen much lower vacancy rates, being able to fill positions faster and reduce turnover. The budget was created with old trends in place which reduced the Police personnel budget from full year-round employment to an amount based on historic trends. This year beat those trends and the adjustment will be evaluated for an update over the next year.
The City Council Budget would increase by $90,000.00 due to the higher election costs incurred from the special elections and run-off election. The City had 3 different elections in this fiscal year that were not budgeted. This includes the normal November election, the special December Election and the run-off in January.
The Pools Budget would increase by $42,000.00 for the utility and repair costs incurred. Additional repairs were required above the normal budget. The water utility budget was also over due to these issues.
The Finance Budget would increase by $6,000.00 for investment management fees incurred with higher levels of investment. Additional funds were invested with Hancock Whitney who serves as an Investment Advisor for the City to increase returns. Fees are based on the amount invested, causing higher fees in this fiscal year.
The City would increase the Building Maintenance Division Budget by $20,000.00 for repair and maintenance supplies used in the fiscal year. Additional maintenance was done throughout the year including Library Carpet Cleaning, baby changing stations, and inspections for potential building issues.
The Projects/Transfer Out Budget would increase by $248,292.00 for the remaining General Fund portion allocated for the Pedestrian Routes and Sidewalk Project funded by a combination of grants, debt, and General Fund contribution. This was the sidewalk and road improvements done to Live Oak Road. Staff has finished its review of expenditures and ensured all pending grant payments to the City were received. The General Fund portion was originally funded from a previous year's Park Budget but had not been moved while staff waited to finish their review of final expenditures.
Offsetting some of the increases, the Legal Services Budget would be reduced $10,000.00 to match actual expenditures and other reductions from Public Affairs Budget $15,000.00 for personnel, the Engineering Budget $8,835.00 for personnel, and the Streets Budget $40,000.00 for personnel vacancy.
Offsetting the remainder of the increase, staff proposes to recognize an additional $879,416 of sales taxes that came in over the original estimates. May, July, and August sales taxes received from the State were much higher than originally estimated. After review, staff determined these higher amounts were due to large one-time investments being made by existing business and would not be new recurring monthly contributions. These one-time amounts were high enough for the City to meet its budget in June, making the final quater of the fiscal year sales taxes be above what was expected. While some of these funds would cover other revenue shortfalls, such as property taxes, staff proposes to use $879,416 to fund the additional expenditures in this budget adjustment.
The Parks Budget would increase by $55,000.00 for lower than expected personnel vacancy and recognize an additional $55,000.00 in fees related to 4th of July Jubilee proceeds, Senior Center Meals, BVYA and SYSA utility payments, and recreation programs to offset the increase.
These expenditures and revenues were included in the 5-year forecast done in coordination with the FY 2025-26 Budget and Tax Rate planning and are in line with those estimates.
GOAL
To adjust the budget and align additional revenues to expenditures for FY 2024-2025.
COMMUNITY BENEFIT
To maintain a complete and balanced budget as identified as a goal in the City's Strategic Plan and that meets State and Charter requirements.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of Ordinance 25-T-038
FISCAL IMPACT
The budget adjustment will increase the General Fund Budget for FY 2024-25 by $934,416. This will be offset by $879,416 in additional sales taxes received and $55,000 in additional Park fees above expectations. The impacts of these changes were included in the 5 year forecast when creating the FY 2025-26 Budget.
RECOMMENDATION
Staff recommends approval of Ordinance 25-T-038