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ITEM #: 1.
DATE: 04/08/2024
AI #:1905
CITY COUNCIL ACTION REPORT
SUBJECT:
CITY MANAGER'S RECOMMENDED FY2025 ANNUAL BUDGET AND FY2025-2029 CAPITAL IMPROVEMENT PROGRAM
STAFF PRESENTER(S):
Ryan Bittle, Finance Manager
Summary
Staff will present, answer questions, and receive input from the City Council on the FY2025 City Manager’s Recommended Budget and five-year FY2025-2029 Capital Improvement Program (CIP). Council discussion and feedback will be used to make any required modifications prior to presenting the Tentative Budget and preparing required publications for final adoption of the FY2025 budget. The City Manager’s Recommended Budget for FY2025 is $495.6 million. (Ryan Bittle, Finance Manager)
FISCAL IMPACT
This is an informational step in building the FY2025 budget. As proposed, this budget complies with Council adopted financial policies that provide for fiscal conservatism, flexibility, and adherence to legal requirements and professional practices. Property tax rates are within legal limits and the combined rate is below the maximum established in the adopted financial policies. This is a balanced budget with no proposed tax rate increases, and service levels have been maintained despite increasing cost pressures.
BACKGROUND AND PREVIOUS ACTIONS
The FY2025 budget process began in calendar year 2023 and included departments submitting their initial list of new capital projects, preparing base budget estimates, preparing supplemental addition requests and updating existing CIP project costs and timelines as needed. All of these estimates and requests are reviewed by Budget and Research and the executive team. In the case of capital projects, Engineering Project Management, Information Technology, and Procurement are highly involved in reviews to ensure that all elements of a project are captured within its scope/budget and that we have the organizational resources to deliver the projects proposed. Council was provided an initial General Fund five-year forecast that included risks and budget priorities during the City Council Retreat in January, and those discussions were utilized in the development of this recommended budget. That forecast served as the basis for this recommended budget. This budget was developed within the framework of our financial plan and complies with all aspects of that plan.
STAFF ANALYSIS
The proposed budget complies with financial policies and General Fund resources exceed proposed uses by $56.5
million
which, as presented, will be programmed as CIP Reserves for use in future fiscal years of our fully funded five-year CIP. Any changes that arise impacting this number will be reflected when the tentative budget is presented for adoption in May. This recommended budget is built around the core financial policies previously adopted by Council. The budget maintains current programs and services to an expanding population base and addresses the highest priorities expressed by City Council with priority given to those items listed in the Strategic Plan. Council priorities include but are not limited to public safety, sustainability, prudent financial stewardship, compensating employees fairly, providing capacity to absorb capital cost increases and actively pursuing economic development opportunities while maintaining a focus on investing in infrastructure through our capital improvement program. As presented, the recommended budget retains all base budget programs and adds $6.0 million in ongoing supplementals, 35.43 new full-time equivalent (FTE) positions, plus $21.7 million in one-time supplementals. The FY2025 carryovers will be added to the Tentative budget.
Attachments
FY2025 City Manager's Recommended Budget Presentation
FY2025 City Manager's Recommended Budget - Electronic Book
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