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Agenda No. 9.
CITY COUNCIL MEMORANDUM
| City Council Meeting: |
April 15, 2025 |
| Department: |
Finance |
| Subject: |
Ordinance 25-T-016 - Authorizing an amendment to the Fiscal Year 2024-2025 Budget (S.Gonzalez/J.Walters) |
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| 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.
The Police Budget is proposed to increase its supplies by $71,324 to outfit vehicles and $7,396 to complete the dispatch update project. In addition, it would also increase its equipment budget for the Axon video recording system in the amount of $49,983. All of these items were budgeted in the previous fiscal year but had to be expensed to the current year due to long lead times and delivery delays.
Police will also increase its equipment budget by $89,000 and recognize an offsetting grant of $74,190 for the Flock Camera system as approved.
Finally Police will increase its budget to accommodate 5 additional Student Resource Officers and vehicles in the amount of $347,900 as approved by resolution 25-R-009, $236,750 for personnel and will recognize additional funding from the school of $169,835. In the agreement the City takes the cost of vehicles but is reimbursed by the school over the life of the vehicle.
The Fire Department Budget is proposed to increase $38,776 for the Battalion Chief's Truck replacement that was approved in the previous fiscal year.
The Parks Department Budget is proposed to increase $4,450 to finish the study on the GNT Riata Segment that was partially paid last year. This will complete the amount approved in the contract.
The IT Division Budget is proposed to increase $36,300 to approved projects including $15,000 for the Library Access Project, $17,000 for the Police Department Fingerprint Scanner, and $4,300 for Intune Licenses.
The Inspections Division Budget is proposed to increase $10,000 in order to spend expected Technology fees for software updates and expansions throughout the year.
The Fleet Division Budget is proposed to increase $12,000 to cover the cost of vehicle repairs and set the amount to the amount as approved in the Fiscal Year 2023-24 Budget.
The Facilities Budget will increase by $200,000 to complete the Library Foundation Repairs. These funds will come from the amounts previously set aside for paving grassy areas in staging areas at 10 Commercial Place.
The City will transfer $1,225,000 from reserves to Capital Projects to complete the 2024 Street Preservation and Maintenance (SPAM) projects that were originally budgeted in the 2023-24 fiscal year.
The City is proposing to increase the budget for Woman Hollering Creek by $550,000 in order to close the project. This project has currently spent $12,623,574.03 out of the $13,249,789 contractually approved expenditures and has $515,923 remaining on open purchase orders. At the start of the project, there were not enough wastewater impact fees currently collected in order to fully fund the project. As additional funds were collected throughout the life of the project, they were then budgeted to be transferred into the project.
The City is proposing to increase the Roadway Impact Fee Area 2 budget by $154,536 as approved by resolution 25-R-044 to reimburse improvements in the Heritage Oak Residential subdivision. |
| 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-016 |
| FISCAL IMPACT |
The budget will adjustment will increase the General Fund Budget for FY 2024-25 by $2,328,879. This will be offset by $244,025 in reimbursements and $200,000 transferred from the Capital Projects Fund. The remaining $1,884,854 will be funded through use of fund balance. Fund Balance ended last fiscal year at $16,203,459. The General Fund was budgeted to decrease the fund balance in FY 2023-24 by $2,000,000 but only decreased it by $500,000. These funds will cover the budget adjustment as proposed and the City will stay aligned with its 5 year forecast.
The Capital Recovery Sewer Fund budget will increase $550,000 for a transfer out to the Woman Hollering Trunk Line Project and is funded through its reserves of $744,300.
The Roadway Impact Fee Area 2 Fund budget will increase $154,536 to reimburse improvements to Heritage Oak Residential subdivision from fund balance of $848,000. |
| RECOMMENDATION |
| Staff recommends approval of Ordinance 25-T-016 |
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