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CC 05-21-2024 Item No. 11. FY 2024-25 Proposed Budget_Staff PresentationMay 21, 2024 Fiscal Year 2024-25 Proposed Budget CC 05-21-2024 Item No. 11 2 Study Session Objectives Present City Manager’s Proposed Budget Receive comments and questions from Council and Public Gather feedback and return with updates for Final Budget Hearing on June 4th 3 FY 2024-25 Themes Resilience and adaptation Building on a strong fiscal foundation Implementing the plan Community engagement and collaboration Roadmap to FY 2024-25 Budget Adoption and Balancing Co u n c i l G o a l S e t t i n g / Wo r k P r o g r a m Budget Update 1st Quarter Report Budget Update Mid-Year Report Fee Study and Revenue Tax Measures Budget Update SLR Review #2 FY 2024-25 Proposed Budget -Community Funding -Festivals & Fee Waivers FY 2024-25 Adopted Budget Bu d g e t U p d a t e Se r v i c e L e v e l R e d u c t i o n (S L R ) P r e v i e w October 2023 November 2023 January 2024 April 2024 June 2024 February 2024 Community Budget Meeting #1 Commission/ Committee Feedback Labor Contracts March 2024 Budget Update 3rd Quarter Report May 2024 City Hall & Blackberry Farm Update Community Budget Meeting #2 Budget Update -Audit Update -Committed Reserve Revenue Tax Measures December 2023 Budget Update Capital Improvement Plan (CIP) Last Updated 5.01.2024 Community Outreach by the Numbers •City Website cupertino.org/budget •Interactive Financial Transparency Portal cupertino.org/opengov •Budget Learning Library cupertino.org/budgetlearning library Accessing the Budget 6 Financial Forecast Review by Baker Tilly General Fund Forecast General Fund Overview All Funds Overview Service-Level Reductions Proposed Budget Requests Issues and Challenges Agenda 7 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2024 Baker Tilly US, LLP. City of Cupertino Financial Forecast Review Steve Toler, Director May 21, 2024 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2024 Baker Tilly US, LLP. Steve Toler DIRECTOR M: +1 (650) 740-7007 E: steve.toler@bakertilly.com 10 Project Overview CUPERTINO FINANCIAL FORECAST REVIEW Phase I Independent Analysis of Long-Range Forecast Phase II Prepare Fiscal Sustainability Plan 11 Financial Forecasting in Local Government CUPERTINO FINANCIAL FORECAST REVIEW •Fiscal management tool to inform and assist in decision-making •Identifies future revenue and expenditure trends •Integral to annual budget process •Promotes sound fiscal discipline in service delivery •Credible •Understandable •Linked to sound fiscal practices How They Are Used What Makes Them Useful 12 City’s Forecast – Our Initial Reactions CUPERTINO FINANCIAL FORECAST REVIEW Excel-based model Trend analysis of historical actual results Future trends at detailed categories for revenues and expenditures Tracks overall impacts to reserves Provides good storytelling graphics to inform decisions Has ability to grow based on the agency’s needs 13 Updates to Key Assumptions CUPERTINO FINANCIAL FORECAST REVIEW The City worked with Baker Tilly to validate the City's financial forecast. In collaboration with Baker Tilly, the City has made the following updates to the forecast: •Revised the sales tax growth rate assumption. •Adjusted the recession scenario to every 7 years to align with post-World War II patterns. •Incorporated 2% salary savings to account for vacant positions. •Revised CPI assumption. •Adjusted interest earnings to fluctuate with current reserve balances and yields. •Adjusted the Economic Uncertainty Reserve level to fluctuate every year based on annual revenues and expenditures. These improvements have led to a more refined forecast. 14 Executive Summary of Our Independent Review CUPERTINO FINANCIAL FORECAST REVIEW FY 2025 financial forecast provides a reasonable basis upon which to inform Council’s decisions for the proposed FY 2025 budget Staff has improved the forecast based on our interactions and discussions during the project Improvement recommendations will not significantly change the story of the City’s fiscal health, but should be considered to better refine future forecasts General Fund Forecast Forecast Revenue Assumptions1 16 Account Assumption Description Sales Tax Moderate (2.9% AAGR) HdL’s forecast in FY 2024-25 Moderate trend after Property Tax Moderate (3.0% AAGR) HdL’s forecast in FY 2024-25 Moderate trend after Transient Occupancy Tax Moderate (2.1% AAGR) Recovery to $7.5M in FY 2023-24 Moderate trend after 1Forecasts assume recession (no growth) in FY 2027-28 for all revenue categories except Property Tax Forecast Expenditure Assumptions Account Assumption Description Compensation 3.2% AAGR Elimination of 5 FTEs in FY 2024-25 Benefits 1.2% AAGR Based on CalPERS projections Increases to health insurance contributions Materials 2.4% AAGR CPI Contracts 3.7% AAGR CPI Law enforcement contract = CPI + 2% Contingencies 0.4% AAGR 1.25% of Materials and Contracts Transfers -0.4% AAGR Resumption of $2 million annual transfers to the Capital Reserve in FY 2029-30 Facility debt paid off in FY 2029-30 17 -$0.1M $0.9M $1.2M $0.4M -$0.2M -$2.7M -$2.9M -$4.9M -$5.9M -$7.0M Annual Operating Surplus/(Deficit) – General Fund 18 Recession scenario Sunset of Utility User Tax in November 2030, resulting in a loss of revenue of over $4M annually Resumption of $2M transfers to Capital Reserve 19 -$20.0M $0.0M $20.0M $40.0M $60.0M $80.0M $100.0M $120.0M $140.0M $160.0M $180.0M 10-Year Fund Balance and Reserves – General Fund Sales Tax Repayment Reserve Economic Uncertainty Pension Trust Unassigned Assigned Sustainability Reserve Public Access Television CASp Certification and Training Annual Operating Surplus/(Deficit) Fund Balance – General Fund Classification Year End Projection 2023-24 Proposed 2024-25 Projected 2033-34 Restricted 20.7 20.7 1.6 Committed Economic Uncertainty Reserve 18.0 21.3 26.0 Sales Tax Repayment Reserve 74.5 77.6 97.8 Sustainability Reserve 0.1 0.1 0.1 Unassigned 26.6 22.8 - Other Classifications 10.2 7.4 3.4 Total Fund Balance $150.1 $149.9 $128.8 General Fund Overview Balancing the General Fund Budget 23 Sales Tax $11.4M Sales Tax $11.6M Property Tax $31.7M Property Tax $33.2M Transient Occupancy $7.5M Transient Occupancy $7.7M Charges for Services $11.9M Charges for Services $15.1M Other Revenues, $17.7M Other Revenues, $22.1M Total $80.3M Total $89.8M FY 2023-24 Adopted FY 2024-25 Proposed General Fund Revenues Note: Numbers may not add to total due to rounding. General Fund Revenues Category FY 2023-24 Adopted FY 2024-25 Proposed $ Change % Change Sales Tax 11,428,930 11,648,962 220,032 1.9% Property Tax 31,736,834 33,174,977 1,438,143 4.5% Transient Occupancy 7,500,000 7,731,947 231,947 3.1% Utility Tax 3,304,742 4,130,140 825,398 25.0% Franchise Fees 3,443,574 3,509,346 65,772 1.9% Other Taxes 1,641,486 1,684,329 42,843 2.6% Licenses & Permits 4,265,081 3,665,866 (599,215)-14.0% Use of Money & Property 2,328,336 4,697,122 2,368,786 101.7% Intergovernmental 807,624 2,471,990 1,664,366 206.1% Charges for Services 11,894,786 15,123,336 3,228,550 27.1% Fines & Forfeitures 405,000 395,000 (10,000)-2.5% Miscellaneous 1,142,836 1,210,653 67,817 5.9% Transfers in 15,000 15,000 - 0.0% Other financing sources 367,000 367,000 - 0.0% Total Revenues $80,281,229 $89,825,668 $9,544,439 11.9%24 Note: Numbers may not add to total due to rounding. Compensation and Benefits $35.8M Compensation and Benefits $34.7M Materials $6.4M Materials $5.8M Contract Services $24.8M Contract Services $29.1M Transfers $6.5M Transfers $7.3M Other Expenditures, $12.6M Other Expenditures, $13.0M Total $86.1M Total $89.9M FY 2023-24 Adopted FY 2024-25 Proposed General Fund Expenditures General Fund Expenditures Category FY 2023-24 Adopted FY 2024-25 Proposed $ Change % Change Employee Compensation 24,781,492 23,388,317 (1,393,175)-6% Employee Benefits 11,004,730 11,329,376 324,646 3% Total Personnel Costs 35,786,222 34,717,693 (1,068,529)-3% Materials 6,395,466 5,773,144 (622,322)-10% Contract Services 24,813,166 29,115,394 4,302,228 17% Cost Allocation 10,257,656 10,638,580 380,924 4% Capital Outlays & Special Projects 1,211,157 1,165,000 (46,157)-4% Contingencies 216,731 254,580 37,849 17% Transfers Out 6,457,600 7,349,598 891,998 -14% Other Financing Uses 925,000 925,000 -0% Total Expenditures $86,062,998 $89,938,989 $3,875,991 5% 26 Service-Level Reductions Grouping Reductions Operations and Maintenance Reduce sidewalk, curb, and gutter. Move some Public Works contract services in-house, extending maintenance timelines. Reduce Public Works PT staffing. Shift credit card fees to customers. Remove library extra hours from the base due to available State funding to cover these costs. Various other reductions. (2,903,446) Infrastructure Reduce funding to CIP of $2M annually for the first 5 years of the forecast. Will utilize the existing fund balance to cover these costs. Lengthen tree trimming cycle, reduce frequency of median maintenance, shift focus of sidewalk maintenance (2,947,764) Fiscal Accountability Align law enforcement costs with prior year actual hours. Reduce applications used in the City, extend tech refresh cycles, and remove the new Enterprise Resource Planning (ERP) software from the budget. (2,750,544) Community Benefit Per Council direction, community benefit items have been retained in the budget. Staff is working with non- profit organizations to secure funding for them, but nothing has been finalized. (123,344) Total $(8,725,098) Service-Level Reductions1 1Full list of service-level reductions can be found on pages 43-45 of the FY 2024-25 Proposed Budget. Position Department FTE Special Project Executive Limited-Term1 Administration -1.00 Public Works Project Manager1 Public Works -1.00 Public Works Project Manager1 Public Works -1.00 Maintenance Worker I/II1 Public Works -1.00 Innovation & Technology Manager1 Innovation & Technology -1.00 Total -5.00 Staffing Reductions 29 FY 2023-24 Adopted Budget 212 FTE FY 2024-25 Adopted Budget 207 FTE 1Vacant position All Funds Overview 31 Financial Overview by Fund Fund Revenues Expenditures Change in Fund Balance/ Net Position1 General Fund 89,825,668 89,938,989 (113,321) Special Revenue Funds 18,616,881 13,956,348 4,660,533 Debt Service Funds 2,676,200 2,676,200 - Capital Projects Funds 13,635,000 22,057,580 (8,422,580) Enterprise Funds 6,608,500 9,271,222 (2,662,722) Internal Service Funds 7,784,696 8,643,349 (858,653) Total All Funds $139,146,945 $146,543,688 $(7,396,743) 1A negative change in fund balance/net position is due to the use of fund balance 32 Sales Tax $11.4M Sales Tax $11.6M Property Tax $31.7M Property Tax $33.2M Transient Occupancy $7.5M Transient Occupancy $7.7M Charges for Services $23.5M Charges for Services $27.0M Intergovernmental $4.6M Intergovernmental $17.1M Other Revenues $31.5M Other Revenues $42.5M Total $110.2M Total $139.1M FY 2023-24 Adopted FY 2024-25 Proposed All Funds Revenues Note: Numbers may not add to total due to rounding. All Funds Revenues Category FY 2023-24 Adopted FY 2024-25 Proposed $ Change % Change Sales Tax 11,428,930 11,648,962 220,032 2% Property Tax 31,736,834 33,174,977 1,438,143 5% Transient Occupancy 7,500,000 7,731,947 231,947 3% Utility Tax 3,304,742 4,130,140 825,398 25% Franchise Fees 3,443,574 3,509,346 65,772 2% Other Taxes 6,305,547 6,312,859 7,312 0% Licenses & Permits 4,265,081 3,665,866 (599,215)-14% Use of Money & Property 3,762,886 6,811,066 3,048,180 81% Intergovernmental 4,576,274 17,119,817 12,543,543 274% Charges for Services 23,459,638 26,968,150 3,508,512 15% Fines & Forfeitures 408,563 415,000 6,437 2% Miscellaneous 1,142,836 1,210,653 67,817 6% Transfers in 8,499,600 15,612,178 7,112,578 84% Other financing sources 367,000 835,984 468,984 128% Total $110,201,505 $139,146,945 $28,945,440 26%33 Note: Numbers may not add to total due to rounding. Compensation and Benefits $45.6M Compensation and Benefits $44.4M Materials $8.9M Materials $8.6M Contract Services $33.0M Contract Services $35.3M Transfers $8.5M Transfers $15.6M Other Expenditures $25.8M Other Expenditures $42.6M Total $121.8M Total $146.5M FY 2023-24 Adopted FY 2024-25 Proposed All Funds Expenditures All Funds Expenditures Category FY 2023-24 Adopted FY 2024-25 Proposed $ Change % Change Employee Compensation 30,671,196 28,914,628 (1,756,568)-6% Employee Benefits 14,884,120 15,531,628 647,508 4% Total Personnel Costs 45,555,316 44,446,256 (1,109,060)-2% Materials 8,940,498 8,559,117 (381,381)-4% Contract Services 32,992,544 35,306,004 2,313,460 7% Cost Allocation 12,475,250 14,550,523 2,075,273 17% Capital Outlays 2,907,224 18,759,024 15,851,800 545% Special Projects 5,322,739 4,404,420 (918,319)-17% Contingencies 321,066 344,526 23,460 7% Debt Services 2,677,600 2,676,200 (1,400)0% Transfers Out 8,499,600 15,612,178 7,112,578 84% Other Financing Uses 2,074,020 1,885,440 (188,580)-9% Total Expenditures $121,765,857 $146,543,688 $24,777,831 20% 35 Proposed Budget Requests Fund One-Time Special Projects Ongoing Special Projects Total Proposals General Fund 915,000 250,000 1,165,000 Special Revenue Funds -3,466,911 3,466,911 Enterprise Funds 152,000 210,733 362,733 Internal Service Funds 440,000 440,000 Total All Funds $1,067,000 $4,367,644 $5,434,644 Budget Requests by Fund 37 38 Budget Requests by Department Department One-Time Special Projects Ongoing Special Projects Total Proposals Council & Commissions --- Administration 100,000 -100,000 Innovation & Technology --- Administrative Services --- Parks & Recreation --- Community Development 200,000 -200,000 Public Works 767,000 4,367,644 5,134,644 Non-Departmental --- Total All Departments $1,067,000 $4,367,644 $5,434,644 Program Project Expenditure Funding Source Strategic Goal CITY WORK PROGRAM ADMINISTRATION 120 City Manager CWP - Rise Const Stakeholder Engmt 100,000 General Fund Quality of Life TOTAL ADMINISTRATION 100,000 COMMUNITY DEVELOPMENT 702 Mid Long Term Planning CWP Sign Ordinance Update 200,000 General Fund Quality of Life TOTAL COMMUNITY DEVELOPMENT 200,000 PUBLIC WORKS 800 Public Works Admin CWP Recycled Water Feasibility 200,000 General Fund Sustainability and Fiscal Strategy 122 Sustainability Division CWP Electrification Study 50,000 General Fund Sustainability and Fiscal Strategy 844 Traffic Engineering CWP Active Transportation Plan 330,000 General Fund Transportation TOTAL PUBLIC WORKS 580,000 TOTAL CITY WORK PROGRAM 880,000$ Special Project Requests 39 41 Festival Costs Waived Fees City Paid expenses Total Costs Festival Date Festival Producer Recreation Facility/Park/ Road Permits Public Works Sheriff Materials Total Notes Kids N Fun Festival Saturday, August 24, 2024 $1,850 $4,283 $3,395 $4,495 $14,023 Day N Night Fun Fest Saturday, September 14, 2024 Cupertino Rotary $2,788 $7,259 $5,179 $4,495 $19,721 Bhubaneswar Sister City City Initiative (CBSCI) Saturday, September 21, 2024 Cupertino Bhubaneswar Sister City $2,522 $6,140 $3,961 $3,720 $16,343 Diwali Festival Saturday, October 12, 2024 Cupertino Chamber of Commerce $2,405 $4,490 $3,404 $5,580 $15,880 Veterans Day November 11, 2024 Veteran's Memorial $1,308 $0 $0 $0 $1,500 $2,808 Egg Hunt Saturday, April 12, 2025 The Home of Christ Church in Cupertino $500.11 $2,125.00 $67.60 $620.00 $3,312.71 Holi April 2025 Cupertino Chamber of Commerce $1,471 $2,000 $2,605 $2,790 $8,866 Cherry Blossom Sat.-Sun., April 26-27, 2025 Toyokawa Sister City $6,622 $21,649 $11,633 $11,780 $51,685 Dilli Haat Saturday, June 14, 2025 EnActe $2,849 $7,270 $2,913 $5,425 $18,457 Relay for Life NOT RETURNING IN 2025 American Cancer Society $0 $0 $0 $0 $0 Costs for FY 24/25 Events $22,316 $55,216 $33,159 $38,905 $1,500 $151,096 TOTAL Waived Fees $110,690. 79 TOTAL City Paid $40,405 TOTAL Festival Costs $151,096 Community Funding 42 Non-Profit Organization FY 2023-24 Funding FY 2023-24 Program/Project/Event FY 2024-25 Funding FY 2024-25 Program/Project/Event AINAK 2,500 Eye Exams & Eyeglasses 2,750 AINAK Eyeglasses Asian American Parents Association 3,000 2024 Cupertino Multicultural Fair N/A2 N/A2 Cupertino Little League N/A1 N/A1 16,000 Scoreboard Replacement Cupertino Symphonic Band 4,000 Band Equipment 3,000 Band Equipment & Materials No Time to Waste 5,000 7/250 Feed the Need N/A2 N/A2 Omniware Networks 4,000 Mental Health Program N/A2 N/A2 Rotary Club of Cupertino N/A1 N/A1 4,000 House Renovations STEMBoost Corporation 4,000 Elementary Science Olympiad Fund Day/Night 3,000 Elementary Science Olympiad Summer Workshops West Valley Community Services 10,000 Gift of Hope 2023 3,750 Gift of Hope 2024 Total $32,500 $32,500 1Organization did not apply for or receive a Community Funding Grant in FY 2023-24. 2Organization did not apply for or receive a Community Funding Grant in FY 2024-25. •General Fund •Add $32,500 for community funding •Add $3,905 for festival costs •Add $2,050 for Artist Awards program •Increase animal services contract (June 4th Agenda) •Reduce fee revenue by $21,200 due to Council’s direction on permit parking and crane lift fees •Special Revenue Funds •Increase SB1 revenue by $212,614 Potential Changes Since Proposed Budget Printing 43 FY 2024-25 Proposed Budget May 1, 2024 FY 2024-25 Proposed Budget May 21, 2024 Revenues 89,825,668 89,804,468 Expenditures 89,938,989 90,041,794 Surplus/(Deficit)(113,221)(237,326) Potential Changes Since Proposed Budget Printing – General Fund 44 City Work Program FY 2024-25 City Work Program 46 Adopted FY 24-25 City Work Program #Project Description Budget Goal Ongoing Projects 1 Tree List (CDD)Review and revise development tree list (per Ch. 14.18: Protected Trees) with an emphasis on appropriate trees and native species. $50k allocated Sustainability and Fiscal Strategy 2 Tree List (PW)Project Phases: 1) Review, revise, and communicate street tree list with an emphasis on appropriate trees and native species. 2) Develop an Urban Forest program scope and cost for future consideration. $60k allocated Sustainability and Fiscal Strategy 3 Public Safety (License Plate Readers) Deploy city-owned license plate readers and implement policies to allow neighborhood-owned ones. $60k allocated Quality of Life 4 Public Safety (Block Leader)Strengthen Block Leader/Neighborhood Watch programs to ensure the leaders are active and expand the coverage of active neighborhoods. $10k allocated Quality of Life 5 Preserve existing and develop new BMR/ELI Housing Explore opportunities to preserve existing expiring BMR housing. Develop ELI (Extremely Low Income) and BMR housing units for Developmentally Disabled individuals (IDD) on City-owned property as well as the County-owned sites. $250k allocated Housing 6 Whole City Policy Review Repeat the 2013 process of compiling and reviewing all City Policies including 1) Administrative and 2) Council policies and provide recommendations/updates, e.g. Green Purchasing, Property Acquisition $10k allocated Public Engagement and Transparency 7 Fiscal Procedures and Policies Handbook Develop the handbook to ensure standardization of accounting, budget, investment, procurement policies, procedures, rules and regulations. $45k allocated Sustainability and Fiscal Strategy 8 Support for the unhoused Collaborate and fund jointly with West Valley efforts to address regional needs and find workable support for the Unhoused. $50k allocated Housing 47 Adopted FY 24-25 City Work Program #Project Description Budget Goal Ongoing Projects 9 Municipal Water System To analyze and recommend options for the continued operation of the system currently and at the end of lease with San Jose Water Company in September 2024. $181k allocated Sustainability and Fiscal Strategy 10 5G Ordinance Update 5G Ordinance $0 allocated Quality of Life 11 Residential and Mixed Use Residential Design Standards Create objective design standards for residential projects, including ensuring adequate buffers from neighborhood low-density residential development $240k allocated Quality of Life 12 Art in Public and Private Areas (Proposed by Arts & Culture Commission) Revisit Municipal Code standards for art in public and private development, including the standards in the Municipal Code and developing an Art-in-lieu fee policy. $0 Estimated Quality of Life 13 Speed Limit Lowering (AB 43) (Proposed by Bike Ped Commission) Lower speed limits where feasible pursuant to state adopted Assembly Bill 43 $0 Estimated Transportation 14 Homestead Bike Lane Study & Safe Routes to School (Proposed by Bike Ped Commission) Support collaboration efforts on multi-jurisdicitonal projects along Homestead Road that include upgrading pedestrian and bicycle infrastructure. (The current project phase is focused on preliminary design and is funded to 35%. Future phases, when funded, will focus on 100% plan design construction) $0 Estimated Transportation 48 Adopted FY 24-25 City Work Program #Project Description Budget Goal Ongoing Projects 15 Poet Laureate Playbook Update (Proposed by Library Commission) Update the Cupertino Poet Laureate Playbook to streamline processes, outline clear expectations, and expand applicant qualifications. The playbook has not been updated since 2016. $0 Estimated Quality of Life 16 Electrification Study (Proposed by Sustainability Commission) Conduct public outreach, policy research, and coordinate with regional efforts to develop policy options for electrification of Cupertino's buildings in light of recent legal rulings inhibiting certain electrification efforts. $50k allocated Sustainability and Fiscal Strategy 20 Active Transportation Plan This item is a consolidation of existing and new transportation efforts aiming to further goals outlined in the City's Vision Zero Initiative, including: 1) Review and update the bike plan 2) Review and update the pedestrian plan 3) Review current Complete Streets Policy and propose adjustments to create a better interface between all modes of transportation $330k Transportation New Projects 17 Recycled Water Feasibility Study (Proposed by Library and Sustainability Commissions) Develop Recycled Water Feasibility Study. Include Blackberry Farm focus and extension of recycled water from SCVWD. $200k Estimated Sustainability and Fiscal Strategy 18 Sign Ordinance Update Sign Ordinance $200k Estimated Quality of Life 19 The Rise: Construction stakeholder engagement Improve engagement with stakeholders to ensure progress with construction and reduce barriers. $100k Estimated Quality of Life New Projects Total$500,000 Capital Improvement Program (CIP) Projects External Funding City Funding Total Proposed Budget Bollinger Road Corridor Design 425,600 106,400 532,000 Electric Vehicle Charging Station (EVCS) expansion - Service Center 560,000 560,000 McClellan Road Bridge Replacement 5,850,000 5,850,000 Photovoltaic Systems Design & Installation 6,300,000 6,300,000 Roadway Safety Improvements - High Friction Pavement & Speed Feedback Signage 3,205,620 356,180 3,561,800 Vai Avenue Outfall 490,000 490,000 ADA Improvements (Annually funded)100,000 100,000 Annual Playground Replacement (Year 5 of 5)300,000 300,000 Street Light Installation - Annual Infill (Annually funded)35,000 35,000 CIP Preliminary Planning & Design1 125,000 125,000 Capital Project Support1 50,000 50,000 Total $9,481,220 $8,422,580 $17,903,800 FY 2024-25 Proposed CIP Projects 501Budgeted appropriations are part of the CIP base budget. As these are not projects, they were not presented to the Council at the CIP study session, but are being included here to show the total CIP budget. Issues and Challenges •Potential Sales Tax Reallocation •Capital Project Funding •Reduced Staffing Issues and Challenges 52 Next Steps 54 Next Steps1 May 21, 2024 Proposed Budget Study Session June 4, 2024 Final Budget Hearing and Adoption Nov 2024 1st Quarter Financial Report 1Additional meetings to be added if needed Questions?