CC 11-19-2024 Item No. 16. FY 2024-25 One-time Funds Allocation Plan_PresentationNovember 19, 2024
Allocation Plans for Uncommitted
funds from the Sales Tax
Repayment Reserve
2
Agenda
Background
Areas of Focus and Guiding Principals
Overview of Plans (Options A-C)
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Category FY24 FY25 Summary
Materials & Contracts $5.5M Reductions across departments, most notably reductions to street
pavement maintenance and training and development
Staffing $2.4M 13 FTE positions
FY24 Reductions $7.9M
Community Benefits $0.1M 4th of July Fireworks
Fiscal Accountability $2.8M Align Law Enforcement costs with actuals, ERP, and legal costs
Infrastructure $2.9M No CIP reserve transfer and tree maintenance moved inhouse
Operations and
Maintenance
$2.9M Elimination of two Project Managers and reduction of part-time
staff. Incudes additional materials and contract reductions.
Total FY25 Reductions $8.7M
Background
Background
•Community Budget Surveys
•10/15/24 CC Meeting and
•Departments
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Areas of Focus
I.Restoring Community Benefits
II.Restoring Reduced Services
III.Investing in Employees
IV.Enhancements
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Guiding Principals
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I.One-time funds + Ongoing benefits
II.One-time funds
III.Hold for future use
IV.Limit ongoing expenses
Overview of Options A-C
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Allocation Plan Capital Fund
Reserve
Allocations for
current use
General Fund
Reserves
Option A
Option B
Option C
●All Plans are Fiscally Responsible
•City has sufficient reserves as recommended by
GFOA
•Permissible investments limited by state law
•Balance opportunity to invest public funds to
provide public services with cautious approach
to projected General Fund deficits
Other Considerations
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Option A
11/18/2024
•No budget adjustment recommendations
•Funds are to be held in a new committed
reserve
•This reserve would be drawn down, per City
Council direction as the funds are expended
and would not be replenished.
Option A
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Option A
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-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Inflation Vs. Long Term Investment Growth
Inflation (%)Investment Benchmark (%)
Value (w/ reinvested interest)($)Value (w/o reinvestment)($)
I.One-time funds + Ongoing benefits
II.One-time funds
III.Hold for future use
IV.Limits ongoing expenses
Option A - Considerations
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Option B
11/18/2024
Area of
Focus
Guiding
Principal
Description Allocation
One -time
Allocation
Ongoing
Enhancement Hold funds for
future use
Transfer to Capital Reserve
to fund future Capital
Improvement Plan (CIP)
projects.
$31,811,295 $0
Enhancement Hold funds for
future use
Deficit Funding Reserve in
the General Fund
$31,000,000 $0
Total allocation for future use $62,811,295 $0
Various Various See attachment E for more
detail
$11,335,166 $353,539
Total Allocations for current use $11,335,166 $353,539
TOTAL ALL ALLOCATIONS $74,146,461 $353,539
Option B
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Also included in C
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•Increases funded status 66% to 75%
•Decrease in ongoing payments to lower
structural deficit
•Manages long-term liability
Benefits of Advanced CalPERS Payment
I.One-time funds + Ongoing Benefits
II.One-time funds
III.Hold for future use
IV.Limits ongoing expenses
Option B - Considerations
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Staffing (Options B & C)
New Position
•3 Yr Limited Term Grant
Management Analyst
New Classifications
•Assistant Director of
Administrative Services
•Grants Analyst
•Senior Business Systems
Analyst
•Supervising Code
Enforcement
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Option C
11/18/2024
Option C
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I.One-time funds + Ongoing benefits
II.One-time funds
III.Hold for future use
IV.Limits ongoing expenses
Option C - Considerations
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