CC 03-04-2025 Item No. 8. Fiscal Year 2024-25 Mid-Year Financial Report_Supplemental Report1
CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: March 4, 2025
Agenda Item #8
Subject
Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25
Recommended Action
1. Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25
2. Adopt Resolution No. 25-XXX approving Budget Modification No. 2425-383, increasing
appropriations by $4,161,892 and revenues by $4,115,183.
Background:
Staff’s responses to questions received from councilmembers are shown in italics.
Q1: Regarding Special Projects being carried over from prior years, the Fixed Asset
Acquisition appears to possibly need an update to reflect vehicle replacement
appropriations over the past few years. FY 25 adopted over $400k to vehicle replacement
in Special Projects but this amount is not reflected in Appendix G. The FY 23-24 Mid-Year
Special Projects shows $1,264,468 in that update for that year’s Amended Budget (see PDF
227 of February 21, 2024 City Council meeting Mid-Year update), what portion was spent
and what amount is carried over and added to the FY 25 Budgeted amount? Have all of the
Special Projects balances that were unspent to purchase specified vehicles been brought
forward? Where is this number reflected if not in the Special Projects listing?
May we see a summary of the vehicles which were purchased over the past 5 years using
the Special Projects funds and the sale totals for the vehicles sold. There is an account
specified for this purpose of accounting for sales of vehicles, it would be good to see how
the balance has changed and what sales are reflected in it. (Vice Mayor Moore)
Staff Response: The FY 2023-24 Amended Budget for Vehicle Replacement was $1,264,468, with
expenditures and allocations as follows:
- $507,767.39 was expended and transferred to fixed assets.
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- $548,510 was carried over into FY 2024-25, as detailed in the First Quarter Financial Report
presented at the December 3rd City Council Meeting (Attachment C: Detailed Budget
Carryovers, Council-Approved Adjustments, and Encumbrance Carryovers as of September 30,
2024 under Encumbrance Carryovers for Fund 630).
- The remaining $208,190.61 was unspent and not carried forward into FY 2024-25.
When vehicles are sold at an amount exceeding their book value, the revenue is recorded under Other
Sources – Fixed Assets Proceeds (630-90-985-490-411).
Below is a summary of vehicle purchases over the last five years, excluding large equipment and
trailers or ordered vehicles yet to be delivered:
Q2: Is there an Unassigned Fund Balance chart? (Vice Mayor Moore)
Staff Response: Please see the chart below.
Fiscal Year Vehicle
FY 2019-20 2020 Ford F-350
FY 2020-21 2020 Ford F-250
FY 2020-21 2020 Ford F-250
FY 2020-21 2021 Ford F-650
FY 2020-21 2020 Ford F-350
FY 2021-22 2021 Ford F-150
FY 2022-23 2022 Ford F-350
FY 2022-23 2022 Ford F-350
FY 2023-24 2023 Ford F-150
FY 2023-24 2023 Ford F-150 (Lightning)
FY 2023-24 2023 Ford F-150 (Lightning)
FY 2024-25 2024 Ford F-150 (Lightning)
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Q3: Is it possible for the First Quarter Special Projects Attachment G to have a reference to
the Grants tracking update to be able to more readily see what Special Projects have a
grant associated with them? (Vice Mayor Moore)
Staff Response: Staff has updated Attachment F to include “Outside Sources of Funding”
Q4: Thank you for including the Q2 CIP Program. But the Q2 Work Program Update is
not included. Could you please include the Q2 Work Program update too? (This is usually
included in each quarterly budget update and I thought that is a good practice.) (Mayor
Chao)
Staff Response: The Q2 City Work Program (CWP) Update was included in the staff report for the
March 3 Workshop. The Q2 updates can be viewed on the CWP Dashboard and a printable PDF
has also been added to the City Work Program Website.
Q5: How many vacant positions are there? What's the recruitment plans or plans to
eliminate those positions? (Mayor Chao)
Staff Response: Below are the list of current vacant positions. Staff will return as part of proposed
budget with the status of vacant positions as of 4/1/2025 and plans for how to proceed with the
positions.
Position Class Title (working title) Status
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Budget Manager In progress awaiting new position classification
Management Analyst In progress
Account Clerk I/II In progress
Associate Planner In progress
Building Inspector In progress
Code Enforcement Officer In progress
Planning Manager (Housing Manager) Not started
Senior Planner In progress
Senior Planner Not started
Senior Code Enforcement Officer Not started
Assistant City Manager In progress
Management Analyst (Emergency Analyst) Not started
Senior Office Assistant Not started
Assistant to the City Manager (Emergency Services Manager) Not started
Assistant Engineer Not started
Maintenance Worker I/II In progress
Maintenance Worker I/II In progress
Maintenance Worker I/II In progress
Public Works Project Manager In progress
Engineering Technician In progress
Public Works Supervisor In progress
Q6: With the allocation of $2.5M for the ERP system replacement, I thought that would
increase the general fund budget by $2.5M. But that is not mentioned. So, I am curious
where the $2.5M is reflected? Maybe in the "requested Midyear adjustment" of $4.1M?
(Mayor Chao)
Staff Response: The ERP item was approved by City Council on the February 19th 2025 meeting.
The Mid-Year report covers up to December 31, 2024.
Q7: The Council voted to retain the remaining $64.5 million from the CDTFA settlement
in the Future Use Reserve on Feb. 4. Where is this reflected in the Mid-year budget?
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(Mayor Chao)
Staff Response: The fund balance table on page 27 of the staff report shows changes from first
quarter to mid-year, in this table you will note the committed amount increases from first quarter
estimates of $31.1 million to $98.6 million the majority of that is related to the Sales Tax
Repayment Reserve being renamed and remaining in the committed reserve category.
Q8: This chart shows the General Fund Revenue - Expenses. I assume that the General
Fund here does not include the $64.5 million from the CDTFA settlement, right?
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(Mayor Chao)
Staff Response: This chart is meant to show surpluses or deficits in any given year and not existing
fund balance. See chart in question #2 for more detail on existing fund balance and how they are
forecasted to change over the forecast period.
Q9: The above chart does not include expenses for Capital projects. Could you please show
a chart of for All Funds, not just the General Fund? (Mayor Chao)
Staff Response: The 10-year financial forecast provided is for the General Fund, as it is the City's
primary operating fund. A similar long-term forecast has not been developed for all funds, as they
are highly variable due to grant funding, restricted revenues, and capital project cycles. Unlike the
General Fund, these funds fluctuate significantly based on external factors, making long-term
projections less reliable.
Attachments Provided with Original Staff Report:
A – FY 2024-25 Mid-Year Financial Report
B – Draft Resolution
C – Description of Budget Transfers as of December 31, 2024
D – FY 2024-25 Mid-Year Recommended Adjustments
E – Mid-Year Performance Measures & Workload Indicators
F – FY 2024-25 Mid-Year Special Projects Update as of December 31, 2024
G – Competitive and Non-Competitive Citywide Grants Tracking
H – Capital Improvement Program Project Status