Item 40 - Public Hearing Fiscal Year 2024-25 Budget

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Proposed Fiscal Year 2024-25 City Budget, Changes to the City's basic classification and compensation plan, Uniform Schedule of Miscellaneous Fees, and the Seven -Year Capital Improvement Program June 4, 2024 Page 4 compliant with City Council Policy. As General Fund revenue changes, so does the dollar amount of the Reserve requirement. A summary of the proposed FY 2024-25 General Fund budget identifying recurring activity and one-time activity follows. Revenue $ Expenditures $ Net Transfers $ Pension Stabilization $ Net Activity $ 406, 527, 340 (364,561,010) (31,142,290) (10,531,020) $ (11,104,760) $ (1,658,000) 293,020 $ (12,762,760) The proposed recurring General Fund budget is balanced. $ 406,527,340 $ (375,665,770) $ (32,800,290) $ (10,531,020) $ (12,469,740) If the City Council directs staff to move forward with free downtown parking on Sundays and Art Walk Day instead of one -hour free parking on evenings and weekends, then General Fund spending will decrease by $1.2 million, and the proposed Budget Ordinance will be updated accordingly. General Fund Ten -Year Outlook The Outlook is a tool that extrapolates the proposed budget structure and known future events (e.g. Measure X rate decrease) to see the potential impact to the future General Fund budget. This Outlook includes the following assumptions: • Recurring amounts only • Debt pay-offs • Measure X rate decrease (1.5% to 1.0% in 2029) • Inflationary increases FY25-26 and later, based on the California Department of Finance forecast of CPI • City's contribution to OC streetcar operations begins in FY 2025-26 ($1 M estimated) • Planned wage increases • Orange County Fire Authority contract increase of 4.5% annually • Contributions to, and uses of, the Pension Stabilization Account have been included to smooth the pension debt fluctuations