Item 40 - Public Hearing Fiscal Year 2024-25 Budget (Revised)

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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 4 3 3 9 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. The proposed recurring General Fund budget is balanced. 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 ($1M estimated) •Planned wage increases •Orange County Fire Authority contract increase of 4.5% annually •Contributions to, and uses of, the Pension Stabilization Account have been included to smooth the pension debt fluctuations FY 24-25 Proposed General Fund Budget Recurring O ne-Time Total Revenue 406,527,340$ 406,527,340$ Expenditures (364,561,010)$ (11,104,760)$ (375,665,770)$ Net Transfers (31,142,290)$ (1,658,000)$ (32,800,290)$ Pension Stabilization (10,531,020)$ (10,531,020)$ Net Activity 293,020$ (12,762,760)$ (12,469,740)$