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Fiscal Year 2024-25 First Quarter Budget Update and Proposed Appropriation
<br />Adjustments
<br />November 19, 2024
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<br />As of September 30, the City generated approximately $40 million, or 10% in revenue,
<br />which is typical for this time of year. Sales tax receipts lag about two months after the
<br />corresponding period and the City’s first half of major property tax installments is not
<br />received until November and December. Preliminary economic data from the City’s Sales
<br />Tax consultants suggest that sales tax revenue is projected to fall below original
<br />expectations for FY24-25; however, we have only received detailed data from the state
<br />through June 2024. Increases in online shopping were not enough to offset declines in
<br />luxury auto sales, general consumer goods, and food and drug stores (including
<br />Cannabis). The benefits stemming from reduced inflation and interest rates are not
<br />expected to arrive until closer to FY2025-26. Therefore, staff is not recommending any
<br />revenue adjustments at this time, pending further data. In the interim, staff will explore
<br />alternative strategies to offset the impact of reduced sales tax revenue. This may include
<br />identifying other revenue streams that are outperforming expectations, utilizing savings
<br />from staffing vacancies, or proposing adjustments to expenditures for budget rebalancing.
<br />A summary of General Fund expenditures through September 30 follows.
<br />General Fund Expenditures
<br />Overall, expenses are tracking closely to the prior year, with a total of $97,287,325 spent
<br />through September 30, 2023. In FY24-25, spending for most departments is below the
<br />De partme nt
<br />FY24-25 Original
<br />Budge t
<br />Spending as of
<br />9/30/2024
<br />%
<br />Expe nde d
<br />City Attorney 4,500,350 758,120 16.85%
<br />City Clerk 1,934,570 303,126 15.67%
<br />City Counc il 1,043,970 199,500 19.11%
<br />City Manager 3,963,160 766,083 19.33%
<br />Com m unity Development 4,327,760 569,939 13.17%
<br />Financ e & Mgm t Servic es 13,268,160 2,773,998 20.91%
<br />Fire & Emergenc y Medic al Svc s ³57,837,370 18,137,088 31.36%
<br />General Non-Departm ental 38,543,830 14,184,590 36.80%
<br />Human Resources 4,393,370 826,203 18.81%
<br />Inter-Fund Transfers 17,999,970 3,570,106 19.83%
<br />Library 7,916,230 1,875,661 23.69%
<br />Museum Funding 1,715,320 424,427 24.74%
<br />Parks, Rec reation & Comm Svc s 16,083,960 4,363,563 27.13%
<br />Planning & Building 18,731,210 4,301,482 22.96%
<br />Polic e 162,545,030 34,762,261 21.39%
<br />Public W orks 51,968,800 9,552,046 18.38%
<br />T otal Ge ne ral Fund Expe nditure s²406,773,060 97,368,193 23.9%
<br />³Fire & Em ergency M edical Services includes an one-m onth advanc e
<br />²Ex cludes increased appropriations for the Library by $15,802.58 approved at the Sept 16 City Counc il
<br />m eeting, $118,548 in the us e of fund balance approved at the September 23rd City Counc il meeting &
<br />Carry Forwards approv ed at the Oc tober 1 City Council m eeting
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