Item 08 - Fiscal Year 2024-25 First Quarter Budget Update and Proposed Appropriation Adjustments

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Fiscal Year 2024-25 First Quarter Budget Update and Proposed Appropriation Adjustments November 19, 2024 Page 4 4 6 8 0 informal marker of 25%, which represents the first three months of the fiscal year. The exceptions are Fire & Emergency Medical Services, which is addressed in the footnote above, as well as Non-Departmental, and the Parks, Recreation, and Community Services Agency (PRCSA) expenditures. Non-Departmental expenses are slightly higher this year due to the timing of payments for legal services. Staff will re-evaluate the status of this budget as part of the Mid-Year Budget Update, and may request to revise this if unexpected conditions warrant an increase. PRCSA’s expenses do not yet reflect the carryovers approved at the October 1 City Council meeting. Once the carryovers are uploaded to the budget, their expense budget will be under the 25% marker, aligning them more closely with other City departments. The carryovers are expected to be posted to the general ledger and reflected in the City’s budget in November. General Fund Adjustments The deadline to obligate ARPA funds is December 31, 2024. To meet the obligation deadline and have funds available to complete the installation of digital information kiosks, we request an appropriation adjustment reallocating $166,810 in the General Fund from PRCSA Service Enhancement, Building and Building Improvements to CMO, Improvements Other Than Buildings. There is no budget impact to PRCSA, as the same amount referenced above will be transferred to their budget through ARPA funding. The agreement for this project did not include the contingency language required per federal guidelines to obligate these funds. This request has a net zero General Fund impact and will allow contingency funds to be available for the project. Restricted Fund Adjustments Overview Liability & Property Insurance Fund Projects (Fund 80) Fund 80 has a spendable fund balance of $14 million as of June 30, 2024, which meets the City’s target reserve level of 80% of the most recent actuarial liability. After approving the recommended appropriation adjustment of $153,055 for the following risk management projects, the fund balance remains compliant with the reserve requirement. •City Facilities Security Enhancements (Project No. 22-0505) •Council Chamber Restrooms ADA Compliance (Project No. 22-0504) •4th Floor ADA Compliance (Project No. 22-0502) National Opioid Settlement Adjustments (Fund 111) The City received additional installments from the Opioid Settlement funds following recent agreements with major retailers and pharmaceutical companies, including Walmart, Walgreens, CVS, Allergan, Teva, and McKinsey, aimed at addressing the opioid crisis. This funding is expected to support the establishment of in-hospital detoxification