Item 20 - Fiscal 2024-25 Mid-Year Budget Update, Appropriation Requests, and Workforce Changes

Home Browse Search

FY24-25 Mid-Year Budget Update, Appropriation Requests, and Workforce Changes March 4,2025 Page 10 4 8 6 7 Since these costs are reimbursed by the County, this adjustment ensures the City’s budget remains balanced, though reimbursements typically occur one month after billing. Liability and Property Insurance Fund In an effort to settle claims and litigate matters early while minimizing litigation expenses, Human Resources requests an appropriation adjustment of $1 million from spendable fund balance for anticipated settlements. The Liability & Property Insurance Fund has sufficient funds to support this request, with an estimated spendable fund balance of $12.1 million. The City’s target reserve level for this fund is $17.2 million, representing 80% of liability, as actuarially determined every two years. Staff plans to address this reserve deficit during the budget process by gradually increasing overhead charges to rebuild the balance to the target level. Quality Service Training The Quality Service Training Fund was established as an internal service fund to provide training and support services aimed at enhancing City services through the use of total quality improvement tools. A budget appropriation is requested for the Quality Service Training Fund to cover charges for the Organizational Development and Training room setup. These charges were expected in FY23-24, but a processing delay shifted payment to the current fiscal year. The fund will use its remaining spendable balance of $61,400 to cover the costs. With no further expenses anticipated, it will be formally closed after the final payment. Training services are now being funded through HR’s General Fund budget. Workers Compensation Fund Based on past loss history, the City is prioritizing the settlement of workers’ compensation claims to avoid prolonged open cases. This approach helps mitigate long-term costs and liability while ensuring efficient claim resolution. Human Resources requests an appropriation adjustment of $946,266 in spendable fund balance to support the settlement of workers’ compensation claims. The Workers Compensation Fund has sufficient funds to support this request, with an estimated spendable fund balance of $19.7 million. The City’s target reserve level for this fund is $30.5 million, representing 80% of liability, as actuarially determined every two years. The City’s target reserve level for this fund is $30.5 million, representing 80% of liability, as actuarially determined every two years. Similar to the Liability & Property Insurance Fund, staff plans to address this reserve deficit during the budget process by gradually increasing overhead charges to rebuild the balance to the target level. Corporate Yard Since Aldridge Electric is no longer a renter at the Corporate Yard, the City no longer receives revenue from this source. Staff recommends adjusting the Corporate Yard budget to align revenues with expenditures, resulting in a $27,528 reduction due to the loss of revenue from Aldridge Electric with an equal offsetting decrease to the Corporate Yard’s part-time salaries expenditure budget.