Item 10 - Fiscal Year 2024-25 Third Quarter Budget Report and Proposed Appropriation Adjustments

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FY2024-25 Third Quarter Budget Update & Proposed Appropriation Adjustment June 3, 2025 Page 4 5 0 8 4 Paramedic Service Charge The Public Provider Ground Emergency Medical Transportation (PP-GEMT) program provides supplemental federal reimbursement to public agencies for the cost of emergency medical transports for Medi-Cal patients. To further support agencies, a new federal program increasing reimbursement rates took effect on January 1, 2023, resulting in higher collections than originally estimated. Based on year-to-date activity, staff increased the Paramedic Services Charge revenue estimate by $3,500,000, resulting in a revised budget total of $15,100,000. Investment Earnings Initial estimates assumed that American Rescue Plan Act (ARPA) funding balances would significantly decrease by the December 2024 obligation deadline. However, because major projects take time to complete, such as the Main Library renovation, Memorial Park improvements, and others, project balances have remained higher than anticipated. Combined with continued elevated interest rates, the City has experienced higher investment earnings than originally projected. Accordingly, staff has updated the investment earnings estimate by $1 million, resulting in a revised total of $3,150,000. Business License Tax Business Tax revenues continue to exceed original estimates, supported by ongoing compliance efforts led by Treasury Services staff. Based on continued strong performance through the third quarter, staff recommends increasing the revenue estimate by an additional $560,000. This brings the revised total for FY 2024-25 to $18,010,000. Refuse Franchise Fee Update The Refuse Franchise Fee revenue estimate was previously updated during the Mid-Year Report based on available data. Following continued strong collections through March, the estimate has been increased by an additional $740,000, bringing the total to $10,240,000 for FY 2024-25. The increase is primarily driven by higher waste collection rates implemented by the City's hauler. As franchise fees are calculated as a percentage of the hauler’s gross receipts, these rate adjustments have resulted in higher revenues to the City. Utility Users Tax – Electric As part of the Mid-Year Budget Report on March 4, 2025, staff adjusted the Utility Users Tax revenue estimate for electric services to reflect higher-than-expected receipts. Based on continued strong collections through the third quarter ending March 31, 2025, staff has adjusted the revenue estimate upward by an additional $500,000. This adjustment accounts for sustained higher electricity rates implemented by Southern California Edison (SCE) and elevated demand. The revised Utility Users Tax – Electric revenue budget for FY 2024-25 is now $18,800,000.