DATE: November 6, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: FY 2023-24 FOURTH QUARTER FINANCIAL STATUS REPORT
RECOMMENDATION
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Staff submits the fourth quarter Financial Status Report and recommends that the City Council accept the report and approve the budget adjustments.
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BACKGROUND AND ANALYSIS
The City Council adopted the FY 2023-24 budgets on June 7, 2023, with approved General Fund revenues of $204 million and expenditures of $203.3 million. The City adopted budget for all funds is $574.67 million in revenues and $569.93 million in expenditures.
This Report is intended to provide the City Council and the public with an overview of the state of the City’s general fiscal condition as of June 30, 2024. The Report summarizes the preliminary General Fund major operating funds results as of June 30, 2024, and is not intended to be inclusive of all transactions. It compares budget and actual for revenues and expenditures. The financial status of Measure X, Water Utilities, and Harbor enterprise funds are also included.
The preliminary results for the year ending June 30, 2024 show that the General Fund will have a $18.8 million surplus. Per Council Policy 200-13, 50 percent of the General Fund surplus at the end of the fiscal year will go towards reducing long-term unfunded liabilities. Preliminary total revenues are at $225.3 million and are 6 percent higher than the previous fiscal year. Total General Fund expenditures for the fourth quarter amount to $206.7 million. Of the surplus, $2.1 million will be carried forward to the current year. Also, some of this surplus is also related to onetime funds that we do not expect to be ongoing. For example, $1.4 million was transferred to the General Fund to close out a debt service fund. Also, the City’s interest earnings came in significantly higher than budget. The City is currently earning around 4% on its investments, which is much higher than it has earned in the past and this is not expected to be ongoing. Additionally, ambulance billing revenue came in $2 milion higher than budget due to some catch up payments related to the prior year. We do not expect this to continue in the future. Staff continues to closely monitor revenues and expenditures and will recommend adjustments if warranted.
FISCAL IMPACT
There is no fiscal impact.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
Does not apply.
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Prepared by: Jill Moya, Financial Services Director
Reviewed by: Michael Gossman, Assistant City Manager
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Financial Status Report
3. Attachment A - Budget Adjustments