DATE: November 5, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: FY 2024-25 FOURTH QUARTER FINANCIAL STATUS REPORT
RECOMMENDATION
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Staff recommends that the City Council accept the Fourth Quarter Financial Status Report, approve the attached budget adjustments and adopt resolutions approving the corrected GANN Appropriations Limits for Fiscal Years 2024-25 and 2025-26.
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BACKGROUND AND ANALYSIS
On June 5, 2024, the City Council adopted the FY 2024-25 budgets. The approved General Fund includes $216.28 million in revenues, with recurring expenditures totaling $215.45 million and an additional $3.26 million allocated for one-time costs, bringing the total General Fund budget to $218.71 million. Across all funds, the City adopted a budget of $594.18 million in revenues and $604.56 million in expenditures.
This report summarizes the preliminary results of the General Fund and other major operating funds for the fiscal year ending June 30, 2025. It compares budget and actual results for revenues and expenditures and also provides financial status updates for the City’s Enterprise Funds, including Water Utilities and Harbor. The report is preliminary and unaudited; final reports will be presented in December 2025 following completion of the City’s annual audit.
Actual revenues for the year totaled $234.3 million, while actual expenditures reached $233.8 million, resulting in a preliminary surplus of $0.5 million. Expenditures exceeded the originally adopted General Fund budget primarily due to midyear budget amendments approved by Council. These amendments increased total appropriations by $31.5 million, including $2.4 million carried forward from the prior year, $22.0 million in Council-approved adjustments, $2.3 million in mutual aid expenditures, $2.7 million for CalPERS unfunded liability payments, and $1.0 million for employee separation payouts. Major Council-approved expenditure adjustments included $8.25 million allocated to the El Corazon Park Site 1 project using prior year surplus, $3.0 million for the SiFi and Ubiquity projects (to be reimbursed), $2.7 million for the Oceanside Boulevard undergrounding utility project, $2.3 million for the San Luis Rey River project, and $2.1 million for the Crown Heights Resource Center rehabilitation project, among others (see Quarterly Financial Report attachment for full detail).
Additional revenues approved during the year-totaling $7.3 million-helped offset a portion of these increases, consisting of $3.5 million in Council-approved adjustments, $1.0 million in investment earnings, $2.2 million in mutual aid reimbursements, and $0.6 million in other changes.
Per Council Policy 200-13, 50 percent of the General Fund surplus at the end of the fiscal year will be allocated toward reducing long-term unfunded liabilities.
Staff continues to closely monitor revenues and expenditures and will recommend adjustments as needed to maintain fiscal stability.
In addition to providing the fourth quarter financial update, this report includes the submission of corrected GANN Appropriations Limits for Fiscal Years 2024-25 and 2025-26. The appropriation limits originally presented in the budget adoption resolutions for those fiscal years included miscalculations. The corrected appropriation limit for FY 2024-25 is $515,642,968, and for FY 2025-26 is $551,265,317. These corrections do not result in the City exceeding its appropriations limit during any intervening period but are being made to ensure accuracy and compliance with state requirements.
FISCAL IMPACT
There is no fiscal impact associated with the preparation of this report.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed and approved as to form.
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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. 2024-25 Quarterly Financial Status Report Q4
3. Attachment A Q4
4. Resolution FY 24-25 Appropriations Limit
5. Resolution FY 24-25 Exhibit A
6. Resolution FY 25-26 Appropriations Limit
7. Resolution FY 25-26 Exhibit A