Item 13 - Fiscal Year 2023-2024 General Fund Results

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Fiscal Year 2023-2024 General Fund Results December 17, 2024 Page 2 estimates and aligns with the City's policy of using a conservative approach in revenue estimation. Additionally, General Fund expenditures resulted in total savings of $7.5 million. FY23-24 General Fund Results These positive variances have resulted in a spendable General Fund balance of $20.3 million, in excess of the 18% General Fund Reserve balance of $73.2 million. With the proposed closure of the Engineering Services Fund and the recommended appropriation requests outlined in this report, the spendable fund balance would decrease to $16.3 million. While many General Fund revenues exceeded conservative estimates and several departments realized expenditure savings, the following factors were the most significant contributors to the $20.3 million spendable balance. Revenues • The Business Tax exceeded estimates, generating an additional $0.8 million above the adjusted budget of $16 million, as reported in the FY 23-24 First Quarter Budget Update presented on November 7, 2023. • Property Tax surpassed revenue estimates by $0.6 million due to ongoing growth in assessed valuations. This rate of growth is not expected to continue in FY2024-25. • Investment earnings for the fiscal year exceeded estimates, generating an additional $0.9 million above the adjusted budget of $4.9 million, as reported in the FY 2023-24 Third Quarter Budget Update presented on June 4, 2024. • The General Fund collected $1 million more than the $8.4 million budget in Indirect Costs, primarily due to increased personnel salaries charged to restricted -money programs. • Refuse Franchise Fee revenues for FY 23-24 exceeded the $8 million estimate and minimum annual payment required by agreement by $1.5 million, driven by higher -than -anticipated gross receipts from directly billed customers. Under the City's Franchise Fee agreement, the waste hauler is obligated to remit either a minimum annual payment of $8 million or 17.9% of gross receipts, whichever is greater. • Cannabis revenues exceeded estimates, generating an additional $3 million of one-time revenue following the implementation of corrections to the tax calculations for prior periods. • Charges for services generated $2.2 million more than expected, primarily due to Paramedic Service Charges, Planning and Building revenues, and increases to Parks and Recreation's zoo revenue and recreational program offerings. As reported in the FY 23-24 Third Quarter Budget Update on June 4, 2024, the City continues to receive increased reimbursements for Medicare and Medi-Cal transports. The Third Quarter Report also included a budget