Item 13 - Fiscal Year 2023-2024 General Fund Results

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Fiscal Year 2023-2024 General Fund Results December 17, 2024 Page 4 occurred that were not included in the budget, including $100,000 for elevator repairs in the Fleet Division and $140,000 for necessary fire panel repairs. Staff is requesting a one-time funding allocation of $240,000 to cover these critical, unanticipated repairs. Parks Projects in Progress Due to a process -related oversight, $555,600 in carryovers were not included in the October 1, 2024 request for the carry-over of unspent amounts from FY23-24 to FY24- 25. As a result, Public Works is requesting to re -budget unspent FY23-24 appropriations totaling $555,600 to complete the design and construction phases for the following parks projects: • Cool pavement treatment at Madison and Campesino Parks • El Salvador Park concession stand • Edna Park and restroom improvements • Thornton Park playground Enaineerina Services Division Fund Close -Out On December 19, 2023, staff reported that the Engineering Services Division has been managing a negative fund balance for several years. To address this issue and prepare for the fund's eventual closure, the City Council approved a FY 2024-25 annual budget allocation within the General Fund to cover overhead costs and staff time that cannot be billed to projects or developer deposits. At this stage, staff is requesting authorization to transfer all related expenditures and revenues from the Engineering Services Division fund to the General Fund to close the fund. An additional $1.25 million allocation is required to fully address the negative fund balance from FY 23-24, which resulted from unanticipated costs. This one-time funding allows for a clean closure of the fund. Although the Engineering Services fund has a budget of approximately $6.7 million, only $5.4 million will shift to the General Fund due to indirect cost recovery. The General Fund charges overhead costs to other funds, including the Engineering Services fund. These overhead costs are for accounting, legal assistance, and contract processing. By moving Engineering Services to the General Fund, the General Fund will not charge itself for these indirect overhead services. The City's General Fund Reserve policy requires maintaining a reserve balance equal to 18% of annual recurring revenue. With an anticipated $5.4 million increase of General Fund recurring revenue from the Engineering Services Division, the 18% Reserve must increase by $977,371. This action ensures compliance with the reserve policy, further supporting the City's fiscal stability. Contribution to Section 115 Trust for Pension Stabilization In line with the City Council approved Unfunded Employee Pension Liability Cost Reduction Policy, staff recommends a one-time $2 million contribution of the excess