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Fiscal Year 2023-2024 General Fund Results
<br />December 17, 2024
<br />Page 5
<br />spendable General Fund balance to the Section 115 Trust for pension stabilization. Per
<br />the policy, when the General Fund balance exceeds the reserve policy requirement, the
<br />City may consider an additional deposit to address unfunded pension liabilities. This
<br />deposit is part of the overall Section 115 Trust strategy, which helps mitigate
<br />fluctuations in future contributions caused by differences in actual plan performance and
<br />changes to actuarial assumptions made by CalPERS.
<br />The following table includes these proposed appropriations, along with an updated
<br />summary of the General Fund budget for the current fiscal year, which accounts for the
<br />additional reserve requirement.
<br />FY2024-25 General Fund Summary
<br />FY24-251st
<br />Quarter Budget
<br />Update
<br />FY23-24 Year-
<br />End Results
<br />Proposed
<br />December 17
<br />Adjustments
<br />Updated
<br />Estimates
<br />Estimated Beginning Balance at
<br />July 1, 2024
<br />109,495,834
<br />20,349,223
<br />129,845,057
<br />Revenue Estimate
<br />406,543,143
<br />5,429,840
<br />411,972,983
<br />Appropriated Spending
<br />(406,907,411)
<br />(7,890,440)
<br />(414,797,851)
<br />Pension Trust Set Aside
<br />(34,565,751)
<br />(2,000,000)
<br />(36,565,751)
<br />Estimated Ending Balance at June
<br />30, 2025
<br />74,565,815
<br />20,349,223
<br />(4,460,600)
<br />90,454,438
<br />Less: 18% Reserve'
<br />73,173,121
<br />977,371
<br />74,150,492
<br />Estimated Spendable Balance
<br />1,392,694
<br />20,349,223
<br />(5,437,971)
<br />16,303,946
<br />1$15,803 in recognized revenue approved by City Council on September 19, 2024 is one-time money. The City's
<br />18% reserve policy applies to annual recurring revenue only.
<br />ENVIRONMENTAL IMPACT
<br />There is no environmental impact associated with this action.
<br />FISCAL IMPACT
<br />Exhibit 1 outlines the line -item changes to revenue estimates resulting from the closure
<br />of the Engineering Services Fund, along with the recommended appropriation
<br />adjustments discussed in this Staff Report. These adjustments result in a $2.46 million
<br />increase in General Fund appropriations, funded by a one-time allocation from the
<br />spendable fund balance. Additionally, the proposed adjustments include the transfer of
<br />revenues and corresponding expenditures from the Engineering Services activity to the
<br />General Fund, each totaling $5.4 million, bringing the total appropriation request to
<br />$7.89 million.
<br />The $2 million deposit to the 115 Trust is reflected in the FY 2024-25 General Fund
<br />Summary table. While this deposit reduces the estimated spendable balance, it is
<br />excluded from Exhibit 1 as it represents a financial transfer rather than a direct
<br />appropriation adjustment.
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