City Council Meeting

JC MartinezstaffPPTA or PPTRA was now budgeted as revenue so there was like a three million dollar credit to the personal property account which will go into the expenditure side. This was more of an accounting change just to make it more accurate additionally our auditor was asking us to sort of do this just for more transparency and better tracking as well so we made that correction or change in FY 24 and then lastly the other financing sources this is almost exclusively to the transfer of ARPA funds one of the categories that was allowed in ARPA was something called revenue replacement we had not done that prior so we moved a good chunk of that almost nine million dollars from the ARPA fund to the general fund side to

and then a positive variance of slightly over $6 million. dollars. And one of my favorite slides is the unassigned fund balance summary and then in addition we've added in the budget stabilization fund specifically for councilmember Staley as well. So we know for a fact that we ended FY 23 at 16.8 or about 28.3 million dollars when you add in that six million dollar variance, but you take out $1.5 million, which is a requirement per the budget stabilization fund, we would potentially end up an estimated 17.9% of the general fund unassigned fund balance for FY 2024, or about a 1.1% increase from the 16.8, or about a $4.5 million increase from $28.3 million. dollars. Again, as stated earlier, when you look at the minimum adopted financial policy of 15%,

that's about 27.5 million dollars. The variance there is about 2.9 or about 5.3 million dollars. And then our targeted fund balance ratio, based on what was being discussed by Davenport, we would aspire to be at about 22% or about 40 million dollars in total unassigned fund balance. And then as a note, I'd like to say something that I'm pretty sure you're all aware of, but would like to reiterate and or clarify. Given how the unassigned fund balance is calculated currently as a percentage of total general fund revenues, if no annual contributions are transferred to the fund balance, the listed percentage would be about 17.9, will decrease every year. The fund balance is the numerator and the general fund revenues are the denominator.

Mayor, council, again, once more. Just really quickly, a couple of multiple things here. Let me see if I can get the presentation up and going. So we come to you, summarized below are the staff's recommendation for the FY 2025 Fall Supplemental Appropriations, totaling $650,000 for all funds. Specifically in the Capital Improvement Program Fund, we'll be receiving an additional $50,000 from NVTA 30 and apply towards a transit development plan for Q. The net impact of the proposed general fund appropriations results in a reduction of $600,000 as was displayed in the previous presentation to the fy 2025 general fund fund balance the proposed general fund supplemental appropriation is about 0.3 percent of the fy 2025 adopted final

Mayor, Council, last one for the night for me anyways. So no presentation, just a verbal report out. We are not proposing any changes to the current financial policies. We are asking Council to reaffirm these policies and the listed guidelines for staff to use in preparation for the proposed FY2026 budget. Of note, and as briefed earlier in an earlier presentation, we will be funding the budget stabilization fund within the unassigned portion of the general fund balance for the first time in FY24 and hope continue this practice in FY25 until the accumulations reach 3% of the general fund revenues. Additionally, as mentioned by Davenport, forward looking to FY 2027, we may recommend, more than likely, a change to the debt policies, specifically increasing the current 9% limit