File #: 2023-3014   
Type: Regular Agenda Item
Body: City Council
On agenda: 5/4/2023
Title: Workshop to Provide Direction on Fiscal Years 2023-24 and 2024-25 Operating Budget to Be Incorporated into Budget Adoption Hearing Materials for City Council Consideration in June 2023. (Finance 10024056) [Heard on both May 2 and 4, 2023]
Attachments: 1. Exhibit 1 - Proposed Budget Summary, 2. Exhibit 2 - Biennial Budget Proposals, 3. Exhibit 3 - Workforce Change Requests, 4. Presentation, 5. Presentation - REVISED, 6. Correspondence - Updated 5/2, 7. Correspondence from Staff, 8. Presentation Slide - Business Districts
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Workshop to Provide Direction on Fiscal Years 2023-24 and 2024-25 Operating Budget to Be Incorporated into Budget Adoption Hearing Materials for City Council Consideration in June 2023. (Finance 10024056) [Heard on both May 2 and 4, 2023]

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To: Honorable Mayor and Members of the City Council

From: Jennifer Ott, City Manager


EXECUTIVE SUMMARY

The City Manager is proposing a General Fund Budget of $153,007,187 in Fiscal Year (FY) 2023-24, including appropriation of $15 million of General Fund residual fund balance for the Aquatic Center, and $140,846,146 in FY 2024-25. The proposed General Fund Biennial Budget recommends the use of Residual Fund Balance totaling $25.3 million in FY 2023-24, inclusive of the Aquatic Center, and $7.1 million in FY 2024-25. The total proposed budget for all funds is $373,566,706 in FY 2023-24 and $312,490,168 in FY 2024-25.
The proposed Biennial Budget absorbed ongoing expenditure increases of approximately $7.4 million in FY 2023-24, and $9.4 million in FY 2024-25, mostly in the General Fund. Compared to the FY 2022-23 budget, these additional ongoing costs have an impact as the City continues to face a tight operating budget in the General Fund, while also attempting to improve existing service delivery, public safety, and services to the City's unsheltered residents.

The City Manager anticipates evaluating the two-year biennial budget further at the mid-cycle budget update for July 1, 2024.

BACKGROUND

The May 2, 2023 City Council meeting and the May 4, 2023 budget workshop are scheduled to provide City Council and the community an opportunity to discuss the factors that make up the overall City budget and consider proposals for changes in service levels and capital improvements. If necessary, City Council will hold an additional budget workshop on May 11, 2023. The proposed FY 2023-25 Biennial Budget will be scheduled for adoption at the June 20, 2023 City Council meeting.

During the May 2, 2023 City Council ...

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