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REVIEW AND DISCUSS STRONG COMMUNITIES PROPOSED BUDGET FOR FISCAL YEAR 2025-26
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RECOMMENDATION
Information item only.
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Presented to the Strong Communities Advisory Committee is the Fiscal Year (FY) 2025-25 Proposed Annual Budget for the use of Measure M - Strong Communities proceeds.
Summary
The FY 2025-26 Proposed Annual Budget was released to the City Council and public on May 15, 2025, and two study sessions to review the budget will be held on June 4 and 5, 2025. The Strong Communities portion of the budget, on pages G-10 and G-11 of Attachment A, is being presented for the Committee’s information.
Total proposed FY 2025-26 tax revenues are $16,515,00 which is a 3% increase from the FY 2025-26 revenue projection of $16,046,000.
Total proposed budgeted expenditures are $12,817,018, which is a 2% increase from the FY 2025-26 expenditure projection of $12,568,913.
The FY 2025-26 Proposed Annual Budget includes $7.0 million for Recreation programs, $4.4 million for Library programs, $1.1 million for administration expenses, and about $313,000 for State tax collection fees and audit costs.
Of the total FY 2025-26 Strong Communities proposed expenditure budget, approximately $7.0 million is for part- time and full-time salary and benefit costs.
Maintenance of Effort
Section 19 of the enacting ordinance for Strong Communities includes the following Maintenance of
Effort provisions:
A. “The City shall not use the proceeds of this tax to replace general fund revenues used for local library and recreation services. Following passage of this ordinance, absent a condition of economic downturn, the City shall commit general fund revenue to local library and recreation services in an amount no less than the amount committed for the 2014/2015 fiscal year. For purposes of this requirement alone, a reduction in general fund revenue budgeted for local library and recreation services below the 2014/2015 fiscal year level in response to an economic downturn shall be acceptable so long as the reduction in a given year is proportional to the reduction in City general fund revenues.
B. Notwithstanding any other provision of this Ordinance, the City may reduce its general fund commitment to the golf program at any time, but the City may not use the proceeds of this tax to back-fill for any such reduction.”
The FY 2014-15 Adopted Budget included General Fund transfers to the Library Fund of $4,250,000 and to the Recreation Fund of $2,950,000. The transfers were amended by Council action to fund additional activities in support of Council strategic priorities from one-time dollars. As shown in Attachment B, the final transfer amount in FY 2014-15 for Library was $4,275,000 (page G-11) and Recreation services was $3,105,000 (page G-17) for a total of $7,380,000. FY 2025-26 General Fund transfers to Library and Recreation total $7,724,202, an increase of $344,202. In Attachment A, the Library transfer is shown on page G-13 and the Recreation transfer is shown on page G-15. The distribution of the total General Fund contribution has been adjusted to ensure the continued feasibility of the separate funds. The table below compares the FY 2014-15 General Fund transfers for Library and Recreation services to the FY 2025-26 Proposed Annual Budget.
|
|
FY 2014-15 Amended Budget |
FY 2025-26 Proposed Budget |
|
Library Fund |
$4,275,000 |
$3,950,000 |
|
Recreation Fund |
$3,105,000 |
$3,774,202 |
|
Total |
$7,380,000 |
$7,724,202 |
Attachment A: FY 2025-26 Proposed Annual Budget - Community Services Section
Attachment B: FY 2017-18 Adopted Annual Budget - Community Services Section