TITLE:
title
FISCAL YEAR 2024-25 MID-YEAR BUDGET UPDATE
end
DEPARTMENT: FINANCE DEPARTMENT
PRESENTED BY: CAROL MOLINA, FINANCE DIRECTOR
CONTACT INFORMATION: CAROL MOLINA, FINANCE DIRECTOR (714) 754-5243
RECOMMENDATION:
recommendation
Receive and file the Fiscal Year 2024-25 Mid-Year Update, including updated projections for General Fund revenues and expenditures for the fiscal year ending June 30, 2025.
end
BACKGROUND:
On June 4, 2024, the City Council approved a General Fund (Fund 101) balanced budget of $189.9 million and the All Funds (including Restricted Funds) budget totaled $239.8 million with a total of 602 Full-Time Equivalents (FTEs) across City Departments. All City Departments continue to exercise fiscal prudence by monitoring their budgets to ensure there are sufficient appropriations for essential programs and expending actual revenues that have been received or awarded in grants or restricted funds.
During most of calendar year 2024, the U.S. economy experienced solid growth driven by continued consumer spending, but at the end of 2024 and leading into 2025 persistently higher interest and inflation rates began to drag on growth and consumer spending. The weight of high interest rates on home and auto loans has slowed activity in those markets, and the persistently high cost of goods for the average consumer has reduced disposable incomes and reduced household savings. At the Federal level, volatility in the financial markets and uncertainty over the impacts of immigration policies, government layoffs, and new tariffs, have challenged consumer confidence and business outlooks for 2025 and beyond.
ANALYSIS:
The FY 2024-25 General Fund Adopted Budget is $189.9 million. Based on the most recent analysis, it is anticipated General Fund expenditures will come in under budget at $187.1 million, a reduction of $2.8 million. However, General Fund revenues are estimated to end the year at $183.5 million, resulting in a revenue shortfall o...
Click here for full text