TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
FROM: Jeffery Yates, Assistant City Manager
DATE: February 24, 2025
RE:
Title
Receive the FY 2025 Second Quarter Financial Update
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal V : Financially Sound City Providing Exemplary City Services.
Executive Summary:
The presentation and discussion will focus on the City’s FY 2025 financial performance through December 31, 2024.
Background:
The information included in the presentation highlights the City’s financial activities through December 31, 2024.
Issues/Analysis:
Several key takeaways emerge when the various reports are analyzed as a landscape. No single piece of information provides a complete picture, but when taken together, we can get a high-level picture of the City’s financial condition and health.
The reports are attached for a detailed review, and we welcome any follow-up questions for clarity or explanation. The reports included offer four key takeaways:
1. The City’s financial health is strong and the General Fund is performing as expected. The City continues to experience strong financial performance. Through the second quarter, the revenues and expenditures are in alignment with historical trends. The three expenditure types that most reflect operations-personnel services, operating expenditures, and contract services-are aligned with historical trends.
2. Vacancies continue to be both a positive and a risk. The positive trend is that, given our experience through December (13 pay periods), we estimate savings of at least $13 million. However, the City is experiencing higher than expected use of overtime, temporary labor, and seasonal. As we continue through the year we will monitor these areas, which will, as would be expected, reduce the City’s savings. We are on track to achieve our estimated vacancy savings.
At the December 30 report, the City had 186 vacancies, or about 10.8%. This is largely driven by 80 Police sworn vacancies (19.09%) and 5 (8.2%) 911-Communications vacancies. The Fire Department had 12 (3.41%) rank vacancies. With the federal government significantly reducing its workforce, the City may see a reduction in vacancies in non-sworn positions.
3. Geopolitical and economic pressures will impact the City in a variety of ways. During the last month, economic and trade policy shifts have put the City at increased risk. In addition, the new administrations push on federal funding restrictions, may have a significant impact on a variety of programs. Staff continue, daily, to monitor the constant state of flux.
These three components represent significant takeaways from the information provided.
The close of December is the midway look at the trends impacting the General Fund and other funds. Detailed reports are attached to provide further detail. It is significant to note that because of the year-end and the accrual processes for the audit, the first quarter does not provide significant insight into the year. With the close of the 3rd quarters, we will have a much better picture of the anticipated results from FY 2025
Budget Impact:
N/A
Options:
N/A
Recommended Action:
Discuss and Receive Report
Attachments:
Presentation
Financial Report