AGENDA TITLE:
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Adopt a Resolution Approving Final Budget Adjustments for Fiscal Year 2024-25 and Appropriating Funds ($665,508) (IS - BUD)
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MEETING DATE:
December 17, 2025
PREPARED BY:
Jennelle Baker, Budget Manager
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RECOMMENDED ACTION:
Adopt a Resolution Approving Final Budget Adjustments for Fiscal Year 2024-25 (FY 25) and Appropriating Funds in the amount of $665,508.
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BACKGROUND INFORMATION:
The year-end closing process for each fiscal year typically takes several months to finalize all expenditures and journal postings. During the closing process for FY 25, it was discovered that additional budgeted transfers and appropriations were needed for Streets, Water, Wastewater, General Fund Debt and Electric Utility Capital Funds.
Public Works Street Division required a transfer of $1,964,433.87 from the Streets Measure K fund (303) to the Streets Gas Tax fund (301) to clear a fund deficit. Measure K funds and Gas Tax funds are both unrestricted and allowable for operations. The expenses that caused the deficit were Streets-related operational activities only.
The Public Works Water and Wastewater Divisions needed transfers of $13,500,000 from the Wastewater operating fund (530) to the Wastewater Capital fund (531) and $1,750,000 from the Water operating fund (560) to the Water Capital fund (561). These transfers cover the FY 25 and estimated FY 26 Capital expenses approved by the Council for both enterprise funds. The plan to remedy these “catch-up” Capital transfers is to request the transfer of funds at the time of budget planning or when the Capital Improvement project is presented to Council for approval at a regular meeting.
The General Fund Misc. Debt Service Charges (40998100.75099) required a transfer of $650 from the Non-Departmental Misc. Contracts Services account (10095000.72499) due to the US Bank administrative charges being $650 higher than budgeted.
The Electric Utility (EU) capital program includes several projects that are needs-based driven and annual budgets are created based on expected expenditure needs. The projects that require additional appropriations are difficult to predict in terms of final expenditures and EU cannot stop operations that involve maintaining or fixing infrastructure toward the end of the year. Based on the timelines to get to the Council, the end-of-year clean-up is the most timely way to present these Capital needs to the Council. EU adjusts capital budget at mid-year based on best estimates, but end-of-year overages are often expected as a possibility to occur due to unknown contingency costs. For FY 2024-25, five projects were overspent due to an increase in service level demands, and increased system improvement/maintenance efforts that are associated with safety and reliability. These costs totaled $665,508 and were mostly offset by payments made by customers for the installation of electrical infrastructure, development impact fees, and reduced operating expenses. The projects in need of appropriations:
• Work for Others (EUCP-15004) - $75,355
• Substation Maintenance (EUCP-23001) - $137,081
• S/L Maintenance (EUCP-21001) - $2,488
• O/H Cap Maintenance (EUCP-21002) - $54,553
• U/G Cap Maintenance (EUCP-21006) - $396,031
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
FUNDING AVAILABLE:
Revenue and expenditure budget adjustments per Attachment 1 - Exhibit A, Final Budget Adjustments FY 2024-25.