TO: Finance Committee
FROM: Kevin Sing, Director of Finance
SUBJECT:
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2025 Operating Budgets
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BACKGROUND:
I am pleased to present the draft General Fund and Sewer and Water Fund Operating Budgets for 2025. These two funds include nearly all of the City’s recurring revenues and expenses. We have been working on the budget since June. The City Manager has met with every department to hear the justification for their entire budget. These justifications were for new budget requests and recurring expenses that are included in the budget. This draft is the result of those meetings.
Staff is still working on the capital portions of the budget. Capital requests far outpace available funding, therefore we are prioritizing requests and researching alternative funding options.
2025 Operating Budget Highlights
General Operating Fund
Overall budgeted revenues are $16M higher than the 2024 Budget. Major contributors for this increase are Sales Taxes, State Income Tax, Other Misc. Taxes, Interest Income, and Ambulance Fees. Budgeted expenses are also $16M higher than the 2024 Budget. These increases are driven by Personnel Costs, Building Maintenance and Repairs, Ballpark Repairs, and Sales Tax Rebates.
Sewer and Water
Budgeted revenues are flat as actuals have been lower than budget for the past two fiscal years. This had been accounted for in the rate study completed last year. The 2025 Budget reflected the estimated revenue from that study. Budgeted expenses are $3.5M higher than 2024. Notable items higher are depreciation and transfer to the General Fund for shared expenses.
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