CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 6 of 15 increase every year after the COVID-19 low. Compared to FY 2022/23, $4.7 million collected in FY 2023/24 represents an increase of 11.1 percent. It should be noted that Other Revenues excludes an unrealized investment gain of $3.0 million. However, it includes approximately $1.5 million in GASB adjustments related to the City’s leases and SBITAs, approximately $0.5 million higher than budget in interfund reimbursement revenues, and almost $0.4 million in federal grant revenue administered through the California Office of Emergency Services for COVID reimbursement. Year-over- year revenue decreased by 17.9 percent, mainly due to the phase-out of federal stimulus funds. General Fund Expenditures. Actual General Fund expenditures incurred were less than the amended budget by $5.5 million or 3.7 percent. Table 4 below shows the major expenditure categories, comparing the amended budget against actual expenditures. Table 4. General Fund Expenditures – Amended Budget vs. Actual The $3.6 million savings in Personnel costs is primarily due to greater than anticipated levels of vacancies in several departments, including Police, Fire, Public Works, Finance, and Library & Recreation. Given the City’s current fiscal landscape, staff also utilized cost-saving measures to keep some positions vacant as appropriate. Actual expenditures in the Transportation and Training category exceeded its amended budget slightly mainly due to higher fuel costs, as well as higher vehicle repair and maintenance costs, totaling approximately $0.3 million in additional costs. These increases were offset by staff utilizing cost-saving measures to reduce travel and training expenditures whenever possible, resulting in $0.2 million in savings. The $0.2 million savings in the Repairs and Maintenance category is mostly due to reduced repair contract expenditures. The $3.6 million savings in the Materials, Supplies and Services category is the result of the following over and under expenditures: approximately $2.0 million in savings from various contractual services, and approximately $2.2 million in savings from various supplies and materials accounts. These are offset by overspending in other areas, including approximately $0.4 million in phone, computer equipment and software costs, $0.2 million for interfund expenses related to the Storm Drain operation, and $0.2 million for temporary personnel and recruitment service expenses. The $1.9 million in overspending in Other Expenditures is mostly due to the aforementioned Page 235 of 658