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CC 06-04-2024 Item No. 14. Fiscal Year 2024-2025 Budget Adoption_Desk Item1 CITY COUNCIL STAFF REPORT SUPPLEMENTAL 1 Meeting: June 4, 2024 Agenda Item #14 Subject Consider the Recommended Operating and Capital Improvement Program Budgets for Fiscal Year (FY) 2024-25, adoption of the Operating and Capital Improvement Program Budgets for FY 2024- 25, establishment of the Appropriation Limit, and related actions. Recommended Action 1. Adopt Resolution No. 24-XXX establishing an Operating Budget of $120,495,113 for FY 2024-25, which includes the following changes to the FY 2024-25 Proposed Budget, published on May 1, 2024: a. Approve the operating budget of $120,392,308 outlined in the FY 2024-25 Proposed Budget. b. Approve additional appropriations of $32,500 for the Community Funding Grant Program as included in Attachment D. c. Approve additional appropriations of $3,905 for festival costs as included in Attachment D. d. Approve additional appropriations of $2,050 for the Artist Awards program as included in Attachment D. e. Approve additional appropriations of $64,350 for the animal services contract as included in Attachment D. f. Approve a reduction in revenues of $21,200 due to the elimination of the proposed permit parking and crane lift fees as included in Attachment D. g. Approve additional revenues of $212,614 for SB 1 as included in Attachment D. h. Approve Community Funding Grants for the following organizations, allocating a total of $32,500: i. AINAK: $2,750 ii. Cupertino Little League: $16,000 iii. Cupertino Symphonic Band: $3,000 iv. Rotary Club of Cupertino: $4,000 v. STEMBoost Corporation: $3,000 2 vi. West Valley Community Services: $3,750 2. Adopt Resolution No. 24-XXX establishing a Capital Improvement Program Budget of $26,151,380 for FY 2024-25 3. Adopt Resolution No. 24-XXX establishing an Appropriation Limit of $132,542,385 for FY 2024-25 Background: Staff’s responses to questions received from councilmembers are shown in italics. Q1: Why was there a transfer for the De Anza student intern program? (Councilmember Moore) Staff Response: Funds were transferred from part-time salaries to general service agreements because the De Anza student intern program was funded by part-time salaries, effectively using this program to replace paid intern positions. The transfers are shown below: 610-34-310 500-502 - Employee Compensation Salaries Part Time Transfer - unfilled Intern III position to fund Intern Contract (26,069) 610-34-310 700-702 - Contract Services General Service Agreement Transfer - unfilled Intern III position to fund Intern Contract 26,069 100-31-305 500-502 - Employee Compensation Salaries Part Time De Anza Intern Agreement funding (120,088) 100-31-305 700-702 - Contract Services General Service Agreement De Anza Intern Agreement funding 120,088 100-32-308 500-502 - Employee Compensation Salaries Part Time De Anza Student Intern Agreement funding (13,843) 100-32-308 700-702 - Contract Services General Service Agreement De Anza Student Intern Agreement funding 13,843 The De Anza student intern program was initially expected to cost $160,000. However, after De Anza College received a federal grant to fund the majority of the program and the details of the program materialized, staff was able to structure a more cost-effective solution. Attachments Provided with Original Staff Report: A – Draft Resolution – Operating Budget for Fiscal Year 2024-25 B – Draft Resolution – Capital Budget for Fiscal Year 2024-25 C – Draft Resolution – Appropriations Limit for Fiscal Year 2024-25 D – Budget Adjustments Summary and Detail E – Appropriation Limit for Fiscal Year 2024-25 F – Appropriation Limit Price and Population Factors for Fiscal Year 2024-25 3 G – Proposed Budget Study Session Supplemental Report H – Planning Commission Adopted Resolution I – Adopted FY 2024-25 City Work Program Budget Details