TO: CITY COUNCIL
FROM: ADAM PIRRIE, CITY MANAGER
DATE: JUNE 11, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
ADOPTION OF THE 2024-26 PROPOSED OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET
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SUMMARY
Staff is pleased to present the budget for 2024-26 to the City Council for adoption. Attached to this report is the City of Claremont’s 2024-26 Proposed Operating and Capital Improvement Program Budget.
The proposed budget maintains exiting levels of service, and provides additional funding to enhance services in certain areas and to respond to direction from the City Council in addressing their recently adopted list of City Council Priorities. Additionally, the proposed budget includes funding for additional discretionary payments to CalPERS to pay down the City’s unfunded pension liabilities in the amount of $1.2 million over two years.
RECOMMENDATION
Recommended Action
Staff recommends that the City Council adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, ADOPTING THE 2024-2026 BUDGET AND AUTHORIZING EXPENDITURES AND APPROPRIATIONS RELATED THERETO.
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ALTERNATIVES TO RECOMMENDATION
In addition to the staff recommendation, there are the following alternatives:
A. Request additional information.
B. Direct staff to make changes in the proposed 2024-26 Budget.
FINANCIAL REVIEW
The costs to strategically plan, develop and prepare the budget document, and complete the staff report are estimated at $200,000. These costs consist of staff time and are included in the operating budgets of all departments.
ANALYSIS
The proposed 2024-26 Operating and Capital Improvement Program budget includes total revenues of $66.3 million in 2024-25 and $64.6 million in 2025-26. General Fund revenues represent a significant portion of these totals, amounting to $35.9 million in 2024-25 and $36.6 million in 2025-26.
Budgeted expenditures for 2024-25 total $73.1 million, and in 2025-26 expenditures total $65.1 million. These expenditures fund the City’s operating costs, proposed capital improvement projects, and debt service payments. General Fund expenditures are budgeted at $34.0 million in 2024-25 and $34.8 million in 2025-26. Taking General Fund transfers out to other funds into consideration, expenditures and transfers out for 2024-25 total $35.9 million and for 2025-26 total $36.6 million. These operating transfers are to fund debt service costs, as well as the subsidy of the City’s Landscape and Lighting District and Senior Nutrition Program.
Attachment A is the City Manager’s Budget Message which provides a summary of the process and contents of the budget, a summary of projects for the upcoming two-year budget cycle and proposed organizational changes for the next two fiscal years.
Attachment B is the proposed City of Claremont Operating and Capital Improvement Program Budget for 2024-26.
Attachment C is the resolution adopting the 2024-26 City Budget and authorizing expenditures and appropriations.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following: Council Priorities, Economic Sustainability Plan, General Plan, and the 2022-24 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Adam Pirrie
City Manager
Attachments:
A - City Manager’s Budget Message
B - Proposed 2024-26 Operating & Capital Improvement Program Budget
C - Resolution Adopting the 2024-26 Budget and Authorizing Expenditures and Appropriations