HomeMy WebLinkAbout8.1 Preliminary Fiscal Year 2025-26 General Fund BudgetSTAFF REPORT
CITY COUNCIL
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Agenda Item 8.1
DATE:April 1, 2025
TO:Honorable Mayor and City Councilmembers
FROM:Colleen Tribby, City Manager
SUBJECT:Introduction of an Ordinance Designating Fire Hazard Severity Zones in the City of DublinPrepared by:Bonnie Terra,Division Chief and Hazel L. Wetherford, DeputyCity Manager
EXECUTIVE SUMMARY:The City Council will consider introducing an ordinance designating fire hazard severity zones in the City of Dublin as recommended by the California Department of Forestry and Fire Protection and in accordance with Government Code Section 51179.
STAFF RECOMMENDATION:Waive the reading and INTRODUCE the Ordinance Designating Fire Hazard Severity Zones in the City of Dublin Based on the Recommendation of the State Fire Marshal.
FINANCIAL IMPACT:None.
DESCRIPTION:California law requires the California Department of Forestry and Fire Protection (CAL FIRE) to develop fire hazard severity zones within a State Responsibility Area (SRA) and a Local Responsibility Area (LRA). An SRA is an area where the State has financial responsibility for wildland fire protection and prevention, whereas an LRA is where the local government is responsible for wildfire protection.Assembly Bill 337 (Bates 1992), spurred by the devastating Oakland Hills fire of 1991, directed CAL FIRE to evaluate fire hazard severity in LRAs and to make recommendations to the local governments where very high fire hazard severity zones exist. These zones have been updatedperiodically, with the most recent updates occurring between 2008 and 2011. During the last update, Dublin was not designated with any very high fire hazard severity zones.
Attachment 3
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Recent changes in state law – Senate Bill 63 (2021) and Assembly Bill 211 (2022) – haveexpanded CAL FIRE’s responsibilities to include designation of moderate, high, and very high fire hazard severity zones. In alignment with these changes, the State Fire Marshal released updated maps identifying all three categories on February 24, 2025. Pursuant to Government Code Section 51179, local governments are required to adopt an ordinance designating these zones within their communities no later than 120 days after receiving the updated LRA maps. Upon receipt of the map (Attachment 2), and in accordance with State regulations, Staff made the map available for public review on the City’s website, with a public comment period running from February 28, 2025 to March 30, 2025. At the time this Staff Report was prepared, the City had received 28 public comments as summarized in Attachment 3. While Staff responded to each comment, state law does not permit local governments to request changes or provide comments on the fire hazard severity zone designations issued by the State Fire Marshal.The updated LRA map for Dublin designates areas as moderate and high fire hazard severity zones but does not include any very high zones. Notably, the City’s Wildfire Management Plan helps reduce the risk of open land wildfire to the lowest practical level consistent with reasonable protection of wildlife habitat and other open space values. Additionally, since there are no very high fire hazard severity zones designated in Dublin, the 100-foot defensible space clearance requirement per state law is not required. However, properties in the high fire hazard severity zone are subject to requirements outlined in the California Building Code, Chapter 7A – Materials and Construction Methods for Exterior Wildfire Exposure. These requirements are focused on ignition-resistant materials to be used for things like roofing, vents, eaves, exterior walls, windows and glazing, decking, rain gutters, and fences. These requirements would apply to the design and construction of new buildings in this zone. Property owners are also required to make a natural hazard disclosure as part of a real estate transfer. There are no additional requirements for properties in the moderate fire hazard severity zone.Finally, adopting an ordinance within 120 days of receiving LRA designations from the State Fire Marshal is required by State law and would formally designate moderate and high fire hazard severity zones in the City of Dublin.
STRATEGIC PLAN INITIATIVE:None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted.
ATTACHMENTS:1) Ordinance Designating Fire Hazard Severity Zones in the City of Dublin Based on the Recommendation of the State Fire Marshal2) City of Dublin Local Response Area Fire Hazard Severity Zone Map3) Fire Hazard Severity Zone Map - Public Comments
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STAFF REPORT
CITY COUNCIL
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Agenda Item 8.1
DATE:April 15,2025
TO:Honorable Mayor and City Councilmembers
FROM:Colleen Tribby, City Manager
SUBJECT:Preliminary Fiscal Year 2025-26 General Fund BudgetPrepared by:Jay Baksa, Finance Director
EXECUTIVE SUMMARY:The City Council will review the Preliminary Fiscal Year 2025-26 Budget, focusing on the General Fund. The review will include a refined projection of the current year and an update to the 10-Year Forecast. This is the second year of the City's two-year budget; therefore, this information will supplement the budget document adopted by the City Council in June 2024. The updated Capital Improvement Program is presented under a separate item.
STAFF RECOMMENDATION:Receive the report and provide direction to Staff related to the budget adoption scheduled for the first City Council meeting in June.
FINANCIAL IMPACT:The update to the second year of the City’s two-year budget results in a decrease to revenues of $319,051 and an increase to operating expenditures of $3,315,216 in the General Fund as compared to the Fiscal Year 2025-26 Forecast Budget that was presented in June 2024. After transfers out, total General Fund reserves are projected at $259,247,519, a decrease of $6,648,252 from the Forecast Budget.
DESCRIPTION:BackgroundThe City of Dublin utilizes a biennial budget process, in which a comprehensive budget document is prepared that establishes high-level priorities and specific departmental goals for a two-year period. The second year of the cycle is the "update year," in which projections are revised to account for new and updated costs, while the original document continues to serve as the guiding financial plan.
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As in prior years, this report focuses on the General Fund, as there are no major budgetary changes in other funds. This report will discuss the updates to the City's major revenue categories and recommended updates to the City’s expenditure projections, reflecting the most recent information available. Updated Projections, Fiscal Year 2024-25On February 18, 2025, Staff presented a mid-year financial review to the City Council that showed$132.5 million in total General Fund revenue in the current year, reflecting an increase of $4 million over the budget due to higher interest income. Staff utilized the most up-to-date information in preparing the mid-year report, including sales tax figures from the third quarter of 2024 (July – September 2024). Furthermore, and as a matter of conservative practice, Staff included changes to major revenues only in the mid-year report and assumed that all expenditure budgets would be spent. In early April 2025, Staff received the sales summary for the fourth quarter of 2024 showing a dramatic drop in the auto market, which makes up almost 40% of the City’s sales tax base. In that quarter alone, revenue from auto sales dropped over $600,000 from the same quarter last year. Applying such reductions to the first and second quarters of 2025 (January – June) results in a decrease of $1.8 million in the current fiscal year, from $30.5 million to $28.7 million.Moreover, the City’s consultant expects the decline in the auto sector to continue into Fiscal Year 2025-26, and for an uncertain national economic climate (i.e., weakened consumer confidence) to cause a softening across all sales sectors. The impact is a decrease of $3.8 million in anticipated revenue next year. Chart 1 below illustrates these points. Chart1: Sales Tax Projections($ in millions)
Because of the significance of this information, Staff has worked to refine the Fiscal Year 2024-25 year-end numbers. In reality, City expenditures almost always end the year under budget,
28.9 29.3
28.7
27.6
30.5
31.4
25
26
27
28
29
30
31
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Actual
FY 22-23
Actual
FY 23-24
Projected
FY 24-25
Projected
FY 25-26
Updated Projection Prior Projection
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reflecting things like position vacancies and underspending on supplies or utilities. Accordingly, despite the decline in sales tax projected over the next year and a half, Dublin remains in a surplus position (ongoing revenues less ongoing expenditures). Staff is acutely mindful, however, that these new sales tax figures could be a signal of potential negative economic impacts in other areas such as property tax and interest income. This is discussed in the Recession Analysis section ofthis report.Table 1 summarizes the updated current year-end projections and is followed by a review of the findings. Large changes to specific categories (+/-$500,000) are discussed below. Table 1: FY2024-25 Year-End ProjectionsFY 24-25 Adopted FY 24-25 Amended FY 24-25 Projected $ Variance % VarianceRevenues$128,267,303 $133,569,704 $133,493,473 ($76,231)0.06%Expenditures (109,321,048) (111,858,059)(106,806,646)$5,051,413 (4.52%)Difference $18,946,255 $21,711,645 $ 26,686,827 $4,975,182 22.91%Revenues:
Sales Tax– decreaseof $1,840,536 (-6.03%)This is due almost entirely to a decline in the auto sector, beginning in the quarter ending December 31, 2024.
Rentalsand Leases/ Charges forServices – decreaseof $554,269(-5.74%)Both revenue categories coming in lower than the Amended Budget, mainly due to the Dublin Arts Center not yet being operational. All other recreation programming revenuesare generally coming in as budgeted.
Development Revenue– increase of $879,887 (+10.05%)The increase is due to the acceleration of the Dublin Centre and Francis Ranch development projects.
OtherRevenue– increase of $1,081,007 (+38.03%)The category is a catch-all for various items such as the sale of property and donations but mainly comprises reimbursements from the Camp Parks Intergovernmental Services Agreement and one-time items like community benefit payments. In the current year, the City received a community benefit payment of $1 million from Landsea as part of thedevelopment agreement for the Dublin Centre project.Expenditures:
Salaries and Wages – decreaseof $1,650,145 (-10.53%)The decrease is due to multiple staffing vacancies throughout the year, including at the Director and Assistant Director levels.
Benefits– decreaseof $855,597 (-13.72%)
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The decrease is due to the multiple vacancies, as well as the conservative practice of budgeting the highest level of benefits for vacant positions (such as the higher retirement tier and the family medical plan).
Services & Supplies– decreaseof $1,344,744 (-16.52%)The net decrease is due partially to the lower-than-anticipated cost of insurance premiums through PLANJPA, the City’s insurance pool. These savings will also be reflected in the Fiscal Year 2025-26 Budget. While rates have continued to increase, the overall amount of the increase was lower than originally anticipated. The City is also experiencing lower costs for general repairs and maintenance, as well as for operating supplies.
Utilities– decrease of $539,611(-14.01%)Utilities can be difficult to budget; for example, a rainy fall and winter can lead to significant savings in recycled water costs, which the City is seeing in the current year. Additionally, Staff is projecting budget savings in both electricity and gas on an annualized basis. It should be noted that the completion of various energy efficiency projects is currentlysaving the City approximately $600,000 annually.
Contract Services– decreaseof $683,065(-0.98%)After factoring in encumbered funds and annualizing expenditures, Staff is projecting a savings in contract services of $683,065. This is primarily due to the Dublin Arts Center not opening this fiscal year.Preliminary Fiscal Year 2025-26 BudgetThe Preliminary Budget (Table 2 and included as Attachments 1 and 2) projects an operating surplus in the General Fund (ongoing revenues less ongoing expenditures) of $17,376,839. After transfers, total reserves are projected at $259,247,519, a decrease of $6,648,252 from the Forecast Budget. As shown in Table 2, revenues in Fiscal Year 2025-26 are projected to decrease a net $319,051 (-0.24%) from the Forecast Budget, due primarily to the net impact of lower projected sales tax revenue, higher interest income, and revenue derived from development. Expenditures are increasing $3,315,216 (+2.94%) over the Forecast Budget. Changes to specific categories (+/-$100,000) are explained in the section below.
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Table 2: FY 2025-26 Operating Budget Impact & ReserveFY 2025-26Forecast FY 2025-26Update $ Change %ChangeRevenues$133,717,880 $133,398,929 ($319,015) (0.24%)Expenditures (112,706,775) (116,021,991) (3,315,216)2.94%Net Operating Budget Impact $21,011,106 $17,376,839 ($3,634,267)(17.39%)Transfers In $136,015 $136,015 100.0%Transfers Out / Contributions 17,551,900 20,701,900 3,150,000 17.95%Total Reserves, End of Year $265,895,771 $259,247,519 ($6,648,252)(2.50%)
Revenues:
Sales Tax– decreaseof $3,829,460 (-12.19%)The auto sector losses experienced in the current year have been carried into Fiscal Year 2025-26, along with a general softening of other sectors.
Development Revenue– increase of $1,633,000 (+18.73%)Development revenue includes permitting fees and payments for planning and engineering services provided by the City. The increase from the Forecast is due to the acceleration of projects. It should be noted that the receipt of revenues and corresponding services (i.e., City cost) do not happen simultaneously. Plan check costs are typically incurred approximately 12 months after revenue has been received, meaning that as development decreases, the associated decrease in costs will lag. In anticipation of this, the City has maintained the Service Continuity Reserve (currently at $3.2 million) to cover costs during that lag.
Charges for Services– net increase of $115,304(+1.52%)The increase is due to anticipated administrative fee revenue from the management of the City’s solid waste contract.
Interest – increaseof $2,000,000 (+35.74%)The projected increase in interest earnings is due to the continued benefit of high interest rates, as well as a high cash balance in the General Fund. Staff and its consultants are closely monitoring the actions of the Federal Reserve and will make any adjustments as needed throughout the year.
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Expenditures:
PersonnelCosts (Salaries and Benefits)– Increase of $723,235(+3.17%)The Preliminary Budget includes two new positions funded by the General Fund:
o One Administrative Technician in the Communications Division, to assist with the increased level of public transparency activities undertaken (the weekly Dublin Digest, social media posts, and public outreach). This Division currently has three staff: one Public Information Officer, one Analyst, and one Coordinator.
o One Office Assistant in Dublin Police Services, to assist with an increased workload of records management, reporting needs, and customer service. This Division currently has four staff: two Office Assistant II’s, one Administrative Technician, and one Administrative Aide.In addition, the full year cost for the Park Monitor position approved with the mid-year financial review has been included, as well as additional hours for seasonal staff at the Shannon Center. Health and retirement costs have been updated to reflect current and requested staffing.
Services & Supplies– decreaseof $220,939 (-2.67%)The net decrease is due to lower insurance premiums through PLANJPA, the City’s insurance pool. The City’s insurance rates have continued to increase, but the amount originally budgeted for both budget years was based on guidance from the plan JPA’s conservative projections. The decrease is partially offset by minor increases indepartmental costs ($25,000 for the purchase of water bottle filling stations and City flag replacements, combined), as well as an increase in the Youth Advisory Committee grant program from $2,500 to $10,000, per City Council direction at the November 19 meeting.
InternalServices Fund (ISF)– Increaseof $130,000 (2.26%)The change is attributed to an increase in software costs for the City’s new Financial and Permitting system being fully implemented and online, and additional unforeseen costs with the system such as additional user licenses. All technology-related costs are paid for by the Information Technology ISF and allocated out to City departments based on service requests and equipment allocation.
Contract ServicesExpenditures– increase of $2,682,920 (+3.83%)The increase in contract services is due to the following:
o $1,556,622 for development-related contracts, specifically for the Dublin Centre and Francis Ranch projects, which have advanced quicker than anticipated. These costs have offset revenues, although the receipt of the revenue and the corresponding expense can occur in different fiscal years.
o $602,000 for maintenance costs, including:
$70,000 for Green Stormwater Infrastructure maintenance, which is a requirement of the Municipal Regional Permit.
$462,000 for increased maintenance (field management, trash removal, and restroom cleaning), and additional support for events and rentals at Fallon Sports Park, Dublin Sports Grounds, and Don Biddle Community Park resulting from high park usage by the various user groups. Staff will factor
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these increases in costs for field maintenance when analyzing future rental fees. Staff has also included $12,000 for MCE to install water bottle filling stations in City facilities.
$70,000 for one-time Civic Center maintenance including painting, drywall repairs, fire sprinkler maintenance, roll-up door replacement, HVAC duct inspections, and potential carpet repairs or replacement. This cost will be covered by the General Fund Reserve for the Parks Department Relocation to the Dublin Arts Center.
o $303,420 for street sweeping expenses, due to the need to comply with prevailing wage regulations beginning July 1, 2025.
o $79,379 for other maintenance contracts which include additional janitorial services at The Wave during peak activity days, contract services to maintain the new Battery Energy Storage Systems at Corp Yard, Senior Center, and The Wave, and a new contract with a specialty vendor for preventative maintenance and repairs of The Wave Natatorium dehumidifier.
o $70,000 for ongoing SB1383 implementation costs and as-needed solid waste franchise support.Other Pending ProposalsThe Preliminary Fiscal Year 2025-26 Budget for both the Police Services and Fire Services contracts are currently based on the proposals given to the City last year. Staff expects to receive updated proposals in May but does not anticipate major cost increases at this time. Any changes will be highlighted at the time of the final budget presentation in June.Transfers OutThe Preliminary Budget includes transfers out of $2.0 million to the Internal Services Fund –Facilities for preventive maintenance, and $18,701,900 to capital improvement projects. Of the amount for capital projects, $10,900,000 comes from Committed/Assigned Reserves and $7,801,900 from Unassigned Reserves. Capital projects funded by the General Fund in Fiscal Year 2025-26 are shown in Table 3, with new items noted in bold italics. These are included in the Preliminary CIP Budget item on this City Council agenda. All other transfers remain the same as in the Forecast Budget.
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Table 3: Transfers Out to the Capital Improvement Program, FY 2025-26Reserves / Projects Amount Committed/Assigned $10,900,000Dublin Arts Center 250,000Village Parkway Reconstruction 10,650,000Unassigned$7,801,900Annual Street Resurfacing 2,086,900Citywide Energy Improvements 400,000Citywide Storm Drain Improvements 30,000Facilities Parking Lot Resurfacing 500,000FallonField G Renovations (NEW)500,000Kolb Park Renovation 2,450,000Resiliency and Disaster Preparedness 1,375,000ShadeStructureStudy(NEW)200,000Sunday School Barn Improvements 260,000Total$18,701,90010-Year ForecastThe 10-Year General Fund Forecast serves as the foundation of the annual budget process in terms of guiding the City’s use of resources now to prepare for the future. Staff continues to monitor ongoing revenue sources that fund ongoing costs and how those impact the General Fund over time. After incorporating the most current information available into the 10-Year Forecast and making certain assumptions about future revenues and expenditures, the projected operating deficit begins in Fiscal Year 2030-31, as illustrated in Chart 2. This is one year closer compared to the last forecast model. Revenue and expenditure assumptions are discussed below.
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Chart 2: 10-Year General Fund Forecast($ in thousands)
10-Year RevenueAssumptions:
PropertyTax
o Years 2-5: Between 4.38% - 5.06% annual growth based on estimates provided by the City’s Property Tax consultant, which includes the following assumptions:
o CPI adjustment: 2% increase throughout the forecast.
o Transfer of ownerships: growth based on historical averages.
o Years 5-10: 2.5% annual growth as development slows down.
Sales Tax
o Year 2: 3.5% growth based on the current projects from the City’s sales tax consultant. This follows projected decreases in both FY 2024-25 and FY 2025-26.
o Years 3-5: 3.2% annual growth; Years 6-10: 2.5% annual growth.
Development Revenue
o Based on development projections.
o Year 2: 3% increase based on timing of ongoing projects; Year 3: 3% decrease.
o Years 4-10: Flat in Year 4 and steady declines beginning in Year 5 through Year 10 as the community nears build-out. This is continually adjusted as development projects are brought to the City.
0
50,000
100,000
150,000
200,000
250,000
24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 33-34 34-35
Property Taxes Sales Tax Development Licenses & Permits
Other Taxes Fines Interest Rents & Leases
Intergovernmental Charges for Svcs Other Total Expenditures
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Charges for Services
o 2% annual growth (inflationary).
Interest
o Decreases beginning in Year 2, as the City spends General Fund Reserves and as interest rates decrease.
AllOther Revenue
o 0% - 2% annual growth.10-Year ExpenditureAssumptions:
Personnel
o No new positions.
o COLA: up to 3.5% annually and merit increases.
o Benefit increases: 5% annual increase to retirement and health care.
Services and Supplies
o 2% annual increase (inflationary).
InternalServices Funds
o 10% annual increase to build up balances for future maintenance needs.
ContractedServices
o 6% annual increase across the board for all contract services.
o This allows for one new Police Officer added annually to the City’s contract with Alameda County Sheriff’s Office. Actual needs are determined each year through collaboration with Dublin Police Services.
Utilities
o 4% annual increase.
Transfers Out/Contributions/Other
o Preventative Maintenance - $1.0 million per year (decreased from the current contribution of $2 million per year).
o Lease Revenue Bond Early Payoff - $1 million per year to FY 2028-29.
o General Fund contributions to capital projects based on the approved CIP.Recession Analysis It should be noted that, while conservative assumptions are used in the City’s major revenue categories, a full recession is not included in the 10-year period. With the recent actions by the federal government, there has been speculation that a recession may occur in the near future. While the length and severity of any downturn is impossible to predict, Staff generally looks to the Great Recession, which significantly impacted City revenues over a three-year period, beginning in 2009.
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Using the Fiscal 2024-25 projected year-end numbers as a baseline, potential total recessionary revenue loss could net $12.5 million over three years as shown in Table 4 below.Table 4: Potential Recession, Impact on RevenueFY 2024-25 Recession Year 1 Recession Year 2 Recession Year 3Total Revenue $133,493,473 $125,807,548 $121,066,112 $121,091,817 Property Tax $63,499,389 (2,857,473)(612,483)Sales Tax $28,695,829 (4,447,853)368,569 1,587,767 Interest Revenue $9,622,800 (3,238,072)(2,252,532)(949,579)Net Revenue(Loss)/Gain (7,685,926)(4,741,435)25,705 Expenditures $106,806,646 $118,021,991 $123,833,778 $131,109,144 Operating Surplus/(Deficit)$26,686,827 $7,785,557 ($2,767,666)($10,017,357)Revenue loss amounts would serve as the starting point for discussion regarding expenditure reductions and/or use of reserve funds. As of the time of this report, the City has a total of $11.2 in contingency reserves, as well as an Unassigned (Cash Flow) Reserve of $76.6 million that equates to about 8 months of the Fiscal Year 2025-26 budgeted expenditures. This positions the City to be able to weather short-term revenue losses, even if severe. However, structural revenue losses (such as losing a major stream altogether) in combination with uncontrolled expenditure growth would require the City to consider programmatic cuts, new revenue streams, and other long-term budget balancing solutions.Next StepsStaff is seeking direction from the City Council on the Preliminary 2025-26 Budget. The final Proposed Budget will be brought back to the City Council on June 3 for adoption.
STRATEGIC PLAN INITIATIVE:The Preliminary Fiscal Year 2025-26 Budget reflects priorities established in the City’s Two-Year Strategic Plan.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted.
ATTACHMENTS:1) Preliminary Fiscal Year 2025-26 General Fund Summary2) Preliminary Fiscal Year 2025-26 General Fund Reserves
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GENERAL FUND SUMMARY -FY25-26 Budget Update
Actual
2023-24
Adopted
2024-25
Amended
2024-25
Projected
2024-25
+/-
Amended
Forecast
2025-26 Adjustments
Updated
2025-26
Revenues
Property Tax $61,967,658 63,225,641 63,225,641 63,499,389 273,748 66,148,550 (42,895) 66,105,655
Sales Tax 31,293,707 30,536,365 30,536,365 28,695,829 (1,840,536) 31,403,805 (3,829,460) 27,574,345
Sales Tax Reimbursements (390,267) (375,000) (375,000) (375,000)0 (375,000)(375,000)
Development Revenue 6,857,011 7,803,163 8,752,163 9,632,050 879,887 8,719,665 1,633,000 10,352,665
Transient Occupancy Tax 1,481,868 1,550,000 1,550,000 1,334,487 (215,513) 1,600,000 (100,000) 1,500,000
Other Taxes 7,647,501 7,145,000 7,145,000 7,386,712 241,712 7,402,250 (40,000) 7,362,250
Licenses & Permits 230,552 239,300 239,300 165,907 (73,393) 319,900 319,900
Fines & Penalties 98,693 67,400 67,400 45,382 (22,018) 67,400 67,400
Interest Earnings 8,499,829 5,622,800 9,622,800 9,622,800 0 5,596,400 2,000,000 7,596,400
Rentals and Leases 2,172,046 2,223,573 2,223,573 2,038,875 (184,698) 2,271,676 2,271,676
Intergovernmental 441,518 300,000 300,000 453,144 153,144 300,000 300,000
Charges for Services 9,678,380 7,372,703 7,439,807 7,070,236 (369,571) 7,599,409 115,304 7,714,713
Other Revenue 4,489,879 2,556,358 2,842,655 3,923,662 1,081,007 2,663,826 (55,000) 2,608,826
Subtotal Revenues - Operating $134,468,374 $128,267,303 $133,569,704 $133,493,473 ($76,231) $133,717,880 ($319,051) $133,398,829
Transfers In $227,051 $130,000 $130,000 $0 $136,015 $136,015
Unrealized Gains/Losses/Adjustments 7,022,273 - -
Total Revenues $141,717,698 $128,267,303 $133,569,704 $133,623,473 $53,769 $133,717,880 ($183,036) $133,534,844
Expenditures
Salaries & Wages $13,508,508 $15,706,648 $15,673,275 $14,023,130 ($1,650,145) $16,355,896 $507,800 $16,863,696
Benefits 4,500,714 6,235,407 6,235,407 5,379,810 (855,597) 6,483,553 215,435 6,698,988
Services & Supplies 5,831,603 8,047,629 8,137,688 6,792,944 (1,344,744) 8,282,397 (220,939) 8,061,458
Internal Service Fund Charges 5,443,999 5,475,186 5,475,186 5,475,186 - 5,755,854 130,000 5,885,854
Utilities 2,602,582 3,852,949 3,852,949 3,313,338 (539,611) 4,042,135 4,042,135
Contracted Services 61,003,255 67,575,579 69,979,146 69,296,081 (683,065) 69,975,690 2,682,920 72,658,610
Capital Outlay 462,908 869,000 945,758 968,016 22,258 256,000 256,000
Debt Service Payment 1,331,850 1,334,650 1,334,650 1,334,650 - 1,331,250 1,331,250
Contingency & Miscellaneous 13,318 224,000 224,000 223,491 (509) 224,000 224,000
Subtotal Expenditures - Operating $94,698,737 $109,321,048 $111,858,059 $106,806,646 ($5,051,413) $112,706,775 $3,315,216 $116,021,991
Operating Impact (REV-EXP)$39,769,637 $18,946,255 $21,711,645 $26,686,827 $4,975,182 $21,011,106 ($3,634,267) $17,376,839
Transfer Outs & Contributions to Other Funds
Transfers Out (CIPs) - Com./Assig. Reserve 3,780,775 1,695,229 32,306,947 32,306,947 8,450,000 2,450,000 10,900,000
Transfers Out (CIPs) - Undesignated 601,971 3,401,794 20,506,267 20,506,267 7,101,900 700,000 7,801,900
Contribution to OPEB/PERS - - -
Contribution to ISF & Other 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Subtotal - Transfers Out & Contributions $6,382,746 $7,097,023 $54,813,214 $54,813,214 $0 $17,551,900 $3,150,000 $20,701,900
Total Expenditures $101,081,483 $116,418,071 $166,671,273 $161,619,860 ($5,051,413) $130,258,675 $6,465,216 $136,723,891
GF Impact (Include CIP & Transfers) $40,636,214 $11,849,232 ($33,101,569) ($27,996,387) $5,105,182 $3,459,206 ($6,648,252) ($3,189,046)
TOTAL GENERAL FUND BALANCE $290,432,952 $302,282,184 $257,331,383 $262,436,565 $265,895,771 ($6,648,252) $259,247,519
Attachment 1
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FISCAL YEAR 2025-26 UPDATE BUDGET GENERAL FUND RESERVES
RESERVE DESCRIPTION
Actual
2023-24
Net Change
2024-25
Projected
2024-25
Net Change
2025-26
Projected
2025-26
Non-Spendable $54,709 $54,709 $54,709
Prepaid Expenses 54,709 54,709 54,709
Restricted $9,351,801 $6,704,350 $16,056,151 $0 $16,056,151
Cemetery Endowment 60,000 60,000 60,000
Developer Contribution - Downtown 1,490,000 1,490,000 1,490,000
Developer Contr - Heritage Park 19,000 19,000 19,000
Developer Contr - Nature Park 60,000 60,000 60,000
Section 115 Trust - Pension 2,071,235 2,071,235 2,071,235
Public Facilities Advance 4,901,566 6,704,350 11,605,916 11,605,916
Heritage Park Maintenance 750,000 750,000 750,000
Committed $84,215,443 ($12,544,158) $71,671,286 $1,000,000 $72,671,286
Advance to Public Facility Fee 6,704,350 (6,704,350)
Downtown Public Improvement 36,118,491 (363,279)35,755,212 35,755,212
Economic Stability 8,000,000 8,000,000 8,000,000
Emergency Communications 532,113 532,113 532,113
Fire Svcs Pension/OPEB 2,211,094 2,211,094 2,211,094
Innovations & New Opportunity 894,498 894,498 894,498
One-Time Initiative - Capital 1,917,848 (1,418,339)499,509 499,509
One-Time Initiative - Operating 503,860 503,860 503,860
Public Safety Reserve 4,600,000 4,600,000 4,600,000
Specific Committed Reserves
Contribution to Public Facility Fee 6,000,000 6,000,000 6,000,000
Cultural Arts Center (CIP)4,402,990 (4,227,990)175,000 175,000
Don Biddle Park (CIP)675,193 (675,193)
Fallon Sports Park III Contingency 100,000 (100,000)
Lease Revenue Bond Payoff 8,000,000 1,000,000 9,000,000 1,000,000 10,000,000
Maintenance Facility (CIP)55,008 (55,007)
Utility Undergrounding (CIP)3,500,000 3,500,000 3,500,000
Assigned $153,402,584 ($41,363,549) $112,039,035 ($11,147,000) $100,892,035
Accrued Leave 1,518,423 1,518,423 1,518,423
Catastrophic Loss 17,714,064 17,714,064 17,714,064
CIP Carryovers 16,670,673 (16,670,673)
Municipal Regional Permit 1,809,022 (1,809,022)
Non-Streets CIP Commitments 3,253,486 (590,976)2,662,510 2,662,510
Operating Carryovers 963,754 (2,014,571)
Parks and Streets Contingency 201,270 201,270 201,270
Pension & OPEB 18,000,000 18,000,000 18,000,000
Relocate Parks Dept 500,000 500,000 (320,000)180,000
Service Continuity 3,150,000 3,150,000 3,150,000
Dublin Blvd Extension Advance 59,500,000 (16,936,087)42,563,913 42,563,913
Specific Assigned Reserves
ARPA Revenue Replacement 990,187 990,187 990,187
Climate Action Plan 2,669,424 (840,334)1,829,090 (177,000)1,652,090
Façade Improvement Grants 429,972 429,972 429,972
Library Tenant Improvement 1,000,000 1,000,000 1,000,000
HVAC Replace. & Civic Ctr Improv. (CIP)2,288,697 (1,208,273)1,080,424 1,080,424
Pavement Management 2,000,000 2,000,000 2,000,000
Village Pkwy Pavement Reconstruction 20,743,613 (1,293,613)19,450,000 (10,650,000)8,800,000
Unassigned $43,408,415 $19,206,970 $62,615,385 $6,957,954 $69,573,339
Unassigned-Unrealized Gains (7,039,428)(7,039,428)(7,039,428)
Unassigned (Available)50,447,843 69,654,813 76,612,767
TOTAL RESERVES $290,432,952 ($27,996,387) $262,436,565 ($3,189,046) $259,247,519
Attachment 2
199
Preliminary General Fund
FY 2025-26 Update
April 15, 2025
200
Presentation Overview
FY 2024-25
YEAR-END
PROJECTIONS
GENERAL FUND
OPERATING BUDGET
FY 2025-26 UPDATE
10-YEAR
FORECAST
RECOMMENDATIONSRECESSION
ANALYSIS
201
Sales Tax Projections
28.9
29.3
28.7
27.6
30.5
31.4
25
26
27
28
29
30
31
32
Actual
FY 22-23
Actual
FY 23-24
Projected
FY 24-25
Projected
FY 25-26
Updated Projection Prior Projection
•$600K decrease last quarter in
Auto Sales.
•Auto Sales = 41% of all sales tax
in FY 23-24.
•Decrease of $1.8M and $3.8M in
auto sales revenue in FY 24-25
and 25-26, respectively.
•“Softening” in other sectors.
•Not a recession, but reflection of
uncertainty.
202
Year -end Projections
Amended Projections $ Variance % VarianceFY 2024-25 FY 2024-25
Revenues $133,569,704 $133,493,473 ($76,231)(0.06%)
Expenditures ($111,858,059)($106,806,646)$5,051,413 (4.52%)
Operating Surplus $21,711,645 $26,686,827 $4,975,182 22.91%
Transfers In $0 $130,000 $130,000
Contributions to ISF ($2,000,000)($2,000,000)$0 0%
Transfers Out ($52,813,214)($52,813,214)$0 0%
General Fund Impact ($33,101,569)($27,996,387)$5,105,182 (15.42%)
203
Year -end Projections, 2
General Fund Revenue: -$76,231 (-0.06%)
•Sales Tax: -$1.84M (-6.03%)
–Due almost entirely to decline in the Auto Sector.
–Based on quarter ending December 31, 2024.
•Rents & Leases / Charges for Service: -$554K (-5.74%)
–Dublin Arts Center not being operational.
–All other recreation programming coming in as budgeted.
204
Year -end Projections, 3
•Development Revenue: +$879K (+10.05%)
–Acceleration of Dublin Centre and Francis Ranch development
projects.
•Other Revenue: +1.08M (+38.03%)
–Catch-all for various items (sale of property, donations, etc ).
–Increase due to $1M community benefit payment from the Dublin
Centre project.
205
Year -end Projections, 4
General Fund Expenses: -$5.05M (-4.52%)
•Salaries & Wages: -$1.65M (-10.53%)
–Staffing vacancies, including Director and Assistant Director.
•Benefits: -$855K (-13.72%)
–Vacancies, and budgeting highest level of benefits for vacant
positions.
•Services & Supplies: -$1.34M (-16.52%)
–Lower than anticipated cost of insurance.
–Lower costs for repairs and maintenance and operating costs.
206
Year -end Projections, 5
•Utilities: -$540K (-14.01%)
–Savings in electricity and gas.
–Energy Efficiency projects: -$600K in annual savings.
•Contract Services: -$683K (-0.98%)
–Dublin Arts Center not opening in FY 2024-25.
207
Preliminary FY 2025-26 Budget
Forecast
FY 2025-26
Update
FY 2025-26 $ Variance % Variance
Revenues $133,717,880 $133,398,929 ($319,051)(0.24%)
Expenditures ($112,706,775)($116,021,991)($3,315,216)2.94%
Operating
Surplus
$21,011,106 $17,376,839 ($3,634,267)(17.39%)
Contributions to
ISF
($2,000,000)($2,000,000)$0 (0.00%)
Transfers Out ($15,551,900)($18,701,900)$3,150,000 17.95%
General Fund
Impact
$3,459,206 ($3,189,046)($6,648,252)(192.19%)
208
Preliminary FY 2025-26 Budget, 2
General Fund Revenue: -$319,051 (- 0.24%)
•Sales Tax: -$3.83M (-12.19%)
–Auto Sector losses from FY 2024-25 carried into FY 2025-26.
–General softening of majority of sectors, due to weakening consumer confidence.
•Development Revenue: +$1.63M (+18.73%)
–Acceleration of Dublin Centre and Francis Ranch development projects.
–Building costs occur approximately 12 months after revenue.
–$3.2M Services Continuity Reserve.
209
•Charges for Services: +$115K (+1.52%)
–Increase in anticipated administrative fee revenue from
management of City’s solid waste agreement.
•Interest: +2M (+35.74%)
–Continued high interest rates.
–Continued high cash balance.
–Federal Reserve actions monitored closely.
Preliminary FY 2025-26 Budget, 3
210
Preliminary FY 2025-26 Budget, 4
General Fund Expenses: +$3.32M (+2.94%)•Personnel Costs: +$723K (+3.17%)
–1 Administrative Technician – Communications
•Support increase level of public transparency activities.
–1 Office Assistant – Dublin Police Services
•Records management, reporting requirements, customer service.
–Additional Seasonal Staff Hours.
–Updated Health and Retirement cost to reflect current/requested staffing.
211
Preliminary FY 2025-26 Budget, 5
•Services and Supplies: -$220K (-2.67%)
–Lower than anticipated insurance premiums.
–Offset, minor departmental costs (water bottle filling stations and
flag replacement).
–Youth Advisory Committee grant increase from $2,500 to $10,000.
•Internal Services Fund: +$130K (+2.26%)
–Increases in software costs:
•Fully implemented Financial and Permitting System.
•IT costs are allocated to City departments.
212
Preliminary FY 2025-26 Budget, 6
•Contract Services: +$2.68M (+3.83%)
–$1.56M for development related contract costs.
•Costs have corresponding revenues.
–$602K for maintenance costs.
•$70K for Green Stormwater Infrastructure maintenance.
•$462K for parks maintenance (Fallon, Dublin Sports Ground, Don Biddle).
–High usage parks. Costs will be analyzed when determining future rental fees.
–$12K for water bottle fill stations.
213
Preliminary FY 2025-26 Budget, 7
•Contract Services Continued
–$70K for one-time Civic Center maintenance
•Painting, drywall replacement, and roll-up door replacement.
•Funded through General Fund Reserve.
–$303K for Street Sweeping
•Comply with prevailing wage regulations.
–$70K for ongoing SB1383 implementation costs
–$79K for other maintenance contracts
•Janitorial service during peak activity days.
•New battery storage maintenance.
214
Preliminary FY 2025-26 Budget, 8
•Pending Proposals
–Police and Fire budgets based on budget proposals from last year.
–Anticipate receiving update in May.
–Highlight any changes at final adoption.
215
Transfers Out - CIP
Reserves / Projects Amount
Committed/Assigned $10,900,000
Dublin Arts Center 250,000
Village Parkway Reconstruction 10,650,000
Unassigned $7,801,900
Annual Street Resurfacing 2,086,900
Citywide Energy Improvements 400,000
Citywide Storm Drain Improvements 30,000
Facilities Parking Lot Resurfacing 500,000
Fallon Field G Renovations (NEW)500,000
Kolb Park Renovation 2,450,000
Resiliency and Disaster Preparedness 1,375,000
Shade Structure Study (NEW)200,000
Sunday School Barn Improvements 260,000
Total $18,701,900
216
Transfers Out/Contribution
•Preventative Maintenance - $2.0 million per year.
•No contribution to retirement/OPEB.
–Reviewed at year-end.
217
General Fund Reserves
Reserve Category FY 2023-24
Actual
FY 2024-25
Projected
FY 2025-26
Updated
Restricted $9.4 $16.1 $16.1
Committed $84.2 $71.7 $72.7
Assigned $153.4 $112.0 $100.9
Unassigned
(Cashflow)
$50.4 $69.5 $76.6
Unrealized
Gains/(Losses)
($7.0)($7.0)($7.0)
Total $290.4 Million $262.4 Million $259.2 Million
218
10-Year Forecast
0
50,000
100,000
150,000
200,000
250,000
24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 33-34 34-35
Property Taxes Sales Tax Development Licenses & Permits Other Taxes Fines
Interest Rents & Leases Intergovernmental Charges for Svcs Other Total Expenditures
219
Forecast Assumptions
Expenditures
•Personnel:
–No new positions
–COLA: Up to 3.5% annually
–Benefits: 5% annually
•Services and Supplies: 2% annually
•Internal Service Funds: 10% annually
•Contract Services: 6% annually
•Utilities: 4% annually
220
Forecast Assumptions, 2
Revenue
•Property Tax:
–Based on HDL (Years 2 - 5 = 4.38% – 5.06%)
–Years 5 - 10 = 2.5%
•Sales Tax:
–Reductions in FY 2024-25 and FY 2025-26
–Year 3-5 = 3.2% annual growth
–Year 6-10 = 2.5% annual growth
–Reduction of $2.5 in FY 2026-27
•Development: decrease years 4 - 10
•Interest: decrease years 3 - 10
•Other: up to 3% annually
221
Forecast Assumptions, 3
•Development:
–Year 2 – 3% increase
–Year 3 – 3% decrease
–Year 4 – Flat
–Year 5 -10 steady decline (build out)
–(Continually adjusted as development projects are brought to the City)
•Interest: decreases starting in Year 2
–General Fund Reserves Spent
–Interest Rates Decrease
•Other: Between 0% - 2% annually
222
Recession
•$12.5M revenue loss
•Timing
–Sales Tax
–Property Tax
–Interest
FY 2024-25
Recession
Year 1
Recession
Year 2
Recession
Year 3
Total Revenue $133,493,473 $125,807,548 $121,066,112 $121,091,817
Property Tax $63,499,389 (2,857,473)(612,483)
Sales Tax $28,695,829 (4,447,853)368,569 1,587,767
Interest Revenue $9,622,800 (3,238,072)(2,252,532)(949,579)
Net Revenue
(Loss)/Gain (7,685,926)(4,741,435)25,705
Expenditures $106,806,646 $118,021,991 $123,833,778 $131,109,144
Operating
Surplus/(Deficit)$26,686,827 $7,785,557 ($2,767,666)($10,017,357)
223
Next Steps
•Budget adoption on June 3.
•Other items or additional information to include in the
FY 2025-26 Budget Update?
224