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HomeMy WebLinkAbout8.3 Fiscal Year 2024-25 4th Quarter Financial Review and Additional Special STAFF REPORT CITY COUNCIL Page 1 of 10 Agenda Item 8.3 DATE: November 4, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Fiscal Year 2024-25 4th Quarter Financial Review and Additional Special Designation of General Fund Reserves Prepared by: Jay Baksa, Finance Director EXECUTIVE SUMMARY: The City Council will receive a financial report on the fourth quarter of Fiscal Year 2024 -25 and consider amendments to the General Fund reserve designations. STAFF RECOMMENDATION: Adopt the Resolution Authorizing Additional Special Designations of General Fund Reserves for Fiscal Year 2024-25 and confirm additional General Fund reserve designations as of June 30, 2025. FINANCIAL IMPACT: City Council confirmation of General Fund reserve designations will not alter amounts received or spent but will allow Staff to close the Fiscal Year 2024-25 financial books. Total General Fund reserves are projected at $325.4 million as of June 30, 2025, with $50.4 million in the unassigned cash flow reserve, representing 5.2 months of the Fiscal Year 2025- 26 Adopted General Fund Budget. DESCRIPTION: This report transmits the preliminary financial results of Fiscal Year 2024-25, focusing on the General Fund. At this time, the numbers are essentially final, and though adjustments may happen as the audit is finalized, Staff does not expect substantial changes from the numbers in this report. The Annual Comprehensive Financial Report, which will be presented to the City Council at the second meeting in December, will contain the final audited results. General Fund Overview General Fund operating revenues totaled $138.2 million in Fiscal Year 2024-25, an increase of 390 Page 2 of 10 $3.7 million over the prior year. Including unrealized gains and transfers in, total revenues were $149.7 million, up $8 million from the prior year. General Fund operating expenditures totaled $102 million, an increase of $7.3 mi llion from the prior year. Including contributions to other funds and transfers out, total expenditures were $114.6 million, up $13.6 million from the prior year. Contributions to capital projects, reimbursable expenditures, and transfers to other funds totaled $12.7 million, an increase of $6.3 million from the prior year. The resulting impact from operations (revenues less expenditures) was a net increase of $36.2 million to total General Fund reserves. Overall, General Fund reserves increased by $35 .0 million from the prior year, as summarized in Table 1. Year-over-year variances are discussed in greater detail in the following sections. Table 1: General Fund Summary FY 2023-24 FY 2024-25 Total Reserves, Beginning of Year $249,736,608 $249,736,608 Revenues 134,468,344 138,222,222 Expenditures (94,698,737) (102,007,918) Net Operating Budget Impact 39,769,637 36,214,304 Transfers In 227,051 162,885 Unrealized Gain/Loss/Adjustments 7,022,273 9,181,038 Transfers Out/Contribution to Other (6,322,616) (12,668,399) CIP Reimbursement Revenue 1,888,264 Total Reserves, End of Year $290,432,952 $325,474,797 Change from Prior Year $35,041,845 Specific revenue and expenditure changes (+/-$250,000 compared to Fiscal Year 2023-24 actuals and to the Fiscal Year 2024-25 amended budget) are discussed below. The General Fund Summary (Attachment 3) presents this data by major category. Revenues Property Tax (+$1,871,014 vs. prior year / + $613,031 vs. budget). Property Tax revenue was largely in line with projections. The increase over the prior year is attributed to the 2% Consumer Price Index (CPI) adjustment—the maximum annual increase permitted by law—combined with new development coming online throughout th e year. Overall, net assessed valuation increased by approximately $1.02 billion, or 4.6%, compared to the prior year. When compared to the Amended Budget, revenue increased due to higher -than- anticipated Supplemental Property Tax payments, which exceeded budget by $368,000, and prior-period payments that came in $331,000 higher than projected. These variances are primarily related to continued development activity and the timing of property tax payments on new construction. Sales Tax (-$2,121,287 vs. prior year / -$1,363,945 vs. budget). During the 391 Page 3 of 10 Preliminary Budget presentation in April 2025, Staff provided an updated financial forecast that included revised Sales Tax projections. At that time, there was significant uncertainty in the national economic climate, and the City was experiencing lower Sales Tax revenue across nearly all business sectors. As a result, Staff lowered the Fiscal Year 2024 -25 Sales Tax projection from $30.5 million to $28.7 million , but due to this uncertainty did not recommend any formal budget adjustment. While Sales Tax revenue ultimately came in below the original Adopted Budget of $30.5 million, actual receipts exceeded Staff’s preliminary projection by approximately $400,000. This stronger-than-expected performance reflects the continued resilience of Dublin’s local economy—particularly within the auto sector, where local dealerships outperformed statewide averages. Development Revenue (+$3,509,054 vs. prior year / +$1,208,182 vs. budget). This category includes revenue from permits associated with new development—primarily building permits—as well as tenant improvements to existing structures. It also encompasses fees for City services, including zoning review and plan check services. Development revenue can fluctuate significantly from year to year and is directly tied to the volume and timing of active development projects. The increase in revenue compared to both the prior year and the Amended Budget is primarily due to the acceleration of the Dublin Centre and Francis Ranc h development projects. Other Taxes (-$115,777 vs. prior year / +$386,724 vs. budget). The net increase compared to the Amended Budget was due to higher-than-anticipated revenue from Electric Franchise Fees, which increased as a result of utility rate increases. The year-over-year decrease in Other Taxes is due to lower Property Transfer Tax revenue —which can fluctuate annually with real estate market activity—and a continued decline in Cable Franchise Fees. The latter has been steadily decreasing since 2016 as consumers shift away from traditional cable television subscriptions toward alternative streaming services . Interest (+$2,663,865 vs. prior year / +$1,540,895 vs. budget). Interest earnings came in higher than both the prior year and the Amended Budget due to two primary factors. First, the Federal Reserve’s federal funds target range remained between 4.25% and 4.50% from December 2024 through the end of Fiscal Year 2024 -25, despite earlier expectations of rate cuts. Second, the City’s cash balance remained higher than projected, driven by General Fund revenues exceeding expenditures by approximately $38 million and the timing of capital project spending. Of the $51.6 million appropriated in the General Fund for Capital Improvement Projects, only $8.8 million was expended during the fiscal year. These factors resulted in an average year-over-year cash balance increase of approximately $30 million, leading to interest earnings that were $1.5 million above the Amended Budget and $2.6 million higher than the prior year. Charges for Services (-$1,008,410 vs. prior year / +$1,230,163 vs. budget). The increase over the Amended Budget is primarily due to higher-than-projected revenue from the annual Santa Rita Services payment. This revenue reimburses the City for costs associated with Alameda County Fire’s responses to service calls at the Santa Rita Jail. Although a 392 Page 4 of 10 program change implemented in the prior fiscal year was expected to reduce service calls and related reimbursements, actual revenues were $1.4 million above the Amended Budget, despite a year-over-year decrease of $300,000. In addition to the Santa Rita Jail reimbursement, year-over-year revenue declines were primarily driven by Parks and Community Services (PCS), which experienced a $680,000 decrease compared to the prior year. About $200,000 of this decrease reflects moving some recreation revenue to the Rents and Leases category. While PCS programs continued to see strong participation and revenues exceeded budget estimates, overall receipts declined from the prior year. Contract program revenue decreased following an exceptional surge in F iscal Year 2022-23, when post-pandemic demand temporarily spiked. Participation levels have since stabilized at a level consistent with regional trends. Revenues from The Wave also declined due to cooler early-summer weather and lower demand for swim lessons. Additionally, Cultural Arts revenue came under budget due to the Dublin Arts Center not being opened during the fiscal year. Other Revenue (-$1,082,432 vs. prior year / +$539,578 vs. budget). Many revenues in this category are non-recurring, such as community benefit payments and one -time reimbursements. The increase from the Amended Budget is primarily due to a $1 million community benefit payment received from the Dublin Centre development. The year-over-year decrease reflects the receipt of a one-time settlement payment in FY 2023-24 Expenditures Salaries and Wages (+$537,258 vs. prior year / -$1,627,509 vs. budget). Staffing costs came in lower than the Amended Budget due to several high-level vacancies and the timing of new hires throughout the year. The year-over-year increase is primarily attributable to annual cost-of-living adjustments and merit-based salary increases. Benefits (+$1,038,805 vs. prior year / -$695,888 vs. budget). Like Salaries and Wages, benefit costs came in lower than the Amended Budget due to vacant positions throughout the year. The year-over-year increase reflects higher retirement contribution rates through CalPERS and rising health care costs. Services and Supplies (+$561,261 vs. prior year / -$1,728,439 vs. budget). Expenditures for Services and Supplies were higher than the prior year, primarily due to increased insurance costs through the City’s Plan Joint Powers Agreement. Insurance premiums nationwide have risen significantly over the past few years, resulting in the City’s total cost increasing from $1.48 million in Fiscal Year 2022 -23 to $3.99 million in Fiscal Year 2024-25. Despite this substantial increase, the final premium amount was approximately $250,000 lower than originally projected. Year-over-year increases also reflect one-time purchases within the Maintenance Division, including hammocks installed at Don Biddle Community Park and three-stream receptacle bins for various City facilities. Expenditures came in lower than the Amended Budget due lower - 393 Page 5 of 10 than-anticipated costs for repairs and maintenance of City vehicles and facilities, and reduced fuel costs. Additionally, opioid settlement funds received in the current fiscal year were not spent and will be carried forward into Fiscal Year 2025 -26. Utilities (+$517,887 vs. prior year / -$732,480 vs. budget). Utility costs can be difficult to project and are often influenced by factors outside of the City’s control. For example, a prolonged rainy season can lead to savings in water expenditures, while an especially warm summer can significantly increase energy consumption and costs. Utility expenditures in Fiscal Year 2024-25 were higher than the prior fiscal year but remained significantly below the Amended Budget. Staff had anticipated a double -digit increase in energy costs based on information provided by the utility companies, indicating significant rate hikes for both electricity and natural gas. However, actual City costs of these utilities remained relatively flat. The overall year-over-year increase in utility expenditures is attributed to higher than projected recycled water costs associated with both park and landscape irrigation. Contracted Services (+$4,848,369 vs. prior year / -$4,668,369 vs. budget). Contracted Services expenditures increased year-over-year primarily due to planned cost increases in Police Services, Fire Services, and Maintenance contracts. When compared to the Amended Budget, overall Contract Services expenditures stayed approximately $4.6 million under budget, with about $900,000 to be carried forward into F iscal Year 2025-26 for ongoing or uncompleted projects. Additional savings occurred in Public Works due to lower-than-expected building maintenance costs and the timing of development - related work and inspections. The Finance Department also realized savings from bu dgeted funds intended for additional investments with Chandler Asset Management, which were not made due to financial market uncertainty. Finally, Parks and Community Services experienced budget savings resulting from the delayed opening of the Dublin Arts Center. Capital Outlay (-$228,919 vs. prior year / -$711,769 vs. budget). Underspending in Capital Outlay was primarily due to project timing. The Amended Budget included funding for upgrades to the City’s fire station alerting system and costs associated with the opening of the Dublin Arts Center. The alerting system project, led by Alameda County Fire, experienced delays and has begun in the current fiscal year, with the related funding carried forward. Similarly, capital costs for the Dublin Arts Center were not incurred due to the timing of the facility’s opening; those budgets have been carried forward to Fiscal Year 2025-26 as well. Transfers Out for Capital Improvement Program (CIP) Projects The General Fund transferred out $10.7 million in Fiscal Year 2024-25 for capital project expenditures. Of that amount, $5.4 million was covered by Committed/Assigned Reserves, $3.3 million was covered by Undesignated Reserves (i.e., cash flow), and $1.9 million was reimbursed, as shown in Table 2. A total of $43.2 million in unspent capital project budgets has been carried over to Fiscal Year 2025-26. 394 Page 6 of 10 Table 2: General Fund CIPs Category / Project Amount Committed/Assigned Reserves Civic Center Rehabilitation $475,753 Cultural Arts Center 3,000,175 Dublin Blvd Extension 21,177 Dublin Irrigation System Upgrades 438,000 Fallon Park Flag Installation 118,989 Fallon Sports Park Phase 3 48,537 Green Stormwater Infrastructure 923,599 IT Infrastructure Improvement 2,976 Village Parkway Reconstruction 430,794 Subtotal - Committed/Assigned $5,460,000 Undesignated Reserves Alamo Creek Park & Assessment Dist. Fence Replacement $7,073 Annual Street Resurfacing 1,839,821 Audio Visual System Upgrade 239,905 Citywide Energy Improvements 30,161 Downtown Dublin Street Grid Network 28,791 Dublin Standard Plans Update 512 Financial System Replacement 312,500 Iron Horse Nature Park & Open Space 7,750 Jordan Ranch Neighborhood Square 900 Kolb Park Renovation 933 Resiliency and Disaster Preparedness 466,557 Restrooms Replacement 758 Situational Awareness Camera 384,352 Waste Enclosure Upgrade 123 Subtotal - Undesignated $3,320,135 Reimbursable Green Stormwater Infrastructure $1,888,264 Subtotal – Reimbursable $1,888,264 Total - General Fund Transfers Out to CIPs $10,668,401 General Fund Reserves General Fund Reserves allocations are generally made twice a year: in June, with preliminary close of the fiscal year books, and again in the fall/winter, when the books are essentially closed. With this report, Staff is recommending changes to Committed and Assigned Reserve allocations, as well as to how some reserves are named and categorized. These changes are described below. 395 Page 7 of 10 Allocation Changes In June 2025, Staff recommended making only two reserve designations ($1.0 million to the Lease Revenue Bond Payoff, and $3.6 million to the Dublin Boulevard Extension Ad vance) and deferring additional designations until the close of the fiscal year due to economic uncertainty at the time. With the close of the financial books, Staff now recommends additional designations, as shown in Table 3 and discussed further below. Table 3. Committed/Specific Assigned Reserve Recommendations Reserve Category June 2025 Approval Q4 Adjustment FY 24-25 Total Adjustment Adjustment Type Committed Emergency Communications ($532,113) ($532,113) Eliminate Lease Revenue Bond Payment $1,000,000 $1,000,000 Increase Downtown Public Improvements $8,885,798 $8,885,798 Increase One-Time Initiative – Capital ($1,917,848) ($1,917,848) Transfer Out One-Time Initiative – Operating ($503,860) ($503,860) Transfer Out Innovations & New Opportunities $2,421,708 $2,421,708 Transfer In Contribution to Public Facility Fees $4,000,000 $4,000,000 Increase Advance to Public Facility Fees $5,000,000 $5,000,000 Increase Assigned Dublin Blvd Extension Advance $3,563,913 $8,000,000 11,563,913 Increase Emergency Communications Reserve – Decrease $532,113 (Eliminate). The Emergency Communications Reserve was originally established to fund the City’s share of a Countywide Emergency Communications System Upgrade. After the project was completed, the remaining balance was retained to potentially fund future communication infrastructure needs, such as upgrades to the City’s phone system. Since that time, Staff has established dedicated Internal Service Fund s to support ongoing replacement and upgrades of communication systems. As a result, this reserve is no longer necessary. Staff recommends liquidating the reserve and reallocating the remaining balance to other City priorities. Downtown Public Improvement Reserve – Increase $8,885,798. Based on Strategic Objective 1B of the City’s Strategic Plan, Staff is recommending designating an additional $8,885,798 to the Downtown Public Improvement Reserve, for a total set-aside of $45.0 million. Innovation & New Opportunity Reserve – Transfer $2,421,708 from Other Reserves. This reserve was established to provide funding for unique or emerging initiatives. Examples of projects supported by this reserve include the purchase and installation of situational awareness cameras and the installation of electric vehicle charging stations. 396 Page 8 of 10 Upon review of the City’s reserve structure, Staff determined that maintaining three separate reserves with similar purposes was unnecessary. To streamline the City’s reserve framework and consolidate funds for flexibility and efficiency, Staff recommends closing the One-Time Initiative – Capital Reserve and the One-Time Initiative – Operating Reserve and transferring their balances to the Innovation and New Opportunity Reserve. Contribution to Public Facility Fee – Increase $4,000,000. This reserve was established to set aside funds to address a potential funding shortfall in the Public Facility Fee (PFF) Program once the program reaches full buildout, which is expected to coinc ide with overall City buildout. A shortfall may occur if actual fee collections are lower than projected, or if the assumptions used to calculate the PFF differ from the facilities ultimately constructed or the type of development that occurs. This reserve serves as a financial safeguard to ensure sufficient funding is available to complete all projects identified in the PFF. Advance to Public Facility Fee – Increase $5,000,000. This reserve was established to provide funding advances for major community projects, including Wallis Ranch Community Park, Jordan Ranch Neighborhood Square, and Library Tenant Improvements. Funds advanced from the General Fund will be reimbursed as Public Facility Impact Fees are collected from future development. Staff recommends adding an additional $5,000,000 to this reserve to advance the purchase of community nature park land, as outlined in the Developer Agreement between the City and GH Pac Vest. Dublin Boulevard Extension Advance – Increase $8,000,000. The Dublin Boulevard Extension Advance Reserve was established to set aside funds as a cash -flow advance to the Eastern Dublin Transportation Impact Fee (EDTIF) program. This reserve provides upfront funding for the construction of the Dublin Boulevard Extension, which will be completed prior to development occurring in the area. As development proceeds, EDTIF revenues will reimburse the General Fund for the advance. The current EDTIF advance is estimated at $63 million. Staff recommends adding an additional $8 million to this reserve based on updated project cost estimates and the potential need for General Fund participation in certain mitigation -related expenses. With this additional designation, the total amount set aside in the Dublin Boulevard Extension Advance Reserve will be $71.0 million. The attached Resolution confirms designations of additional Committed Reserves for Fiscal Year 2024-25. City Council approval of Assigned Reserves is not necessary by resolution. Reserve Name / Category Changes Catastrophic Loss Reserve – Change Name to Asset Contingency Reserve. The Catastrophic Loss Reserve was established to maintain a reserve balance equal to 15% of the book value of the City’s assets. While this is a long-standing reserve in Dublin, there is no external requirement or industry best practice that any reserve, replacement or other, be tied to 397 Page 9 of 10 a fixed percentage of an organization’s asset book value. In fact, setting a percentage threshold is generally discouraged, as it may not accurately reflect the current replacement cost or condition of assets. This can result in underfunding (if replacement costs exceed book value) or overfunding (if the assets have significant remaining useful life). While Staff supports maintaining a reserve to address unforeseen costs related to City assets, it is recommended that the reserve name and purpose be updated to allow for broader use. This would enable the reserve to cover a wider range of asset -related needs beyond catastrophic loss or damage—such as repairs, damage mitigation, or unanticipated infrastructure costs. Category Changes. To increase clarity on the City’s funding sources, Staff has made a revision to how the General Fund reserves are categorized and presented. Within the major categories of Committed and Assigned reserves, Staff created sub categories as shown in Table 4. Attachment 2 shows the regrouping of reserves into the new subcategories. Table 4. Updated Reserve Categories Description Committed Reserves Contingency Reserves Funds set aside to address future liabilities and significant unanticipated events. Project Specific Reserves Funds designated for current or future CIP projects or other defined initiatives. Assigned Reserves Accounting Adjustment Reserves Used to book annual accounting and year-end adjustments to ensure compliance with reporting standards. Specific Use Reserves Funds set aside for defined or restricted purposes, such as paying off the lease revenue bonds or relocating the Parks and Community Services Department when the Dublin Arts Center opens. Non-Specific Use Reserves Funds set aside for more broadly defined objectives, providing flexibility for purposes consistent with the City’s strategic and financial objectives. STRATEGIC PLAN INITIATIVE: Strategy 1: Economic Development, Small Business Support, and Downtown Dublin Objective B: Work with ARA and Hines on the development of the Dublin Commons project, including associated public improvements, relocation of tenants, development agreement and appropriate incentives to effectuate physical changes to the area, as well as support for small businesses. Strategy 4: Inclusive and Effective Government Objective A: Set reserves aside for major infrastructure investments which are key to the City’s economic future. 398 Page 10 of 10 Strategy 5: Long-Term Infrastructure and Sustainability Investments Objective A: Continue to explore funding mechanisms for capital and ongoing maintenance needs. Strategy 5: Long-Term Infrastructure and Sustainability Investments Objective B: Focus on major street improvements to assist in improving safety and traffic movement, including Village Parkway, Tassajara Road, and Dublin Boulevard extension. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Authorizing Additional Special Designations of General Fund Reserves for Fiscal Year 2024-25 2) Exhibit A to the Resolution – General Fund Reserves 3) Fiscal Year 2024-25 General Fund Summary 399 Attachment 1 Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 1 of 2 RESOLUTION NO. XX – 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AUTHORIZING ADDITIONAL SPECIAL DESIGNATIONS OF GENERAL FUND RESERVES FOR FISCAL YEAR 2024-25 WHEREAS, the City's Fund Balance and Reserves Policy requires special fund balance allocations to be adopted by the City Council, and allows the City Council to take action prior to the end of the fiscal year to direct a specific assignment of the fund balance; and WHEREAS, Staff reviewed updated information regarding fund balance and estimated one-time revenues during the preparation of the Fiscal Year 2025 -26 Budget; and WHEREAS, the City Council approved allocations to specific Committed Reserves and Assigned Reserves on June 17, 2025, based on estimated revenues and expenditures at that time. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby make a special allocation of the estimated Fiscal Year 2024-25 year-end balance to the Committed fund balance as follows:  Decrease the reserve for Emergency Communication by $532,113  Increase the reserve for Downtown Public Improvements by $8,885,798  Decrease the reserve for One-Time Initiative – Capital by $1,917,848  Decrease the reserve for One-Time Initiative – Operating by $503,860  Increase the reserve for Innovations & New Opportunities by $2,421,708  Increase the reserve for Contribution to Public Facility Fees by $4,000,000  Increase the reserve for the Advance to Public Facility Fees by $5,000,000 BE IT FURTHER RESOLVED that, any net resources remaining after special designations, and after meeting the Fund Balance and Reserves Policy requirements, will be left in the Unassigned (Available) Reserve. BE IT FURTHER RESOLVED, that the City Council of the City of Dublin does hereby approve the proposed changes to the categorization of the Reserves as shown in Exhibit A to the Resolution. {Signatures on the following page} 400 Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 2 of 2 PASSED, APPROVED AND ADOPTED this 4th day of November 2025, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 401 FISCAL YEAR 2024-25 Q4 UPDATE GENERAL FUND RESERVES SUMMARY RESERVE DESCRIPTION Actual Increase Decrease Net Change Actual Non-Spendable $54,709 ($14,586)($14,586) $40,123 Prepaid Expenses 54,709 (14,586)(14,586)40,123 Restricted $9,351,801 $6,890,844 $0 $6,890,844 $16,242,645 Cemetery Endowment 60,000 60,000 Developer Contribution - Downtown 1,490,000 1,490,000 Developer Contr - Heritage Park 19,000 19,000 Developer Contr - Nature Park 60,000 60,000 Heritage Park Maintenance 750,000 750,000 Public Facilities Advance 4,901,566 6,704,350 6,704,350 11,605,916 Section 115 Trust - Pension 2,071,235 186,494 186,494 2,257,730 Committed $180,760,419 $20,449,711 ($3,980,725)$16,468,986 $197,229,405 Contigency Reserves (Assigned) -Asset Contingency 17,714,064 17,714,064 Economic Stability 8,000,000 8,000,000 Fire Svcs Pension/OPEB 2,211,094 2,211,094 - Parks and Streets Contingency 201,270 201,270 - Pavement Management 2,000,000 2,000,000 - Pension & OPEB 18,000,000 18,000,000 Public Safety Reserve 4,600,000 4,600,000 - Service Continuity 3,150,000 3,150,000 Project Specific Reserves Cultural Arts Center (CIP) - GI0120 4,402,990 (3,000,175)(3,000,175)1,402,815 Don Biddle Park (CIP) - PK0115 675,193 675,193 Downtown Public Improvement - ST0319 36,118,491 8,885,798 (4,289)8,881,509 45,000,000 Dublin Blvd Extension Advance ST0216 59,500,000 11,563,913 (21,177)11,542,736 71,042,736 Fallon Sports Park III Contingency - PK0119 100,000 (48,537)(48,537)51,462 - HVAC Replace. & Civic Ctr Improv. (CIP) - GI0122 2,288,697 (475,753)(475,753)1,812,944 - Library Tenant Improvement - GI0521 1,000,000 1,000,000 Maintenance Facility (CIP) - GI0509 55,008 55,008 - Village Pkwy Pavement Reconstruction - ST0323 20,743,613 (430,794)(430,794)20,312,819 Assigned $56,857,608 $25,994,180 ($23,515,540)$2,478,640 $59,336,248 Accounting Adjustment Reserves Accrued Leave 1,518,423 70,971 70,971 1,589,394 CIP Carryovers 16,670,673 17,186,131 (16,670,673)515,458 17,186,131 Façade Improvement Grants 429,972 429,972 Operating Carryovers 963,754 1,690,898 (963,754)727,144 1,690,898 Specific Use Reserves (Committed) - Advance to Public Facility Fee 6,704,350 5,000,000 (6,704,350)(1,704,350)5,000,000 ARPA Revenue Replacement 990,187 990,187 - Contribution to Public Facility Fee 6,000,000 4,000,000 4,000,000 10,000,000 ) - Lease Revenue Bond Payoff 8,000,000 1,000,000 1,000,000 9,000,000 - One-Time Initiative - Capital 1,917,848 (1,917,848)(1,917,848)0 - One-Time Initiative - Operating 503,860 (503,860)(503,860)0 Relocate Parks Dept 500,000 500,000 - Utility Undergrounding 3,500,000 3,500,000 Non-Specific Use Reserves Climate Action Plan 2,669,424 (114,906)(114,906)2,554,518 - Emergency Communications 532,113 (532,113)(532,113)0 - Innovations & New Opportunity 894,498 2,421,708 2,421,708 3,316,206 Municipal Regional Permit 1,809,022 (923,599)(923,599)885,422 Non-Streets CIP Commitments 3,253,486 (559,965)(559,965)2,693,521 Unassigned $43,408,415 $27,510,850 ($18,292,890) $9,217,961 $52,626,375 Unassigned-Unrealized Gains (7,039,428)9,181,038 9,181,038 2,141,609 Unassigned (Available)50,447,843 50,484,766 TOTAL RESERVES $290,432,952 $80,845,585 ($45,803,740) $35,041,845 $325,474,797 Attachment 2 - Exhibit A to Resolution 402 FISCAL YEAR 2024-25 GENERAL FUND SUMMARY Actual 2023-24 Adopted 2024-25 Amended 2024-25 Actuals 2024-25 Revenues Property Tax $61,967,658 63,225,641 63,225,641 63,838,672 Sales Tax 31,293,707 30,536,365 30,536,365 29,172,420 Sales Tax Reimbursements (390,267) (375,000) (375,000) (350,000) Development Revenue 6,857,011 7,803,163 9,157,883 10,366,065 Transient Occupancy Tax 1,481,868 1,550,000 1,550,000 1,324,612 Other Taxes 7,647,501 7,145,000 7,145,000 7,531,724 Licenses & Permits 230,552 239,300 239,300 344,825 Fines & Penalties 98,693 67,400 67,400 53,168 Interest Earnings 8,499,829 5,622,800 9,622,800 11,163,695 Rentals and Leases 2,172,046 2,223,573 2,223,573 2,159,045 Intergovernmental 441,518 300,000 300,000 540,580 Charges for Services 9,678,380 7,372,703 7,439,807 8,669,970 Other Revenue 4,489,879 2,556,358 2,867,870 3,407,448 Subtotal Revenues - Operating $134,468,374 $128,267,303 $134,000,639 $138,222,222 Transfers In $227,051 $162,885 CIP Reimbursement Payments $2,152,018 Unrealized Gains/Losses/Adjustments 7,022,273 9,181,038 Total Revenues $141,717,698 $128,267,303 $134,000,639 $149,718,163 Expenditures Salaries & Wages $13,508,508 $15,706,648 $15,673,275 $14,045,766 Benefits 4,500,714 6,235,407 6,235,407 5,539,519 Services & Supplies 5,831,603 8,047,629 8,121,663 6,393,224 Internal Service Fund Charges 5,443,999 5,475,186 5,475,186 5,475,186 Utilities 2,602,582 3,852,949 3,852,949 3,120,469 Contracted Services 61,003,255 67,575,579 70,520,386 65,851,624 Capital Outlay 462,908 869,000 945,758 233,989 Debt Service Payment 1,331,850 1,334,650 1,334,650 1,334,650 Contingency & Miscellaneous 13,318 224,000 224,000 13,491 Subtotal Expenditures - Operating $94,698,737 $109,321,048 $112,383,274 $102,007,918 Operating Impact (REV-EXP)$39,769,637 $18,946,255 $21,617,365 $36,214,304 Transfer Outs & Contributions to Other Funds Transfers Out (CIPs) - Com./Assig. Reserve 3,720,645 1,695,229 31,106,948 5,460,000 Transfers Out (CIPs) - Undesignated 601,971 3,401,794 20,506,267 3,320,135 Transfers Out (CIPs) - Reimbursable 2,335,687 1,888,264 Contribution to ISF & Other 2,000,000 2,000,000 2,000,000 2,000,000 Subtotal - Transfers Out & Contributions $6,322,616 $7,097,023 $55,948,902 $12,668,399 Total Expenditures $101,021,353 $116,418,071 $168,332,176 $114,676,318 GF Impact (Include CIP & Transfers) $40,696,344 $11,849,232 ($34,331,537) $35,041,845 TOTAL GENERAL FUND BALANCE $290,432,952 $302,282,184 $256,101,415 $325,474,797 Attachment 3 403 Fiscal Year 2024-25 4th Quarter Financial Review and Additional Special Designation of General Fund Reserves November 4, 2025 404 General Fund (GF) Overview •Revenues = $138.2 Million •$4.2 Million over budget •$3.8 Million over prior year •Expenditures = $102.0 Million •$10.3 Million under budget •$7.3 Million over Prior Year •Transfers Out = $12.7 Million Table 1: General Fund Summary FY 2023-24 FY 2024-25 405 GF Revenue Summary Revenues –$4.2 Million over budget •Property Tax (+$0.6 Million) •Assessed Value (AV) increase of $1.02 Billion (4.6%) •2% Consumer Price Index adjustment •Supplement and Prior Period Property Tax higher than budgeted •Sales Tax (-$1.4 Million) •Economic Uncertainty lowered projections $30.5 Million $28.5 Million •Actual revenue = $29.1 Million •Dublin Businesses resilient 406 GF Revenue Summary, 2 •Development Revenue (+$1.2 Million) •Accelerated Development •Dublin Center and Francis Ranch •Other Taxes (+$0.4 Million) •Increase in Electric Franchise Fee •Decrease in Property Transfer Taxes and Cable Franchise Fees •Interest Earnings (+$1.5 Million) •Rates (4.25%-4.50%) •Portfolio Market Yield Increase •Cash Balance 407 GF Revenue Summary, 3 •Charges for Services (+$1.2 Million) •Santa Rita •Recreation Programming (Aquatics/Sports) •Recreation Programming (Cultural Arts) •Other Revenue (+$0.5 Million) •Community Benefit Payment –Dublin Centre 408 GF Expenditure Summary Expenditures –$10.4 Million Under Budget •Salaries and Wages (-$1.6 Million) •Vacant Positions •Hiring Timing •Benefits (-$0.7 Million) •Vacant Positions •Services and Supplies (-$1.7 Million) •Lower insurance premiums •Lower costs for repairs and maintenance (vehicles/facilities) •Opioid Funds 409 GF Expenditure Summary, 2 •Utilities (-$0.7 Million) •Higher Rates Offset by Lower Utilization •Contracted Services (-$4.6 Million) •Building Maintenance •Dublin Arts Center opening •Finance investment savings •Capital Outlay (-$0.7 Million) •Fire Station Alerting System •Dublin Arts Center opening 410 Transfers Out •Total GF Transfers Out = $12.7 Million •Designated Reserves = $5.5 Million •Unassigned Reserves = $3.3 Million •CIPs –Reimbursable = $1.9 Million •Other (Pension/ISF) = $2.0 Million Amended 2024-25 Actuals 2024-25 Difference Transfers Out (CIPs) - Com./Assig. Reserve 31,106,948 5,460,000 (25,646,948) Transfers Out (CIPs) - Undesignated 20,506,267 3,320,135 (17,186,132) Transfers Out (CIPs) - Reimbursable 2,335,687 1,888,264 (447,423) Contribution to ISF & Other 2,000,000 2,000,000 - Subtotal - Transfers Out & Contributions $55,948,902 $12,668,399 ($43,280,502) 411 GF Reserves Recommendations -Based on Strategic Objectives •Downtown Public Improvement Reserve •Increase $8,885,798 –New Balance = $45.0 Million •Emergency Communication Reserve •Decrease $532,113 –New Balance = $0.0 Million •Remove Reserve •Contribution to Public Facility Fee Reserve •Increase $4.0 Million –New Balance = $10.0 Million 412 GF Reserves, 2 •Advance to Public Facility Fee Reserve •Increase $5.0 Million –New Balance = $5.0 Million •Dublin Boulevard Extension Advance •June increased $3,563,913 •Increase $8.0 Million –New Balance = $71,042,736 •Innovation & New Opportunity Reserve •Transfer $2,421,708 –New Balance = $3,316,206 •One-Time Initiative –Capital •Transfer $1,917,848 –New Balance = $0.0 Million •Remove Reserve 413 GF Reserves, 3 •One-Time Initiative –Operating •Transfer $503,860 –New Balance = $0.0 Million •Remove Reserve •Total Reserves = $325.4 Million •$50.5 Million Unassigned Cashflow Reserve •5.2 months of operating expenses •Policy calls for 2-4 months 414 GF Reserves, 4 •Reserve Updates •Name Change:Catastrophic Loss to Asset Contingency •Reserve Recategorization:Easier to understand/greater transparency 415 Staff Recommendations •Adopt the Authorizing Additional Special Designations of General Fund Reserves for Fiscal Year 2024-25 and confirm additional General Fund reserve designations as of June 30, 2025. 416