TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Adoption of the FY 2025 City of Salem budget
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Natural Environment Stewardship; Safe and Healthy Community; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community.
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SUMMARY:
summary
The City of Salem budget for fiscal year (FY) 2025 is required to be adopted by Oregon budget law prior to July 1, 2024. Adoption of this resolution will allow authorized spending in the coming fiscal year.
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ISSUE:
Shall City Council adopt Resolution No. 2024-31 to adopt the FY 2025 City of Salem budget?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2024-31 to adopt the FY 2025 City of Salem budget.
body
FACTS AND FINDINGS:
Resolution No. 2024-31 and Exhibit A (Attachments 1 and 2) establish a total expenditure budget of $732,548,570 as represented in the display below.
Working capital: $374,392,740 Expenditures: $732,548,570
Unappropriated
Revenues: $556,481,380 Ending Fund Balance: $198,325,550
Total Resources: $930,874,120 Total Requirements: $930,874,120
The City of Salem FY 2025 City Council Amendments Summary (Attachment 3) provides a financial summary of budget changes following the Budget Committee’s recommendation on May 8, 2024, including Council actions and carryovers from the FY 2024 budget.
Rebudgeted Purchase Orders and Reappropriated Expenditures
Each year, the City reviews and carries over budget authority from one fiscal year to the next for some supplies, equipment, or services. Carryovers occur for purchases or projects that are started but will not be completed before the end of FY 2024 and additional expenditure authority is needed to pay for those purchases or projects in FY 2025. City Council authorized budget appropriation for these outstanding purchases as part of the FY 2024 budget. A detailed list of carryover items for the General Fund totaling $284,800 is shown in Attachment 4. Carryover items for all other City funds totaling $3,743,860 are shown in Attachment 5. These amendments were reviewed and remain within the 10 percent limit for changes to the Budget Committee’s recommendation for each affected City fund as prescribed in Oregon budget law.
Working Capital
For the FY 2025 budget, the additional working capital for reappropriated purchase orders, projects, and items is considered restricted because of the addition of equivalent expense. With the approval of the carryover requests, General Fund working capital will increase from the Budget Committee recommended amount of $32,436,340 to $32,721,140.
Additional Budget Adjustments
The City Council approved the allocation of opioid settlement dollars at their meeting on May 28, 2024. An amendment has been included in the final City budget to reflect this discussion.
1. Add $189,340 of expense to the General Fund budget, including a 1.0 FTE youth and young adult coordinator position to focus on preventing youth substance use and building awareness within the community. Add $189,340 interfund transfer revenue in the General Fund to reimburse for the additional expense.
2. Reduce the materials and services budget and increase the interfund transfers budget by $189,340 in the opioid settlement trust fund cost center to reimburse the General Fund for eligible expenses.
During their deliberations, the Budget Committee recommended City Council implement a $9 per month increase to parking permits in downtown parkades and also increased FY 2025 budgeted revenue in the Downtown Parking Fund by $79,000. City Council adopted the FY 2025 Fee Schedule on June 10, 2024, without this increase. A reduction to Downtown Parking Fund revenue in the amount of $79,000 is included in the FY 2025 final budget since the increase was not approved.
Staff was informed this month that a $180,000 donation would be received over a two-year period from Friends of Center 50+ to support a limited duration volunteer coordinator at Center 50+. This program coordinator would be the main point of contact for volunteers and would create a smooth process to make the Center more efficient in the use of volunteers. Seniors continue to be one of the largest volunteer contributors in Salem and this position will help expand the size of the volunteer workforce, as more help will be needed in the future.
1. Add $90,000 to the FY 2025 General Fund budget for the cost of the position with offsetting revenue added of $90,000 from the Center 50+ trust fund.
2. Add $90,000 of both donation revenue and expense in the Center 50+ trust fund to complete the transfer to the General Fund.
BACKGROUND:
The Budget Committee reviewed the City budget this spring and recommended a budget to City Council on May 8, 2024. City Council made no adjustments to the recommended FY 2025 budget at their meeting and the public hearing on June 10, 2024.
Kali Leinenbach
Budget Manager
Attachments:
1. Resolution No. 2024-31
2. Resolution No. 2024-31, Exhibit A
3. City of Salem FY 2025 City Council Amendments Summary
4. City of Salem FY 2024 Carryovers for the FY 2025 Budget, General Fund
5. City of Salem FY 2024 Carryovers for the FY 2025 Budget, All Other City Funds
6. Written Testimony