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Home My WebLink About2024-05-21 Finance Committee Action MinutesFINANCE COMMITTEE ACTION MINUTES Page 1 of 3 Special Meeting May 21, 2024 The Finance Committee of the City of Palo Alto met on this date in the Community Meeting Room and by virtual teleconference at 1:02 PM. Present In Person: Burt (Chair), Lauing, Veenker Present Remotely: None Absent: None CALL TO ORDER ACTION ITEMS 1. Discussion on the Fiscal Year (FY) 2025 Budget Wrap-Up and Recommended FY 2025 Budget including the FY 2025 Municipal Fee Schedule for City Council Adoption MOTION: Council Member Veenker moved, seconded by Council Member Lauing to recommend to the City Council 1. Adoption of the FY 2025 Operating and Capital Budgets and Municipal Fee Schedule, amended by: a. The Table of Finance Committee Adjustments to the Budget, including the Staff technical adjustments b. Changes approved in the wrap-up discussion, including those shown in the below table (FY25 Subtotal Source: $3,154,000; FY25 Subtotal Use: $3,154,000) 2. Approve the FY 2025-2029 Capital Improvement Plan, amended by: a. Changes approved in the wrap-up discussion Dept Finance Committee Adjustments to Budget FY 2025 GF (cost)/savings or rev Ongoing Beginning Balance $ - $ - NON Increase Gas Transfer to General Fund in FY25 to 14.5% (from 11.9%) & in FY26 to 18% (previously scheduled in FY27) 2,000,000 900,000 ACTION MINUTES Page 2 of 3 Finance Committee Special Meeting Action Minutes: 5/21/2024 NON Use BSR to balance FY 2025 - Reduce BSR from 18.8% to 18.5% 606,000 - NON Use Uncertainty Reserve to Balance FY 2025 - - NON Increase JMZ ticket prices from $10 to $14, during peak periods 350,000 350,000 CSD Account for Los Altos & Los Altos Hills contribution for animal control services CMR#2403-2827 198,000 198,000 Subtotal Sources (Revenue) $ 3,154,000 $ 1,448,000 NON Other Post Employment Benefit (OPEB) (1,650,000) (3,300,000) CIP California Avenue Interim Improvements (450,000) - CIP Car-free Streetscape Design for Ramona Street (50,000) - CIP Additional funding for Roth Building Rehabilitation (PF- 23001) * (revise terms & conditions of tenant work letter) (300,000) - Organization request $1M partially offset with $0.2M interest earnings NON Establish a Citywide Special Events & Programming ($265k total program) * [Requested UNAFF $45k, 3rd Thursdays $40k, Neighbors Abroad $30k, Magical Bridge Programming & Events $150k, cultural events] (235,000) (235,000) NON Ability Path Matching Gift * - - NON Palo Alto Transportation Management Association (PATMA) increase to $400,000 * (200,000) (200,000) CSD Environmental Volunteers Foothills Nature Preserve Program * (11,000) - CSD Administrative Support for new Citywide Special Events & Programming (1 FTE) - (125,000) CSD JMZ additional staffing, new ticketing system and promotion $ (498,000) $ (665,000) FIR Upstaff Fire Engine 62 with 3 Sworn Staff instead of Overtime (60,000) (80,000) PWD Public Services Streets 311 Requests to support catch-up & keep-up (100,000) (100,000) UTL Sustainability Program Customer Service Support (1.0 FTE Electric Fund) - - ACTION MINUTES Page 3 of 3 Finance Committee Special Meeting Action Minutes: 5/21/2024 OOT Review an alternative service approach for PA Link with reduced net costs (proposed FY2025 budget funds $900,000) 400,000 400,000 CIP Study of artificial turf replacement with grass at up to 4 fields (recommend use of current CIP to fund a study) - - Subtotal Use (Expense) $ (3,154,000) $ (4,305,000) Potential Funds Remaining surplus/(deficit) $ - $(2,857,000) MOTION PASSED 3:0 2. Review Wastewater Treatment Fund Cashflow and Recommend to the City Council Authorization of the Negotiation and Execution of a Line of Credit MOTION: Council Member Lauing moved, seconded by Council Member Veenker to recommend that the City Council (1) Direct staff to pursue negotiating a line of credit, totaling $31 million, and (2) Authorize the City Manager or designee to negotiate and execute the line of credit MOTION PASSED: 3-0 ITEMS HEARD OUT OF ORDER. ITEM 3 HEARD BEFORE ITEM 2 3. Recommend the City Council Adopt the Fiscal Year 2025 Investment Policy; CEQA Status - Not a Project MOTION: Council Member Veenker moved, seconded by Council Member Lauing to recommend the City Council adopt the Fiscal Year 2025 Investment Policy. MOTION PASSED 3:0 Adjournment: The meeting was adjourned at 4:11 P.M.