HomeMy WebLinkAboutStaff Report 2403-2792CITY OF PALO ALTO
Finance Committee
Regular Meeting
Tuesday, June 04, 2024
Agenda Item
3.Accept the Fiscal Year 2024 Third Quarter Financial Status Report
Finance Committee
Staff Report
From: City Manager
Report Type: Action Item
Lead Department: Administrative Services
Meeting Date: June 4, 2024
Report #:2403-2792
TITLE
Accept the Fiscal Year 2024 Third Quarter Financial Status Report
RECOMMENDATION
This report transmits information regarding the City of Palo Alto’s Fiscal Year 2024 Third
Quarter Financial Status Report. No action other than acceptance by the Finance Committee is
recommended.
EXECUTIVE SUMMARY
The purpose of this report, provided quarterly, is to provide the City Council with information on
the financial status of the City’s General Fund and Enterprise Funds. This report is as of the end
of the Third (3rd) Quarter of Fiscal Year (FY) 2024 (July 1, 2023 through March 31, 2024). The
actuals are preliminary or unaudited balances.
The General Fund FY 2024 Adjusted Operating budget is $247.5 million estimate for revenue
sources (excluding Operating Transfers-in). Of this amount, $164.0 million has been collected
through the end of the 3rd quarter, which is 66.2% of the adjusted budget (compared to FY 2023,
revenues were 66.9% of the adjusted budget) and 9.2 % higher than the same quarter in prior
fiscal year and inline with expected levels estimated in the FY 2024 Adopted Budget. The FY 2024
Adjusted Budget reflects a 10.4% increase in estimated revenues from the prior year. Actual
major tax revenues are $97.5 million, which is 63.5%, from the $153.5 million adjusted budget.
The General Fund FY 2024 Adjusted Operating expenditures budget is $285.3 million (excluding
Operating Transfers-out). Of this amount, $180.0 million has been spent to date, which is 63.1%
of the Adjusted Budget and most notably, the spend is 23.4% higher than the same quarter in
prior year.
The General Fund 3rd Quarter Financial Report (Attachment A) contains a summary of major
General Fund revenues by source and expenditures by department and the comparison between
the FY 2024 Adopted Budget and Adjusted Budget. The Adjusted Budget column includes prior
year commitments that were carried forward into FY 2024 and the City Council approved
amendments to the FY 2024 Adopted Budget Year-to-Date (YTD). The Adjusted Budget - Revenue
and Sources (excluding Operating Transfers-in) includes a $10.4 million increase, a 4.4% increase
over the FY 2024 Adopted Budget. Expenses (excluding Operating Transfers-out) were also
adjusted from $245.9 million to $285.3 million, a 16.0% increase over the FY 2024 Adopted
Budget. This increase includes reappropriations, encumbrances, and budget amendments.
These changes can be viewed on City’s website1. Actual revenues and expenditures (including
encumbrances) are tracking at 66.2% and 69.7%, respectively, with the adjusted budget. As a
result of budget amendment actions taken in FY 2024, the Budget Stabilization Reserve (BSR) is
$57.0 million at the end of Q3. It is anticipated that at end of FY2024, BSR will stay at the same
Q3 level of $57.0 million.
The FY 2025 Proposed Budget continues the two-year budget balancing strategy from FY 2024.
FY 2025 reflects cautious optimism as inflation and other economic, global, and labor market
factors impact both the pace of revenue and expense growth. The FY 2025 Proposed Budget is
projected to have a $55.0 million BSR balance at year end, but this estimate has been reduced
tentatively to $54.0 million based on Finance Committee proceedings on May 21, 2024 at the
time this report was produced.
All Enterprise Funds ended the 3rd quarter with positive change in net position, totaling a $30.5
million increase, or 149.0%, higher than the same period of the prior fiscal year. The increase is
primarily from Electric and Wastewater Treatment Funds.
BACKGROUND
Staff provides quarterly financial reports to ensure visibility of the City’s financial status. Staff
provided the Mid-Year Budget Review2 to report the financial status of major funds and the
Capital Improvement Program as of the second quarter (Q2) of the current fiscal year and
recommended adjustments to the Adopted Budget in February 2024. This 3rd Quarter Financial
Report covers financial activity from July 1, 2023 to March 31, 2024 and compares those amounts
to the same period of the prior fiscal year and to the FY 2024 Adjusted Budget. This report serves
as a financial status and does not include budgetary adjustments; budgetary transactions
necessary to align FY 2024 activities with the FY 2025 balancing strategy will be brought forward
during year-end close.
1 Budget Adjustments and Monitoring
https://www.cityofpaloalto.org/Departments/Administrative-Services/Budget-Adjustments-and-Monitoring
2 City Council Special Meeting, February 12, 2024, Agenda Item 11, Staff Report# 2311-2233
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82690
In the discussion of the various major tax revenue categories below, staff indicates generally how
each category is trending compared to the adjusted budget from the FY 2024 Mid-Year Review.
ANALYSIS
General Fund
Revenue Highlights for FY 2024 3rd Quarter YTD
rd Quarter YTD, compared
to the same period of the prior fiscal year. Revenue for each period is expressed as a percentage
of the Adjusted Budget
Table 1: General Fund Revenue
R F I %F %F %
P $$1 $6 $6
C 2 7 2 3 7 3 8
S 2 3 1 3 5 3 6
T 1 1 1 2 6 2 6
U 1 (-1 6 1 8
P 7 2 4 1 6 9 4
D 4 1 3 5 7 7 4
B 2 -2 -2 1 -0
A 3 2 0 4 6 4 6
T $1 9 $6 $6
3 A
F
F
(
2
1
1
$
2
$
4
3
2
Property Tax
At the close of the 3rd quarter, property tax revenue receipts were $42.1 million, 65.3% of the
adjusted budget, and an increase of 13.5% over the same period in the prior fiscal year. Higher
assessed values driven by change in ownership was the primary reason for the increase. Property
tax is received from the County of Santa Clara during second, third, and fourth quarters of the
calendar year. The compound annual growth rate (CAGR) over the 10 years has been
approximately 8.2%. The FY 2024 secured property tax assessed value growth rate and
unsecured property tax assessed values (AV) growth rates are 5.98 % and 11.64 %, respectively,
with a combined rate of 6.23%.
At FY 2024 mid-year, the property tax budget was revised upward by $0.8 million to $64.6 million.
The County of Santa Clara’s Finance Agency and Office of the Assessor, the entities responsible
for managing the property tax billing, collection, and processing changes (e.g., sales, assessment
appeal, etc.) forecasts indicate the upward revised FY 2024 forecast of $64.6 million will be met
or exceeded. However, the Governor’s FY 2025 State budget proposal has the potential to
retroactively (in FY 2024) result in $0.6 loss in Excess ERAF that is not reflected in the above
forecast due to uncertainty of this actually materializing and if it impacts past fiscal year(s).
Excess Educational Revenue Augmentation Fund (ERAF) distributions from the County of Santa
Clara in fiscal years 2021, 2022, and 2023 receipts are $5.6 million, $6.6 million, and $6.4 million,
respectively. Approximately 22% of Excess ERAF is at-risk from fiscal years 2021 to 2024 and 20%
in FY 2025 due to the State Controller’s Office audit finding on Marin County Excess ERAF
calculation methodology that is applicable to the County of Santa Clara. The County of Santa
Clara has filed a lawsuit against the State Controller’s Office on this matter. As of June 30, 2023,
the total excess ERAF reserve balance totaled $4.1 million for the at-risk amounts for fiscal years
2021 to 2023. The updated FY 2024 forecast assumes $1.5 million for additional reserve for
Excess ERAF for a potential loss from the State audit as recommended by the County.
In addition, another 8% of Excess ERAF is also at risk in FY 2024 due to the Governor’s FY 2025
budget proposed legislation allocating ERAF to charter schools, potentially reversing the recent
appellate decision the County and State Controller’s Office obtained holding the charter school
do not get Excess ERAF. The at-risk amount increases to 9% in FY 2025.
As of the third quarter, sales tax revenue is $21.7 million, 57.2% of the adjusted budget, and a
$0.4 million increase, or 1.8%, from the same period last fiscal year. Inflation is still elevated
during this quarter but declining, while consumer spending is experiencing a slowdown but
remains strong. Due to the timing of the California Department Tax and Fee Administration
(CDTFA) sales tax collection and distribution, third quarter sales tax represents seven months of
sales tax activity and does not represent sales tax activity for the full three quarters of the fiscal
year. However, as of writing of this report, the eight month’s sales tax receipt results in an
increase of $0.6 million or 2.6% over the prior year for the same period. Actual performance for
this fiscal year will not be known until August/September.
At FY 2024 mid-year, this revenue was revised upward by $1.6 million to $37.9 million or 4.5%
based on conservative estimate, and the projected outlook by City’s sale’s tax consultant. Staff
expect that the actuals for the year will at or slightly higher than the $37.9 million adjusted
budget.
Transient Occupancy Tax (TOT)
rd quarter results represent 7.5 months of TOT receipts due to up to 2.5-
month timing delay in receipts. At FY 2024 mid-year, the budget was revised downward by $1.3
million to $25.5 million, a 4.8% decrease, based on the performance of the first quarter of the
current fiscal year. Of this amount, $13.4 million is anticipated to fund General Fund Expenses,
while $12.1 million will be transferred to the Capital Improvement Fund to fund 2014 Council
Infrastructure Plan capital projects and associated debt service costs. Staff continues to monitor
trends and, at the time of the forecast, conservatively estimate TOT levels based on recent trends
and the economic outlook. As of the writing of this report, receipts as of the third quarter or
March 2024 are 7.3% higher, average occupancy is 78.8%, an increase of 9.7%, and average daily
room rate is $251, a decrease of 7.7%, all from the same period last year. If the current trend
continues, receipts are likely to exceed the adjusted budget. However, on a monthly basis this
revenue source has been volatile so the degree of actuals being over adjusted budget remains
uncertain.
Permits, Licenses and Other Fees
rd quarter total $7.2 million, 68.9% of the adjusted
budget, an increase of $2.4 million or 49.2% compared to the prior year fiscal year. The increase
is primarily due to the surge in new construction permits and street cut fees. The new
construction permit revenues will be adjusted at year-end to defer a potion to FY 2025 for
permits that are in progress by June 30, 2024.
Documentary Transfer Tax
Business Tax
rd
quarter, while revenue collected totals $2.6 million. The tax is effective in January 2023, with the
rate through January 2025 being 50% or 3.75-cents per square foot per month. The full rate will
be assessed starting January 2025 at 7.5-cents per square foot per month. The tax has an annual
cap of $0.5 million per business and both the rate and the cap are increased by 2.5% annually
beginning FY 2027. While tax began January 1, 2023, the first due date is January 2024 for the
calendar year of 2023. After the initial first payment, filings shall be submitted on a quarterly
basis.
Expense Highlights for FY 2024 3rd Quarter YTD
Table 2: General Fund Expenditures
$4.6 million in regular salaries because of positions added and hired in FY 2024 and
general, merit and market adjustments.
$4.7 million in City’s pension contribution.
$0.7 million in medical, dental and vision expenses
E F F I %F %F %
P 4$3$3$1 5$7 4$7
F 3 3 4 1 4 7 4 7
C 2 2 7 3 4 6 3 5
P 1 1 1 9 2 6 2 6
P 1 1 3 2 3 5 2 5
L 8 6 1 2 1 6 1 6
A 7 7 5 7 1 6 9 7
A 2 1 1 7 6 4 6 2
T 1$1$3$2 2$6 2$5
F
(
3 A
$2.5 million pension contribution to Section 115 irrevocable Pension Trust which is
based on approximate lower discount rate of 5.3%.
Temporary salaries, overtime, and workers compensation are also trending higher due
to increase in salary rates and vacancies across departments.
In addition to salaries and benefits, the following department experienced material variances.
Community Services expenditures increased by $7.4 million compared to the same period in prior
year mainly due to salaries and benefits ($2.6 million increase) and contract services ($3.9 million
increase). Most contract services increases are as follows.
Landscape maintenance due to additional sites and services on weekends, increase in
required minimum staffing level and higher material, and labor cost;
Animal service provider cost; and
Golf course fee contract services are higher by $2.2 million because in prior fiscal year
July 2022 to March 2023 invoices were delayed until the 4th quarter. The variance of $2.2
million will be neutralized at year-end.
Public Works expenditures increased by $1.3 million, due to $0.7 million and $0.6 million increase
of salaries and benefits and contract services, respectively. The increase of contract services is
mainly due to higher janitorial service contact. This is caused by new wage and benefits
standards, and additional City facilities and service frequency at some facilities.
All Other Departments expenditures increased $11.9 million, or 77.9% compared to the same
quarter in the prior fiscal year. Majority of the increase is from Non-Departmental and Office of
Transportation, expending $11.5 million and $3.4 million, respectively.
Non-Departmental expenses increased by $8.4 million, or 273.9% compared from prior
fiscal year and is driven by the following:
Contract Services-legal fees increased by $1.4 million for settlement of Green v. City
of Palo Alto (Santa Clara Court Case No. 1-16-CV-300760)3. This is the first payment of
total legal fees of $4.3 million to be paid over 3 years.
Contract Services-outside services increased $0.7 million primarily due the Trusted
Response Urgent Support Team (Trust) Call Center Team Services program, launched
in April 2023.
General Expenses – payment of first set of refunds issued to active class members and
a lumpsum refund to inactive class members totaling $6.3 million resulting from the
3 Green v City of Palo is a class action lawsuit filed against the City in October 2016 that challenged the City’s gas
and electric rates under Proposition 26. The trial court rejected plaintiff’s challenges to the City electric rates but
found that gas rates constituted unapproved taxes in violation of article XIII C of the California Constitutions. In
December 2023, the court issued a final order approving the $17.3 million settlement which consists of a $12.9
million refund to class members, a $7,500 service award for the class representative, and $4.3 million in attorney’s
fees for plaintiff’s counsel.
Green v. City of Palo Alto (Santa Clara Superior Court, Case No. 1-16-CV-300760)
settlement3. Total customer refunds are $12.9 million to be paid over three years.
Office of Transportation increased by $1.5 million, or 118.8% from the same quarter in
the prior fiscal year primarily due the contract for Palo Alto Link, the City’s new on
demand shuttle program. Program started spring of FY 2023.
Police and Fire The total actual expenses for the Police and Fire Departments comprised
approximately 42.0% of total General Fund expenditures for the 3rd quarter. The following table
highlights Police and Fire salaries and overtime for the third quarter. Net overtime cost analysis
for the Police and Fire Departments can be found in Attachment B.
Table 3: Police and Fire Salaries and Overtime Expenditures
Police overtime is 19.6% higher than FY 2023 and represents 250.7% of the adjusted budget due
to backfilling vacancies and benefited leave of absences. The Police Department uses overtime
to fill staffing gaps due to vacancies, trainings, leave of absences, and provide resources to
infrequent increased demand such as major incidents. As of 3rd quarter of FY 2024, the
Department has a total of 12 vacancies, or 12% of 139 FTE: six police officer positions, three
dispatchers, two records staff, one community service officer. Another 6 FTE are unavailable to
work due to long-term injury and 8 FTE of filled positions are attending the police academy or
field training to become solo police officers. Most overtime is attributed to staffing police officer
positions. Although overtime is tracking higher and exceeded adjusted budget, overall, the
Department is trending within the budget for total salary and benefits and anticipates doing so
F
(
S F F %F %F %
P 1$1$1 2$6 1$6
P 2 2 1 1 2 1 2
T 1 1 1 2 7 2 7
F 1 1 1 1 6 1 7
F 2 2 5 2 1 3 7
T 1 1 1 2 7 1 7
T
S 3$2$1 4$7 3$7
3 A
through the remainder of FY 2024. The Department’s net overtime cost is $1.6 million after
deducting the reimbursements and salary savings due to vacancies. Analysis is included in
Attachment B.
Fire overtime is 5.0% higher than the same quarter in FY 2023 and represents 139.4% of the
adjusted budget. Overtime is generated from backfill for vacancies on shift. There are 23
positions required each day for fire engines and ambulances to be fully operational according to
the current deployment model. If there is a vacancy, the position must be backfilled for the
Engine or Ambulance to be operational. This vacancy can be due to unfilled positions (15 FTE as
of 3rd quarter), employee on injury, new hires who are in training and have not completed
probation, and on vacation or sick leave. Overtime will continue to be high as these vacancies
must be filled each day with overtime to maintain operation. Although overtime is tracking higher
and exceeded the adjusted budget, overall, the Department is trending within the budget for
total salary and benefits and anticipates doing so through the remainder of FY 2024. The
Department’s net overtime cost is $2.0 million after deducting the reimbursements and salary
savings due to vacancies. Analysis is included in Attachment B.
General Fund Budget Stabilization Reserve (BSR) Balance
As a result of budget amendment actions taken in FY 2024, including the FY 2024 Midyear Budget
Report4 the Budget Stabilization Reserve (BSR) was $57.0 million at the end of Q3, which is above
the City Council recommended 20% level of $53.9 million by $3.1 million. By policy, the City
maintains a BSR balance of 15-20% of the annual operating expense, with a target level of 18.5%.
However, in development of the FY 2024 budget, the Council adopted the BSR at the 20% level
to mitigate risk due to economic uncertainty. The FY 2025 Proposed Budget is projected to have
a $55.0 million BSR balance at year end, which is 18.8% of expenses and higher than the City
Council’s recommended target level of 18.5% by $1.0 million. The BSR level of $55.0 million
includes a recommendation to use $2.0 million from the BSR to increase the Uncertainty Reserve
to $4.7 million in FY 2025 to prepare for a forecasted shortfall of $9.7 million in FY 2026. FY 2025
and future fiscal year BSR balances are estimates and subject to revision based on Finance
Committee proceedings under way at the time this report was written.
4 City Council Special Meeting, February 12, 2024, Agenda Item 11, Staff Report# 2311-2233
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82690
Table 4: Enterprise Funds Change in Net Position
Water Fund increased $0.8 million, or 37.1%, from the prior fiscal year due to overall increase in
revenues partially offset by an increase in operating costs. Water revenues are higher for nine
months ended March 31 due to 5% rate increase effective July 1, 2023, and higher consumption.
Service connection fees are also higher during this fiscal year mainly due to two major customers.
The increase in operating costs is primarily from commodity purchases and salaries and benefits.
San Francisco Public Utilities Commission (SFPUC) commodity rate increased from $4.75 to $5.21
per cubic feet, a 9.7% increase.
Electric Fund increased $23.8 million, or 3,513.0% from prior fiscal year due to overall increase
in operating revenue and decrease in operating costs. The $20.1 million increase in operating
revenue is mainly driven by $11.2 million and $4.8 million increases from customer and resource
adequacy capacity sales, respectively. The $11.2 million increase in customer sales is due to the
net impact of 21% increase in base rate effective July 1, 2023, and deactivation of the Electric
Hydro Adjuster (E-HRA). There is also an increase in consumption in the current fiscal year. The
$2.7 million decrease in operating costs is due to $11.4 million decrease in commodity purchases
due to improved hydroelectric generation resulting from rainy winter of 2022/2023. However,
the decrease in purchase of utilities was offset mainly by increases in salaries and benefits and
contract services. Based on the current financials, this fund may end in a positive change in net
position which portion of this will replenish the nearly depleted hydroelectric stabilization
reserves, reducing the chance that City would need to activate the E-HRA in the next few years,
even if there is less snow and rain.
I
F F F (%
W 3$2$8$3
E 2 6 2 3
F 1 1 (-
G 4 5 (-
W 7 7 (-
W 1 4 5 1
R 3 3 (-
S 1 1 (-
A 2 5 1 3
T 5$2 3 1
F
3
(
Gas Fund decreased by $1.2 million, or 21.6%, from the same period prior fiscal year mainly due
to $0.9 million increase in equity transfer to the General Fund, and $0.4 million retirements of
gas meters due to incompatibility with the new advanced metering infrastructure or smart meter
endpoints. Overall, the operating revenue decrease of $20.1 million, was offset by a decrease in
operating expenses, $20.2 million. Revenue and operating expense decreases are related to the
lowered commodity prices compared to unprecedented spike in natural gas market price in prior
fiscal year wintertime, November 2022 to January 2023. The gas distribution rate increased 8%
effective July 1, 2023, but the system average rate decreased by 31.3% due to decrease in natural
gas market prices which are pass-through in nature.
Wastewater Treatment Fund increased $5.7 million, or 129.4%, from prior fiscal year mainly due
to a revenue increase from partners that is driven by increased capital activity for Joint
Intercepting Sewer Project and credits applied to partners in FY2023. Partner revenues are
determined by estimated cost of maintaining and operating the Regional Water Control Plant
and related system (Plant). Per addendum 12 of the Basic Agreement between the City of Palo
Alto, City of Mountain View, and City of Los Altos for the Acquisition, Construction and
Maintenance of a Joint Sewer System5 (Joint Intercepting Sewer Project), Mountain View and Los
Altos begun paying additional $2.3 million and $0.6 million, respectively for the Joint Intercepting
Sewer Project in 4th quarter, which was billed and sent to Partners in the 3rd quarter. Also, $2.7
million in credits were identified and applied to partners in FY2023, which lowered Q3 revenue
of FY2023. These credits are due to the amount billed to partners in FY2018-2022 for Secondary
Upgrade Upgrades (WQ-19001), and Primary Sedimentation Tank Rehabilitation (WQ-14002
before the California State Water Resource Control Board reimbursed the City in FY2023.
Airport Fund increased by $1.9 million, or 353%, primarily due to $1.6 million increase in grants
received from Federal Aviation Administration and State of California for various airport projects.
FISCAL/RESOURCE IMPACT
There are no financial impacts recommended in this report. Staff will return to Council as part of
the review of the FY 2024 Annual Comprehensive Financial Report with year-end budget
adjustments to recommend any adjustments needed to align budgets with actuals.
5 City Council, December 11, 2023, Agenda Item 2, Staff Report # 2308-1879
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82522
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
5/22/20244:53 PM
CITY OF PALO ALTO
GENERAL FUND FIRST QUARTER FINANCIAL REPORT
FISCAL YEAR ENDING JUNE 30, 2024
(in thousands)
BUDGET ACTUALS (as of 03/31/2024)
Adopted Adjusted Pre % of Adj
Categories Budget Budget Encumbr Encumbr Actual Budget*
Revenues & Other Sources
Sales Tax 36,272$ 37,887$ -$ -$ 21,669$ 57.2%
Property Tax 63,785 64,578 - - 42,149 65.3%
Transient Occupancy Tax 26,834 25,547 - - 16,443 64.4%
Documentary Transfer Tax 5,920 5,808 - - 4,228 72.8%
Utility Users Tax 18,457 19,674 - - 13,041 66.3%
Business Tax 1,660 2,451 2,620 106.9%
Other Taxes and Fines 1,757 1,757 - - 641 36.5%
Charges for Services 35,131 35,181 - - 26,423 75.1%
Permits & Licenses 10,151 10,402 - - 7,168 68.9%
Return on Investment 1,846 2,909 - - 1,861 64.0%
Rental Income 15,858 15,858 - - 12,181 76.8%
From Other Agencies 3,333 8,231 - - 2,961 36.0%
Charges To Other Funds 15,496 15,550 - - 11,796 75.9%
Other Revenues 636 1,713 - - 785 45.8%
Total Revenues 237,136 247,545 - - 163,967 66.2%
Operating Transfers-In 23,932 27,225 - - 20,419 75.0%
Encumbrances and Reappropriation 15,000 43,471 - - - 0.0%
Contribution from Development Services Reserves 1,084 1,084 - - - 0.0%
Total Sources of Funds 277,152$ 319,325$ -$ -$ 184,386$ 67.1%
Expenditures & Other Uses
City Attorney 4,668 5,287 15 758 3,274 76.6%
City Auditor 986 1,692 0 659 221 52.0%
City Clerk 1,491 1,641 50 150 802 61.1%
City Council 439 541 3 53 323 70.1%
City Manager 4,715 4,968 126 126 3,776 81.1%
Administrative Services 11,099 11,298 52 368 7,775 72.5%
Community Services 38,224 40,701 152 3,486 28,054 77.9%
Fire 46,761 47,529 84 576 35,545 76.2%
Human Resources 4,747 5,280 32 219 3,396 69.1%
Library 12,138 12,599 15 515 8,293 70.0%
Office of Emergency Services 1,576 1,981 82 213 944 62.5%
Office of Transporation 2,704 5,466 140 1,156 2,917 77.1%
Planning and Development Services 26,055 33,700 1,681 2,972 17,744 66.5%
Police 51,764 52,241 441 337 40,022 78.1%
Total Expenditures 245,928 285,323 3,032 15,818 180,043 69.7%
Total Use of Funds 279,508$ 322,753$ 3,032$ 15,818$ 208,116$ 70.3%
Net Change to BSR (2,356)$ (3,428)$ (23,730)$
ATTACHMENT A
Attachment D
2022 2023 2024 Q3
POLICE DEPARTMENT
Overtime Expense
Adopted Budget (A)$944,186 $972,512 $1,028,988
Modified Budget (B)1,244,186 972,512 1,028,988
Net Overtime Cost - see below 781,344 1,107,518 1,575,247
Variance to Budget 462,842 (135,006) (546,260)
Overtime Net Cost
Actual Expense $2,319,043 $2,940,019 $2,576,927
Less Reimbursements
Other Program Reimbursements - 878 259,747
California OES/FEMA (Strike Teams) - - -
Stanford Communications 107,684 124,868 76,900
Utilities Communications Reimbursement 56,004 64,599 43,794
Local Agencies (C)5,456 4,949 4,891
Police Service Fees 120,411 100,413 103,071
Total Reimbursements 289,556 295,707 488,403
Less Department Vacancies (A)1,248,143 1,536,794 513,277
Net Overtime Cost $781,344 $1,107,518 $1,575,247
Department Vacancies (number of days)3,903 4,876 1,577
Workers' Compensation Cases 11 23 21
Department Disabilities (number of days)1,221 739 381
FIRE DEPARTMENT
Overtime Expense
Adopted Budget (D)$1,931,121 $2,124,054 $2,146,234
Modified Budget (E)2,703,621 3,801,054 2,146,234
Net Overtime Cost - see below 4,073,011 1,740,750 1,961,648
Variance to Budget (1,369,390) 2,060,304 184,586
Overtime Net Cost
Actual Expense $4,684,796 $3,589,198 $2,990,514
Less Reimbursements
California OES/FEMA (Strike Teams) - 341,629 -
Total Reimbursements - 341,629 -
Less Department Vacancies (D)611,784 1,506,819 1,028,865
Net Overtime Cost $4,073,011 $1,740,750 $1,961,648
Department Vacancies (number of days)1,717 4,105 1,752
Workers' Compensation Cases 35 32 8
Department Disabilities (number of days)947 484 274
NOTES:
(A)The FY 2024 Police Department budget was increased by 1.0 Court Liaison Officer, 1.0 Administrative Associate, 2.0 Public Safety
Dispatchers, and 2.0 Police Officers.
(B)Police Department adopted budget has not been adjusted in FY 2024.
(C)Includes Animal Control Services contract with Los Altos and Los Altos Hills.
(D)The FY 2024 Fire Department budget was increased by 2.0 Fire Inspectors.
(E)The Fire Department adopted budget has not been adjusted in FY 2024.
Public Safety Departments
Overtime Analysis for Fiscal Years 2022 through 2024