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HomeMy WebLinkAboutStaff Report 2402-2681CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, May 13, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     3.FY 2025 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion   City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Administrative Services Meeting Date: May 13, 2024 Report #:2402-2681 TITLE FY 2025 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion RECOMMENDATION This study session is intended to facilitate next steps in the FY 2025 Budget process. Facilitation of a forum for Finance Committee to discuss with the City Council the status of FY 2025 budget review in preparation for the Committee’s budget wrap-up work on May 21, 2024. Staff recommends that the City Council: • Review the current proposed budget adjustments to the Fiscal Year 2025 Proposed Operating and Capital Budgets and Municipal Fee Schedule in alignment with the work completed by the Finance Committee on May 7, and 8, 2024; • Review the areas of focus for the City Council as identified by the Finance Committee and staff; and •Provide feedback to the Finance Committee on any areas of focus or additional deliberations to review as part of the Budget Wrap-up Meeting scheduled for May 21, 2024. ANALYSIS Due to the meeting schedules, this memorandum precedes the Finance Committee review of the FY 2024 Proposed Operating and Capital Budgets and Municipal Fee Schedule, scheduled for May 7 and 8. Staff will a provide a Supplemental Memo prior to May 13th as necessary and as time permits to support a discussion on the Finance Committee proposed adjustments to the FY 2025 budgets and/or Municipal Fee schedule. FY 2025 Budget documents are referenced below: - FY 2025 City Manager Proposed Budget Transmittal Letter - FY 2025 Proposed Operating Budget - FY 2025 Proposed CIP Budget - Budget Transmittal to City Council (May 6, 2024) – Agenda Report - Finance Committee Review of Proposed Budgets (May 7 and May 8, 2024) Agenda Report - Finance Committee Review of Proposed Municipal Fee (May 8, 2024) Agenda Report As new materials are released during the Finance Committee review, all materials can be found on www.cityofpaloalto.org/budget FISCAL/RESOURCE IMPACT This report is a study session for the City Council to review the Finance Committee’s analysis and tentatively recommended changes to the FY 2025 Proposed Budget. No financial impacts will occur as a result of this report; however, recommendations from this study session will inform the Finance Committee’s final recommendations for adjustments to the FY 2025 Proposed Budgets to the City Council for adoption on June 17, 2024. STAKEHOLDER ENGAGEMENT On May 15, 2024, the City will conduct a virtual Budget Informational Session with community members to share information about the FY 2025 budget process and receive input from the community for the City Council to consider regarding priorities and service needs. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. APPROVED BY: Kiely Nose, Assistant City Manager