The fiscal year 2024-25 budget presented at the recent government meeting reveals a net excess of general fund revenues over operating appropriations amounting to $500,000. This surplus is primarily attributed to revenue generated by Measure L, contributing to an unassigned reserve of $8.6 million, which represents approximately 22.82% of the general fund operating appropriations. This figure is slightly below the city council's target reserve ratio of 25%.

The budget outlines total revenues of $72.9 million for the current year, an increase of $3.7 million from the revised prior year. Key revenue components include $33 million from combined property, sales, and use taxes, with specific estimates of $15.4 million from Bradley Burns sales tax and $11.1 million from Measure L transaction and use tax. However, the transaction and use tax revenue for Measure L has decreased by over $4 million due to shifts in online sales and their allocation to county pools.

The meeting also highlighted adjustments in various funds, including a $522,278 increase in taxes other than property, primarily from business licenses and utility users tax. Conversely, there are expected decreases in licenses and permits, fines, and charges for services, reflecting a broader trend of reduced revenue from building permits and parking citations.

Discussion among council members addressed the implications of these revenue changes, particularly the anticipated increases in the park development fund linked to ongoing housing projects in the city. Notably, the council confirmed that funds allocated for a parking structure are separate from those designated for park development.

Sales tax projections indicate a decline of 6.6% from the previous year, with a modest recovery of 4% anticipated for the upcoming fiscal year, which still leaves a net decrease of 2.6%. This trend underscores ongoing challenges in revenue generation as the city navigates its financial landscape.