Rolling Hills finance director presents preliminary FY 2024–25 year‑end; council receives and files report

City staff on Oct. 13 presented preliminary, unaudited year‑end results for the fiscal year ending June 30, 2025, and the City Council voted to receive and file the report.

The presentation, led by Robert Samaria, summarized general‑fund performance and highlighted three drivers: (1) slower property‑tax growth, (2) weaker building‑related revenues and (3) higher-than-budgeted charges from Los Angeles County building and inspection services. “These aren't audited numbers,” Samaria said, noting the final audit is pending, but added the figures are close enough to draw conclusions.

Why it matters: The general fund is the city’s primary operating fund. Small changes in property‑tax growth or unexpected costs can affect reserves and how much the council can program for one‑time projects.

Key numbers and findings presented by staff: - Total general‑fund revenues were slightly ahead of the adopted budget (the staff memo indicated an adopted revenue budget near $2.6 million). Samaria said the city finished the year with a small favorable variance in aggregate revenues. - Property‑tax growth ended the year at 3.5% over the prior year, the lowest rate in recent non‑COVID years, which staff attributed in part to low resale activity and fewer reassessments under Proposition 13. - Real property transfer tax receipts fell to about $43,000 for the year, the lowest in several years. - Building permit and inspection revenues were budgeted at $400,000 but realized about $349,000; the city also experienced higher charges billed by Los Angeles County for building and inspection services. Samaria said the net effect produced an approximately $200,000 swing compared with prior years and produced an unusual pattern of invoices rather than net receipts. - On the expenditure side, total operations ended the year around $168,000 over budget; Samaria attributed most of that variance to increased county service charges and unbudgeted legal costs related to land‑movement claims and CPUC matters. - CalPERS unfunded‑liability movements also affected the report. Samaria explained that investment losses in a prior year increased the city’s unfunded liability and that the city’s annual payment tied to that liability increased to roughly $76,000 for the year. - The city’s audited reserves at the start of the year were $4,679,000. If the building‑revenue issues remain unresolved, staff estimated a year‑end consumption of reserves and an available discretionary balance of roughly $720,000 after setting policy reserves.

Staff told the council they have supplied supporting statements and invoices to Los Angeles County public‑works staff and are awaiting a detailed response to reconcile the apparent discrepancy in building collections versus billed charges. Council members urged staff to press the county for clarification.

The council moved to receive and file the preliminary report by a voice vote. Staff emphasized the numbers are preliminary and that the final audited results could change modestly when the audit is complete.

Ending: Staff said they will continue to pursue reconciliation with the county, complete the audit and return to council if material changes appear in the final audited numbers.