Millbrae Council adopts FY24–25 midyear budget amendments, cites $700,000 surplus and one-time grants
Loading...
Summary
The Millbrae City Council on March 11 adopted midyear budget amendments increasing FY24–25 revenues to about $44.4 million and expenditures to about $43.8 million, citing one-time grants, a BLF property tax adjustment and modest staffing changes; vote 5-0.
The Millbrae City Council on March 11 adopted a midyear amendment to the FY24–25 budget, approving staff recommendations to increase revenues and expenditures to reflect one-time grants, reimbursements and an updated property‑tax allocation. The motion to amend the adopted budget passed 5-0.
Finance staff reported the adjustments raised budgeted general‑fund revenues from roughly $42.4 million to $44.4 million and budgeted expenditures from about $42.9 million to $43.8 million, leaving an approximate $700,000 positive variance for the fiscal year. City Manager Tom Williams and Director of Finance Mike Sung briefed the council on the revisions.
Key changes described at the hearing included an approximately $1.5 million increase in property‑tax receipts tied to the Basic Aid/BLF reconciliation, about $800,000 in one‑time grant and reimbursement revenues (for projects such as Bayside Manor work and eligible Caltrans reimbursements), and a recommended $70,000 increase for recreation fund operations tied to higher program demand.
On the expenditure side, staff recommended commensurate increases for public‑works and parks projects funded by grants and reimbursements, and a transfer out adjustment tied to a vehicle license fee. The council also approved two staffing‑related adjustments: a full‑time chief building official hire (estimated cost for 1.5 months in the current fiscal year about $30,000, all‑in) and a short contract for an additional part‑time code‑enforcement inspector (approximate three‑month cost $27,000). Staff said those hires will be offset by reductions in external contract costs in the Community Development Department and some cost recovery.
Council members asked about CalPERS unfunded‑liability impacts and the timing of property‑tax distributions. Sung said CalPERS employer costs will likely rise modestly in the coming year because a recent actuarial return (5.8%) lagged the discount rate; staff expect a temporary increase in pension costs followed by a partial moderation when recent higher returns are recognized.
Vice Mayor Holiver and other council members praised the city’s reserve posture; City Manager Williams said the adjustments leave the city “financially sound and healthy” with a balanced midyear budget. The motion to adopt the resolution amending the FY24–25 budget passed 5‑0.
Staff will return to the council with ongoing budget monitoring and to include the recurring cost of new staff in next year’s budget process.
