Final FY25 Adopted Budget

it is unlikely additional rate reductions will be possible in coming years, and rate increases could become necessary in response to the many competing financial stressors discussed throughout this transmittal letter.

General Fund Overview The General Fund, which includes services such as police, fire, parks and recreation, and general government, represents approximately one third of the total budget. General Fund operations are largely supported by property taxes, which constitute approximately 67% of the total revenue in this fund.

Miscellaneous 12% Other Financing Sources 1% FY2025 Revenues & Other Financing Sources excludes transfers

Charges for Fees & Services 2%

Licenses & Permits 4% Intergovernmental 7%

Use of Money & Property 2%

Property Taxes 67%

Other City Taxes 5%

Prioritization of General Fund expenditures is crucial considering annual salary and benefit growth (generally 3-5% annually), rising supply and material costs, and increased service demands due to a growing population. On the expense side, the Fiscal Year 2025 budget includes an increase of 4.50% in General Fund expenditures (excluding transfers) over the Fiscal Year 2024 Adopted. That increase was fueled by non-discretionary line items such as collectively bargained wages, mandated employment benefits and necessary insurance costs. Total FTE increased two from 647.7 to 649.7. Personnel expenditures increased 4.52% over Fiscal Year 2024. The overall increase in expenditures is reflective of supplies and services at current service levels costing more, rather than new expenditures being added. Contingency for Fiscal Year 2025 is 30.62% which is primarily an increase for anticipated staffing in a future fire station.

FY 2025 General Fund Expenditures by Category excludes transfers

Services 18% Contingency 2%

Personnel 75%

Supplies 3%

Capital Outlay 2%

22