HomeMy WebLinkAbout5/20/2025 Item 6c, Jackson - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: May 20, 2025
TO: Mayor and Council
FROM: Emily Jackson, Finance Director
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 6c – FY 2024-25 Q3 BUDGET REPORT
Staff received the following question, regarding the FY 2024-25 Third Quarter Budget
Report. The question is below with staff’s response shown in italics:
1) On page 38, where the Water Fund is discussed, the following table shows
“Other Revenues” have been received at 1215%. There is some description
below the table, describing that this is related to permits, fees, and penalties.
However, could you further explain how they come to be so far over
projections?
The “Other Revenues” category appears significantly over projections due to how
budgeted and actual revenues for Development Impact Fees are structured.
Development impact fees are budgeted for and received into their own designated
fund (509). However, annually funding for eligible projects is transferred to the
Water Fund (601) after the annual AB 1600 review and reporting process. Because
the Water Fund reflects the actual transfer amount, but does not carry the
corresponding budget, it creates the appearance of a large over realization. During
FY 2024-25, the Utilities Department budgeted $800,000 in Fund 509 for
anticipated development impact fees. Excluding the “Transfers In” amount during
FY 2024-25, YTD actuals for the remaining “Other Revenue” categories total
$281,401, compared to a budget of $240,694 (117%). These revenues include
those for other city licenses and permits (recycled water construction water
permits), miscellaneous penalties (customer late fees), sales of surplus property,
credit collections, development review fees, utilities set-up fees, and low-income
subsidies (the customer assistance program).