Agenda Date: 05/21/2024
Subject:
Title
2024 Mid-year Budget Update
Body
From:
James L. Becklenberg, City Manager
Prepared by:
Tiffany Hooten, Finance Director
Presentations:
James L. Becklenberg, City Manager
Tiffany Hooten, Finance Director
PURPOSE:
Staff will be providing an update on the 2024 Budget which sets the stage for the preparation of the 2025 Budget and long-term financial planning.
LONG-TERM OUTCOME(S) SERVED:
High Quality Governance
DISCUSSION:
At the May 14, 2024 council study session, an overview of the strategic plan was shared with city council. The strategic plan is a guiding document for the long-range vision for the city. This plan links the comprehensive plan, Envision Littleton, and the annual budget cycle. This plan plays a pivotal role in informing the city's annual budget cycle.
As city leadership begins the 2025 budget cycle, staff would like to provide an update on 2024 budget trends as well as the unaudited results of the 2023 fiscal year. These two years are the foundation of the development of the 2025 budget and budget philosophy. By providing an understanding of what, if any, funds are available for the ensuing budget year, staff can align those resources with strategic initiatives and further ensure resources are optimally allocated.
2023 Results
In reviewing 2023 results (unaudited) and excluding the one-time Rocket booster contribution and expenditures, General Fund revenues were higher than in 2022 by $2.9M or 5.6%. Expenditures were higher than 2022 by $4.9M or 9.8%. The ending Fund balance was $21.8M.
While the change in fund balance for 2023 was higher than estimated, a key trend that initially presented itself mid-year 2023 was a slight decline in retail sales tax. It was initially thought to be inconsistent fluctuations in sales tax revenues and would correct itself in 2023; however, this decline continued through the end of 2023. The estimated 2023 retail sales tax revenues were $41.2M and the actual 2023 reta...
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