These budgetary practices, coupled with the City’s Financial Reserves Policy, have served the City well for many years, and will continue to be a contributing factor to continuing the pathway to excellence in the coming year. The proposed FY 2024-2025 budget is operationally balanced. This budget funds the following capital projects: • La Paz Road Mobility Enhancements and Permanent Repair; • Alicia Parkway Regional Traffic Signal Synchronization Project; • EV Charging Stations; • Sports Field Synthetic Turf Replacement Program at La Paz Sports Park; and, • Residential Annual Resurfacing Program These projects will be primarily funded through Special Revenue Funds, including grants, Gas Tax, and Measure M2. The FY 2024-2025 budget includes over $5.3 million in grant funded capital projects, representing over 52% of total budget capital expenditures for the year. It is proposed that $0.9 million from the General Fund Infrastructure reserve be used for the emergency capital infrastructure repairs to La Paz Road in FY 2024-2025. FISCAL OVERVIEW FY 2024-25 Total Revenue The proposed FY 2024-2025 budget estimates revenue from all funds, including transfers in, to be $80.6 million. The breakdown of total revenue for FY 2024-25 is shown in the table below. Total Budget Revenue FY 2024-2025 Revenue Revenue (All Funds) $70.8 million Transfers In $9.8 million TOTAL REVENUE $80.6 million The proposed FY 2024-25 total revenue is a $12.8 million increase from the previous year’s adopted budget. This increase is predominantly due to additional grant funds received ($6.4 million higher) and higher transfers in, to fund capital projects ($2.9 million higher). This budget does include an increase to General Fund revenues of $2.7 million, primarily due to a $2.0 million increase in property taxes. These revenue projections are conservative and are in-line with the City’s fiscal principles. iii