The pathway that has led us to today was built by the pursuit of fiscal sustainability. This standard has resulted in a culture of sensible spending, deliberate savings, and successful financial management. The FY 2024-25 budget upholds this standard of excellence by maintaining a conservative approach to both revenue and expenditure projections, continuing the practice of saving for significant infrastructure projects and unforeseen emergencies, while continuing to not take on any debt. With a focus on exceptional public services and an intentional investment in infrastructure, the FY 2024-2025 Operating and Capital Improvement Budget is balanced at $65.3 million. This budget utilizes $0.9 million from the City’s General Fund Infrastructure reserves to fund the emergency capital repairs to La Paz Road, while also allocating an additional $1.3 million from the FY 2024- 25 operating surplus to the Capital Improvement Program. This budget also importantly commits an additional $1.1 million to increase the City’s infrastructure reserves so that additional infrastructure improvements can be achieved in the coming years. Overall, the purpose and focus of this budget is to efficiently and effectively: Carry out the goals and objectives identified in the adopted Strategic Plan; Provide the highest-quality services and programs to the community; Maintain and upgrade the City’s existing infrastructure; and, Complete the General Plan Update. BUDGET PHILOSOPHY & OBJECTIVES The budget philosophy and objectives are guided by the goals set by the City Council in the Strategic Plan. Specifically, the development of the annual City Operating Budget and Capital Improvement Program are guided by the following conservative financial practices and philosophies: Balanced General Fund revenues and operating expenditures; The General Fund budget includes an operating contingency reserve to cover unanticipated revenue losses, expenditure increases and mid-year budget adjustments; The General Fund budget also includes a capital contingency reserve for emergency capital infrastructure needs; If necessary, General Fund Reserves could be utilized for specific capital improvement projects and/or multi-year projects that do not have another funding source; and, To purposely save for and allocate funding for current and future capital and infrastructure projects and/or emergencies. ii