Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
FEBRUARY 14, 2024
Subject
SUBJECT: FISCAL YEAR 2025 BUDGET DEVELOPMENT STATUS UPDATE
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the Fiscal Year 2025 (FY25) Budget Development Status Update.
Issue
ISSUE
This continues the monthly updates to the Board on the FY25 Budget development process. This report sets up the economic context for the upcoming fiscal year with the forecast of sales tax revenues and other resources, cost inflation, and other financial risks. A comprehensive and transparent public outreach program runs concurrently during the budget development process to maximize public input and ensure that Metro's stakeholders have an active role.
Metro will focus on aligning to a common set of strategic imperatives and priorities, working collaboratively across their respective departments to maximize funding availability by program.
Background
BACKGROUND
Revenues set the framework for what we are working with for FY25. Metro's primary revenue source is sales tax, and current economic conditions are signaling slowing sales tax growth in the upcoming fiscal year. Federal stimulus funding from the last few years has helped Metro's resources by stimulating consumer spending and providing essential funding for transit operations. However, those funds have now been exhausted.
The first step of the FY25 Equitable Zero-Based Budget (EZBB) process is to establish the assumptions surrounding sales tax, operating and other revenues, grant reimbursement, bond proceeds, as well as prior year carryover. These assumptions help gauge the FY25 funds available for eligible projects and programs.
Discussion
DISCUSSION
Metro is committed to maximizing the use of revenues for all programs, based on each of the ordinances that govern the eligibility and use of funds. However, the most critical step is to develop accurate projections of sales tax revenues.
Sales Tax Reven...
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