At a special meeting on Tuesday, June 25, the City Council unanimously adopted a City budget for fiscal year 2024-25 that maintains current levels of service from all City departments. The new fiscal year begins on July 1.

The adopted 2024-25 budget calls for general fund expenses of approximately $21 million, offset by revenues of approximately $20 million.

An increase in the cost of the City's insurance and a decrease in projected sales tax revenue are primarily responsible for the deficit, which will be covered by a one-time use of funds in excess of reserves. Risk management will be a top priority in FY 2024-25 as the City endeavors to lower its insurance costs in the future.

Additional revenues and cost savings are expected to be generated over the course of the year through a cost and revenue efficiency (CARE) initiative led by City administration.

In a separate action, the Council voted to increase general fund reserves from 15% to 25% to serve as a buffer against future economic downturns. The City's self-insured retention (SIR, similar to a deductible) for insurance claims has also gone up, creating uncertainty that the increased reserves will help to manage.

Any questions about the City's 2024-25 budget can be directed to Finance Director Chad Hess at chess@sausalito.gov.

Fiscal year 2023-24 is expected to close with a projected surplus of $500,000 over the budgeted amount.