City manager's FY2025 budget highlights schools, salaries and no fee increases

Lisa Saprano, director of Budget and Evaluation, presented the city manager's recommended FY2025 operating budget on April 11, describing a $1.142 billion total request with a $624 million general fund that funds core services and priorities.

Saprano said roughly 47% of the general fund's spending (about $300 million) will pay salaries and benefits, including fully funded pension contributions. The city's contribution to schools is proposed at $123 million, a $3.5 million increase from the current year and about twice the state's required local effort. Debt service is budgeted at about $45 million.

Saprano told council and the public the budget was built on the current real estate tax rate of $1.118 per $100 of assessed value and that the proposal includes no new rates or fee increases for real estate, waterworks, sewer or trash. She also said the city manager included elements of employee compensation, including a 3% general wage adjustment effective July 1 for eligible employees and a midyear January adjustment targeted for fire and police positions.

The presentation framed the proposal around four constraints: pandemic-era supply-chain impacts, ongoing inflation, uncertain future economic conditions, and the need to balance expenditures with sustainable revenues. Saprano said other operating expenses beyond salaries, pensions and schools amount to roughly $162 million.

Why it matters: the recommended budget sets Council's baseline for deliberation and funds life-safety services, schools and city operations without adding new rates or fees. Council will consider adjustments in upcoming work sessions and may adopt a budget after further review.

Council scheduled an additional work session on April 23 to continue deliberations. No final appropriations were adopted at the April 11 hearing.