DATE: October 9, 2024
TO: PPACG Board of Directors
FROM: Carol McBroom, Finance Director
THROUGH: Andrew Gunning, PPACG Executive Director
SUBJECT: FY 2025 Pikes Peak area council of governments draft budget
ACTION REQUESTED: Review & Recommend
SUMMARY
PPACG is presenting the proposed PPACG FY 2025 draft budget. Attachment 1 contains the Fiscal Year (FY) 2025 Budget Details document which provides information on the major revenue and expenditure categories.
The proposed FY 2025 Budget revenues and expenditures table is provided in Attachment 2 through 4. Noteworthy aspects for FY 2025 include:
- Revenues decreased $2.3M over FY2024. Area Agency on Aging’s revenues dropped by $2 million due to the depletion of ARPA funding. The Military Planning budget dropped $1M due to program project changes. The Transportation Planning budget increased overall by $460,000 which includes $309,000 in state funding allocated to cover the match requirement for the FY25 contract.
- Member Dues increased 1.9%, ($10,051), over FY2024.
- Three draft budgets are included for the board to review. They are total wage package increases of 3%, 4% and 5%. The wage and benefit calculation also includes the anticipated increase in benefit costs.
- FTEs by department: Admin-9, AAA-17, Military-2, Environmental-1, Transportation-10, PPRTA-2. Full-time employees budgeted at 41, same as FY2024.
| Proposed Wage Package Increase | Total Proposed 2025 Wage Package Expense | Increase over FY24 | Percentage of Total 2025 Draft Budget |
|---|---|---|---|
| 3% | $4,708,393 | $119,226 | 41.10% |
| 4% | $4,749,142 | $159,975 | 41.40% |
| 5% | $4,789,890 | $200,723 | 41.80% |
RECOMMENDATION
PPACG staff recommends that the Board of Directors discuss and provide direction on the draft 2025 Budget and approval if the Board is ready to proceed.
PREVIOUS BOARD ACTION
The Board of Directors has reviewed and approved the PPACG budget process and has officially adopted the budget every year since its inception.
FINANCIAL IMPLICATIONS
The FY 2025 Budget Worksheet is provided as Attachment 2 through 4. These worksheets document the proposed revenues and expenses of Pikes Peak Area Council of Governments by program area.
STAKEHOLDER PROCESS
The following steps have been approved by the Board for the development of the Pikes Peak Area Council of Governments annual budget.
- At the August Board meeting a discussion and direction by the Board will take place to determine the dues level. The representatives of the member governments then notify their financial managers of the proposed member dues for the coming year.
- At the October Board meeting, the Finance Director submits to the Pikes Peak Area Council of Governments Board of Directors a budget packet for the fiscal year commencing the following January. Part of the packet is a proposed operating budget that includes proposed expenditures and the means to finance them.
- No later than December 31, the budget is officially adopted, and a resolution is signed by the Chairperson, Treasurer, and Executive Director.
Attachment(S)
- Proposed FY 2025 Budget Details including Proposed Dues Assessment Table for PPACG Member Governments
- Proposed FY 2025 Budget Worksheet with a 3.0% wage package increase.
- Proposed FY 2025 Budget Worksheet with a 4.0% wage package increase.
- Proposed FY 2025 Budget Worksheet with a 5.0% wage package increase.