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ORANGE COUNTY ABC BOARD—AGENDA FORM <br /> i <br /> Meeting Date: June 17, 2025 Agenda Item#8 <br /> Regular Session X <br /> Closed Session <br /> Presenter/Information Contact: Ron McCoy <br /> Subject: Year-End Budget Amendment for Fiscal Year 2025 <br /> Attachment(s): <br /> 1. Attachment"A"Year-End Budget Amendment FY 2025 <br /> 2. Attachment`B"Revised Annual Budget/Worksheet for Fiscal Year 2025 <br /> I <br /> Brief Summary/Explanations: <br /> Six months of declining sales revenues have had a significant impact on the FY 2025 operational budget. <br /> The year-end budget amendment accounts for a sharp decrease in sales, savings in allocated payroll <br /> funds, a decrease and reallocation of funds held for operating expenses, an increase in interest income <br /> and an increase in capital expenditures. <br /> Budget Amendment(Attachment"A"): <br /> The following revisions to the annual budget for fiscal year 2025 are recommended for the <br /> Board's consideration and approval based on examination of the budget at year-end. <br /> i <br /> Section 1 <br /> Based on year-end projections, total budgeted retail store sales revenues have been decreased <br /> substantially, -$1,505,985 (4.73%). This adjustment will affect the change in net position/working <br /> capital retained by the same amount. <br /> i <br /> Section 2 <br /> The decline in sales,however,resulted in a decrease in sales-related expenses. Projected tax <br /> expenses have been decreased-$355,785 while cost of goods have been decreased by-629,905 for a <br /> total savings of 5.99%. Therefore,the change in net position has been increased by$985,690. j <br /> I <br /> Section 3 <br /> With the implementation of living wage/competitive marketplace adjustments in the previous <br /> calendar year, anticipated payroll expenses were increased to meet unprecedented effects on the <br /> budget. The surplus in allocated funds coupled with recent cost-saving controls (healthcare savings, <br /> strict scheduling management)has led to lower than projected payroll expenses. For the year-end j <br /> amendment,payroll expenses have been decreased by-9.71%,leading to a net increase of$424,255 in <br /> working capital/change in net position. <br /> Page 1 of 5 pages <br />