FY 2022-23
Proposed Budget Update
City Council Meeting
Tuesday, May 17, 2022
Budget Development
Budget preparation began in January
Preliminary General Fund discussion with Council April 5th Finance Subcommittee Proposed Budget discussion May 12th Council Proposed Budget and KPI discussion today
Recommended Budget for Council Adoption on June 21st
Property Tax Allocations
Sales Tax Allocation
Key Revenue Assumptions
Property Tax (3.8% increase)
Sales Tax (1.2% increase after FY 2022 revision)
Transient Occupancy Tax (2.6% increase)
Cardroom, Business License, TBID (6.4% increase)
Other estimates weighted as four year average or average dollar growth year-over-year Investments (LAIF 0.3% with other at 1.3%)
Key Expenditure Assumptions
Salaries & Benefits - $8.8M(33.6% of total - 9.2% YTY increase) Police Services - $7.7M(29.3% of total - 6.1% YTY increase) Debt Service - $134K(1.2% decrease)
Internal Service Fund Support - $1.9M(18.3% increase)
Total Increase of 6.5% to $26.1M
General Fund Position Requests
Public Works (Engineering Technician) $112.2K
Parks & Recreation (Rec Coordinator + PT) $321.5K
Police (Lieutenant – January 2023) $158.5K
Total $592.2K
Internal Service Fund Support Changes
Buildings & Maintenance ($196K)
Fleet $246K
Information Technology $323K
Legal $93K
Total $466K
General Fund FY 2022-23
Proposed Budget Estimate-To-Date
General Fund Revenues $25.1M
General Fund Expenditures $26.1M
General Fund Net Income ($1.0M)
Estimated unassigned fund balance expected to be approximately $2.3M at the end of FY 2022-23
Preliminary Expectations
FY 2022-23 Estimated Net Loss ($1.0M)
FY 2021-22 Estimated Unassigned Fund Balance $2.2M
Estimated variance from Final Budget FY 2021-22 $500K Average variance from Adopted Budget FY 2022-23 $750K Funding reserves FY 2022-23 (Contingency) ($163K)
Estimated June 30, 2023 Unassigned Fund Balance $2.3M
General Fund Reserve (“Savings Account”)
Adopted Expected Estimated Estimated
2021-22 2021-22 2022-23 Change
Unassigned FB $2.2M $2.7M $2.3M $100K
Expected reserves at FYE:
Contingency reserve funding – 3% of General Fund Salaries or $136k Capital projects reserve at $2M target
Economic development reserve at $1M target
Increase to reserves is NOT an expenditure, but does reduce the amount of Unassigned Fund Balance
QUESTIONS?
Special Revenue Funds
$5.5M EDA Grant for Green Island Road
$1.0M OBAG 3 for Green Island Road
$1.0M State Transportation Improvement Program
Funding primarily expended for Capital Improvements
Capital Projects Funds
Green Island Road ($14M total - $3.5M in FY 2022-23)
ARPA Projects ($9.0M using $4.4M ARPA)
New CIP Projects
Capital Project Funding Analysis
Governmental Business*
FY 2020-21 Depreciation $4.3M $3.1M
FY 2022-23 Budget $17.7M $4.4M
FY 2023-24 CIP $24.1M $370K
FY 2024-25 CIP $19.3M $505K
FY 2025-26 CIP $13.6M $550K
FY 2026-27 CIP $87.3M $650K
*Does not include new Engie Project for Wastewater
Enterprise
Debt Service Funds
Boys & Girls Club gymnasium paid in full in FY 2021-22
Engie loan debt service
City Hall debt service
Only Governmental debts
Business-Type debts are in Enterprise and ISF Funds
Water Enterprise
Current rate structure through 2023
Rate study in progress
New CIP projects
Continued drought water purchases
Wastewater Enterprise
CPI increase
Rate study in progress
Structural imbalance
Recycled Water Enterprise
Established in FY 2020-21
No uniform rate structure
Rate study in progress
Ramping up operations to help offset impact of drought on the Water Enterprise Currently experiencing annual deficits
No personnel allocations to date
Internal Service Funds
ISFs should breakeven over time (Unrestricted Net Position) Net Position allowable for planned asset replacement or purchase Large increase due to change in budgeting methods
Also increase due to covering expected FY 2021-22 negative net positions
Looking towards the Future
Development activity in the City remains robust
Continued interest rate hikes forecasted by Federal Reserve Bank into 2023 (currently 1.0% - target 2.5%) Continued inflationary pressures (expected to subside)
Slower economic growth expected in FY 2022-23
Continued economic uncertainty
QUESTIONS?
Key Performance Indicators
Key performance indicators (KPIs) refer to a set of quantifiable measurements used to gauge overall long-term performance KPIs specifically help determine strategic, financial, and operational achievements
The following Strategic Objectives were affirmed during the City Council’s January 29, 2021 Strategic Plan Workshop:
Ensure American Canyon Remains a Safe Community
Build on the strength of our local community to develop a clear ‘sense of place’ and establish our unique identity.
Attract and expand diverse business and employment opportunities.
Expand Opportunities for use of outdoor recreation and an active and healthy lifestyle.
Improve the transportation network within the city to alleviate congestion and enhance the quality of life for the community.
Develop and maintain infrastructure resources to support sustainable growth.
Deliver exemplary government services.
Key Performance Indicators
QUESTIONS?