TO: Honorable Mayor and Members of the City Council
FROM: Rose Tam, Director of Finance
DATE: March 6, 2024
SUBJECT: Fiscal Year 2023-24 Mid-Year Budget Review
SUMMARY
The purpose of this report is to provide the City Council with the mid-year budget performance and a projection for the remainder of the fiscal year.
RECOMMENDATION
It is recommended that the City Council:
1. Review the mid-year analysis and approve the mid-year revenue and expenditure projections for the fiscal year ending June 30, 2024, and
2. Authorize the Director of Finance to complete all necessary budget amendments and appropriations.
FISCAL IMPACT
Based on the projections, the total General Fund revenues will be $39,101,544 and expenditures will be $37,325,184. The General Fund revenue exceeds expenditures resulting in an estimated surplus of $1,776,360.
The General Fund revenue is projected to increase by $2,569,056 from the original adopted budget and expenditures to increase by $899,607. The total Special Revenue and Other Funds revenues will be $87,009,924 and expenditures will be $104,916,909 which includes all capital improvement projects and ARPA funded projects through June 30, 2024.
BACKGROUND
A mid-year budget review is a tool that provides the City Council and staff with an opportunity to review the status of the current budget and determine if any mid-course adjustments are necessary. Additionally, the City’s Fiscal Accountability Policy states that a mid-year budget review is to be prepared by staff and presented to the City Council. The mid-year budget report estimates the revenues, expenditures, and projected fund balances at the end of the fiscal year ending June 30, 2024.
The original adopted General Fund revenues were $36,532,488 and are revised to $39,101,544. Based on betterthan-expected revenues received as of January 2024, we project the total revenues will increase by $2,569,056.
One of the large increases in revenues is from a one-time contract modification fee in the amount of $1M from Waste Management. The other increases are mainly from property tax in lieu of VLF, sales tax, SB 211 pass through, franchise tax, utility users tax, interest earnings from investment, design review fees, and Recreation fees.
Measure BP was approved by Baldwin Park voters in the November 2022 General Election. Revenue from it started on April 1, 2023. We have projected $6 million in revenue from Measure BP for the 23/24 Fiscal Year.
While revenue remittances from the California Department of Tax and Fee Administration (CDTFA) have yet to normalize in a stable pattern, we believe that we will meet the projected revenue of $6million for this fiscal year.
The original adopted General Fund expenditures were $36,425,577 and are revised to $37,325,184 with an increase of $899,607. The increases in expenditures are mainly due to cost increase from animal control service fees, utilities, and maintenance and repairs.
The Executive Team and City staff will continue to proactively monitor and control expenditures and strive to seek additional revenues. We remain committed to supporting the City Council as we collaboratively work towards enhancing the future prospects of both the citizens and business owners of Baldwin Park.
LEGAL REVIEW
None Required.
ATTACHMENTS
1. Fiscal Year 2023-2024 Projected Fund Balance at June 30, 2024 (including projected revenues and expenditures)
Projected 2024 2024 2024 2024 Projected
Fund Balance Projected Projected Projected Projected Fund Balance Fund Fund Description 06/30/2023 Revenues Transfers In Expenditures Transfers Out 06/30/2024 General Fund:
100 General Fund 42,077,020 38,587,544 514,000 36,611,692 713,492 43,853,379 200 Future Development Fund 5,746,673 44,360 - 2,470,793 - 3,320,240 210 Community Enhancement Fund 538,938 100,000 - 107,500 - 531,438 Subtotal - General Fund 48,362,631 $ 38,731,904 $ 514,000 $ 39,189,985 $ 713,492 $ 47,705,057 $ Internal Services Funds:
401 Information and Support Services 776,146 832,658 - 1,296,673 - 312,132 402 Fleet Services 944,768 549,304 - 1,493,742 - 331
403 Internal Insurance (7,787,886) 5,066,133 - 5,039,794 - (7,761,547) 404 Capital Equipment (3,791) - - - - (3,791)
Subtotal - Internal Services Funds (6,070,763) $ 6,448,095 $ - $ 7,830,208 $ - $ (7,452,876) $ Special (Restricted) Funds:
110 Measure BP Sales Tax (TUT) 1,735,186 6,000,000 - - - 7,735,186 205 Federal Asset Forfeiture 140,147 - - 57,043 - 83,104 206 State Asset Forfeiture 56,068 - - 49,000 - 7,068
207 Local Law Enforcement Block Grant 15,648 - - - - 15,648 208 Law Enforcement Development Impact 80,449 20,600 - 25,000 - 76,049 209 AB74 Public Safety Enhancement 153,883 - - 50,000 - 103,883 220 Community Development Block Grant 294,555 1,990,274 - 1,980,163 - 304,666 221 H.O.M.E. (Home Investment Partnership Program) 6,914,655 3,319,758 - 3,309,119 - 6,925,295 222 CAL Home 159,447 100 - - - 159,547
223 Economic Development Act Revolving Loan - - - - - - 230 AB1693 Business Improvement Fees 39,150 135,200 - 152,125 - 22,225 231 Air Quality Management (103,624) 188,000 - 197,548 - (113,172) 232 Residential Development Fee 4 - - - - 4
233 Economic Development Grant 554 - - - - 554
234 Park Fees (Quimby Act) 2,820,992 205,000 - 2,267,031 - 758,961 235 General Plan Fees 721,749 162,000 30,382 535,612 - 378,519 236 Public Art Fees 256,190 33,000 - 36,000 - 253,190
237 Cannabis Mitigation Fee (19,225) 450,000 - 206,000 244,000 (19,225) 240 Gasoline Tax (249,968) 2,036,726 - 2,029,458 - (242,700) 241 Surface Transportation Program 936,752 - - 989,000 - (52,248) 242 Traffic Congestion Relief - - - - - -
243 Bicycle and Pedestrian Safety 15 82,901 - - - 82,916 244 Proposition A 599,436 2,264,186 - 2,223,617 - 640,006 245 Proposition C 1,168,684 1,708,584 - 2,770,335 - 106,934 246 AB939 Integrated Waste Management 49,573 643,000 - 628,923 - 63,651 247 Oil Recycling Grant (3,724) 10,000 - 17,468 - (11,192) 249 Storm Drains NPDS 83,389 175,100 - 173,415 - 85,074 250 Assessment District 404,523 14,630 - - - 419,153
251 Street Lighting and Landscape 671,347 1,792,200 - 2,461,043 - 2,504 252 Parks Maintenance Assessment District (308) 868,800 125,147 1,019,947 - (26,308) 253 Proposition A - Parks - 60 - - - 60
254 Measure R Local Return 1,335,915 1,280,938 - 2,540,344 - 76,509 255 Measure M 508,207 1,446,797 854,742 1,850,035 592,169 367,542 256 SB1 Road Repair & Accountability 1,759,769 1,789,266 - 3,535,511 - 13,524 257 Traffic Mitigation Fees (9,621) 1,600 - - - (8,021) 258 Measure W 2,390,940 12,975,690 - 10,521,866 - 4,844,764 259 Measure H 110,250 - - - - 110,250
260 Summer Lunch Program - - - - - -
270 Grants Fund (5,701,183) 25,063,500 - 23,106,833 30,382 (3,774,897) 271 Police Grants Fund 14,641 570,017 - 568,817 - 15,840 275 American Rescue Plan Act 15,867,100 10,000 - 14,245,489 270,000 1,361,611 278 Measure W Grant - - - - - -
280 Cooperative Agreements Contributions 31,475 15,000 - 15,000 - 31,475 301 Building Reserve 10,213 - - - - 10,213
450 BPROUD Utility District 356,349 - - 51,000 - 305,349 Subtotal Special Funds 33,599,603 $ 65,252,927 $ 1,010,270 $ 77,612,740 $ 1,136,550 $ 21,113,509 $ TOTAL GENERAL, INTERNAL SERV., & SPECIAL FUNDS: $ 110,432,926 75,891,470 $ 1,524,270 $ 124,632,933 $ 1,850,043 $ 61,365,691 $ City of Baldwin Park
Fiscal Year 2023-2024 Projected Fund Balance at June 30, 2024 (Includes Midyear Adjustments) Attachment 1
Projected 2024 2024 2024 2024 Projected
Fund Balance Projected Projected Projected Projected Fund Balance Fund Fund Description 06/30/2023 Revenues Transfers In Expenditures Transfers Out 06/30/2024 Financing Authority Funds:
601 Debt Service 36,393 - - - - 36,393
610 COP Lease Payment - - 588,346 588,346 - -
625 Gas Tax Debt Service (0) - - - - (0)
635 BPFA/PM 2003 Tax Alloc 33,104 - - - - 33,104
637 BPFA/CBD 1990 Refunding Loan 143 - - - - 143
650 Pension Obligation Bond 3,355 - - - - 3,355
651 Pension Obligation Bond 2019 191,917 3,844,972 - 3,844,972 - 191,917 660 Measure M Rev Bond 3,725,348 - 592,169 592,169 854,742 2,870,607 Subtotal Financing Authority Funds 3,990,261 $ 3,844,972 $ 1,180,514 $ 5,025,487 $ 854,742 $ 3,135,519 $ Successor Agency Funds:
800 RDA Obligation Retirement - $ - $ - $ - $ - $ - $
Capital Projects
806 Sierra Vista Capital Prj 1,851,424 - 107,043 107,043 - 1,851,424 Subtotal Capital Projects 1,851,424 $ - $ 107,043 $ 107,043 $ - $ 1,851,424 $ Debt Service
838 BP Merged 2000 Refinance (347,335) 1,090,263 - 973,414 107,043 (337,529) Subtotal Debt Service (347,335) $ 1,090,263 $ - $ 973,414 $ 107,043 $ (337,529) $ Low/Mod Housing
890 Low/Mod Income Housing 11,323,821 272,399 - 910,565 - 10,685,655 Subtotal Low/Mod Housing 11,323,821 $ 272,399 $ - $ 910,565 $ - $ 10,685,655 $ TOTAL SUCCESSOR AGENCY FUNDS: $ 1,362,662 12,827,910 $ 107,043 $ 1,991,022 $ 107,043 $ 12,199,549 $ Housing Authority:
901 Housing Voucher Choice 213,141 7,269,524 - 7,532,643 - (49,978) 902 Housing Authority American Rescue Plan Act (9,434) 249,133 - 30,930 - 208,769 905 Public Housing 392,710 78,774 30,825 186,427 - 315,882 910 CIAP - 30,825 - - 30,825 -
Subtotal Housing Authority Funds 596,417 $ 7,628,256 $ 30,825 $ 7,750,000 $ 30,825 $ 474,673 $ COMBINED GRAND TOTAL - ALL FUNDS 93,306,057 $ 123,268,816 $ 2,842,652 $ 139,399,441 $ 2,842,652 $ 77,175,432 $ Attachment 1 (Continued)