Joint Special Council/BFPD
06/20/22 07:00 PM
Finance
Marc Puckett
Budget
Doc ID: 5059
COUNCIL RESOLUTION
AGENDA MATTER:
CONSIDERATION OF APPROVAL OF THE FISCAL YEAR 2022-2023 PROPOSED OPERATING AND
CAPITAL IMPROVEMENT BUDGET
EXECUTIVE SUMMARY:
Under the direction of the City Manager/Board Manager, staff have worked diligently to develop an Operating and Capital Improvement Budget for the City and an Operating Budget for the Fire District.
These proposed budgets recommended for your adoption represent the spending plans for the City and BFPD for Fiscal Year 2022-2023.
On June 2, 2022, the City Council/District Board held a Budget Study Session and reviewed the Proposed Operating and Capital Improvement Budget for Fiscal Year 2022-2023. At this meeting, together with subsequent one-on-one meetings as requested, the Council/Board determined that their questions were sufficiently answered and determined that additional budget workshops were not necessary. Following the Budget Study Session, staff presented the Fiscal Year 2022-2023 Proposed Budget at a Community Budget Hearing held on June 14.
The Proposed Operating and Capital Improvement Budget for Fiscal Year 2022-2023 includes proposed appropriations for all funds with budgetary activity. This includes the General Fund and its sub-funds, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Proprietary Funds, and Fiduciary Funds.
DISCUSSION:
Proposed Operating and Capital Improvement Budget
The Fiscal Year 2022-2023 Proposed Operating and Capital Improvement Budget for the City and the Fire District totals $144,117,447. Estimated Revenues on an all funds basis is estimated at $149,147,255. The proposed Operating Budget equals $45,291,782 which is an increase of $2,361,823 or 5.50% from the current 2021-2022 adopted budget. The proposed Capital Improvement Budget is projected at $45,217,872 and includes $39,671,054 for initiation of construction of the new First Avenue Overhead Bridge over the BNSF railyard.
The combined General Fund is projected to reflect a net decrease in fund balance during Fiscal Year 2022-2023 due to a utilization of $308,240 of fund balance to balance the proposed budget. Key financial data has been excerpted from the proposed budget and presented below for both estimated revenues and appropriations for select funds and sub-funds as is detailed in the tables below.
General Fund Summary
The proposed budget for 2022-2023 includes the utilization of total projected resources of $23,678,140.
The operating appropriations are estimated at $23,678,140. The proposed General Fund budget is balanced as presented and it is estimated that the General Fund will reflect some increase in fund balance as of the end of June, 2022. The breakdown of the proposed budget for both estimated revenues and appropriations is shown in the table below.
Joint Special Council/BFPD
06/20/22 07:00 PM
Finance
Marc Puckett
Budget
Doc ID: 5059
COUNCIL RESOLUTION
Fiscal Year Estimated Revenues Appropriations
2022-2023 $23,678,140 ($23,678,140)
General Fund (Measure Q sub-fund summary)
General Fund revenues received from Measure Q for Fiscal Year 2022-2023 are estimated to be approximately $9,000,000. General Fund appropriations funded by Measure Q are proposed at $9,054,325. Proposed appropriations related to Measure Q have been reduced by $3,000,000 from appropriation levels outlined in the proposed budget reviewed at the City Council Study Session. This decrease relates to a reduction in funding allocated to the First Street Bridge as a local match. Much of the $3,000,000 related to aesthetic design elements included in the bridge construction for a concrete mural design on the bridge and decorative lighting as well as other decorative elements that were valued engineered out of the costs of construction. As proposed currently, no design elements for aesthetic purposes remain within the pricing for the bridge construction.
Fiscal Year Estimated Revenues Appropriations
2022-23 $9,000,000 ($9,054,325)
Fire District
The proposed FY2022-2023 operating budget for the Barstow Fire Protection District fund is $6,216,506.
The firefighters are also funded through the General Fund 103 sub-fund (Measure Q – Fire). Funding through this source totals $4,464,802. The total funding allocated to the firefighters and firefighting is $10,681,308, an increase of 92.7% since Measure Q passed in November, 2018. Also, staffing within the Fire District increased 40% (from 20 to 28 firefighters) after the passage of Measure Q in November, 2018. The Fire District’s proposed budget includes $5,464,802 or 60.7% of all Measure Q revenues received. Together with the Police department, 75% of Measure Q revenues are allocated directly to Public Safety purposes. The Fire District budget also includes additional funding from Measure Q to fund a deficit reduction payment of $359,444 to begin reducing the accumulated fund deficit of $5,049,330.
The proposed budget for the Fire District is detailed in the table below.
FY 23 Proposed Funding Estimated Revenues Appropriations Gen. Fd. MQ sub-fund 103 $4,464,802 ($4,464,802)
BFPD fund 225* $6,575,950 ($6,216,506)
Total Appropriation Request $11,040,752 ($10,681,308)
*Revenues for BFPD fund 225 include an additional $1,500,000 in Measure Q funding not included in the $4,464,802 total funding provided from the General Fund sub-fund Measure Q – Fire.
Wastewater
The proposed annual operating and capital improvement budget for Wastewater activities includes estimated revenues of $6,423,800 and an appropriation request of $5,740,052 for fiscal year 2022-2023.
As currently projected, budgetary activities in the Wastewater Fund will result in an increase in net position of $684,000 for Fiscal Year 2022-2023. Wastewater System Improvements included in the proposed Fiscal Year 2022-2023 Capital Improvement Program amount to $512,349. The proposed budget for the Wastewater Fund is as follows in the table below.
Fiscal Year Estimated Revenues Appropriations
2022-23 $6,423,800 ($5,740,052)
Joint Special Council/BFPD
06/20/22 07:00 PM
Finance
Marc Puckett
Budget
Doc ID: 5059
COUNCIL RESOLUTION
Solid Waste
The proposed annual operating and capital improvement budget for Solid Waste activities includes estimated revenues of $4,786,990 and an appropriation request of $5,097,758 for fiscal year 2022-2023.
As currently projected, the budgetary activities in the Solid Waste Fund will result in a net reduction in net position of $311,000 for Fiscal Year 2022-2023. The proposed budget for the Solid Waste Fund is as follows in the table below.
Fiscal Year Estimated Revenues Appropriations
2022-23 $4,786,990 ($5,097,758)
Capital Projects Fund
The Capital Project Fund includes multiyear and large scale projects funded by various funding sources and funds. These resources are both restricted and unrestricted in nature. The Capital Projects Fund estimated revenues amount to $45,247,242 and appropriation requests of $45,217,872. The seven-year Capital Improvement Program is included in the proposed budget together with a summary of Fiscal Year 2022-2023 CIP projects listed by funding source. Also, for each project included in the CIP program, a project summary page has been included which identifies the project description, funding source(s) and the estimated project timeline. Although CIP projects are approved as part of the City’s overall Capital Improvement Program, each project is subsequently submitted to City Council for approval (per guidelines within the Purchasing Policy) prior to construction of the project.
Fiscal Year Estimated Revenues Appropriations
2022-23 $45,247,242 ($45,217,872)
The Fiscal Year 2022-2023 proposed budget reflects austerity measures that staff has implemented over the past year to control and reduce spending. The Fiscal Year 2022-2023 proposed budget is presented in a new format and represents implementation of a “best practices” approach to continual improvement of the transparency, readability, and understandability of the budget document where practicable. The proposed budget document is presented in conformity with professional standards and the Distinguished Budget Presentation Award program requirements promulgated by the Government Finance Officers Association (GFOA).
FISCAL IMPACT:
RECOMMENDED ACTION:
Staff recommends that the City Council and Barstow Fire Protection District Board take the following actions:
1. That City Council approve the Fiscal Year 2022-2023 Proposed Operating and Capital Improvement Budget for the City in the amount of $141,117,447 and adopt the attached joint resolution No.______, approving the Proposed Budget (Attachment 1) as submitted less adjustments as noted above, excluding the Barstow Fire Protection District Budget – Fund 225, and waive the full reading.
2. That the Fire Protection District Board approve and adopt a preliminary budget for the Barstow Fire Protection District in the amount $6,216,506 and adopt the attached joint resolution No.______, approving and adopting the preliminary Budget as submitted (Attachment 1) less adjustments as noted above pursuant to Health & Safety Code Section 13893(a)(1) and waive full reading.