Joint Special Council/BFPD
02/21/23 07:00 PM
Finance
Heidy Riley
Budget
Doc ID: 5288
AGENDA ITEM
AGENDA MATTER:
FISCAL YEAR 2022/23 MID-YEAR BUDGET STATUS REPORT & PROPOSED BUDGET
ADJUSTMENTS
EXECUTIVE SUMMARY:
Finance staff initiated meetings with departmental managers to review actual revenues and expenditures through January 2023 to compare budgetary performance with fiscal year 2022/23 budgeted appropriations. Based upon this analysis, the fiscal year 2022/23 mid-year budget review has been prepared together with the attached proposed budget adjustments (Exhibit A), which are presented for the City Council’s consideration and approval.
In conjunction with the mid-year budget review, staff has examined all Capital Improvement Projects (CIP) and capital equipment requests to determine if any appropriation adjustments were necessary, either through budget carry forwards or through new appropriation requests. The requested adjustments to the CIP or to capital equipment requests are attached (Exhibit B) for the City Council’s consideration and approval.
Staff continually monitors and reviews budgetary performance and will continue to do so through the end of the current fiscal year and in conjunction with year-end close. Staff brings forward budget adjustments from time-to-time as necessary to ensure the City's spending plan remains current.
DISCUSSION:
BUDGET OVERVIEW
General Fund:
As part of staff's mid-year analysis, finance staff met with department and division managers to review their budgetary performance for each area of responsibility. Based upon that review, the requested budget adjustments and carryforwards, which are included as part of the budget status overview, the General Fund is estimated to end the fiscal year with a budget surplus of $4,947,000 on a combined basis as per the FY 2022/23 adopted budget.
General Fund Revenues - Fund 100
The General Fund’s revenue estimates for fiscal year 2022/23, which includes adjustments, if any, approved by City Council from July 2022 through January 2023, were estimated at $21,511,151. Based upon the staff's analysis of the revenue estimates, including updated economic forecasts, staff is projecting that estimated revenues should be increased by $4,112,679 in total. Sales Tax revenue estimates are projected to increase by $250,000. An increase to the franchise fees received from Solid Waste and Wastewater are estimated to come in at $225,000 higher than originally budgeted. Additionally, Transient Occupancy Tax (TOT) revenues are estimated to modestly increase by $5,000. A transfer of funds is proposed from the American Rescue Plan Act (ARPA) in the amount of $3,640,755 for eligible revenue replacement due to the pandemic. Proposed revenue adjustments for all other revenue line items total a decrease of $8,076 on a combined basis (Attachment A).
Joint Special Council/BFPD
02/21/23 07:00 PM
Finance
Heidy Riley
Budget
Doc ID: 5288
AGENDA ITEM
Revenue projections remain conservative. Other revenues budgeted in FY 2022/23, such as fees associated with cannabis businesses and from the Intergovernmental Service Agreement (IGSA) for solid waste services are being decreased due to the anticipated timing of receipt of such revenues. Further changes in revenue projections, if needed, will be included as part of the yearend budget clean-up resolution which will be brought back to the City Council for consideration in June 2023.
General Fund Expenditures - Fund 100
The adopted fiscal year 2022/23 General Fund operating budget, plus Council approved budget adjustments from July 2022 to January 2023, amounts total appropriations in the amount of $21,819,391. Based upon the budget review conducted by finance staff, in coordination with department and division managers from all departments, actual expenditures are tracking fairly well to projected spending levels. Year-to-date expenditures total $11,976,711, which amounts to approximately 56% of the adopted budget through January 2023; however, additional appropriations are proposed within the General Fund totaling $2,238,542 as part of the mid-year budget adjustment. These proposed adjustments are necessary primarily due to payment of wage increases that were approved by the City Council in November 2022, as well as approval to hire additional staffing needed for implementation of cannabis and rental inspection programs and additional appropriations for public safety overtime.
General Fund-Measure Q - Fund 102 & 103 (Fire)
Fiscal Year 2022/23 Measure Q sales tax revenues estimates are proposed to increase by $500,000. Although estimated revenues have exhibited favorable budgetary variances, expenditures are expected to slightly outpace budgeted appropriations necessitating proposed appropriation adjustments totaling $617,162.
Barstow Fire Protection District (BFPD) - Fund 225
Barstow Fire Protection District Revenues - Fund 225
The BFPD’s current fiscal year budget projects revenues of $6,575,950, with actual revenues received of $3,865,558 through January 2023. Property tax revenues collections appear to be in line with the original revenue estimates of 4,964,950 for FY 2022/23, with $3,156,016 received through January 2023. Other revenues received totaling $709,542 comprised of impact fees, cell tower leases, sale of equipment, and strike team reimbursements. An increase to the overtime appropriation in the amount of $450,000 is requested to cover the anticipated overtime costs through the end of the fiscal year per budget analysis.
FISCAL IMPACT:
The net budgetary adjustments in estimated revenues and appropriations in the General Fund results in an estimated excess of revenues over expenditures of $1,781,495 at year end on a combined basis.
RECOMMENDED ACTION:
1. Staff recommends that the City Council / Fire Board approve the budget adjustments and related transfers within the Budget Adjustments contained within the "Exhibit A” as discussed herein.
Joint Special Council/BFPD
02/21/23 07:00 PM
Finance
Heidy Riley
Budget
Doc ID: 5288
AGENDA ITEM
2. Staff recommends that the City Council / Fire Board approve the Capital Improvement Plan (CIP), Capital Equipment, and Special Revenue budget adjustments and carryforwards, and related transfers in conjunction with the aforementioned budget adjustments and carryforward budgets, contained in "Exhibit B" of this staff report.