Joint Special Council/BFPD
06/20/23 05:30 PM
Finance
Heidy Riley
Budget
Doc ID: 5378
COUNCIL RESOLUTION
AGENDA MATTER:
CONSIDERATION OF APPROVAL OF THE FISCAL YEAR 2023/2024 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 2023/2024.
On June 8, 2023, the City Council/District Board held a Budget Study Session and reviewed the Proposed Operating and Capital Improvement Budget for Fiscal Year 2023/2024. At this meeting, the Council/Board determined that their questions were sufficiently answered and no additional budget workshops were scheduled.
The Proposed Operating and Capital Improvement Budget for Fiscal Year 2023/2024 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 2023/2024 Proposed Operating and Capital Improvement Budget for the City and the Fire District totals $64,536,466. Estimated Revenues on an all funds basis is estimated at $64,536,466.
The proposed Operating Budget equals $52,653,787 which is a decrease of $5,278,043 or 9.11% from the current 2022/2023 adopted budget. The proposed Capital Improvement Budget is projected at $2,468,171, a decrease of 89.06%. The large majority of this decrease is due to the construction phase of the First Avenue Bridge being managed by San Bernardino County Transit Authority (SBCTA) and construction-related invoices for the construction phase of the bridge project are not being processed through the City. Additionally, the Capital Improvement Budget does not include capital projects that will be crossing from FY 2022/2023 into FY 2023/2024. Carryforward amounts for these projects will be brought to the City Council for approval of carryforward amounts before the end of the calendar year.
The combined General Fund is projected to reflect a net decrease in fund balance estimated at just under $830,000 during Fiscal Year 2023/2024. 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 - 100
The proposed budget for 2023/2024 includes the utilization of total projected resources of $24,438,292, including an appropriation from fund balance in the amount of $1,884,452. The operating appropriations are estimated at $24,438,292. The proposed General Fund budget is balanced as presented and it is estimated that the General Fund will reflect a decrease in fund balance as of the end of June, 2023. The breakdown of the proposed budget for both estimated revenues and appropriations is shown in the table below.
Joint Special Council/BFPD
06/20/23 05:30 PM
Finance
Heidy Riley
Budget
Doc ID: 5378
COUNCIL RESOLUTION
Fiscal Year Estimated Revenues Appropriations
2023/2024 $24,438,292 ($24,438,292)
General Fund (Measure Q Sub-Fund Summary)
General Fund revenues received from Measure Q for Fiscal Year 2023/2024 are estimated to be approximately $9,600,000. General Fund appropriations funded by Measure Q are proposed at $8,994,579.
Fiscal Year Estimated Revenues Appropriations
2023/2024 $9,600,000 ($8,994,579)
Fire District
The proposed FY2023/2024 operating budget for the Barstow Fire Protection District fund is $6,674,407.
The Barstow Fire Protection District is also funded through the General Fund (Measure Q Sub Account 103 – Fire). Funding through this source totals $3,789,715. The total funding allocated to the firefighters and firefighting is $10,464,122 for FY 2023/2024. Additionally, $167,203 is expended from the Measure Q Sub Account 102 for payments related to the purchase of the new fire engine that was placed into service in FY 23, refurbishment of an existing engine in FY 22, and purchase of a hydraulic lift to service Fire Department apparatus in FY 22.
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 represents 42.1% of the estimated Measure Q revenues for FY 2023/2024. Together with the Police Department, 69.6% of estimated Measure Q revenues for FY 2023/2024 are allocated directly to Public Safety purposes. The proposed budget for the Fire District is detailed in the table that follows.
FY 24 Proposed Funding Estimated Revenues Appropriations Gen. Fund MQ Sub-Fund 103 $3,789,715 ($3,789,715)
BFPD Fund 225* $5,584,600 ($6,674,407)
Total Appropriation Request $9,374,315 ($10,464,122)
FY 2022/2023 included an additional $1,000,000 in Measure Q funding to reduce the further accumulation of fund deficit for the Barstow Fire Protection District which totals $4,317,392 as of current.
This does not include any amounts that will need to be recorded after the close of FY 23. The FY 2023/2024 estimate of revenues and expenditures for Measure Q, for both sub-accounts 102 and 103, currently does not allow for the $1,000,000 to be funded with the approval of the FY 2023/2024 budget; therefore, consideration of further funding to reduce the accumulation of the BFPD’s fund deficit will be further analyzed throughout the course of FY 24.
Special Revenue Funds
Special Revenue Funds are those funds which have restricted uses and for these reasons are accounted for in separate funds. The proposed 2023/2024 budget for Special Revenue Funds is detailed in the table that follows:
Fund Name Estimated Revenues Appropriations
COVID-19 $0 $0
Measure I / 2010-2040 $1,900,000 ($1,360,100)
Joint Special Council/BFPD
06/20/23 05:30 PM
Finance
Heidy Riley
Budget
Doc ID: 5378
COUNCIL RESOLUTION
Gas Tax $733,063 ($6,900)
SB1 $631,182 ($901,632)
Asset Seizure $0 ($11,500)
Comm. Dev. Block Grant (CDBG) $262,048 ($262,048)
Grants – Reimbursable 39,150 (39,150)
Grants – Prefunded $0 ($36,992)
Public Safety COPS Program $100,000 ($311,000)
Odessa Water District $0 ($4,825)
Barstow Harvey House Foundation $0 ($325)
Barstow Comm. Services Foundation $0 ($335)
County Flood Control District 4 $0 $0
Transportation Fund $0 $0
Total Special Revenue Funds $3,665,443 ($2,934,807)
Debt Service
The Debt Service Fund is used to account for the revenues and expenditures associated with the Lease Revenue and the Pension Obligation Bonds.
Fiscal Year Estimated Revenues Appropriations
2023/2024 $0 ($2,656,620)
Wastewater
The proposed annual operating and capital improvement budget for Wastewater activities includes estimated revenues of $5,128,400 and an appropriation request of $6,428,025 for fiscal year 2023/2024.
As currently projected, the budgetary activities in the Wastewater Fund will result in a net reduction in net position of just under $1.3M. The update to the Sewer Master Plan, as well as the purchase of a vactor truck, is proposed in FY 2023/2024 which necessitates the use of available fund balance. The proposed budget for the Wastewater Fund is as follows in the table below.
Fiscal Year Estimated Revenues Appropriations
2023/2024 $5,128,400 ($6,428,025)
Solid Waste
The proposed annual operating and capital improvement budget for Solid Waste activities includes estimated revenues of $5,762,200 and an appropriation request of $6,085,100 for FY 2023/2024. As currently projected, the budgetary activities in the Solid Waste Fund will result in a net reduction in net position of $322,900 for FY 2023/2024. The proposed budget for the Solid Waste Fund is as follows in the table below.
Fiscal Year Estimated Revenues Appropriations
2023/2024 $5,762,200 ($6,085,100)
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 transfers in from various funding sources in the amount $2,468,171 and appropriation requests of $2,468,171. A five-year Capital Improvement Program (CIP) summary is included in the proposed budget, together with a summary of Fiscal Year 2023/2024 CIP projects listed by funding source. Staff would also note that projects currently included in the FY 2022/2023 budget that are in progress or Joint Special Council/BFPD
06/20/23 05:30 PM
Finance
Heidy Riley
Budget
Doc ID: 5378
COUNCIL RESOLUTION
currently funded will be brought back for carryforward budget approval prior to the end of calendar year 2023. In order to determine carryforward amounts, all FY 2022/2023 invoices must be submitted and paid. Upon closure of FY 2022/2023 accounting periods, the carryforwards for all CIP projects that remain active will be brought back to the City Council for carryforward budget approval. The proposed budget for the Capital Project Fund is as follows in the table below.
Fiscal Year Estimated Revenues Appropriations
2023/2024 $2,468,171 ($2,468,171)
Fiduciary Funds
Fiduciary Funds are used to account for resources held for the benefit of parties outside of the municipality. These funds are not available to support the City’s own programs. The Landscape & Lighting Maintenance Districts Fund accounts for the receipts and disbursements of special assessments.
The RDA Dissolution Trust Fund accounts for the activities of the redevelopment successor agency. The proposed 2023/2024 budget for Fiduciary Funds is as follows in the table below Fund Name Estimated Revenues Appropriations
Landscape & Lighting
Maintenance Districts $20,000 ($15,900)
RDA Dissolution Trust $3,057 $0
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 2023/2024 Proposed Operating and Capital Improvement Budget for the City in the amount of $64,536,466 and adopt the attached Joint Resolution No. ____-2023 (Attachment B), approving the Proposed Budget (Attachment A), including any City Council amendments (if any), and 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 $6,674,407 and adopt the attached Joint Resolution No. ____-2023 (Attachment B), approving and adopting the preliminary Budget (Attachment A) as submitted pursuant to Health & Safety Code Section 13893(a)(1) and waive the full reading.