Regular Meeting
02/20/24 05:30 PM
Finance
Sydnie Harris
Budget
Doc ID: 5580
AGENDA ITEM
AGENDA MATTER:
FISCAL YEAR 2023-24 MID-YEAR BUDGET STATUS REPORT & PROPOSED BUDGET
ADJUSTMENTS
EXECUTIVE SUMMARY:
Finance staff initiated meetings with departmental managers to review actual revenues and expenditures through December 2023 to compare budgetary performance with fiscal year 2023-24 budgeted appropriations. Based upon this analysis, the fiscal year 2023-24 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. This year there were no requested adjustments to the CIP or to capital equipment budgets.
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, which are included as part of the budget status overview, the General Fund is projected to end the fiscal year with a General Fund fund balance of $6,303,000.
General Fund Revenues - Fund 100
The General Fund’s revenue estimates for fiscal year 2023-24, which includes adjustments, if any, approved by City Council from July 2023 through January 2024, were estimated at $22,553,840. Based upon the staff's analysis of the revenue estimates, including updated economic forecasts, staff is projecting that estimated revenues should be increased by $1,333,900 in total. Property Tax revenue estimates are projected to increase by $100,000.
Sales Tax is also projected to increase by $185,000. An increase to the Vehicle License Fee in lieu of property tax are estimated to come in at $350,000 higher than originally budgeted.
Additionally, Transient Occupancy Tax (TOT) revenues are estimated to significantly increase by $850,000. Proposed revenue adjustments for all other revenue line items total a decrease of $151,100 on a combined basis (Attachment A).
Revenue projections remain conservative. Other revenues budgeted in FY 2023-24, such as fees associated with cannabis businesses and from the Intergovernmental Service Agreement (IGSA) Regular Meeting
02/20/24 05:30 PM
Finance
Sydnie Harris
Budget
Doc ID: 5580
AGENDA ITEM
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 2024.
General Fund Expenditures - Fund 100
The adopted fiscal year 2023-24 General Fund operating budget, plus Council approved budget adjustments from July 2023 to January 2024, amounts total appropriations in the amount of $24,608,292. 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 $12,945,883, which amounts to approximately 54% of the adopted budget through January 2024; however, additional appropriations are proposed within the General Fund totaling $99,000 as part of the mid-year budget adjustment. These proposed adjustments are necessary primarily due to an increase in contract service costs for animal control services.
General Fund-Measure Q - Fund 102 & 103 (Fire)
Fiscal Year 2023-24 Measure Q sales tax revenues estimates are proposed to increase by $425,000. This is in addition to an unrealized gain in disposed property of $72,000. Although estimated revenues have exhibited favorable budgetary variances, expenditures are expected to slightly increase as well necessitating a proposed appropriation adjustments totaling $282,000 resulting in a net surplus of $215,000 in the 102 fund. Alternatively, fund 103 expenditures will increase $350,000 due to additional overtime costs needed. This amount will be appropriated from fund balance.
Barstow Fire Protection District (BFPD) - Fund 225
Barstow Fire Protection District Revenues - Fund 225
The BFPD’s current fiscal year budget projects revenues of $5,584,600, with actual revenues received of $3,991,521 through January 2024. Property tax revenues collections are expected to increase this year an additional $421,000 over the original revenue estimates of $3,750,000 for FY 2023-24, with $2,218,316 received through January 2023. Other revenues received are also expected to increase and additional $450,000 totaling $1,750,000 for the residual tax payments.
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 $869 at year end on a combined basis.
RECOMMENDED ACTION:
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.