Regular Meeting
06/17/24 06:00 PM
Finance
Sydnie Harris
Budget
Doc ID: 5674
COUNCIL RESOLUTION
AGENDA MATTER:
CONSIDERATION OF APPROVAL OF THE FISCAL YEAR 2024/2025 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 2024/2025.
On May 20, 2024, the City Council/District Board held a Budget Study Session and reviewed the Proposed Operating and Capital Improvement Budget for Fiscal Year 2024/2025. 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 2024/2025 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 2024/2025 Proposed Operating and Capital Improvement Budget for the City and the Fire District totals $63,999,202. Estimated Revenues on an all funds basis is estimated at $63,897,412.
The proposed Operating Budget equals $56,065,060 which is an increase of $3,411,273 or 6.47% from the current 2023/2024 proposed budget. The proposed Capital Improvement Budget is projected at $638,919, a decrease of 74.11%. Due to a change in management, projects budgeted in FY 25 are only those currently in progress. Future capital improvements will be brought to council for current approval and budgeted accordingly. Additionally, the Capital Improvement Budget does not include capital projects that will be crossing from FY 2023/2024 into FY 2024/2025. 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 $2,037,798 during Fiscal Year 2024/2025. Key financial data has been excerpted from the proposed budget and presented below for both estimated revenues and appropriations for select funds and subfunds as is detailed in the tables below.
General Fund Summary - 100
The proposed budget for 2024/2025 includes the utilization of total projected resources of $25,713,875, including an appropriation from fund balance in the amount of $1,340,993. 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, 2024. The breakdown of the proposed budget for both estimated revenues and appropriations is shown in the table below.
Fiscal Year Estimated Revenues Appropriations
2024/2025 $24,372,882 ($25,713,875)
Regular Meeting
06/17/24 06:00 PM
Finance
Sydnie Harris
Budget
Doc ID: 5674
COUNCIL RESOLUTION
General Fund (Measure Q Sub-Fund Summary) - 102
General Fund revenues received from Measure Q for Fiscal Year 2024/2025 are estimated to be approximately $10,100,000. General Fund appropriations funded by Measure Q are proposed at $11,253,105. This includes an appropriation from fund balance in the amount of $1,153,105.
Fiscal Year Estimated Revenues Appropriations
2024/2025 $10,100,000 ($11,253,105)
Fire District
The proposed FY2024/2025 operating budget for the Barstow Fire Protection District fund is $7,003,579.
The Barstow Fire Protection District is also funded through the General Fund (Measure Q Sub Account 103 – Fire). Funding through this source totals $4,137,525. The total funding allocated to the firefighters and firefighting is $11,141,104 for FY 2024/2025. 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 41.0% of the estimated Measure Q revenues for FY 2024/2025. Together with the Police Department, 70.6% of the estimated Measure Q expenditures for FY 2024/2025 are directly for the purposes of supporting Public Safety. 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 $4,137,525 ($4,137,525)
BFPD Fund 225* $6,386,100 ($7,003,579)
Total Appropriation Request $10,523,625 ($10,464,122)
FY 2023/2024 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 $3,817,392 as of current.
This does not include any amounts that will need to be recorded after the close of FY 24. The FY 2024/2025 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 2024/2025 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 2024/2025 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 $2,000,000 ($16,300)
Gas Tax $706,000 ($6,900)
SB1 $650,000 $0
Regular Meeting
06/17/24 06:00 PM
Finance
Sydnie Harris
Budget
Doc ID: 5674
COUNCIL RESOLUTION
Asset Seizure $0 ($16,100)
Comm. Dev. Block Grant (CDBG) $252,410 ($252,410)
Grants – Reimbursable 38,116 (38,116)
Grants – Prefunded $81,591 ($112,843)
Public Safety COPS Program $100,000 ($137,500)
Odessa Water District $0 ($4,655)
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 $3,828,117 ($585,484)
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
2024/2025 $2,664,512 ($2,664,512)
Wastewater
The proposed annual operating and capital improvement budget for Wastewater activities includes estimated revenues of $5,128,400 and an appropriation request of $5,277,700 for fiscal year 2024/2025.
As currently projected, the budgetary activities in the Wastewater Fund will result in a net reduction in net position of just under $150,000. The proposed budget for the Wastewater Fund is as follows in the table below.
Fiscal Year Estimated Revenues Appropriations
2024/2025 $5,128,400 ($5,277,700)
Solid Waste
The proposed annual operating and capital improvement budget for Solid Waste activities includes estimated revenues of $6,117,900 and an appropriation request of $6,664,903 for FY 2024/2025. As currently projected, the budgetary activities in the Solid Waste Fund will result in a net reduction in net position of $547,003 for FY 2024/2025. The proposed budget for the Solid Waste Fund is as follows in the table below.
Fiscal Year Estimated Revenues Appropriations
2024/2025 $6,117,900 ($6,664,903)
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 $638,919 and appropriation requests of $638,919. Staff would like to note that projects currently included in the FY 2023/2024 budget that are in progress or currently funded will be brought back for carryforward budget approval prior to the end of calendar year 2024. In order to determine carryforward amounts, all FY 2023/2024 invoices must be submitted and paid. Upon closure of FY 2023/2024 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.
Regular Meeting
06/17/24 06:00 PM
Finance
Sydnie Harris
Budget
Doc ID: 5674
COUNCIL RESOLUTION
Fiscal Year Estimated Revenues Appropriations
2024/2025 $638,919 ($638,919)
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 2024/2025 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 2024/2025 Proposed Operating and Capital Improvement Budget for the City in the amount of $56,995,623 and adopt the attached Joint Resolution No. ____-2024 (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 $7,003,579 and adopt the attached Joint Resolution No. ____-2024 (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.