CITY COUNCIL BUDGET WORKSHOP
550 E. Sixth Street, Beaumont, CA
Thursday, May 19, 2022
Workshop Meeting: 5:00 PM
Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packets are available for public inspection in the City Clerk’s office at 550 E. 6th Street during normal business hours.
AGENDA
MEETING PARTICIPATION NOTICE
This meeting will be conducted utilizing teleconference communications and will be recorded for live streaming as well as open to public attendance subject to social distancing and applicable health orders. All City of Beaumont public meetings will be available via live streaming and made available on the City's official YouTube webpage. Please use the following link during the meeting for live stream access.
beaumontca.gov/livestream
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3. In person comments subject to the adherence of the applicable health orders and social distancing requirements.
In compliance with the American Disabilities Act, if you require special assistance to participate in this meeting, please contact the City Clerk's office using the above email or call (951) 572 - 3196.
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1 WORKSHOP SESSION - 5:00 PM
CALL TO ORDER
Mayor White, Mayor Pro Tem Martinez, Council Member Fenn, Council Member Sa ntos, Council Member Lara
ACTION ITEMS
Approval of all Ordinances and Resolutions to be read by title only.
1. Second Draft FY 2023 City Wide Budget
Recommended Action:
Review the proposed FY 2023 budget changes and provide guidance to staff prior to bringing the budget back for Council consideration and adoption
ADJOURNMENT
The next regular meeting of the Beaumont City Council, Beaumont Financing Authority, the Beaumont Successor Agency (formerly RDA), the Beaumont Utility Authority, the Beaumont Parking Authority and the Beaumont Public Improvement Agency is scheduled for Tuesday, June 7, 2022, at 5:00 p.m., unless otherwise posted.
2 Staff Report
TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE May 19, 2022
SUBJECT: FY 2023 City Wide Budget
Background and Analysis:
The City prepares an annual budget that must be completed by June 30, 2022. The budget estimates the resources that will be available to meet City operational and capital needs. It then allocates those resources to meet those needs across the city operating departments and to meet priority capital projects.
A meeting was held on April 27, 2022, for City Council’s first view of the budget. The budget for FY 2023 provides for total revenues of $60,748,780 and total expenditures of $40,716,471 for a budgeted surplus of $20,032,309. The City Manager’s recommended budget includes using $5,175,594 of budget surplus to support additional positions and operational costs. This allows the City to keep up with growth and to improve service delivery. Additionally, there is $937,200 of recommended General Fund funding requests for projects programmed within the CIP. Should City Council decide to fund the recommended enhancements, the budgeted surplus for the General Fund would $13,919,515.
City Council asked staff to reduce one of the enhancement requests from Economic Development from $700,000 to $500,000 and to include a Management Analyst position to support Economic Development with setting up and administering the forthcoming downtown programs for a total of $168,000. City Council also provided staff with suggestions and priorities for the use of the General Fund surplus.
Staff Recommended Options
Staff recommend using the remaining $13.9M General Fund surplus on the following:
Additional funds for the Stewart Park project $4.75m
A new project for the Memorial Park Plaza $1.75m
3 Item 1.
Memorial Plaza Cameras (New Project) $ 50k Additional funds for the Cherry Channel project $250k Total $6.8M
Staff have left $7.1M available for appropriations throughout the year. Staff are currently in negotiations to payoff the WRCOG agreement. The total currently owed is $9.4M.
Long-Term Financial Forecast with Changes
Staff have analyzed the changes within the long-term financial forecast. Below is the outlook with the following change assumptions:
Long-Term Financial Forecast with added position and not paying off WRCOG.
Long-Term Financial Forecast with added position, not paying off WRCOG and a debt service option to finance the new police station.
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10,000,000.00 20,000,000.00 30,000,000.00 40,000,000.00 50,000,000.00 60,000,000.00 70,000,000.00
80,000,000.00
Long-Term Without Debt Service
Expenses Maint Service Levels
One-time Enhancements On-Going Enhancements
Revenues
4 Item 1.
Staff also analyzed the impact of paying off the WRCOG Agreement.
Long-term financial forecast with added position, paying off the WRCOG Agreement, and removing the backfill of the Measure A revenue loss.
Long-term forecast with added position, paying off the WRCOG Agreement, removing the backfill of the Measure A revenue loss, and a debt service option to finance the new police station.
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10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00 50,000,000.00 60,000,000.00 70,000,000.00 80,000,000.00 Long-Term with Debt Service
Expenses Maint Service Levels
Debt Service Payment One-time Enhancements
On-Going Enhancements Revenues
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10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
80,000,000.00
LTFF Without Debt Svc No WRCOG
Expenses Maint Service Levels
One-time Enhancements On-Going Enhancements
Revenues
5 Item 1.
Other Funding Changes Not General Fund
Staff are also recommending the following changes in other funds.
Added funding of $750k to the Pennsylvania Grade Separation Design (Road and Bridge DIF)
Ebike purchase – Bike Patrol Program, 2(two) ebikes and training for two (2) officers on team $12,360 (AQMD)
Field Training Program Reporting/Training Software - $4,726 (SLESA) Fiscal Impact:
This is the second meeting regarding the FY 2023 budget and is intended to seek guidance from City Council on the proposed changes. No fiscal impact is anticipated from this discussion.
Recommended Action:
Review the proposed FY 2023 budget changes and provide guidance to staff prior to bringing the budget back for Council consideration and adoption Attachments:
A. PowerPoint presentation
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10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00 50,000,000.00 60,000,000.00 70,000,000.00 80,000,000.00 LTFF With Debt Svc No WRCOG Backfill
Expenses Maint Service Levels
Debt Service Payment One-time Enhancements
On-Going Enhancements Revenues
6 Item 1.
DRAFT ANNUAL OPERATING &
CAPITAL IMPROVEMENT BUDGET
Fiscal Year 2022-2023
2nd Review
May 19,2022 7
Item 1.
General Fund Overview & Highlights
From April 27th Workshop
The FY2023 proposed budget provides for Revenues of $60.7M and Expenses of $40.7M for unprogrammed balance of $20.0M available to City Council.
Enhancements total $5.2M first year and add 22.5 FTEs.On- going expenses for future years total $3.6M
General Fund capital projects funding requests total $937,400 for FY2023 and include:
Michigan Avenue Storm Drain Culvert Crossing: $30,200
Mid Year Street Enhancement Program 22/23: $907,200
*Annual Citywide Street Rehab and Maintenance is a backfill of Measure A revenue loss from WRCOG agreement.
8 Item 1.
Council Directed
Changes
Economic Development enhancement request for Downtown
Incentive Package reduced from $700k to $500k
Addition of Management Analyst position to support Economic Development with setting up and administering the forthcoming downtown programs. $168k
Enhancement Requests
9 Item 1.
One-Time Funds
Unprogrammed available
resources in the General Fund
after enhancements and CIP
total $13.9M.
Use of unprogrammed
available resources
recommended to be used on
one-time expenditures taking
into consideration the Long-
Term Financial Forecast.
Discussion and direction from
City Council on
unprogrammed balance on
next slide.
10 Item 1.
Staff
Recommended
Options
Additional Funds for Stewart Park $4.75M
Memorial Plaza (New Project) $1.75M
Memorial Plaza Camera (New Project) $ 50k
Additional Funds for Cherry Channel $250k
Total $6.8M Leaves $7.1M available for appropriation throughout the year. *Note: Currently in negotiations for WRCOG agreement. Total currently owed $9.4M.
One-Time Funds
11 Item 1.
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10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
80,000,000.00
Long-Term with Debt Service
Expenses Maint Service Levels
Debt Service Payment One-time Enhancements
On-Going Enhancements Revenues
-
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
80,000,000.00
Long-Term Without Debt Service
Expenses Maint Service Levels
One-time Enhancements On-Going Enhancements
Revenues
Long-Term Financial Forecast without WRCOG Payoff
12 Item 1.
-
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
80,000,000.00
LTFF Without Debt Svc No WRCOG Backfill
Expenses Maint Service Levels
One-time Enhancements On-Going Enhancements
Revenues
-
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
80,000,000.00
LTFF With Debt Svc No WRCOG Backfill
Expenses Maint Service Levels
Debt Service Payment One-time Enhancements
On-Going Enhancements Revenues
Long-Term Financial Forecast with WRCOG Agreement Payoff 13 Item 1.
Other Funding
Changes-Not
General Fund
Added funding of $750k to Pennsylvania Grade Separation Design (Road and Bridge DIF)
Ebike Purchases for bike patrol program, two (2) ebikes and training for two (2) officers on team $12,360 (AQMD)
Field training program reporting/training software $4,726 (SLESA) 14 Item 1.
QUESTIONS
& CITY COUNCIL DIRECTION
Questions from the City Council
regarding the proposed FY 2023
Budget
Staff are seeking direction
regarding any changes or
additional information needed by
the City Council
Is Council comfortable with
bringing the budget forward for
adoption with any modifications
discussed at this meeting?
15 Item 1.