STAFF REPORT
Meeting Date: March 18, 2024
To: Honorable Mayor & City Council
From: Jeff S. Muir, Director of Finance
Tatiana Szerwinski, Assistant Director of Finance
Brandy Gros, Budget Manager
Subject: Midyear Update on Fiscal Year 2023-24 General Fund Financial Results, General Fund Forecast, and Direction on Application of Public Benefit Contribution
Attachments: None
INTRODUCTION
This item provides a midyear update of the City’s fiscal year 2023-24 financial results compared to the same period in fiscal year 2022-23. This report also presents a General Fund forecast for the remainder of fiscal year 2023-24 and seeks direction from the City Council on utilizing a public benefit contribution payment towards current year expenditures. A ten-year General Fund forecast through fiscal year 2032-33 is also presented.
DISCUSSION
Fiscal Year 2023-24 Midyear Update
On November 7, 2023, Finance presented unaudited General Fund financial results for fiscal year 2022-23. This report provides interim General Fund financial results through the second quarter of fiscal year 2023-24 and a comparison to the same six-month period of the prior fiscal year.
Overall, General Fund revenue for the first two quarters was approximately $2.8 million (2.2%) below the prior year’s results while expenditures were $19.9 million (12.4%) higher than results from the prior year.
Meeting Date: March 18, 2024
Meeting Date: March 18, 2024
High-level midyear revenue variances between fiscal year 2023-24 and fiscal year 2022- 23 are as follows:
• “Big Four” tax revenues are down $2.7 million (2.9%) in aggregate from the same period last fiscal year. Current year property tax inflows slightly trailed the prior year six-month year-to-date results, but significant collections are expected to continue in January due to the seasonality of County payment deadlines. Sales tax saw a dip compared to prior year, as consumer spending trends have shifted from goods to services. Transient occupancy tax (TOT) increased slightly with higher summer occupancy rates. Business license tax results through December are not a good predictor of year-end results because the vast majority is collected when due in January, and overall business license taxes are forecasted to meet or exceed the adopted budget target of $58.0 million for the year. • Swings in other taxes are predominantly driven by the impact of housing market conditions on the realization of property transfer tax, which declined likely due to low supply and the rising cost of home prices / interest rates. • Licenses and permits activity is down $1.8 million (18.0%) relative to the same sixmonth period of the prior year, as ‘non-major’ development activity and special event / filming permits generated lower revenue in the current midyear results. In comparison with prior fiscal years, there was a reduction in the overall valuation and number of submitted new development projects for review. However, it is anticipated revenues will catch up for the remainder of the fiscal year based on projects in the pipeline.
• One-time major development projects revenue for the prior year six-month period included $2.4 million of plan check revenue, while $2.0 million of the current year’s $2.3 million in gross revenue is from developer agreement extension payments. • There was significant growth ($0.7 million or 37.8%) in use of money and property largely due to the realization of higher earnings in the City’s investment portfolio. • Service fees and charges rose by 12.9% due to increased enrollment in afterschool camp, youth, and other recreational programming, as well as Fire Department revenue for inspections and ambulance services. These gains were partially offset by a decrease in Police services for special events.
• The rise in miscellaneous revenue stems from an increase in reimbursements from Metro for related construction costs.
High-level midyear operating expenditure variances between fiscal year 2023-24 and fiscal year 2022-23 are as follows:
• Midyear salaries and benefits saw a 4.0% ($2.5 million) increase over last year, largely related to contractual cost of living increases implemented and new positions that were authorized through the fiscal year 2023-24 budget process. • Contractual services reflect escalating costs ($1.8 million or 17.4%) due to inflationary pressures on the cost of services. Furthermore, the City disbursed $0.7 million more to Community Assistance Grant Fund recipients in the first six months of the fiscal year compared to last year, and $0.7 million for the new master Axon contract (Police tasers, camera equipment, and related software) was expended in the first half of the current fiscal year.
• Disbursements to partner agencies for marketing and promotion exceeded the prior year by $0.5 million (9.8%). This is the result of a combination of a timing difference for when disbursements were issued as well as an increase in Councilapproved work plans of partner agencies for fiscal year 2023-24.
Meeting Date: March 18, 2024
• In accordance with the new Joint Powers Agreement (JPA), disbursements to the Beverly Hills Unified School District (BHUSD) increased by 19.1% ($1.1 million) for the first two quarters of the year.
• Costs incurred for private security rose $0.8 million (31.3%) in the first six months of the current fiscal year. This includes $0.4 million for private security services related to assistance for unhoused individuals.
• The new supportive housing contract with Step Up on Second added $1.8 million in year-to-date expenses.
• Internal service charges continue to rise with the overall cost of providing internal services, the additional investment in public-safety related information technology equipment, and the increasing cost of liability claims and insurance. • Through fiscal year 2022-23, other charges included a $5.0 million annual contribution to the OPEB trust for retiree medical obligations. Having reached the target funded status in the trust for the OPEB liability, the Council approved these funds to be reallocated to pension trust funding with the adoption of the fiscal year 2023-24 budget. Accordingly, the transfer to the pension trust increased by $5.0 million to $10.0 million this year and the OPEB transfer was reduced to zero. • Increasing transfers out predominantly relate to the execution of the capital funding plan for significant investment in infrastructure projects and $2.0 million transferred to the Information Technology Fund for the purchase and maintenance of CCTV cameras for BHUSD under the new JPA agreement.
The results of the above yielded expenditures exceeding revenues over the first six months of the fiscal year by $57.6 million, a $22.7 million increase in comparison to the prior year. Factoring in the one-time public benefit contributions narrowed the total shortfall to $47.6 million, a $14.2 million variance from the first two quarters of the prior fiscal year.
Overall, variances between the first half of the current fiscal year compared to the prior year are explainable and generally within expectations. The fact that expenditures significantly outpace revenues through the second quarter is a typical pattern each fiscal year because property tax is primarily received from December through June and business tax is primarily received in January.
Meeting Date: March 18, 2024
Fiscal Year 2023-24 Budget and Forecast
The table below summarizes the fiscal year 2023-24 General Fund adopted budget, revised budget, forecasted actuals and percentage of revised budget.
REVENUE
Property Tax $ 100,209 $ 100,209 $ 101,188 $ 979 1.0%
Sales Tax 44,860 44,860 43,692 (1,168) -2.6%
Transient Occupancy Tax (TOT) 49,500 49,500 48,500 (1,000) -2.0% Business License Tax 58,000 58,000 58,000 0 0.0%
"Big Four" Tax Subtotal 252,569 252,569 251,380 (1,189) -0.5% Other Taxes 1,190 1,190 914 (276) -23.2%
Intergovernmental Revenue 408 408 469 62 15.1%
Licenses and Permits 19,568 19,568 18,413 (1,155) -5.9% One-Time Major Development Projects Revenue 10,200 10,200 11,300 1,100 10.8% Fines and Penalties 5,791 5,791 6,944 1,153 19.9%
Use of Money and Property 8,090 8,090 7,649 (441) -5.5% Service Fees and Charges 10,096 10,096 13,207 3,111 30.8% Miscellaneous Revenue 9,171 9,171 11,224 2,053 22.4%
Transfers In 6 6 6 0 0.0%
Total Revenue [1] 317,089 317,089 321,506 4,417 1.4%
EXPENDITURES
Salaries and Benefits 145,382 146,104 143,114 (2,990) -2.0% Materials and Supplies 2,422 2,482 2,555 73 3.0%
Contractual Services 22,577 36,956 30,963 (5,993) -16.2% Marketing and Promotion 7,762 9,958 9,348 (610) -6.1%
BHUSD Joint Powers Agreement 11,738 13,800 13,800 0 0.0% Private Security 6,010 6,937 6,937 0 0.0%
Supportive Housing / Unhoused Assistance 0 1,800 1,817 17 0.9% Internal Service Fund Charges 73,106 73,106 73,106 (0) 0.0% Other Charges 7,163 7,330 6,576 (754) -10.3%
Transfer to Pension Trust 10,000 10,000 10,000 0 0.0%
Transfer for Real Property Acquisition 0 8,419 8,419 0 0.0% Transfers Out 35,391 38,231 38,231 0 0.0%
Total Expenditures 321,551 355,123 344,866 (10,257) -2.9% Net Surplus/(Deficit) before Public Benefit
Contributions $ (4,462) $ (38,034) $ (23,360) $ 14,674 -38.6% Public Benefit Contributions 10,000 10,000 10,000 0 0.0% Total Surplus/(Deficit) $ 5,538 $ (28,034) $ (13,360) $ 14,674 -52.3% [1] Total Revenue excludes one-time public benefit contributions, accounted for below the line.
General Fund
($ Thousands)
FY 2023-24
Adopted
Budget
FY 2023-24
Revised
Budget[2]
FY 2023-24
12-Month
Forecast
Variance
Revised
Budget vs.
Forecast
%
Variance
NOTE: Immaterial differences may exist when adding rounded figures above. The Section 115 Pension Trust is included in the General Fund for purposes of financial reporting in the Annual Comprehensive Financial Report. The results above exclude the Section 115 Pension Trust, as well as certain accounting/accrual entries in order to assist with comparison. [2] The difference between the Revised Budget and the Adopted Budget is $16.4 million in carryovers from prior year and $17.2 million in midyear Council appropriations, itemized in further detail below.
Meeting Date: March 18, 2024
Reconciliation of Adopted to Revised General Fund Expenditure Budget Budget adjustments are posted during the year for carryovers from prior year, Councilapproved midyear appropriations, administrative appropriations, and transfers between funds. This often results in significant variances between the adopted and revised budget figures. To date, the expenditure budget has been adjusted upwards by approximately $33.6 million. $16.4 million of this amount is applicable to carryovers from the prior year.
Additionally, there have been $17.2 million in Council-approved midyear appropriations to date as summarized below:
Forecast for the Remainder of Fiscal Year 2023-24
Before considering public benefit contributions, total revenue is projected to surpass the budget by $4.4 million (or 1.4%). High-level revenue comparisons of the revised budget to forecasted actuals are as follows:
• “Big Four” tax revenues are forecasted to be within 0.5% of the budgeted amount.
Projections for both sales tax and transient occupancy tax (TOT) have been adjusted downwards by small margins based on a minor slowing in travel and retail activity as spending trends shift towards the consumption of services. • Property transfer tax in other taxes is forecasted below the revised budget based on year-to-date actuals.
• Intergovernmental revenue is expected to outperform projections based on yearto-date reimbursements for Ground Emergency Medical Transportation (GEMT) and State mandated costs.
• One-time major development projects net revenue is forecasted to exceed the budgeted amount by $1.1 million. $2.0 million in unanticipated development agreement extension fees were collected; however, this is expected to be offset by the deferral of realized building permit revenue to a subsequent fiscal year. • Fines and penalties are forecasted to surpass the budgeted amount by $1.2 million namely due to increased parking ordinance and motor vehicle code violations. • Service fees and charges is forecasted to exceed the budget by $3.1 million, fueled largely by strong year-to-date results for ambulance and fire inspection services, tennis court fees (i.e. pickleball), afterschool program fees, expansion of the universal transitional kindergarten (TK) program, and other youth programming. • The forecast for miscellaneous revenue exceeds the revised budget by $2.1 million primarily because projected Metro reimbursement revenue is up significantly based on an increase in reimbursable activities.
Real Property Purchase (111 North Gale Drive) 8.42$
JPA Agreement + CCTV Purchases/Installation 4.01
Supportive Housing for the Unhoused (Step Up on Second) 1.80 Tourism and Marketing True-Up (from FY 2022-23) 1.12
MOU Increases, Executive Compensation Plan Amendment, and Reclassifications 0.72 Nastec International, Inc. Unhoused Support 0.52
Afterschool Program Instruction 0.40
Flag Display, Shabbat Table, and Related Security 0.24
Total 17.23$
General Fund Appropriations
($ Millions)
NOTE: Immaterial differences may exist when adding rounded figures above.
Meeting Date: March 18, 2024
Total expenditures for fiscal year 2023-24 are forecasted to be 2.9% lower than the revised budget, showing an anticipated expenditure savings of $10.3 million overall. High-level expenditure comparisons of the revised budget to forecasted actuals are as follows:
• Salaries and benefits are forecasted to be 2.0%, or $3.0 million, lower than budgeted due to salary savings from vacancies in authorized/budgeted positions, offset by overtime costs incurred substantially in excess of budget. • Due to significant carryovers from prior year along with the aforementioned midcycle appropriations added to the budget, the contractual services original budget of $22.6 million was increased to $37.0 million. Based on historical trends and timing of certain payments, it is forecasted that $31.0 million will be expended on contractual services during the current fiscal year. However, of the $6.0 million in projected budgetary savings, it is assumed that a meaningful portion of this amount will be carried over into the following fiscal year for services or ongoing projects not completed prior to June 30th.
• Other charges are forecasted to generate $0.8 million in budgetary savings mainly from the annual provision of one-time equipment purchases that have not been incurred, including replacement of downed electrical, streetlight or traffic communication equipment as well as ergonomic equipment.
The originally adopted fiscal year 2023-24 budget projected an overall surplus of $5.5 million with utilization of the public benefit contribution. Significant midyear appropriations have driven forecasted expenditures beyond projected revenues. After consideration of the $10.0 million public benefit contribution, forecasted year-end results yield a deficit of $13.4 million. If the $10.0 million public benefit contribution is not applied to current year expenditures, the forecasted deficit would be $23.4 million. In either case, the use of reserves will be required to address the resulting shortfall.
City Council direction is requested regarding the utilization of the $10.0 million public benefit payment received during the current fiscal year towards the various one-time enhancements and midyear appropriations that have been approved to benefit the community. These include:
One-time enhancement for Private Armed Security $ 5.4 million One-time enhancement for Meridian Barriers $ 0.5 million Midyear appropriation for JPA Agreement and CCTV
Purchases/Installation $ 4.0 million
Midyear appropriation for Supportive Housing for the Unhoused $ 1.8 million Midyear appropriation for Private Security for Unhoused Support $ 0.5 million Midyear appropriation for Property Purchase $ 8.4 million Total $20.6 million
With Council approval of the utilization of the public benefit contribution towards current year expenditures, the estimated use of unassigned reserves for the year would be $9.5 million, leaving a balance of $23.9 million as shown below. If Council does not approve utilization of the public benefit contribution, the $10.0 million will be earmarked for future use and the estimated use of unassigned reserves for this fiscal year will be $19.5 million, thereby reducing the balance in unassigned reserves to $13.9 million.
Meeting Date: March 18, 2024
General Fund Reserves
Based on audited results, the City had total General Fund reserves of $234.1 million as of June 30, 2023, as detailed in the table above.
The economic/contingency reserve required by the City’s financial policies is comprised of at least 40% of General Fund operating expenditures and shall not decrease unless approved by the Council. Based on the current fiscal year 2023-24 forecast and increased operating expenditure budget, it is estimated that the economic/contingency reserve will need to be increased by $7.2 million to $116.4 million for fiscal year 2023-24 to meet policy requirements. Council has also previously established a $13.0 million budget stabilization reserve available for one-time uses as directed by City Council. $17.5 million was set aside at the end of fiscal year 2022-23 to cover then-existing encumbrances and carryovers into the current year. Additional elements of total reserves include funds committed by Council for specified purposes or other restricted funds.
Unassigned fund balance (the amount above current restrictions and Council earmarks, contingency, and stabilization reserves) is forecasted to decrease by $9.5 million to $23.9 million (unless otherwise directed by Council), which can be available for one-time uses at the direction of the City Council. This $9.5 million decrease is due to the combined increase of the required economic/contingency reserve by $7.2 million and the use of $13.4 million of unassigned reserves to cover the projected General Fund deficit, offset by the net use of $11.0 million in assigned reserves for prior year encumbrances/carryovers. The City’s General Fund reserves continue to exceed the amount required by its adopted financial policies.
General Fund Reserves (Fund Balance)
($ Millions)
FY 2022-23
Audited
Actuals with
Prior
Earmarks
FY 2023-24
Unaudited
Forecasted
Actuals
Change from
Prior Year
Economic/Contingency Reserve (minimum 40%)
Contingency Reserve (minimum 25%) $ 68.2 $ 72.7 $ 4.5
Economic Reserve (minimum 15%) 41.0 43.7 2.7
Total Economic/Contingency Reserve 109.2 116.4 7.2
Budget Stabilization Reserve 13.0 13.0 -
Committed Fund Balance (Council earmarks)
Street Tree Removal & Replacement 1.1 1.1 -
One-time Public Benefit Contributions [1] 6.5 6.5 -
One-time Capital Improvement Plan Contributions 26.1 26.1 - Committed Fund Balance Total 33.7 33.7 -
Nonspendable (long-term receivables/advances to other funds) 4.9 4.9 - Restricted (Pension trust) 18.9 18.9 -
Restricted (Metro Projects) 3.5 3.5 -
Encumbrances/Carryovers 17.5 6.5 (11.0)
Unassigned[1] 33.4 23.9 (9.5)
Total Fund Balance $ 234.1 $ 220.8 $ (13.3)
NOTE: Immaterial differences may exist due to rounding. [1] The $9.5 million forecasted decrease in unassigned reserves assumes that the $10.0 million public benefit contribution will be utilized to offset current year expenditures. Should the Council instead decide to earmark that $10.0 million for future onetime public benefit, unassigned reserves would be $13.9 million (a $19.5 million decrease) and One-time Public Benefit Contributions under Committed Fund Balance would increase from $6.5 million to $16.5 million.
Meeting Date: March 18, 2024
Ten-Year General Fund Forecast through Fiscal Year 2032-33 Due to the pandemic and the unique circumstances of the first few years that followed it, forecasting the long-term financial outlook of the City was especially unpredictable and therefore, unreliable. As economic stability improves, coupled with Council approval of significant midyear ongoing funding commitments and major developments on the horizon, it has become increasingly important to take stock of the sustainability of the City’s existing obligations relative to its projected revenue and to consider the long-term forecast in shaping strategic decisions about new undertakings.
The chart below is a ten-year forecast of General Fund financial results. Inflationary assumptions for growth in both revenue and expenditures have been applied. Some other considerations factored into the forecast include (but are not limited to):
• Impacts on TOT of hotel closure during One BH construction; • Impacts on property tax, TOT, and licenses and permit revenue for construction, completion, and opening of the One BH development project; • Ramping up and down of Metro Purple Line Extension construction, which is reflected in miscellaneous revenue and contractual services for costs incurred and reimbursement from Metro thereof;
• Miscellaneous revenue from the One BH development agreement including public benefit contributions, environmental mitigation sustainability fees, and municipal surcharge revenue; and
• Funding commitments for interfund transfers and capital improvement projects as reflected in the approved CIP five-year plan.
The ten-year forecast assumes the status quo with respect to current services provided, positions/FTEs authorized, and policy decisions to-date.
It is important to note that any additional midyear appropriations or future budget enhancements above and beyond what is currently approved would require an update to the projections shown below. There are no current assumptions about additional costs related to Metro security reflected in the forecast below.
Meeting Date: March 18, 2024
FY 2023-24 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Adopted Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Revenue
Property Tax $ 100,209 $ 101,188 $ 103,496 $ 106,443 $ 110,720 $ 115,165 $ 119,852 $ 127,362 $ 135,172 $ 139,887 $ 144,790 Sales Tax 44,860 43,692 44,768 45,972 47,351 48,772 49,991 51,241 52,522 53,835 55,181 Transient Occupancy Tax (TOT) 49,500 48,500 51,233 51,387 49,845 50,044 61,417 66,175 68,160 70,205 72,311 Business License Tax 58,000 58,000 59,160 60,935 62,763 64,646 66,262 67,919 69,617 71,357 73,141 Other Taxes 1,190 914 932 951 970 989 1,009 1,029 1,050 1,071 1,092 Intergovernmental Revenue 408 469 478 488 498 508 518 528 539 550 561 Licenses and Permits 19,568 18,413 18,485 18,855 19,232 19,617 20,009 20,409 20,817 21,233 21,658 One-Time Major Development Projects Net Revenue 10,200 11,300 16,050 12,400 0 0 9,691 9,691 9,691 9,691 9,691 Fines and Penalties 5,791 6,944 7,013 7,083 7,154 7,226 7,298 7,371 7,445 7,519 7,594 Use of Money and Property 8,090 7,649 7,650 7,650 7,650 7,650 7,650 7,650 7,650 7,650 7,650 Service Fees and Charges 10,096 13,207 11,431 11,660 11,893 12,131 12,374 12,621 12,873 13,130 13,393 Miscellaneous Revenue 9,171 11,224 11,800 5,100 3,200 3,200 3,413 4,667 5,921 5,921 5,921 Transfers In 6 6 6 6 6 6 6 6 6 6 6
Total Revenue 317,089 321,506 332,502 328,930 321,282 329,954 359,489 376,668 391,463 402,055 412,989 Expenditures
Salaries and Benefits 145,382 143,114 152,474 159,538 166,078 172,449 178,467 183,312 188,585 192,020 196,604 Materials and Supplies 2,422 2,555 2,606 2,658 2,711 2,765 2,820 2,876 2,934 2,993 3,053 Contractual Services 22,577 30,963 31,652 26,675 25,169 25,672 26,185 26,709 27,243 27,788 28,344 Marketing and Promotion 7,762 9,348 7,319 7,341 7,121 7,149 8,774 9,454 9,737 10,029 10,330 BHUSD Joint Powers Agreement 11,738 13,800 14,200 14,600 14,892 15,190 15,494 15,804 16,120 16,442 16,771 Private Security 6,010 6,937 6,110 6,232 6,357 6,484 6,614 6,746 6,881 7,019 7,159 Supportive Housing / Unhoused Assistance 0 1,817 1,258 1,285 1,314 1,343 1,373 1,404 1,435 1,467 1,500 Internal Service Fund Charges 73,106 73,106 76,030 79,071 82,234 85,523 88,944 92,502 96,202 100,050 104,052 Other Charges 7,163 6,576 6,351 6,478 6,608 6,740 6,875 7,013 7,153 7,296 7,442 Transfer to Pension Trust 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Transfer for Real Property Acquisition 0 8,419 0 0 0 0 0 0 0 0 0 Transfers Out 35,391 38,231 21,892 21,396 21,392 20,396 17,895 18,898 18,900 18,898 18,898 Total Expenditures 321,551 344,866 329,892 335,274 343,876 353,711 363,441 374,717 385,190 394,003 404,153 Net Surplus / (Deficit) (4,462) (23,360) 2,610 (6,344) (22,594) (23,757) (3,952) 1,951 6,272 8,052 8,836 Public Benefit Contribution Utilization[1] 10,000 10,000 0 0 0 0 0 0 0 0 0 Total Surplus / (Deficit) $ 5,538 (13,360)$ $ 2,610 $ (6,344) (22,594)$ (23,757)$ $ (3,952) $ 1,951 $ 6,272 $ 8,052 $ 8,836 Category
General Fund
($ Thousands)
[1] Reflects only those public benefit contributions that are recommended to be applied against current expenditures and exlcudes $87.5 million in public benefit contributions expected to be earmarked for future public benefit over fiscal years 2024-25 through 2029-30.
Meeting Date: March 18, 2024
In reviewing the net results before consideration of public benefit contributions, a small surplus of $2.6 million is forecasted in fiscal year 2024-25 (again, without any enhancements), followed by three consecutive years of deficits. Fiscal years 2026-27 and 2027-28 reflect substantial forecasted deficits triggered by the cessation of significant onetime revenue from major development projects. With the estimated opening of the One BH development in fiscal year 2028-29, the financial outlook is expected to improve annually, yielding an estimated $4.0 million deficit in fiscal year 2028-29 followed by increasing surpluses thereafter.
To preserve the long-term financial health of the City, it is critical that current operations be supported by ongoing revenues, and that one-time revenue (like that of major development projects) be relied upon only to fund one-time costs. Given the anticipated need to use substantial unassigned reserves to subsidize the current fiscal year’s forecasted deficit and to fund the estimated $7.2 million increase to the economic/contingency reserve required by the City’s financial policies, unassigned reserves alone will not be adequate to address the forecasted deficits of fiscal years 2025- 26 through 2027-28. Utilization of certain existing earmarked or budget stabilization reserves could be an option to offset some of the forecasted future deficits.
This long-term forecast further emphasizes the City’s current reliance on one-time major development projects to sustain its existing operations. The City must begin to identify a plan for raising revenue, reducing expenditures, and/or utilizing overall General Fund reserves to meet the status quo demands of the next few years. Furthermore, significantly expanding public safety costs for Metro-related security will require resources above and beyond those included in this forecast.
As part of his Mayoral Initiatives, Mayor Julian A. Gold, M.D. charged City Treasurer, Howard S. Fisher, with assembly of a Blue Ribbon Committee to gain a clearer understanding of the City’s financial position and review of opportunities for additional revenue generation. The Blue Ribbon Committee’s report is being brought forward as a companion agenda item to this staff report.
FISCAL IMPACT
This financial update to the City Council is informational and has no specific fiscal impact.
Based on the forecast presented above, unassigned reserves will not be adequate to address the forecasted future year deficits, and other actions to increase revenues or decrease expenditures will be required.
Looking ahead, any future plans for extensive expansion of safety staffing, services, or security equipment costs for the opening of the Metro stations should be accompanied by the identification of ongoing resources with which the proposed additional spending would be funded.
Meeting Date: March 18, 2024
RECOMMENDATION
It is recommended that City Council provide direction as needed regarding this financial report, including the application of the current year’s $10.0 million public benefit contribution.
Tatiana Szerwinski
Assistant Director of Finance
Jeff S. Muir
Director of Finance
Approved By Approved By