Mid-Year
Financial Report
FY 2021-22
3.1.2022
FINANCIAL
SERVICES
Mid-Year Report Overview
2 Fiscal Year (FY) 2021-22 Q2 Results
Mid-Year Appropriation Requests
General Fund Year End Projection and Five
Year Forecast
Preview of FY 2022-23 Budget Process
Coronavirus Economics
Changing pandemic restrictions
Government intervention
Employment and the labor force
Supply chain issues
Inflation
3 Impacts to Burbank
General Fund revenues nearing full recovery
FY 2021-22 revenues coming in at 3.1% over budgeted
projections
Citywide costs escalating
Labor shortages due to COVID-19
and other position vacancies
Supply shortages across the board
December 2021 CPI is 7%
4 Mid-Year General Fund Revenues
5 Sales Tax 46,363$ 49,788$ 2,788$ 52,576$ 18,333$ 34.9% Property Tax 62,106 59,022 800 59,822 16,278 27.2% Utility Users Tax 15,596 16,707 (1,000) 15,707 7,826 49.8% Services Charges - Intra City 13,218 13,397 13,397 6,671 49.8% Services Charges 15,601 16,051 750 16,801 8,660 51.5% Transient Occupancy Tax 5,531 7,000 1,373 8,373 4,187 50.0% Transient Parking Tax 1,283 1,680 1,500 3,180 908 28.6% All Other Sources 21,125 22,511 (400) 22,111 9,947 45.0% TOTAL REVENUE 180,823$ 186,156$ 5,811$ 191,967$ 72,811$ 37.9% CHANGE
FROM
ADOPTED
REVISED
F Y 2021-22
YTD
ACTUAL
12/31/21
% OF
REVISED
RECV'D
ACTUAL
F Y 2020-21
ADOPTED
F Y 2021-22
RECURRING REVENUE
CATEGORY
Mid-Year Revenue Adjustments
Sales Tax: $2,788,000 Increase
Burbank 1st quarter FY 2021-22 (Jul-Sept) taxable sales up
27.9% on an adjusted basis
Fuel & Service Stations + 107%
Restaurants & Hotels + 61%
Autos & Transportation + 43%
General Consumer Goods and Business & Industry + 28%
Positive gains lead to higher County Pool allocations Measure P Transactions & Use Tax (TUT) up 33.6%
Destination based online sales contributed to increase 6 Mid-Year Revenue Adjustments
Property Tax: $800,000 Increase
Burbank’s Assessed Value (AV) increased 2% for 2021 (General Fund AV increased 3.4%)
Price growth attributable to low inventory and low rates Median sales price for 4th quarter of 2021 was $1.13 million 15.4% increase compared to 4th quarter of 2020
Utility User’s Tax/In-Lieu of Tax ($1,400,000) Reduction Reductions in power consumption from businesses
Increased energy efficiency and electric conservation Declines in wired and wireless telecom revenues
7 Mid-Year Revenue Adjustments
Service Charges $750,000 Increase
Golf revenues continue to thrive with facility improvements and easing of pandemic restrictions
Passport revenues boosted by demand for leisure travel Influx of work from the motion picture industry contributed to increased demand for safety services at the studios
8 Mid-Year Revenue Adjustments
Transient Occupancy Tax: $1,373,000 Increase
Revenues still 30% below pre-pandemic projections
U.S. Travel Association expects 50% increase in business travel spending in 2022
9 Burbank Hotel Occupancy Rates
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
FY 18-19 FY 19-20 FY 20-21 FY 21-22
Mid-Year Revenue Adjustments
Transient Parking Tax: $1,500,000 Increase
Airport activity rebounding from pandemic with pent-up demand for leisure travel
10 Hollywood Burbank Airport Passenger Counts
-
100,000
200,000
300,000
400,000
500,000
600,000
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
FY 18-19 FY 19-20 FY 20-21 FY 21-22
Mid-Year General Fund Expenditures
11 EXPENDITURE APPROPRIATIONS EXPENDITURES PERCENT
CATEGORY FY 2021-22 as of 12/31/2021 EXPENDED
Administrative Depts $ 23,386,208 $ 9,833,727 42.0%
Community Development 18,321,234 6,377,395 34.8%
Fire 38,493,079 20,023,354 52.0%
Library Services 8,551,079 3,938,348 46.1%
Non-Departmental 18,643,190 15,327,021 82.2%
Parks and Recreation 28,300,550 12,748,641 45.0%
Police 64,445,129 29,227,342 45.4%
Public Works 17,797,644 7,734,217 43.5%
TOTALS $ 217,938,113 $ 105,210,044 48.3%
Mid-Year Budget Requests
12 Appropriations Revenues Net Impact
General Fund Appropriation Requests: $ 687,958 $ 445,111 $ 242,847 Non-General Funds
Section 8 Voucher Program (Fund 117) 79,000 - 79,000
Drug Asset Forfeiture Fund (Fund 124) 88,871 - 88,871
HUD Affordable Housing Fund (Fund 128) 94,832 94,832 -
General City Capital Projects Fund (Fund 370) 183,000 58,000 125,000 Electric Fund (Fund 496) 9,700,000 - 9,700,000
General Liability Insurance Fund (Fund 530) 995,000 - 995,000 Workers Compensation Fund (Fund 531) 321,970 - 321,970
Vehicle Replacement Fund (Fund 532) - 45,000 (45,000)
Municipal Infrastructure Fund (534) 352,643 - 352,643
Non-General Fund Appropriation Requests: $ 11,815,316 $ 197,832 $ 11,617,484 Grand Total All Funds Appropriation Requests $ 12,503,274 $ 642,943 $ 11,860,331 General Fund Appropriation Requests
13 Appropriating grant funds for Community
Development:
Providence Saint Joseph’s Medical
Center for public health services
Measure H funds for the Homeless
Incentive Program
Emergency tree removal services for the
Parks & Recreation Department
Appropriation of Animal Shelter donations
for medical care and shelter operations
Americans with Disabilities Act (ADA)
caseload support for Management Services
Non-General Fund Appropriation Requests
14 Electric Fund budget increases
Natural gas price increases
Power supply costs / coal shortages for
the Intermountain Power Project (IPP)
Overhaul of the Lake generator
General Liability Insurance Fund increases
for insurance premiums and workplace
investigations
Infrastructure funding for playground
equipment at George Izay Park
Projected FY 2021-22 General Fund Balance
15 Anticipated Recurring Revenue $191,967,560
Less: Recurring Appropriations (192,851,448)
TOTAL RECURRING BALANCE ($883,888)
Revised Projected Spendable Fund Balance 6/30/21 $26,782,500 Estimated Budget Savings FY 2021-22 13,685,313
Non Recurring Resources 5,887,895
Less: Reserve Adjustments (1,127,835)
Less: Adopted Non-Recurring Items (3,826,078)
Less: Adopted Contribution to CalPERS (8,769,600)
Less: Mid -Year Requests (net of revenue) (242,847)
TOTAL NON-RECURRING BALANCE $32,389,348
PROJECTED FUND BALANCE 6/30/22 $31,505,460
16 General Fund 5-Year Forecast
(in millions)
$192.0
$199.5
$205.7
$212.6
$219.2
$192.9
$198.4
$205.3
$211.9
$218.0
$160
$170
$180
$190
$200
$210
$220
2021-22 2022-23 2023-24 2024-25 2025-26
Revenue Expenses
Balance: ($0.9) $1.1 $0.4 $0.7 $1.1 Ending GF
Balance: $31.5M $42.3M
Financial Forecast Risks & Rewards
17 - Tax revenue from continued development
- Easing of public health restrictions
- Recurring UAL savings from additional
pension payments
- CalPERS investment earnings
- Lagging daytime population / business
travel industry
- Continued transition to online sales
- Future changes to CalPERS assumptions
- Future COVID-19 variants
CalPERS Pension Update
Unfunded Actuarial Liability (UAL) at 6/30/21 just under $385 million (average 73% funded)
18 * Amounts shown are the total amounts due for FY 2022-23 if the City were to pay CalPERS on a monthly basis. For FY 2022- 23, staff will propose pre-paying the liability payments, which will result in a net savings of $1,094,979 citywide.
Classification
Actual
FY 2021-22
Actual
FY 2022-23*
Projected
FY 2023-24
Projected
FY 2024-25
Police 3% @ 50 Rate 23.1% 22.05% 21.5% 21.1%
Police Liability Payment $7,300,248 $8,152,664 $8,733,000 $9,341,000 Fire 3% @ 55 Rate 17.55% 17.71% 17.3% 17.0%
Fire Liability Payment $4,561,502 $5,028,014 $5,413,000 $5,856,000 Misc 2.5% @ 55 Rate 10.38% 10.00% 9.8% 9.6%
Misc Liability Payment $19,578,570 $21,224,820 $22,627,000 $24,294,000 CalPERS Pension Update
CalPERS’ 2021 FYE investment returns of 21.3%
Decreases the City’s UAL payment amount
Increases the overall funded status of Burbank’s three plans by as much as 10%
Triggered CalPERS’ Risk Mitigation Policy which lowered the discount rate from 7% to 6.8%
CalPERS adopted new assumptions regarding retirement age, life expectancy, and salary inflation
Revised assumptions are projected to increase the normal cost rates for each plan by a range of 1.7% - 3%
CalPERS estimates that the UAL savings from investment gains will offset the normal cost increases with a nominal net benefit to the City
19 Multi-Year Pension Funding Plan
$41 million additional payments made to CalPERS to date Achieved $4.6 million annual savings ($3.1 million General Fund) 20 Classification
Original FY 2022 -23
Payment
NEW FY 2022 -23
Payment SAVINGS
Miscellaneous Plan $21,224,820 $20,309,458 $915,362
Police Plan $8,152,664 $7,809,403 $343,261
Fire Plan $5,028,014 $4,799,174 $228,840
Citywide Total $34,405,498 $32,918,035 $1,487,463
Estimated General Fund Savings: $999,007
Unrestricted General Fund
One-time Resources
Projected General Fund Balance 6/30/22 $31,505,460
RESERVES AND SPECIAL ACCOUNTS:
15% Working Capital $29,143,572
5% Emergency Contingency 9,714,524
Compensated Absences 2,471,652
RDA Loan Repayments 9,245,696
Section 115 Pension Trust 11,363,815
Total Available One -Time Resources $93,444,719
21 Projected FY 2022-23 General Fund recurring
balance of $1.1 million
Represents 0.5% of recurring budget
Prior to any new budget requests
$31.5 million projected General Fund Balance
Includes American Rescue Plan Act revenue loss funding Continue implementation of new and previously
identified Council and Labor initiatives
FY 2022-23 Budget Development Process
22 April 20 – Distribute the Proposed Budget
April 26 – Dedicated City Council Budget Meeting
May 3 – Budget Presentation Continuation
May 17 – Public Hearing and Adoption of Utility Rates
May 24 - Public Hearing and Adoption of FY 2022-23 Budget FY 2022-23 Budget Timeline
23 Recommendation
24 Approve resolutions amending the
FY 2021-22 Adopted Budget for the
purpose of Mid-Year adjustments.
25 Questions?