FINANCIAL
SERVICES
Fiscal Year 2022-23
Proposed Budget
Overview & General Fund
April 26, 2022
1 FY 2022 -23 Budget Presentation
Review of Proposed Budget Materials
Citywide Proposed Budget Overview
General Fund Budget
Five-Year Forecast
FY 2022-23 Projected Revenues
FY 2022-23 Proposed Appropriations
Department Budget Requests
Burbank Water & Power Funds
Water Reclamation & Sewer Fund
Refuse Collection & Disposal Fund
Internal Service & Special Revenue Funds
2 Review of Budget Materials
Budget Binder is organized with 29 Sections/Tabs:
1. Review of Proposed Budget
• Staff report provided for the budget presentation
2. New Budget Requests
• City Manager approved budget requests submitted by
departments
3. Infrastructure Investment Plan
• General City (Non-utility) Capital Improvement Program (CIP) funding plan
• CIP Project Sheets for new projects
3 Review of Budget Materials
4. Budget Summaries
• High level overview of the Citywide and General Fund
proposed budgets
• Debt Service and Reserve Summaries
• Citywide Authorized Staffing
• City of Burbank Financial Policies
5. Revenues
• Citywide projected revenues by fund and category
• Revenue sources and descriptions
6-19. General Fund Department Line-Item Budgets
4 Review of Budget Materials
20-26. Non-General Fund Line-item Budgets
• Organized by fund type (i.e. enterprise, special revenue)
27. Agreements and Contracts List
• List of contracts City Council is authorizing with budget adoption
28. Fee Schedule Changes
• Matrix detailing all proposed changes to the citywide fee schedule
29. Supplemental Materials
• Additional memos providing further detail on specific discussion papers requested by the City Council
5 Availability of Budget Materials to
the Public
City of Burbank Website www.burbankca.gov
Financial Services Department Public Counter
City Clerk’s Office Public Counter
Burbank Public Libraries
Central Library
Buena Vista Branch Library
Northwest Branch Library
6 Budget Presentation Schedule
7 April 26: Citywide Overview, General Fund, Burbank
Water & Power, Water Reclamation & Sewer,
Refuse Collection & Disposal, Internal Service
Funds, Special Revenue Funds
May 3: Continuation of Citywide Budget Presentations,
FY 2022-23 Capital Improvement Program (CIP),
Discussion Papers
May 17: Public Hearing and Adoption of Utility Rates
May 24: Public Hearing and Adoption of Citywide
Budget and Fee Schedule
FY 2022-23 CITYWIDE BUDGET
Total Appropriations: $791,810,038
General Fund,
$219,694,022 Water Reclamation
& Sewer,
$22,591,080
Refuse Collection
& Disposal,
$21,440,601
Electric & Water (BWP),
$373,751,962
Internal Service
Funds, $82,045,170
Special Revenue
Funds, $49,584,605
Housing Authority,
$14,059,178
Parking Authority,
$1,226,915 Successor Agency,
$7,416,505
8 FY 2022-23 CITYWIDE BUDGET
Total Appropriations: $791,810,038
General Fund,
$219,694,022 Water Reclamation
& Sewer,
$22,591,080
Refuse Collection
& Disposal,
$21,440,601
Electric & Water (BWP),
$373,751,962
Internal Service
Funds, $82,045,170
Special Revenue
Funds, $49,584,605
Housing Authority,
$14,059,178
Parking Authority,
$1,226,915 Successor Agency,
$7,416,505
9 The Pandemic and Burbank’s Response
General Fund revenues dropped by 12% at the peak
of the COVID-19 recession
$15.4 million deficit in FY 2020-21
Adopted $6.7 million deficit in FY 2021-22
City Council implemented COVID savings measures
that saved the General Fund $24 million over two
years
Federal government response
$1.3 million from the CARES Act
$25.5 million from ARPA
10 The “Post-COVID” Burbank Economy
General Fund revenues will surpass pre-pandemic levels in FY 2022-23
Most revenue categories fully recovered
Still room for growth in tourism based revenues
Citywide costs escalating
Labor shortages and recruitment challenges
Supply shortages across the board
December 2021 CPI was 7%, driven by inflation
The Proposed FY 2022-23 General Fund Budget is
balanced
11 General Fund 5-Year Forecast
(in millions)
12 Ending GF
Balance: $29.6 $41.3
$201.8
$208.6
$216.1
$222.7
$229.5
$201.6
$208.6
$215.2
$221.5
$227.8
$160
$170
$180
$190
$200
$210
$220
$230
$240
2022-23 2023-24 2024-25 2025-26 2026-27
Revenue Expenses
Balance: $0.3 $0.1 $0.8 $1.2 $1.7
American Rescue Plan Act
(ARPA) State and Local Aid
Burbank’s $25.5 million is proposed to be utilized for the following eligible categories:
Category C: $17.4 million for public sector revenue loss to fund General Fund services
Category A: $8.1 million to support public sector economic response to the pandemic
Includes planned technology infrastructure investments for FY 2022-23:
• Police & Fire Projects - $4.8 million
• CDD/Public Works - $187,000
• Financial Services Projects - $210,000
• IT/Citywide Technology Projects - $642,000
13 State Budget Update
FY 2022-23
Governor proposed a $286.4 billion budget with a General Fund of $213.1 billion
Includes additional funding for COVID-19 vaccination/testing, healthcare, homeless prevention & housing, climate change mitigation, and K-12 education
Road Repair and Accountability Act of 2017 (SB1)
State Budget proposes a suspension of annual inflation adjustment for the fuel tax to provide consumers relief from rising gas prices Reduction of revenues by $523 million statewide, but Legislature committed to backfill impact to local streets
City of Burbank estimated to receive $2.4 million in SB1 funding for FY 2022-23
14 15
CalPERS Pension Update
Unfunded Actuarial Liability (UAL) at 6/30/21 just under $385 million 73% average funded status among the City’s three pension plans 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 * 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 is proposing to prepay the liability payments, which will result in a net savings of $1,094,979 citywide.
CalPERS Pension Update
CalPERS’ 2021 FYE investment returns of 21.3%
Decreases the City’s UAL payment amount
Increases the funded status of Burbank’s three plans by up to 10% Triggered CalPERS’ Risk Mitigation Policy which permanently 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%
Investment gains and normal cost increases will net out to a nominal benefit to the City
16 Multi-Year Pension Funding Plan
(in millions)
* Approximately 50% funded by General Fund
17 PLAN TOTAL 4-YEAR
COMMITMENT FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 INTEREST
SAVINGS
PAY-OFF
PERIOD
Miscellaneous* $34 $10 $8 $8 $8 $35.9 20 YRS
Police $12 $3 $3 $3 $3 $17.3 24 YRS
Fire $7 $2 $2 $2 $1 $9.7 24 YRS
Citywide
Commitment $53 $15 $13 $13 $12 $63.0
General Fund
Commitment $36 $10 $9 $9 $8 $45.0
RECURRING
SAVINGS
TOTAL
SAVINGS
ACHIEVED
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Citywide $4.6 - $1.7 $1.4 $1.5
General Fund $3.2 - $1.2 $1.0 $1.0
FY 2022-23 General Fund Revenues:
$202,487,129
18 Sales Tax,
$54,417,033
Property Tax,
$61,786,895
Utility Users Tax,
$16,312,400
Service Charges - Intra
City, $13,499,790 Service Charges ,
$18,405,990
In-Lieu of Tax,
$8,728,076
Interest/Use of
Money, $2,271,472
Parking/Traffic/Other
Fines, $2,002,000
Transient Occupancy
Tax, $10,048,000
Building
Permits/License Fees,
Transient Parking
Tax, $3,339,000
Business Tax,
$2,400,000
Franchise Fees,
$1,471,179 Intergovernmental
Revenues,
$2,211,791
General Fund Recurring Revenues
19Note: FY 2020-21 includes $20.1M of non-recurring revenue which was not part of the adopted budget.
REVENUE
CATEGORY
ACTUAL
TOTAL
FY 2020-21
ADOPTED
RECURRING
FY 2021-22
REVISED
RECURRING
FY 2021-22
PROPOSED
RECURRING
FY 2022-23
%
CHANGE
Sales Tax $ 46,363,192 $ 49,788,463 $ 52,576,463 $ 54,417,033 3.5% Property Tax 62,106,513 59,021,784 59,821,784 61,786,895 3.3% Utility Users Tax 15,595,788 16,707,000 15,707,000 16,312,400 3.9% Services Charges - Intra City 14,730,469 13,396,765 13,396,765 13,499,790 0.8% Services Charges 16,398,662 16,051,612 16,801,612 18,405,990 9.5% In Lieu Tax 8,287,655 8,792,381 8,392,381 8,728,076 4.0% Interest/Use of Money 2,153,171 2,013,006 2,013,006 2,271,472 12.8% Parking/Traffic/Other Fines 2,074,373 2,202,000 2,202,000 2,002,000 -9.1% Transient Occupancy Tax 5,531,388 7,000,000 8,373,000 10,048,000 20.0% Building Permits/License Fees 4,851,794 4,819,895 4,819,895 5,593,503 16.1% Transient Parking Tax 1,282,537 1,680,000 3,180,000 3,339,000 5.0% Business Taxes 2,063,546 2,300,000 2,300,000 2,400,000 4.3% Franchises 1,698,249 1,524,179 1,524,179 1,471,179 -3.5% Intergovernmental Revenues 16,646,110 859,475 859,475 1,558,715 81.4% TOTAL REVENUE $ 200,886,539 $ 186,156,560 $ 191,967,560 $ 201,834,053 5.1% General Fund Revenues
Sales Tax +3.5%
FY 2021-22 second quarter receipts up
19.7% from prior year
Fuel & Service Stations + 109.3%
Restaurants & Hotels + 60.9%
General Consumer Goods + 18.5%
Inflation will continue to impact sales prices
in FY 2022-23
Property Tax +3.3%
California housing market remains strong
Median price of Burbank home from Jan-Mar 2022
was $1,200,000
Median sales prices in FY 2022-23 may be tempered
by rising interest rates
20 General Fund Revenues
Utility Users Tax (UUT) +3.9%
UUT rate of 7% is applied to telephone, gas, and electric usage Electric rate increase and rise in natural gas revenues offset by reduced electric usage and shrinking telecom revenue
Service Charges +9%
Return to full activity for all City
facilities, programs, and services,
including Starlight Bowl
Increased local film & TV production
will impact safety filming services
revenue
21 General Fund Revenues
Transient Occupancy Tax (TOT) +18.8%
March 2022 occupancy rates increased by 30% from prior year Return of group event bookings and business travel
22 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
General Fund Revenues
Transient Parking Tax (TPT) +5%
Revenue relies heavily on Hollywood Burbank Airport activity FY 2022-23 expected to increase due to pent-up demand for leisure and business travel
23 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
General Fund Fee Schedule
Highlights
New Fees:
Container fees for commercial businesses mandated by State Establishment of brush inspection fee
Revised Fees:
Restructure of medical emergency service fees
Residential parking permits up to $15 to align with cost recovery Increases to pool rentals and field reservations to offset staff costs Typing Certification Test reduced from $8 to $5
FY 2022-23 proposed fee increases based on 3-year average of Consumer Price Index (CPI), calculated at 3.4%
December 2021 CPI was 7%
24 Burbank Program, Activity, and
Service Subsidy (PASS) Program
Provides Burbank residents in need of financial
assistance the opportunity to engage and participate in City programs and services.
Subsidies available for a wide variety of City Services 700+ active participants
25 General Fund Appropriations
FY 2022-23 Proposed Budget includes:
$1.3 million in new General Fund recurring budget requests (net of revenue)
$1.7 million in one-time budget requests (net of revenue) $7 million in Information Technology projects & improvements New appropriations were prioritized according
to their adherence to City Council goals
Economic Recovery/ResponsibleDevelopment
Housing/Homelessness
Sustainability
City Services
Transportation/Traffic
Quality of Life
Infrastructure 26
FY 2022-23 General Fund
Appropriations: $219,694,022
27 General
Administration,
$11,091,514
Library Services,
8,564,649
Management
Services,
6,716,382
Financial Services,
6,118,513
Police,
62,464,593 Fire, 39,582,644
Parks and
Recreation,
29,463,105
Public Works,
18,555,504
Community
Development,
13,988,659 Non-Departmental,
23,148,459
28 City Council
FY 2022-23 Proposed Budget $761,150 FTE 3.000
The elected legislative and policy-making body enacting all laws and directing City actions
Authorizes contracts and agreements, appoints City commissions, boards and committees, reviews and adopts the operating budget No new budget requests
29 City Clerk
FY 2022-23 Proposed Budget $2,009,047 FTE 10.475
Serves as Clerk to the City Council, Housing
Authority, Parking Authority, and Successor Agency
Conducts municipal elections and coordinates voter
registration services with LA County
Operates the Passport Acceptance Facility
Maintains all official city records
Budget Highlights:
One-time request for anticipated election expenses - $236,000 Analyst position upgrade - $21,416 (revenue offset)
Passport related expenses - $4,000 (revenue offset)
Recurring request for records destruction services - $3,100
30 City Treasurer
FY 2022-23 Proposed Budget $909,979
FTE 5.000
Responsible for receiving, disbursing,
depositing, and investing all public
funds
Provides monthly reporting of cash
balances, bank balances, and
investment reports.
No new budget requests
31 City Attorney
FY 2022-23 Proposed Budget $4,672,478 FTE 19.000
Serves as top legal advisor to City
Council, Boards, Commissions, City
Officers and staff
Represents the City in civil litigation and
other adversarial proceedings, and
protects the community by prosecuting
misdemeanors and infractions committed
within the City
Budget Highlights:
One-Time request for temporary
staffing - $93,000
32 City Manager/PIO
FY 2022-23 Proposed Budget $2,738,861 FTE 12.5
Sets goals and provides administrative direction for all City departments in full accordance with the policies established by City Council
Budget Highlights:
Communications Manager position - $19,849 (partially
funded by salary savings)
33 Management Services
FY 2022-23 Proposed Budget $6,716,382 FTE 45.487
Oversees Employment Services, Employee Benefits, Labor Relations, General Liability, Workers Compensation, and Environmental Health and Safety
Provides training and support services to City departments and employees, and opportunities for Youth Employment programs Budget Highlights:
$100,000 recurring request
for required Fire Fighter
medical screenings
$150,000 one-time request
for an American Disabilities
Act (ADA) consultant
34 Financial Services
FY 2022-23 Proposed Budget $6,118,513 FTE 34.000
Provides citywide Accounting, Accounts Payable, Accounts Receivable, Revenue Collection, Fixed Asset Management, Payroll, Debt Management, and Internal Audit Management
Produces award winning Operating Budget, Capital Improvement Program (CIP) Budget, and Annual Financial Report
Provides centralized citywide procurement services
Budget Highlights:
Purchasing administrative support -
$86,516
Citywide Fee Study - $90,000
(one-time)
35 Parks and Recreation
FY 2022-23 Proposed Budget $29,463,105 FTE 183.627
Maintains and operates 42 parks and facilities including the animal shelter, offers recreation programs, community events, and senior and human services programs
Budget Highlights:
Animal Shelter staffing, uniforms, and supplies - $222,357 (partially revenue offset)
Animal Shelter Vehicle - $40,000
Utility box beautification program - $12,000 (funded by APP) Cost increases for special events - $9,000
36 Library Services
FY 2022-23 Proposed Budget $8,564,649 FTE 65.488
With three branches, provides access to formal
and informal learning opportunities, programs,
and services that reach 750,000 people
annually
Eliminated overdue fines; hired onsite social
worker; and provided employment assistance
through the Burbank Employment Connection
Budget Highlights:
Central Library technology improvements -
$77,063 (developer funded)
Literacy program grant - $25,000
Translation services -$15,000
37 Community Development (CDD)
FY 2022-23 Proposed Budget $13,988,659 FTE 65.090
Preserves and protects neighborhoods
Land use, transportation planning, and economic
development
Implements affordable housing and homeless
services programs
Verifies life safety in the built environment
Budget Highlights:
Permit Technician - $85,557
Residential parking permit temporary
staffing and consulting services -
$100,000
38 Plans, designs, builds, operates, and
maintains the City’s public works systems
Administration, Engineering Design &
Construction, Fleet & Building
Maintenance, Streets & Sanitation
Public Works
FY 2022-23 Proposed Budget $18,555,504 FTE 90.231
Budget Highlights:
Senior Civil Engineer - $156,784 (partial revenue offset) Permit Technician - $$85,557 (partial revenue offset) Engineering Consulting Services - $300,000 recurring, $200,000 one-time
39 Fire Department
FY 2022-23 Proposed Budget $39,582,644 FTE 137.000
Fire Prevention, Fire Suppression, Emergency Medical
Services (EMS), and Emergency Operations
Management
Responds to over 11,000 emergencies annually including fires, HazMat incidents, regional mutual aid needs, state and federal strike teams
Budget Highlights:
Replacement of Self-Contained Breathing
Apparatus (SCBA) - $400,000
Fire Fighter Recruit Academy - $300,000
Fire Inspector position - $91,363 (revenue offset)
Brush clearance - $160,943 (partial revenue offset)
Continuity of Operations Plan – $150,000
40 Police Department
FY 2022-23 Proposed Budget $62,464,593 FTE 262.780
Protects life and property, provides professional
police services, and works in partnership with
the community
Responds to approximately 50,000 service calls
annually
Provides parking enforcement, state-of-the-art
911 Communications Center, and a Joint Air
Support program
Budget Highlights:
Police Communications
Manager - $132,750
Motor Officer safety equipment
- $22,540
41 Non-Departmental
FY 2022-23 Proposed Budget $23,148,459
Appropriations that are not specific to a single City department Budget Highlights:
Multi-Year Pension Funding Plan - $8 million (General Fund portion)
Annual Maintenance of Effort for Infrastructure - $4.7 million Contribution to the Information Technology Fund 537 for FY 2022-23 IT Projects - $7 million ($5.8 million funded by ARPA)
Projected FY 2022-23 GF Balance
42 Anticipated Recurring Revenue $201,834,053
Less: Proposed Recurring Appropriations (201,553,448)
TOTAL RECURRING BALANCE $280,605
Projected Spendable Fund Balance 6/30/22 $31,217,654
Use of American Rescue Plan Funding 5,845,000
Projected Non-Recurring Revenue/Resources FY 2022-23 8,667,671 Estimated Budget Savings FY 2022-23 3,023,302
Less: Formal & Compensated Absence Reserve Adjustment (1,836,511) Less: Proposed Non-Recurring Items (9,592,564)
Less: Proposed Contribution to CalPERS (7,968,000)
TOTAL NON-RECURRING BALANCE $29,356,552
PROJECTED FUND BALANCE 6/30/23 $29,637,157
General Fund 5-Year Forecast
(in millions)
43 Ending GF
Balance: $29.6 $41.3
$201.8
$208.6
$216.1
$222.7
$229.5
$201.6
$208.6
$215.2
$221.5
$227.8
$160
$170
$180
$190
$200
$210
$220
$230
$240
2022-23 2023-24 2024-25 2025-26 2026-27
Revenue Expenses
Balance: $0.3 $0.1 $0.8 $1.2 $1.7
Economic Unknowns
COVID-19 Variants
Employment and the labor
force
War in Ukraine
Supply chain issues
Inflation
Travel & tourism
Return of daytime
population
Future development
CalPERS Board decisions/
investment returns
44 Unrestricted General Fund
One-Time Resources
45 Projected General Fund Balance 6/30/23: $29,637,157
RESERVES AND SPECIAL ACCOUNTS:
15% Working Capital $29,143,572
5% Emergency Contingency 9,714,524
Compensated Absences 2,471,652
RDA Loan Repayments 1,277,696
Section 115 Pension Trust 10,735,669
Total Available One -Time Resources $82,980,270
Conclusion
The FY 2022-23 General Fund Proposed Budget is…
Balanced on a recurring basis
Balanced in each year of our Five-Year forecast
Projecting a remaining one-time balance of nearly $30 million at the end of FY 2022-23
Prior City Council COVID savings measures
Economic recovery outpacing projections
Federal response to the pandemic
Several department needs not funded in this budget
Further economic recovery and development needed
to accomplish City Council Goals
46 47
Questions?