Mid-Year
Financial Report
FY 2023-24
City Council
February 27, 2024
FINANCIAL
SERVICES
Mid-Year Report Overview
Economic Outlook
Fiscal Year (FY) 2023-24 Mid-Year Results
Mid-Year Appropriation Requests
General Fund Year-End Projection and Five-
Year Forecast
Preview of FY 2024-25 Budget Process
2 Economic Outlook
The recession that never arrived
Inflation is easing
December CPI at 3.4%
Interest rates have stabilized, reductions
projected in 2024
Low unemployment / tight labor market
One-time impacts of writers & actors strikes
Impacts of 2024 Election
State Budget Woes
3 $291.5 billion Proposed Budget
$208.7 billion General Fund
$37.9 billion shortfall for FY 2024-25
Delay in income tax collections for 2023
Decline in stock market that drove down FY 2022-23
revenues
Addressing shortfall by drawing reserves, reducing
programs, shifting expenditures from GF to other funds, and delaying funding over a 3-year period
No estimated direct impact to Burbank but staff will
continue to monitor
FY 2024-25 State Budget Proposal
4 General Fund revenues remain strong
Trending 5.2% over original budgeted
projections
Impacts from strikes offset by other factors
Tourism has largely recovered
Demand for City services remains high
Citywide costs still escalating
Goods, services, and commodities
Hardened insurance market
Labor shortages
5 State of Burbank’s Economy
Mid-Year General Fund Revenues
6 Sales Tax 61,698$ 60,003$ 3,101$ 63,103$ 21,113$ 33.5% Property Tax 69,425 65,818 4,000 69,818 18,414 26.4% Utility Users Tax 18,646 17,997 887 18,884 8,576 45.4% Services Charges 22,729 22,741 22,741 10,584 46.5% Transient Occupancy Tax 12,208 10,759 1,500 12,259 4,857 39.6% Transient Parking Tax 4,303 3,773 500 4,273 1,143 26.7% Interest/Use of Money 4,004 3,249 1,000 4,249 1,835 43.2% Permits/License Fees 5,135 5,995 661 6,656 4,859 73.0% All Other Revenue 29,336 31,509 31,509 13,291 42.2% 227,484$ 221,844$ $7,000 4,649$ 233,492$ 84,672$ 36.3%
REVISED
FY2023-24
% OF
REVISED
RECV'D
CHANGE
2ND
QUARTER
RECURRING REVENUE
CATEGORY
ACTUAL
FY 2022-23
CHANGE
1ST
QUARTER
YTD
ACTUAL
12/31/23
ADOPTED
FY 2023-24
Mid-Year Revenues
Sales Tax (+$3,100,500)
Burbank 3rd quarter 2023 (Jul-Sept) taxable
sales up 5.2% on an adjusted basis
Autos & Transportation +56%
Restaurants & Hotels +18.4%
Business & Industry -26%
• Motion Picture & Equipment down -49.1%,
impacted by writers and actors strikes
Positive gains lead to higher County Pool allocations Measure P Transactions & Use Tax (TUT) down -2.7%
7 Mid-Year Revenues
8 Property Tax
Burbank’s Assessed Value (AV) increased 9.7%, or $2.8 billion for 2023
Price growth attributable to the addition of commercial development, transfers of ownership, and unsecured property Median sales price for the 4th quarter of 2023 was $1.1 million, down from the 3rd quarter peak of $1.3 million
Mid-Year Revenue Adjustments
Utility User’s Tax/In-Lieu of Tax (+$887,000)
Increase in consumption of natural gas due to recent cold fronts
Return to in person work for larger Burbank employers Building Permits (+$661,200)
Received 80.8% of projected revenues at Mid-Year FY 2023-24 Several large developments have applied for building permits Rise in Accessory Dwelling Units (ADUs)
9 Mid-Year Revenues
Transient Occupancy Tax (TOT)
Burbank occupancy rates still 6.9% below pre-pandemic peak Higher Average Daily Rate (ADR) due to inflation
Cambria Hotel opened December 2023
10 Burbank Hotel Occupancy and Daily Rates
$0
$50
$100
$150
$200
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
2019 2020 2021 2022 2023
Occupancy Rate ADR
Mid-Year Revenues
Transient Parking Tax (TPT)
Passenger counts increased in 2023 by 2.3% vs 2022
Air travel up for Thanksgiving and December holidays
11 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 20-21 FY 21-22 FY 22-23 FY 23-24
Mid-Year General Fund Expenditures
12 EXPENDITURE APPROPRIATIONS EXPENDITURES PERCENT
CATEGORY FY 2023-24 as of 12/31/2023 EXPENDED
Administrative Depts $ 27,299,565 $ 12,075,450 44.2%
Community Development 23,875,992 7,288,605 30.5%
Fire 50,471,065 26,268,242 52.0%
Library Services 10,059,379 4,682,156 46.5%
Non-Departmental 28,009,018 13,308,208 47.5%
Parks and Recreation 34,660,820 15,988,475 46.1%
Police 69,891,074 33,647,180 48.1%
Public Works 20,329,249 9,192,400 45.2%
TOTALS $ 264,596,162 $ 122,450,716 46.3%
Mid-Year Budget Requests
13 Appropriations Revenues Net Impact
Total General Fund Appropriation Requests: $ 1,491,129 $ 545,160 $ 945,969 Non-General Funds
General City Capital Projects Fund (Fund 370) 7,793 - 7,793 Electric Fund (Fund 496) 200,000 - 200,000
Water Fund (Fund 497) 600,000 - 600,000
Refuse Collection and Disposal Fund (Fund 498) 231,559 190,318 41,241 Municipal Infrastructure Fund (Fund 534) 1,282,090 - 1,282,090 Information Technology Fund (Fund 537) 192,476 - 192,476 Non-General Fund Appropriation Requests: $ 2,513,918 $ 190,318 $ 2,323,600 Grand Total All Funds Appropriation Requests $ 4,005,047 $ 735,478 $ 3,269,569 General Fund Appropriation Requests
14 Parks and Recreation contract instructors
and classes
PSA with Boys & Girls Club for opioid
prevention program
Media Industry Job Fair in partnership
with Woodbury University
Expansion of parking enforcement pilot
program
Non-General Fund Appropriation Requests
15 DeBell Golf Course slope repairs
SB 1383 Local Assistance Grant through
CalRecyle
Burbank Water & Power requests
Advanced Water Metering Infrastructure
project
Professional consulting services for design
and engineering to support large
development
Projected FY 2023-24 General Fund Balance
16 Adopted FY 2023-24 Recurring Revenues $221,843,625 1st Quarter Revenue Adjustments 7,000,000
2nd Quarter Revenue Adjustments 4,648,700
Less: Recurring Appropriations (217,705,238) TOTAL RECURRING BALANCE $15,787,087
Projected FY 2023-24 General Fund Balance
17 Updated Projected Spendable Fund Balance 6/30/23 $44,269,243 Estimated Budget Savings FY 2023-24 4,354,105 Non-Recurring Resources 4,079,401
Less: Reserve Adjustments (4,326,051) Less: Adopted Non-Recurring Items (20,792,275) Less: Adopted Contribution to CalPERS (2,914,200) Less: Deposit to 115 Trust (5,800,000)
Less: Items Added Post Adoption (7,934,672)
Less: Mid -Year Requests (net of revenue) (945,969)
TOTAL NON-RECURRING BALANCE $9,989,582 Projected FY 2023-24 General Fund Balance
Total Recurring Balance $ 15,787,087
Total Non-Recurring Balance 9,989,582
Projected General Fund
Spendable Balance 6/30/24: $ 25,776,669
18 19
General Fund 5-Year Forecast
(in millions)
Ending GF
Balance: $25.8M $41.2M
$233.5
$242.2
$251.4
$260.6
$269.9
$217.7
$236.2
$248.3
$259.0
$268.7
$200
$210
$220
$230
$240
$250
$260
$270
2023-24 2024-25 2025-26 2026-27 2027-28
Revenue Expenses
Balance: $15.8 $6.0 $3.2 $1.7 $1.2 Financial Forecast Risks & Rewards
- Tax revenue from continued development
- Business, retail, and tourism growth
- Pension savings from additional payments
- Strong General Fund cash position
- Political uncertainty/State Budget troubles
- Increased labor costs
- CalPERS investments underperforming
- Future changes to CalPERS assumptions
20 Unrestricted General Fund
One-time Resources
Projected General Fund Balance 6/30/24 $25,776,669
RESERVES AND SPECIAL ACCOUNTS:
15% Working Capital $32,655,786
5% Emergency Contingency 10,885,262
Up to 5% Budget Stabilization 10,885,262
Compensated Absences 3,569,462
RDA Loan Repayments 927,884
Section 115 Pension Trust 23,989,944
Total Available One -Time Resources $108,690,269
21 Projected FY 2024-25 General Fund recurring
balance of approximately $6 million
Represents 2.5% of recurring budget
Before any new budget requests
Drops to $1.2 million by FY 2027-28
$25.8 million projected one-time General Fund
Balance
FY 2024-25 Budget Development Process
22 May 2 – Proposed Budget Distribution
May 7 – Dedicated City Council Budget Meeting
May 21 – Continuation of Budget Presentation
June 4 - Public Hearing and Adoption of FY 2024-25 Budget FY 2024-25 Budget Timeline
23 Recommendation
Approve resolution amending the FY
2023-24 Adopted Budget for the
purpose of Mid-Year adjustments.
24 Jennifer Becker
Financial Services Director
(818) 238-5500
[email protected]
Questions?
25