AGENDA
ITEM
2 AGENDA STAFF REPORT
DATE: June 27. 2022
TO: Mayor and City Council
APPROVED BY: Diego Favila, Interim City Manager"
PREPARED BY: Sandra L. Fonsec, Interim Finance Director St SUBJECT: Adopt a Resolution of the City Council of the City of Calexico Approving the Budget for Fiscal Year July 1, 2022 to June 30, 2023
Recommendation:
It is recommended the City Council approve a resolution adopting the 2022-23 annual budget for the July 1, 2022 to June 30, 2023 fiscal year. The resolution aiso proposes updates to the 2021-22 fiscal year buaget.
Background:
The City's annual budget provides the fiscal operating authority to provide City services.
The 2021-22 Citywide budget proposes annual expenditures of $162 million. This includes General Fund Operating Expenditures of $18 million, Enterprise and other Operations of $20 million, Debt Service of $6 million, and a Capital Improvement Program of $117 million. Exhibit 1 to the proposed resolution provides a listing of the Citywide budget by Fund. The Proposed Budget book provides additional program details and includes the fiscal status of each City program Fund.
Discussion & Analysis:
City Council received a briefing on the Proposed Budget on June 14, 2022. Budget Hearings were conducted with the City's management staff on June 21, 2022, to provide opportunity for questions and public input. Also on June 21, 2022, staff met with the Economic Development and Finance Advisory Commission to present and discuss the Proposed Budget.
The Measure H Advisory Oversight committee discussed the Measure H section of the budget on June 8, 2002. After a presentation by Recreation staff, the Measure H Advisory Oversight Committee considered, edited, and formally recommended the Measure H budget to the City Council.
Coordinated With:
AGENDA
All City Departments.
ITEM
Attachments: 2
1. Resolution No. 2022- - Resolution of the City Council of the City Calexico Approving the Budget for Fiscal Year July 1, 2022 to June 30, 2023.
RESOLUTION NO. 2022-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALEXICO APPROVING THE BUDGET FOR FISCAL YEAR JULY 1, 2022 TO JUNE 30, 2023 WHEREAS, the City of Calexico is a general law city that operates under the council- manager form of government; and
WHEREAS, the City Council of the City of Calexico annually adopts a budget that estimates revenues and authorizes expenditures, subject to the City's existing purchasing policies and procedures, employment policies and other adopted city policies; NOW, THEREFORE, be it resolved, determined, and ordered by the City Council of the City of Calexico:
Section 1. The fiscal year 2022-23 Budget, attached hereto as Exhibit 1, shall be the budget for the City of Calexico for the fiscal year 2022-23.
Section 2. The City Manager, or his duly appointed representative, has the authority to expend appropriated amounts subject to policies and procedures adopted by the City Council. Budget appropriations shall be controlled at the department level within the General Fund, at the fund level for other funds, and at the capital project level within the capital improvement program. The City Manager is authorized to transfer appropriations between accounts within a General Fund Department, and within other individual funds, to meet the operating needs of the City. The City Manager is also authorized to carry-over any unspent capital project or grant appropriations to the following fiscal year until the projects are complete.
Section 3. The City Manager, or his duly appointed representative, is authorized to fill staff positions as listed in the full-time staff position chart in the budget.
Section 4. A General Fund and Internal Service Fund Operating Reserve Policy was established in the 2020-21 budget and is updated with this 2022-23 budget. It will be the City Council's policy to target and build over 5-year period a fund balance reserve for the combined General Fund and Measure H Funds that follows the Best Practices established by the Government Finance Officers Association (September 2015) equal to 60 days (16%) of General Fund operations. For Internal Service Self-Insurance Funds, the Operating Reserve Policy will remain at a one-month reserve equal to 8% of annual operating expenditures. These reserves will provide contingency funds in the event of economic or other disruption in City operations.
Section 5. A Water and Wastewater Operating Reserve policy was established in the 2019-20 budget and continues with the 2022-23 budget. It is the City Council's policy that both the Water and the Wastewater Enterprise Funds will maintain a $3 million operating reserve.
Water and Wastewater revenues that exceed the amounts needed to maintain this operating reserve will be transferred to the respective Water and Wastewater Capital Funds for investment in their long-term capital improvement programs.
Section 6. The City Manager is directed to establish an IRS Section 115 trust fund to accumulate resources to pay for the City's OPEB (Other Post Employment Benefits) obligations, specifically the City's retiree medical benefit obligations, with a funding model similar to the CalPERS pension trust fund. The initial deposit to the trust fund will be funds accumulated in the Fund #602 Retiree Medical Fund for this purpose as listed in the proposed budget.
Section 7. The 2021-22 Budget will be updated to reflect the following current projections and program requirements. The General Fund revenue budget will be updated to match currently projected revenues of $18,122,348 as listed in the General Fund budget. The General Fund expenditure budget will be updated to authorize $600,000 of 2021-22 operating surplus for one-time capital equipment and vehicle replacement requirements of the City as listed in the General Fund and Local Capital Fund budgets. The Fund #255 ARPA (American Rescue Plan Act) budget will be updated to allocate $1,000,000 to the cutrent Heber Park Project #999, with a corresponding reduction to the ARPA Downtown Project allocation.
PASSED, ADOPTED and APPROVED this day of June, 2022, by the City Council of the City of Calexico.
Javier Moreno, Mayor
ATTEST:
Gabriela Garcia, City Clerk
State of California )
Count of Imperial )
City of Calexico )
L, Gabriela T. Garcia, Deputy City Clerk of the City of Calexico do hereby certify the above Resolution No. 2022- _ was approved at a regular City Council meeting held on the th day of June, 2022, by the following vote to-wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Gabriela T. Garcia, City Clerk
EXHIBIT 1 to Budget Resolution City of Calexico
2022-23 Budget
City-wide Expenditures
CALEXICO
Summary of Expenditures by Fund
2021-22 2022-23
Gross Projection Salaries/ Other Debt Inter-fund
Including Transfers Benefits Operations Capital Service Transfers Total General Fund
111 General Fund 18,071,849 14,520,919 4,180,540 $ : 44,356 $ 18,745,815 120 Measure H Sales Tax 3,325,000 1,250,000 100,000 2,098,000 3,448,000 Operating Grant Funds
221 Library Grants 53,418 53,874
222 Community Donations 30,454 62,662
231 Gas Tax 1,455,200 1,103,495
242 Prop 172/Public Safety Tax 250,000 ..... 260,000
243 COPS State Grant Program 200,000 200,000
255 FEMA/Disaster Recovery/ARPA 1,230,000 8,296,487 8,296,487 256 Cannabis/Applicant Reimburse 10,000 10,000
281 Solid Waste 2,375,784 2,570,735
299 Operating Grants 143,163 225,573
712 Business Imp District
Housing Funds
802 Successor Housing 1,500 2,076,500 87,000 2,163,500
813 Fed Home Grant
840 Fed CDBG - Program Income 6,000 6,000 6,000
841 Fed Home - Program Income 5,000 5,000 5,000
842/3 Local Funds 1,500 1,500 1,500
846 CalHome - Program Income 1,000 1,000 1,000
Capital Project and Debt Service Funds
223 Art in Public Places 103,000 103,000
233 LTA/Measure D 151,181 150,000 8,420,340 8,570,340
234/6 Transportation Development 329,367 23,165 11,000 192,000 226,165 237 Road Maintenance Rehab 80,000 470,000 1,616,700 2,086,700 401 Measure H Bond Proceeds 2,058,578
402 Measure D Bond Proceeds 377,120 2,171,273 2,171,273 411 Local Capital Projects 333,000 3,061,192 3,061,192
412 Capital Grants 509,119 9,766,323 9,766,323
430-6 Development Impact Fees 99,000 2,788,082 2,788,082 452-64 Development Projects 2,963,457 2,963,457
474-6 New River Projects 1,981,719 28,000,000 28,000,000 Measure D Debt Service 1,791,850 4,000 1,793,200
Measure H Debt Service 999,600 4,000 998,000
2,997,388 8,660,000
4,000 873,326
14,742,000
212,172 392,964
4,212,565
2,212,100 1,754,049 6,099,000
4,000 1,184,411
29,968,002
467,062 145,000 885,000
833,951 191,617 1,025,000 1,216,617
541,081 35,431 648,975 684,406
4,370,000 5,514,152 5,514,152
603 1,197,000 1,278,000 1,278,000
604 57,000 62,271 62,271
605 817,122 1,020,200 1,020,200
601-5 (6,441,121) (6,854,423) (1,020,200) (7,874,623)
Total 56,455,954 S 23,043,718 $ 16,108,199 $ 117,041,421 6,551,268 $ 5,855,059 S 168,599,664 Net (Excluding Transfers) 50,355,382 162,744,606