AGENDA
ITEM
4 AGENDA STAFF REPORT
JERE
CALEXICO
DATE: June 22, 2023
TO: Mayor and City Council
APPROVED BY:
PREPARED BY: Sandra L. Fonseca, Interim Finance Director SUBJECT: Annual Budget Resolution for Fiscal Year July 1, 2023 to June 30, 2024 S-S----= =============================================
Recommendation:
It is recommended that the City Council consider a resolution to adopt the 2023-24 Annual Budget.
Background:
The City Council received a presentation on the 2023-24 Proposed Budget on June 15, 2023. During the presentation, City Council members provided feedback and suggested updates to the Proposed Budget. This report transmits a Revised Proposed Budget that incorporates the following updates to the ARPA Fund #255 Items Added to Fund #255 ARPA Project List #91-927 City Equipment and One-time Items Police 1 Admin Car at $75,000 ($60,000+$15,000 Equip) $ 75,000 Police Police Equipment 63,704
Police Police Gear 39,825
Police Firearms/Ammunition 42,902
Engineering Computer/supplies 5,500
Fleet Vehicle and Equipment 65,000
Parks Lawn Mowers 30,000
Recreation Computer Replacement/Upgrading 10,000
Recreation Community Center Ceiling Panels Replacement 20,000 Recreation Arts Center Stage Lighting 15,000
366,931
Items Removed from Fund #255 ARPA Project List H91-907 and #91-908 Police Ford Explorer Patrol Vehicles (292,000)
Police Pickup Truck Patrol Vehicle (91,048)
Downtown Local Assessment Center Asylum Seekers (20,000) (403,048) AGENDA
Increased Fund #255 ARPA Allocation #91-908
Downtown 36,117 ITEM
Net Fund #255 ARPA Changes
Attachments:
1. Resolution
2. Exhibit 1 to the Resolution
3. Attachment A - Fiscal Year 2023-24 Revised Proposed Annual Budget RESOLUTION NO. 2023-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALEXICO APPROVING THE BUDGET FOR FISCAL YEAR JULY 1, 2023 TO JUNE 30, 2024 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; and WHEREAS, the City Council of the City of Calexico received a presentation on the 2023- 24 Proposed Budget and provided feedback and requested updates at a meeting on June 15, 2023; NOW, THEREFORE, be it resolved, determined, and ordered by the City Council of the City of Calexico:
Section 1. Expenditure Authority
The fiscal year 2023-24 Budget, attached hereto as Exhibit 1, shall be the budget for the City of Calexico for the fiscal year 2023-24. The City Manager, or their duly appointed representative, has the authority to expend appropriated amounts subject to policies and procedures adopted by the City Council.
Section 2. Budgetary Control Levels
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. Authorized Staffing
The City Manager, or their duly appointed representative, is authorized to fill staff positions as listed in the full-time staff position chart in the budget.
Section 4. Fund Balance Reserve Policies
The City's Fund Balance Reserve Policies are updated as follows to provide contingency funds in the event of economic or other disruption in City operations.
A. General and Measure H Funds
It will be the City Council's policy to target 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.
Over the next five years, it will be the City Council's policy to further build and delineate the combined General Fund and Measure H Fund reserve as follows:
a. Working Capital Reserve
16% of Annual Expenditures (60 Days of operations)
The Working Capital Reserve provides a General Fund cash balance to cover anticipated cash flow requirements to sustain payroll and other operating payments during the collection period for General Fund tax and fee revenue collections, including the 2-month collection period for Sales Tax revenue from the State of California and up to 5-month Property Tax revenue collection period from the County of Imperial.
b. Emergency Reserve
10% of General Fund Sales Tax (8 Days of operations)
The Emergency Reserve will be targeted and built over the next 5 years by the continued phase in of the Measure H policy to reserve 10% of annual Measure H revenues (Adopted September 2011, Resolution # 2011-99).
B. Street Maintenance Funds (Gas Tax and RMMA Funds)
The Fund Balance Reserve will be 8% of Annual Expenditures (30 Days of operations).
C. Capital Reserve (Local Capital Fund)
The Fund Balance Reserve will be $250,000.
D. Water and Wastewater Enterprise Funds
Current: $3,000,000 Operating Fund Balance Reserve
With Next User Rate Update: The Operating Fund Balance reserve will be 50% of Operating Expenditures.
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.
E. Airport Enterprise Fund
The Fund Balance Reserve will be 8% of Annual Expenditures (30 Days of operations) F. Internal Service Funds (Active and Retiree Medical, Workers Compensation, Unemployment, and General Liability Programs)
The Fund Balance Reserve will be 8% of Annual Expenditures (30 Days of operations) The Workers Compensation and General Liability Claim Reserves will be accrued at the Actuarial 70% confidence level.
G. Unfunded Liabilities
Unfunded retiree medical (OPEB) liabilities will be amortized over 30 years through annual contributions to an OPEB Section 115 Trust.
Unfunded employee compensated absence liabilities (accrued vacation and other leave balance payable upon separation) will be funded from one-time sources or annual year- end operating surplus as available.
Fund Balance Reserves may be drawn at City Council direction to fund one-time or other unplanned expenditure requirements. Reserves that are drawn or otherwise fall below policy targets will be replenished by adjusting revenues and/or expenditures to cause operating surpluses during the subsequent three annual budget cycles.
Section 5. User Fee Policy
To ensure that City fees and rates are sufficient to pay for the costs of providing services, an annual report will be provided to City Council with a listing of user fees, the schedule for fee and rate study updates, and the status of fee updates and adjustments.
Section 6. Spanish Translation Policy
To facilitate public participation in the budget process, key portions of the annual budget and quarterly budget presentations will have Spanish translation.
Section 7. Current Financial Information Policy
To ensure that budget actions are based upon current financial information, the agenda reports roposing annual budget adoption and quarterly budget updates will include information about th tatus of the City's annual audited financial statements, general ledger analysis, and ban reconciliations.
Section 8. 2022-23 Budget Update
The 2022-23 Budget is updated to reflect the following current projections and program requirements. The net General Fund impact of the proposed adjustments is positive, and offsets a drop in Measure H sales tax results. The June 30, 2023 combined General Fund/Measure H Fund Balance continues to be projected to exceed the 60-day Fund Balance reserve policy.
A. General Fund Revenues
$19,039,815 Current Budget
50,000 Sales Tax
61,000 Business License/Cannabis Taxes
17,000 Franchise Fees
(30,000) Program Revenues - Police
18,800 Program Revenues - Fire
(100,000) Program Revenues - Planning, Engineering, Building $19,062,215 Adjusted Budget
B. General Fund Expenditures
$19,012,815 Current Budget
(114,000) Grant Reimbursements
(41.433) Other Operating Costs
$18,857,381 Adjusted Budget
C. Measure H Revenues
$ 3,600,000 Current Budget
(152,000) Measure H Sales Tax
$ 3,448,000 Adjusted Budget
PASSED, ADOPTED and APPROVED this_ day of June, 2023, by the City Council of the City of Calexico.
Raul Urena, Mayor
ATTEST:
Gabriela Garcia, City Clerk
EXHIBIT 1 to Resolution City of Calexico
2023-24 Budget
CALEXICO City-wide Expenditures
Summary of Expenditures by Fund
2022-23 2023-24
Gross Projection Salaries/ Other Capital/ Debt Inter-fund Including Transfers Benefits Operations One Time Items Service Transfers Total 111 $ 18,857,381 $ 15,105,487 $ 4,509,486 $ 11,000 $ 19,625,973 3,408,044 1,250,000 35,000 2,123,044 3,408,044
221
:
222
231 N
237
241
6 w
242
243
245
246
256 burse
258 nt Fund
281
299
712
Housing Funds
802 88,500 100,000 100,000
840 6,000 6,000 6,000
841 5,500 5,500 5,500
1,500 61,500 61,500
846 1,000 1,000 1,000
223 4,500 88,300 88,300
233 221,203 150,000 10,079,342 10,229,342
44,165 23,881 11,000 182,000 216,881
255 673,495 7,623,958 7,623,958
2,705,000 2,705,000
411 1,000,278 1,100,000 1,100,000
412 983,199 10,348,024 10,348,024
16,852 3,143,950 3,143,950
2,963,457 2,963,457
775,000 45,755,047 45,755,047
998,000 4,400 1,001,000
514
515
516
522
525
544 1,611,574
545
546
547
261 145,000
204,600 810,000
• • 504,506
31,890
601/2 5,457,000 5,557,327 5,557,327
603 1,324,000 1,452,000 : 1,452,000
604 62,271 69,314 69,314
605 901,902 1,134,000 1,134,000
607
(17,745,173) (8,212,641)
(8,212,641)
Total 56,018,440 S 24,697,805 $ 15,019,860 $ 146,388,914 $ 4,315,644 S 5,182,755 $ 195,604,978 49,872,694 Net Citywide Budget 190,422,223