AGENDA
ITEM
12 AGENDA
CALEXICO California ITEM
WHERE CALIFORNIA AND MEXICO MEET
12 CITY COUNCIL
AGENDA STAFF REPORT
DATE: November 1, 2023
Mayor and City Council
APPROVED BY: Esporanza Colo Waren, City Manager Cale Nam PREPARED BY: sandra L. Fonseca, Interim Finance Director QF SUBJECT: 2023-24 1st Quarter Budget Status Report and Resolution to Amend the 2022-23 and 2023-24 Budgets
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Recommendation:
It is recommended that the City Council receive a briefing on the 1st quarter status of the 2023- 24 Budget, along with an update on the 2022-23 preliminary year-end results, and consider a resolution to amend both the 2022-23 and 2023-24 budgets to reflect current trends and available balances. A three-phase budget strategy is proposed to allocate 2022-23 budget savings to a) reinvest in capital/equipment; b) continue building reserves; and c) continue pay down of unfunded liability debt obligations.
Background:
The City Council adopted the 2023-24 budget on June 22, 2023. A 1st quarter budget report is provided at this time to update the General Fund's Fund Balance projection for preliminary 2022-23 (unaudited) results and to monitor budget compliance through the 1st quarter of the 2023-24 fiscal year.
The City's 2022-23 results are within budget projections and offer a budget surplus available for the City Council's policy direction. A three-phase budget strategy is proposed to a) reinvest in capital/equipment; b) continue building reserves; and c) continue pay down of unfunded liability debt obligations. A 2022-23 budget amendment is proposed to transfer surplus General Fund budget expenditure savings to the local capital fund to invest in the City's capital and equipment replacement program. A 2023-24 budget amendment is proposed to apply these capital funds to specific capital and equipment lines. The 2022-23 General Fund revenue surplus is proposed to be added to reserves to work towards the 5-year targets established in the annual budget resolution. A 2023-24 budget amendment is proposed to invest 2022-23 medical program savings into the City's Retiree Medical "OPEB" trust to continue buy-down of the unfunded OPE liabilities and to preserve these funds for retiree benefits. A 2023-24 budget amendment is also proposed to add a recent grant awarded to the Police Department.
Discussion & Analysis:
2023-24 Year-to-Date Expenditures
The City has completed the first quarter of the 2022-23 fiscal year on track within its expected expenditure trend. A summary of city-wide year-to-date expenditures by fund is presented in Attachment A. The General Fund has expended 19% of its budget through September 25, 2023, and is on track with its adopted budget. Other program expenditures outside of the General Fund are largely dependent upon the timing of capital projects. All fund expenditures are at or below the expected expenditure trend for the 1st Quarter of the fiscal year. 2022-23 General Fund Preliminary (Unaudited) Results and Updated Fund Balance Projection The 2023-24 year-end Close is moving forward and preliminary (pre-audit) General Fund results are presented in this report. This projection is provided to assist City Council in assessing and investing surplus 2022-23 budget savings based upon the most currently available information. Some minor 2022-23 year-end adjustments will continue as final revenues and expenditures are recorded, but the overall June 30, 2023 General Fund financial position is ahead of budget and presents an opportunity to begin reinvesting one-time year-end surplus funds into the City's long-deferred and urgent City capital/equipment replacements.
The General Fund is on track to end the 2022-23 year with a fund balance of $3.2 million, or 63 days of annual expenditures. Including Measure H, the combined fund balance reaches $3.5 million. A detailed summary of current projections for the General Fund is presented in Attachment B. The key sources of the City's positive 2022-23 year-end results are summarized below and include approximately $214,000 in revenue surplus and $527,000 in expenditure savings.
2022-23 General Fund Results (Preliminary)
Budget Actual Variance
Revenues $19,062,215 $19,276,506 $ 214,291
Expenditures
Salaries/Benefits 11,465,294 11,310,262 155,032
Operations 4,272,033 3,899,968 372,066
15,737,327 3,120,054 - 15,210,230 * 527,097 Savings Before Transfer Capital/Debt 3,647,055 (527,000) Proposed Transfer
18,857,381 18,857,284 97
Net Annual Increase $ 204,834$ 419,222 $ 214,194
Fund Balance Reserve $ 3,276,453
Days of Operations 63
2 2022-23 General Fund Revenues
A summary of General Fund revenue history and projections is presented in Attachment C.
Total 2022-23 General Fund annual revenues were $19.2 million. In total, 2022-23 General Fund revenues exceeded projections by $214,000 and were 5% above the prior year. 4"h Quarter Sales Tax and Ambulance revenues were stronger than budget projections and offset shortfalls in anticipated Planning and Building revenues. Sales Tax for the 4th quarter realized an unexpected 13% increase over the prior year 4th quarter. The City's Sales Tax consultant will be providing an analysis of the sources of this increase at a later date. Ambulance revenue reflects updated reimbursement rates for federal medical programs. If trends continue, both of these sources may present opportunities for revenue budget increases in the next quarterly report.
2022-23 General Fund Expenditures
A summary of General Fund expenditure history and projections by department are presented in Attachment D.. In 2022-23, all departments were within budget except for Fire. Both Police and Fire were over budget in salaries/benefits, while Police had offsetting operating line savings to cover the overage, the Fire Department was not able offset over spending within their budget. Across all non-safety departments, the City met and exceeded its budgeted vacancy assumption. While vacancies contribute to the budget surplus, staffing shortages present continued challenges to deliver customer service both internally and externally to the public.
General Fund Expenditure Results by Department
Police, Traffic Control, and Animal Control $ 6,103,858 $ 6,027,850 $ 76,008 Fire 5,711,999 5,868,390 (156,391)
Planning & Building 844,640 839,745 4,896
Public Works 1,146,638 1,020,392 126,246
Library/Recreation 1,089,209 1,034,253 54,956
Housing 149,900 133,379 16,520
Administration/Non-Department 3,811,137 3,406,275 404,862 18,857,381 18,330,284 527,097
Propsed Capital Fund Transfer 527,000 (527,000)
$ 18,857,381 $ 18,857,284 $ 97
The proposed budget strategy for City Council consideration is to reinvest the 2022-23 expenditure savings into the City's capital/equipment program. The proposed resolution includes a 2022-23 budget amendment to authorize the transfer of $527,000 in 2022-23 General Fund expenditure savings to the Local Capital fund, along with offsetting other budget line reductions to maintain a balanced budget.
3 2023-24 Capital/Equipment Expenditures
The proposed resolution authorizes the following list of $527,000 in new capital/equipment expenditures in the Local Capital Fund to be paid from the proposed 2022-23 General Fund transfer.
2023-24 Capital/Equipment Budget Additions
(Funded from 2022-23 General Fund Expenditure Savings)
City Hall phone system $ 100,000
IT Server 100,000
Animal Control truck 45,000
Animal Controls Infrastructure for Animals 35,000
Traffic Control Parking Vehicles 70,000
Recreation Van Body Work and Paint 7,000
Promenade 170,000
Total $ 527,000
The proposed equipment list includes replacement of the 1996 City Hall Phone system. The current phone messaging system has not been functioning for some time. Replacement of this equipment will improve both internal and public communication. The IT servers are also past its useful life and is no longer compliant with the technology needs to support the City's numerous software applications. The Police Department is running a 2003 Windows server which is no longer compatible with the County's Sheriff's Office and requires immediate update. The Rockwood Avenue Promenade project is for improvements.
2022-23 Measure H Fund
Measure H sales tax revenues realized strong, unexpected 4th Quarter results similar to the General Fund with 4th Quarter Measure H revenues 18% above the prior year's 4th quarter revenue. As with the General Fund, the City's Sales Tax consultant will be providing an analysis by retail sector to understand these results. Attachment E presents an updated budget projection with this actual June 2023 fund balance and shows the continued phase-in of the reserve policy adopted by the Measure H Committee. The Measure H accumulated fund balance reserve is now $228,000, and is projected to reach $1.9 million by 2030.
Retiree Benefits "OPEB" Trust
The City established an OPEB trust in June 2023 to begin prefunding retiree medical benefits in a manner similar to CaPERS pension benefits. The City's budget policy (June 22, 2023) is to provide annual contributions to the trust to amortize the unfunded liability over the next 30 years.
The City's self-insured medical program realized savings in 2022-23 of $370,000. The proposed budget resolution authorizes a supplemental OPEB Trust contribution from these 4 2022-23 medical program savings. This reinvests medical program savings to buy-down the cost of future benefits and provides a one-time reduction in the City's debt. This implements phase three of the proposed budget strategy for 2022-23 savings (invest in capital, build reserves, and buy-down debt).
Fiscal Impact:
The proposed three-phase budget strategy presents a balanced approach to allocate 2022-23 budget savings to a) reinvest in capital/equipment; b) continue building reserves; and c) continue pay down of unfunded liability debt obligations.
With the proposed budget resolution, the June 30, 2023 ending General Fund Balance is $3.2 million, or 63 days of General Fund operations. With these results, the City maintains and exceeds the target fund balance reserve established in its budget policy resolution (June 22, 2023) that meets the industry benchmark recommended by the Government Finance Officers Association. This reserve provides the necessary cash balance needed to cover the annual General Fund working capital/cash flow requirements for the July to November gap until the County's distribution of property taxes in December, without internal borrowing.
The combined General Fund and Measure H Fund Reserves are $3.5 million at June 30, 2023.
With the 2022-23 year-end results and proposed budget amendments, the City continues its consistent trend of annual improvements to its fiscal position and stability.
Combined General Fund and Measure H Fund Balance Reserves June 30, 2023
$7,000,000
$5,000,000
$3,000,000
1ll
$1,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -$1,000,000
-$3,000,000
-$5,000,000
5 Attachments:
Resolution
A. 2023-24 City-wide Expenditures - Summary of Year-to-Date Expenditures by Fund B. General Fund - Fund Balance Projection
C. General Fund - Revenues
D. General Fund - Expenditures by Department
E. Fund 120 - Measure H Fund Projection
6 Exhibit 1 to Resolution
City of Calexico
Proposed Midyear Budget Adjustments
November 1, 2023
Fund Balance Impact
2022-23
111 General Fund
Expenditures
To reclassify program expenditure savings and to authorize transfer of 2022-23 budget surplus to Local Capital Fund for reinvestment in City's capital/equipment replacement program Public Works 120,000
Library 20,000
Recreation 20,000
Administration 367,000
Non-Department - Transfer to Local Capital Fund (527,000) Net Change in Fund Balance
2023-24
411 Local Capital Fund
To Add Expenditure Lines for 2022-23 General Fund Transfer City Hall phone system (100,000)
IT Server (100,000)
Animal Control truck (45,000)
Animal Controls Infrastructure for Animals (35,000)
Traffic Control Parking Vehicles (70,000)
Recreation Van Body Work and Paint (7,000)
Promenade (170,000)
(527,000)
Net Change in Fund Balance (527,000)
299 Operating Grants
Police Grant
Cannabis Tax Fund Grant (CTFGP) Program
Revenues 274,290
Expenditures (274,290)
Net Change in Fund Balance -
602 Retiree Medical Program
Expenditures
To authorize additional OPEB Trust contribution from
2022-23 Medical Program savings (370,000)
Net Change in Fund Balance (370,000)
Total, All Funds $ (897,000)
ATTACHMENT A
2023-24 1st Quarter Budget Report
CALEXICO City-wide Expenditures
Summary of Expenditures by Fund
2023-24 Budget YTD Actual
Current 1st Q Update Adjusted 9-25-23 % Used Notes
Fund
General Fund $ 19,625,973 $ 19,625,973 $ 3,693,943 19%
Measure H Sales Tax 3,408,044 3,408,044 458,047 13%
Grant Funds
Library Grants 54,353 14%
Community Donations 33,390 5%
Gas Tax 1,084,162 13%
Road Maintenance Rehab 2,510,063 2%
Asset Seizure/Forfeiture 42,773 0%
Prop 172/Public Safety Tax 260,000 25%
COPS State Grant Program 200,000 19%
HIDTA 89,000 0%
Stonegarden 103,000 0%
10,000 0%
Solid Waste 2,958,840 9%
159,085 274,290 2%
15,000 0%
100,000 100,000 99 0%
6,000 6,000 8%
5,500 5,500 8%
61,500 61,500 68 0%
1,000 1,000 77 8%
88,300 88,300 0%
10,229,342 10,229,342 0%
216,881 216,881 6,450 3%
6,997,027 6,997,027 31,374 0%
2,705,000 2,705,000 760 0%
1,100,000 527,000 1,627,000 0%
Capital Grants 10,348,024 10,348,024 0%
3,143,950 3,143,950 : 0%
2,963,457 2,963,457 0%
45,755,047 45,755,047 560,157 1%
1,001,000 1,001,000 140,800 14%
8,543,701 9%
835,401 1%
- -
15,134,500 0%
413,818 20%
150,000 9%
6,331,282 8%
1,166,137 1%
44,691,500 0%
885,000 885,000 1%
Hearthstone 1,014,600 1,014,600 0%
536,396 536,396 - 63% Annual Bond Principal Paid
5,557,327 370,000 5,927,327 503,138 8%
1,452,000 1,452,000 507,750 35% Annual Premiums Paid
69,314 69,314 510,859 0%
1,134,000 45% Annual Premiums Paid
1.124,000
(8,212,641) 102128 3 151747 19%
$ 194,978,048 $ 1,171,290 $ 196,149,338 7,316,949 4%
ATTACHMENT B
2023-24 1st Quarter Budget Report
CALEXICO General Fund
Fund Balance Projection
2021-22 2022-23 2023-24
Current Prelim Actual Budget Current 1st Quarter
Actual Budget 11-1-23 Variance Budget Updates Budget
Annual Activity
Revenues
Property Tax $ 6,185,124 $ 6,536,474 $ 6,552,559 $ 16,085 $ 6,676,000 (o) 6,676,000 Sales Tax 4,783,443 4,830,000 4,983,361 153,361 4,900,000 4,900,000 Other General Revenues 3,014,981 3,087,575 3,124,525 36,950 3,187,220 3,187,220 Program Revenues 3,314,836 3,508,166 3,516,061 7,895 3,740,753 3,740,753 Measure H Transfer 1,073,000 1,100,000 1,100,000 1,122,000 1,122,000 One-time Revenues
18,371,383 19,062,215 19,276,506 214,291 19,625,973 (o) 19,625,973 Expenditures
Salaries and Benefits
Gross salary and benefits 12,262,789 13,706,452 13,062,131 144,322 14,743,202 14,743,202 Vacancy Assumption (500,000) (500,000) (500,000)
Measure H Reimbursement (1,250,000) (1,250,000) (1,250,000) (0) (1,250,000) ..... (1,250,000) Grant/Other Reimbursements (544,179) (491,159) (501,869) 10,710 (648,384) (648,384) 10,468,610 11,465,294 11,310,262 155,032 12,344,818 12,344,818 Operating Costs
Operating Costs 4,145,675 4,381,157 4,009,091 372,066 4,696,354 4,696,354 General Liability Insurance 522,929 720,181 720,181 0 694,041 694,041 Contribution to CFD 2013 • . . .
142,052 225,402 225,402 0 225,000 225,000
Cost Allocation (980,831) (1,054,706) (1,054,706) (1,105,910) (1,105,910) 3,829,824 4,272,033 3,899,968 372,066 4,509,486 4,509,486 Capital and Debt Service
Capital/One-Time Items 668,416 527,000 (527,000)
Debt Service - Leases 87,761 13,172 13,171 0 11,000 11,000 Employee Leave Obligation 100,000 100,000 100,000 0 - ... - CaPERS - Unfunded Liability 1,841,209 2,108,876 2,108,876 0 2,025,824 2,025,824 Retiree Medical - Benefit Payments 417,300 719,292 719,292 713,276 713,276 Retiree Medical - Amortize Liability 100,000 178,715 178,715 0 21,569 21,569 3,214,686 3,120,05% 3,647,055 (527,000) 2,771,669 2,771,669 Total Expenditures 17,513,120 18,857,381 18,857,284 97 19,625,973 19,625,973 Net Annual Operating Results 3 858,263 3 204,834 $ 419,222 $ 214,388 3 (0) $ (0) 5 (0) (0)
Fund Balance
Beginning Fund Balance 1,998,968 2,857,231 2,857,231 3,062,065 214,388 3,276,453 Annual Operating Results 858,263 204,834 419,222 214,388 (0) (o) (o) Ending General Fund Balance 2,857,231 3,062,065 3,276,453 214,388 3,062,064 214,388 3,276,452 % Annual General Fund Expenditures 17% 17%
Days of General Fund Operations 63 61
Measure H Fund 79,294 79,294 228,621 149,328 319380 3637815 195,250 344,577 Combined General/Measure Reserve $ 2,936,525 $ 3,141,358 |5 3,505,074 | 5 363,716 3,621,030 % Annual General Fund Expenditures 17% 17% 19% 18%
Days of General Fund Operations 61 61 68 61 67
ATTACHMENT C
2023-24 1st Quarter Budget Report
DALEXICO General Fund
Revenues
2021-22 2022-23 2023-24
Current Prelim Actual Budget Current Proposed 1st Quarter % vs Actual Budget 11-1-23 Variance Budget Updates Budget PY General Revenues
Property Tax
Property tax $ 2,148,740 $ 2,278,700 $ 2,310,064 $ 31,363 $ 2,330,000 $ (0) $ 2,330,000 1% Property Tax in lieu of MVLF 3,252,615 3,417,484 3,420,501 3,017 3,486,000 3,486,000 2% Residual Tax Increment 783,769 840,290 821,995 (18,295) 860,000 860,000 5% Residual - Land Sale
6,185,124 6,536,474 6,552,559 16,085 6,676,000 (0) 6,676,000 2% 4,783,443 4,830,000 4,983,361 153,361 4,900,000 4,900,000-2% 788,593 875,502 890,124 14,623 895,000 895,000 1%
202,759 175,000 170,956 (4,044) 178,500 178,500 4%
991,351 1,050,502 1,061,080 10,579 1,073,500 - 1,073,500 1% Franchise Fees
PGE/Cable/Other 222,929 (16,571) 244,800 244,800 10%
Solid Waste 518,604 6,604 534,000 534,000 3%
741,532 (9,968) 778,800 - 778,800 5%
Other Taxes
Transient Tax 582,508 12,508 600,000 600,000 3%
30% to IVECA Fund
Ri Prop Trns Tx 44,083 (25,117) 70,800 70,800 61%
Hsg Ath In Lieu 84,401 2,941 83,200 83,200 -1%
710,992 (9,668) 754,000 754,000 6%
Money and Property
Investment Earnings 10,222 40,604 28,604 18,000 18,000 -56% Rents And Concessions 252,222 243,233 (2,767) 246,000 246,000 1% Water/Wastewater Leases 318,362 266,913 (0) 274,920 274,920 3% 580,806 550,750 25,837 538,920 538,920 -2%
Other Miscellaneous Revenue
State VLF 46,771 10,000 39,693 (307) 42,000 42,000 6%
Misc Income 2,460 20,477 20,477
Sale of Assets
49,230 40,000 60,170 20,170 42,000 42,000 - 30%
Subtotal, General Revenues 13,983,547 14,454,049 14,660,445 206,396 14,763,220 (0) 14,763,220 1% (o)
Program Revenues
Police
Vehicle Code Fines
Alarm Permits 750 33%
SRO Program -
Special Service /Misc Revenue
Towing Fees
Livescan
POST
Federal Grant/Bulletproof Vest 153893
Assessment District 2005-01 1
Prkg Mtrs/Lots 275,000
Traffic Control Grant 150,000
Parking Citations 204,000
Misc Fees/Services 637 5,000
Animal Licenses/Control 7,140
928,033
Continued
ATTACHMENT C, Continued
2023-24 1st Quarter Budget Report
CALEXICO General Fund
Revenues
2021-22 2022-23 2023-24
Current Prelim Actual Budget Current Proposed Ist Quarter % vs Continued Actual Budget 11-1-23 Variance Budget Updates Budget PY Fire
Ambulance Fees 927,550 800,000 911,463 111,463 820,000 820,000 - 10% Fire Prevention 282,298 275,000 287,392 12,392 281,000 281,000 -2% Fire Late and Other Fees 1,846 9,000 14,854 5,854 9,200 .... 9,200 -38%
1,211,693 1,084,000 1,213,710 129,710 1,110,200 1,110,200 -9% Planning & Building
Building
Building permits 409,750 (156,610) 700,699 : 700,699 78% Mechanical permits 45,685 (4,501) 40,800 40,800 15%
Plumbing permits 39,059 (15,492) 35,700 35,700 83%
Electrical permits 71,526 (46,182) 132,600 132,600 58%
Other permits 4,738 6,660 3,570 3,570 -65%
Plan Check Fees 100,009 2,740 153,000 153,000 0%
Code Enforcement 607 898 1,530 1,530 -36%
Books, Maps and Publications 651 620 1,020 1,020 -37%
Engineering
Grading permits (1,000) 1,020 1,020
Encroachment Permits 68,339 (21,084) 81,600 81,600 39%
Plan Check Fees-Engineering 49,254 40,829 1,020 1,020-98% Engineering/Inspection Fees 45,089 42,954 1,530 1,530 -97% Books, Maps and Publications 2,210 50 (2,950) 3,060 3,060 #### Planning
Plan Check Fees 74,453 4,453 71,400 71,400 -4%
Inspection Fees 600 62,504 (7,496) 71,400 71,400 14%
Other 19 50 11,802 11,752 51 51 ####
837,536 1,137,550 993,141 (144,409) 1,300,000 1,300,000 31% Public Works
State Highway Maintenance 36,749 39,000 39,050 50 39,000 39,000 0% Fees 1,693 1,693
36,749 39,000 40,743 1,743 39,000 39,000 -4%
Parks, Recreation, and Library
Recreation program fees 33,446 33,500 31,832 34,170 -48% Library fines and penalties 2,389 2,800 241 2,856 -6%
Community Center activities 27,560 27,500 10,805 28,050 -27% Parks activities and events 4,839 5,000 2,559 5,100 -33% Leases 13,200 13,200 13,464 2%
CDCAC 5,391
81,434 82,000 50,828 83,640 83,640 -37%
Administration/Other
Successor Agency Admin Fee 199,853 210,000 198,346 (11,654) 235,000 235,000 18% Special District Admin Fee 41,680 44,000 39,180 (4,820) 44,880 : 44,880 15% Other 70 70
Subtotal, Program Revenues 3,314,836 3,508,166 3,516,061 7,895 3,740,753 3,740,753 6% (0)
Interfund Transfers
Measure H 1,073,000 1,100,000 1,100,000 1,122,000 1,122,000 2% 1,073,000 1,100,000 1,100,000 1,122,000 1,122,000 2%
Total General Fund Revenues $ 18,371,383 $ 19,062,215 $ 19,276,506 $ 214,291 $ 19,625,973 (0) $ 19,625,973 2% % Increase vs Prior Year 10%
Attachment D
2023-24 1st Quarter Budget Report
Iman
CALEXICO General Fund
Expenditure Summary
2022-23 2023-24
Budget
Current Prelim Actual Budget Current Proposed 1st Quarter Actual % Budget Budget 11-1-23 Variance Budget Updates Budget YTD 9-25-23 Used General Fund in Total
Salaries and Benefits
Salary and Benefits $ 13,706,452 $ 13,062,131 $ 144,322 $ 14,79,522 $ : $ 14,729,522 $ 2,993,416 21% Vacancy Assumption (500,000) (500,000) (500,000)
Reimbursement - Measure H (1,250,000) (1,250,000) (0) (1,250,000) (1,250,000) (312,500) 25% Reimbursement - Other Funds (491,159) (501,869) 10,710 (648,384) (648,384) (118,981) 18% 11,465,294 11,310,262 155,032 12,331,138 12,331,138 2,561,935 21% Operating Costs
Materials/Supplies 886,455 843,776 42,680 1,049,223 1,049,223 112,903 11% Repairs/Maintenance 390,254 249,291 140,963 440,157 440,157 28,574 6% Contracts/Professional Services 2,729,012 2,632,163 96,849 2,812,447 2,812,447 415,214 15% General Liability Insurance 720,181 720,181 694,041 694,041 113,917 16% Administration/Office Costs 375,435 283,861 91,573 408,207 408,207 40,203 10% Contribution to CFD 2013-1 225,402 225,402 225,000 225,000 - 0% Cost Allocation (1,054,706) (1,054,706) (1,105,910) (1,105,910) (276,477) 25% 4,272,033 3,899,968 372,066 4,523,166 4,523,166 434,334 10% Capital and Debt Service
Capital/One-Time Items/Transfers 527,000 (527,000)
13,172
Debt Service/Leases 13,171 11,000 11,000 2,119 19%
Employee Leave Obligation 100,000 100,000
Pension - Unfunded Liability 2,108,876 ......
2,108,876 (0) 2,025,824 2,025,824 511,844 25%
Retiree Medical - Benefit Payments 719,292 719,292 (0) 713,276 713,276 178,319 25% Retiree Medical - Amortize Liability 178,715 178,715 21,569 21,569 5,392 25% 3,120,054 3,647,055 (527,000) 2,771,669 2,771,669 697,674 25% $ 18,857,381 $ 18,857,284 $ 97 $ 19,625,973 $ 19,625,973 $ 3,693,943 19% (0)
Summary by Department
Police
Salaries and Benefits 4,484,422 4,639,242 (154,820) 5,090,296 5,090,296 1,056,440 21% Vacancy Assumption
Reimbursement - Measure H (850,000) (850,000) (0) (850,000) (850,000) (212,500) 25% Reimbursement - Grant Funds (280,000) (257,760) (22,240) (401,000) (401,000) (70,000) 17% Reimbursement - Dispatch (50% Fire) (336,484) (368,019) 31,535 (395,773) (395,773) (51,739) 13% Pension - Unfunded Liability 819,371 819,371 806,551 806,551 201,638 25% Materials/Supplies 174,173 179,235 (5,062) 200,996 200,996 25,963 13% Repairs/Maintenance 145,717 96,511 49,205 153,002 153,002 7,362 5% Contracts/Professional Services 728,443 577,323 151,120 705,698 705,698 220,272 31% General Liability Insurance 129,865 129,865 126,335 126,335 31,584 25% Administration/Office Costs 91,546 72,393 19,154 116,448 116,448 10,122 9% 5,107,053 5,038,161 68,892 5,552,554 5,552,554 1,219,141 22% Continued
Attachment D, Continued
General Fund Expenditure Summary
2022-23 2023-24
Budget
Continued Budget Proposed Actual % Budget
10-18-23 Updates Used
Traffic Control/Parking
Salaries and Benefits 304,748 19%
Pension - Unfunded Liability 31005 (0) 25%
Materials/Supplies 59,711 65,422 10%
Repairs/Maintenance 8,950 9,398 9,398 7%
Contracts/Professional Services 301,658 9%
General Liability Insurance 10,253 9,718 9,718 0%
Administration/Office Costs 18,989 9%
Debt Service - Vehicle Leases 13,172 19%
748,485 14%
Animal Control
Salaries and Benefits 20%
Pension - Unfunded Liability 0 25%
Materials/Supplies 2%
Repairs/Maintenance 552 0%
Contracts/Professional Services 9,401 6,051 6,051 4%
General Liability Insurance 6,835 6,479 2%
Administration/Office Costs 1,700 995 705 1,784 6%
- 17%
Fire -
Salaries and Benefits 4,409,238 24%
Reimbursement - Measure H (400,000) (0) 25%
Reimbursement - Grant Funds (130,000) 25%
Reimbursement - Dispatch (50%) 336,484 13%
750,151 (0) 25%
256,850 821 16%
34,000 5%
vices 321,235 2%
95,690 0%
38,350 3%
5,711,999 21%
ling
836,986 572,358 69,627
(195,000)
82,681 82,681 (0) 25%
36,309 37,024 10%
9,200 5,561 10%
vices 11,525 95,261 19%
27,340 27,340 0%
35,600 19,521 4%
844,640 839,745 13%
856,895 634,113 19%
(200,000) (61,948)
nds (61,159) 22%
79,444 79,444 (0) 25%
169,318 161,504 6%
99,255 30,990 6%
vices 106,039 86,111 5%
54,304 54,304 0%
42,542 35,875 12%
1,146,638 1,020,392 14%
Attachment D, Continuec
general Fund Expenditure Summary
2022-23 2023-24
Budget
Continued Budget Adjusted Budget Current Proposed 1st Quarter Actual 10-18-23 10-18-23 Variance Budget Updates Budget VTD 9-25-23 Library
333,090 256,927 10,163 355,818 355,818
(66,000) (50,000) (50,000)
41,340 42,300 (o) 36,844 36,844
49,174 44,895 4,279 68,756 68,756
12,645 10,431 2,214 13,277 13,277 1%
88,271 85,034 3,236 95,567 95,567
13,670 13,670 12,957 12,957
20,373 12,909 7,463 21,391 21,391
492,563 465,208 27,355 554,610 554,510
-
Recreation
429,145 461,134 461,134
(39,000)| (50,000) (50,000)
46,508 41,449 41,449
59,300 90,500 90,500
12,050 16,253 16,253
ces 68,710 72,146 72,146
15,379 14,577 14,577
4,555 5,248 5,248 902
596,646 569,045 27,601 651,305 651,305
Housing
104,236 96,696 7,539
20,670 20,670
650 567 83
-
15,450 14,393 1,057
8,894 1,052 7,842
unds
149,900 133,379 16,520
Dep
1,770,241 1,395,721 1,983,391 19%
(200,000)
(20,000) (24,274) (57,211)
6%
100,000 100,000
217,036 217,036 197,113 28%
719,292 719,292 713,276 25%
178,715 178,715 21,569 25%
62,945 58,286 83,506 8%
54,200 53,189 51,410 8%
1,078,280 1,058,670 1,094,565 8%
366,845 366,845 0 328,934 25%
112,887 112,100 787 118,894 13%
Contribution to CFD 2013-1 225,402 225,402 0 225,000 0% Transfer Out to Capital Fund 527,000
Cost Allocation (1,054,706) (1,054,706) (1,105,910) (1,105,910) (276,477) 25% 3,811,137 3,933,275 3,454,538 3,454,538 497,963 14%
Total General Fund Expenditures $ 18,857,381 $ 18,857,284 $ 97 $ 19,625,973 $ $ 19,625,973 $ 3,693,943 19% Attachment E
2023-24 1st Quarter Budget Report
CALEXICO Measure H
Fund #120
Purpose of Fund
Measure H is a local sales and use tax approved by the voters in June 2010, effective October 1, 2010. The sales tax add- on (transactions and use tax) is a general-purpose tax of .5% applicable on sales within the City of Calexico and sales outside of the City under certain applicable criteria. The passage of the tax establishes a Measure H Oversight Advisory Committee to make recommendations on the use of the funds to the City Council.
Measure H Revenues pay for annual debt service on Measure H bonds issued in 2011 to fund capital projects, including fire station improvements, park improvements, and swimming pool. The Measure H committee has also in the past approved in annual allocation for Police and Fire personnel. During periods of fiscal distress, beginning in 2015 through 2021, th ity General Fund drew remaining Measure H balances to sustain current operations and to rebuild its fund balanc reserve. Beginning in 2022-23, a new Measure H allocation for Recreation programming was added, and the annual General Fund transfer was limited to 2% annual growth. An annual residual is now accumulating in the fund to rebuild an Emergency Reserve.
The budget for 2023-24 proposes three objectives for consideration:
1. The budget continues to implement the Committee's reserve policy (adopted September 2011, Resolution # 2011-99) to set aside 10% of annual revenues to fund an emergency reserve. This policy had been adopted after the 2010 earthquake at the recommendation of State Office of Emergency Services. The proposed budget continues to phase in this recommendation and achieves an annual 10% contribution in 2030 with a $1.9 million accumulated reserve.
2. The budget maintains the current level of General Fund support with a 2% annual growth factor. This is recommended to sustain current General Fund operations without a disruption to current staffing and operations.
3. The proposed budget continues discretionary recreation program funding at an amount that achieves $1.7$1.9 million target reserve by 2030 (Updated 11-1-23 with actual 2023 results) 7-Vear Projection
2022-23 2023-24 2025-26 2027-28 2029-30
Actual Projection Projection Projection (Sunset) Notes
Beginning Fund Balance 79,294 3 228,621 3 438,092 3 824,389 31,488,342 Revenues
Measure H Sales Tax 3,587,998 3,524,000 3,637,725 3,821,885 4,015,590 2% 2.5% 2.5% 2.5%
Expenditures
Transfer to Debt Fund
For Measure H Bond 995,198 1,001,000 1,001,000 1,001,000 1,001,000 Public Safety Support
Police 850,000 850,000 850,000 850,000 850,000
Fire 400,000 400,000 400,000 400,000 400,000
Transfer to General Fund
To Sustain Operations 1,100,000 1,122,044 1,167,375 1,214,537 1,263,604 0% 2% 2% 2%
Recreation Programs 93,473 35,000 60,000 60,000 60,000
3,438,670 3,408,044 3,478,375 3,525,537 3,574,604 Reserve Policy:
Net Annual Activity 10% of Annual
Addition to Reserve Fund 149,328 115,956 159,350 296,348 440,986 Revenue % of Revenues 4% 3% 4% 8% 11% Emergency Reserve
Ending Fund Balance $ 228,621 $ 344,577 $ 597,443 $ 1,120,737 $ 1,929,328 RESOLUTION NO. 2023-_
RESOLUTION OF THE CITY OF CALEXICO APPROVING
2022-23 and 2022-24 BUDGET AMENDMENTS
WHEREAS, the City Council adopted the 2023-24 Annual Budget on June 22, 2023, 2022; and
WHEREAS, the City Manager has prepared a 1st Quarter 2023-24 budget update to brief City Council on the City's current budget status, including preliminary 2022-23 results and 2023- 24 year-to-date expenditures; and
WHEREAS, the City Manager has proposed a budget adjustment as listed in Exhibit 1 to this resolution, including updates to the 2022-23 budget for the General Fund year-end surplus and updates to the 2023-24 budget;
NOW, THEREFORE, BE IT HEREBY RESOLVED, DETERMINED, AND
ORDERED BY THE CITY COUNCIL OF THE CITY OF CALEXICO, AS FOLLOWS:
Section 1. The foregoing recitals are true and correct and are a substantive part of this Resolution.
Section 3. The 2022-23 and 2023-34 budgets are amended as listed in Exhibit 1 to this resolution.
Section 4. The City Manager is authorized to allocate the budgeted vacancy savings target between General Fund departments as needed to match the savings realized by various departments
PASSED AND ADOPTED at a meeting of the City Council of the City of Calexico this 1st day of November, 2023.
Raul Urena, Mayor
ATTEST:
Veronica L. Alvarado, Interim City Clerk
APPROVED AS TO FORM:
Carlos Campos, City Attorney
STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) SS.
CITY OF CALEXICO
1, Veronica L. Alvarado, Interim Deputy City Clerk of the City of Calexico do hereby certify that the foregoing Resolution No. 2023-xx was passed and adopted by the City Council on the 1st day of November 2023 by the following vote to-wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Veronica L. Alvarado, Interim City Clerk