AGENDA
ITEM
23 AGENDA
ITEM
CALEXICO California
23 WHERE CALIFORNIA AND MEXICO MEET
DATE: February 21, 2024
TO: Mayor and City Council
APPROVED BY: Esperanza Colo Warren, Cly Managemma CalaNim PREPARED BY: Sandra L. Fonseca, Interim Finance Director AF SUBJECT: Presentation of 2023-24 Second Quarter Budget Status Report and Approve Resolution No 2024- to Amend the 2023-24 Budget. === =========
=======================
Recommendation:
It is recommended that the City Council receive a briefing on the 2nd quarter status of the 2023- 24 Budget and consider a resolution to amend the 2023-24 budget to reflect current trends and available balances. The proposed budget amendment invests improving General Fund tax revenues into program expenditures and new permanent staff positions to improve City services.
Background:
The City Council adopted the 2023-24 budget on June 22, 2023. A 1st quarter budget report was received by City Council on November 1, 2023. A 2nd quarter budget report is provided at this time to assist the City Council in monitoring budget compliance through the first six months of the 2023-24 fiscal year.
The City's year-to-date expenditure results are within budget projections and the General Fund revenue trends project a current year budget surplus available for the City Council's policy direction. A 2023-24 budget amendment is proposed to invest improving General Fund revenues into new permanent Police Records, Traffic Control, Street Maintenance, and Revenue positions to improve City operations and service. Non-General Fund grant and fee fund budget amendments are also proposed to update available funds and operating requirements.
Discussion & Analysis:
2023-24 Year-to-Date Expenditures
The City has completed the first half of the 2023-24 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 44% of its budget through December 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 first half of the fiscal year. 2023-24 General Fund Revenues
Total General Fund revenues are projected to increase by $230,000 to $19.5 million for the year.
The most significant revenue increase is $380,000 in property tax and property-tax related revenues, including the State's Motor Vehicle License Fee in-lieu backfill and also Residual Tax increment (surplus Successor Agency tax revenues in excess of debt service requirements).
These property tax increases are expected to be ongoing revenues based upon assessed property valuations in the City.
Sales Tax revenues are on track with budget through the first five months of the year (through November, 2023). The State will release actual results for the quarter ending in December 2023 in late February 2024. 2023-24 annual Sales Tax projections will be updated in the 3rd quarter budget report.
Property tax increases are offset by reduced projections for business license (-$120,000) and property transfer taxes (-$30,000) paid at the time of real estate sales.
Program revenues earned by specific General Fund departments are on track in total, while individual department revenues are proposed for updates. Increased Fire ambulance revenues of $280,000 are primarily due to improved federal and state reimbursement rates. The ambulance revenue increase offsets a $300,000 reduction in Planning, Engineering, and Building revenues. The 2023-24 Planning, Engineering, and Building revenue budget had included an aggressive increase, while actual year-to-date revenues indicate annual activity will be closer to the 2022-23 actuals of approximately $1 million per year. Combined Public Works, Parks, Recreation, and Library fee revenues are also increased by $20,000 for current trends.
These updates to the General Fund revenue line items will create the baseline revenues for use in the upcoming 2024-25 budget cycle. The improved property tax revenues in particular provide an encouraging baseline to consider new investment in City programs. 2023-24 General Fund Expenditures
All General Fund departments are within the target 50% six-month expenditure trend as of December 2023. The City has also met and exceeded its vacancy savings assumption during this period. Since some key positions are now filled, the vacancy savings may level off in the second half of the fiscal year.
The proposed budget amendment provides City Council an opportunity to reinvest $230,000 of surplus annual revenues by filling permanent positions in support of program operations.
Proposed additions include partial year funding for the remainder of the fiscal year. $15,000 .5 FTE Police: Records Assistant (partial year funding through June) This position will support operations of the new County-wide communications system. The system is in transition and is requiring staff training and a learning curve on new data processes. $15,000 5 FTE Traffic Control: Parking Traffic Officer (partial year funding through June) 2 This position will allow the traffic program to transition a temporary staff to permanent part-time staff. This will improve training, consistency, and the turn-over associated with temporary staff. $20,000 Street Maintenance staff allocation from State Road Maintenance Rehab Fund This action increases the local/General Fund support for Street Maintenance as a first step into improving compliance with the State's Maintenance of Effort (MOE) threshold required to receive annual State grant allocations for the City's Road Maintenance Rehab Fund #237. The City had fallen out of compliance with the State MOE in FY 2021-22 and barely regained compliance in 2022-23. Additional local/General Fund budget support for Street Maintenance will be a policy option for City Council consideration in the new year 2024-25 budget cycle. This first step in this budget amendment reduces the risk of non-compliance in 2023-24 by allocating staff costs currently charged to the RMRA Fund #237 back to the General Fund. This action moves but doesn't increase staff costs and increases the funding available in RMRA Fund #237 for Street Improvement capital projects.
$25,000 .9 FTE Revenue Officer (partial year funding through June), or other title to be determined by Human Resources
This action implements a recommendation from the State Water Resources Control Board to improve the City's administrative capacity to support Water/Wastewater customer billing and revenue functions of the City. Improved revenue administration is also a recommendation in the 2022 State Auditor report. The State Water Resources Control Board has been evaluating City revenue operations during a compliance review of the City's customer billing practices. This action divides the work of the City's existing Revenue officer (.1FTE General Fund, .9 FTE Water/Wastewater Funds); establishes a dedicated position for Water/Wastewater customer billing; and moves General Fund/Non-Utility revenue activities into a separate revenue administrative position. The net General Fund impact is a .9 FTE position increase. Establishing a dedicated Water/Wastewater billing position is a strong recommendation of the State Water Resources Control Board and is necessary to demonstrate the City's commitment to improved customer service and compliance in this program.
($40,000) Prop 172/Public Safety Grant Reimbursements
This State grant allocation has increased from the estimates in the original 2023-24 budget. This action reduces the General Fund expenditure budget by increasing the portion of Police and Fire salaries allocated to the Prop 172 Grant Fund #242.
$120,000 Elections
This action increases the General Fund expenditure budget for the upcoming April local election. $75,000 2013 Community Facilities District (CFD) (Gran Plaza) This CFD includes a contractual sales-tax pass-through to pay debt service on the bonds issued at the time of development. Positive sales tax trends require an increase in the annual contribution to the CFD.
$230,000 Total
3 Collectively, these General Fund expenditure adjustments reinvest the proposed revenue increases and maintain a balanced 2023-24 General Fund budget.
Measure H Fund
Measure H sales tax revenues have exceeded projections for the first half of the 2023-24 fiscal year. The annual projection is increased by $100,000 and improves the projected 2030 Measure H fund balance reserve to $2 million. Attachment E presents the long-term projection for the fund and demonstrates the annual investment of Measure H revenues into Police, Fire, Recreation, and other General Fund operations.
Other Funds
The proposed budget amendment invests grant and donation revenues into various City programs.
The budget amendment also swaps funding between local and state capital funds to comply with the State's Street Maintenance of Effort (MOE) requirements, as discussed above. The pending Bucket Truck capital purchase moves funding between sources, with an offsetting change operating expenditures, and with no net change in total project or total spending by fund. The City's compliance with State Street Maintenance MOE requirements is necessary to continue to receive State Road Maintenance Rehab Fund #237 grant allocations.
Fiscal Impact:
The proposed budget amendment draws on new General Fund tax revenue growth to reinvest in programs by adding permanent staff to improve city services. The General Fund budget amendment is "break even" with revenues matching expenditures.
The combined General Fund and Measure H Fund Reserves increase by $100,000 from improved Measure H sales tax revenue projections. The projected combined General Fund and Measure H Fund June 2024 reserves improve to $3.7 million, or 69 days of General Fund operations. With this proposed action, the City continues its consistent trend of annual improvements to its fiscal position and stability.
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
4 RESOLUTION NO. 2024-_
RESOLUTION OF THE CITY OF CALEXICO APPROVING
2022-24 BUDGET AMENDMENT
WHEREAS, the City Council adopted the 2023-24 Annual Budget on June 22, 2023, 2022; and
WHEREAS, the City Manager has prepared a 2nd Quarter 2023-24 budget update to brief City Council on the City's current budget status, including 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 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 2023-34 budget is 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 21s day of February, 2024.
Gloria G. Romo, 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
I, Veronica L. Alvarado, Interim Deputy City Clerk of the City of Calexico do hereby certity that the foregoing Resolution No. 2024-xx was passed and adopted by the City Council on the 21 st day of February 2024 by the following vote to-wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Veronica L. Alvarado, Interim City Clerk
Exhibit 1 to Resolution
Proposed Midyear Budget Adjustments
2023-24
February 21, 2024
111 General Fund Fund Balance Impact
Revenues
To update Revenue Projections for current trend
Property Tax 135,000
Residual Property Tax 245,000
Property Transfer Tax (30,000)
Business License (120,000)
Program Revenues - Fire - Ambulance 280,000
Program Revenues - Planning/Building (300,000)
Program Revenues - Public Works 2,400
Program Revenues - Recreation 17,600 230,000
Expenditures
To add budget for April 2024 Election
Contract Expenditures (120,000)
To add Program staff
210 Police Records .5 FTE (Partial year) Records Assistant (15,000) 216 Police Traffic .5 FTE (Partial year) Parking Traffic (15,000) Control Officer
413 Public Works Salary allocation from #237 RMMA Fund - (20,000) Streets Street Maintenance Labor
160 Finance & 162 .9 FTE (reclass from Water/Wastewater) (25,000) Revenue Officer
To update Prop 172 grant reimbursements for increased grant revenue Police interfund reimbursements 20,000
Fire interfund reimbursements 20,000
To increase CFD 2013 contribution for contractual sharing of sales tax (75,000) (230,000) Net Change in Fund Balance
120 Measure H
To increase revenues for year-to-date trend
Sales Tax 100,000 100,000
222 Donations Fund
To increase expenditure budget for accumulated donations revenue Police/Animal Control (4,600) (4,600)
237/411 Road Maintenance Fund/Local Capital Fund
To swap capital and operating expenditure budgets between these two funding sources to comply with the State's annual Streets Maintenance of Efforts local spending threshhold, with no net change in total budget or programs. This moves the Bucket Truck capital expenditure to the Road Maintenance fund (truck delivery anticipated Spring 2024)
237 RMMA - Bucket Truck (250,000)
411 Local Capital - Bucket Truck 250,000
237 RMMA - Operating Expenditures 250,000
411 Local Capital Fund - Operating Expenditures (250,000) To increase General Fund/local support for Street Maintenance to move towards compliance with State Maintenance of Effort threshhold 237 RMMA - Interfund Salary allocation (reclass to General Fund) 20,000 20,000 242 Prop 172/Public Safety Grant
To increase grant revenue and expenditures based upon trend State grant revenue 20,000
Public Safety expenditures (Police/Fire) (20,000) -
299 Operating Grants
Police Grant - State Post Wellness
To carryover unused grant budget from 2022-23 into 2023-24 Revenues 10,000
Expenditures (10,000)
513/544 Water/Wastewater Funds
To add revenue staff capacity per state recommendation (reclass from General Fund) . 1 FTE (Revenue Officer) (2,800) (2,800)
Total, All Funds
Expenditures (247,400)
Net Change in Fund Balance $ 112,600
ATTACHMENT A
2023-24 2nd Quarter Budget Report
City-wide Expenditures
CALEXICO
Summary of Expenditures by Fund
2023-24 Budget YTD Actual
Current 2st Q Update Adjusted 12/28/2023 % Used Notes
General Fund
111 General Fund 19,625,973 $ 230,000 $ 19,855,973 8,685,182 120 Measure H Sales Tax 3,408,044.00 3,408,044 1,333,613 Operating Grant Funds
221 Library Grants 54,353.00 29,254
222 Community Donations 33,390.28 4,600 11,217
231 Gas Tax 1,084,162.13
237 Road Maintenance Reha 2,510,063.16 (20,000)
241 Asset Seizure/Forfeitur 42,773.00
242 Prop 172/Public Safety Ta> 260,000.00 20,000
243 COPS State Grant Progran 200,000.00
245 HIDTA 89,000.00
246 Stonegarden 103,000.00
256 Cannabis/Applicant Reimburse 10,000.00
258 National Opioid Settlement Fund
281 Solid Waste 2,958,840.07
299 Operating Grants 2,433,375.30 10,000
712 Business Imp District 15,000.00
Housing Funds
802 Successor Housing 100,000.00
840 Fed CDBG - Program Income 6,000.00 6,000
841 Fed Home - Program Income 5,500.00 5,500
842/3 Local Funds 61,500.00 263
846 CalHome - Program Income 1,000.00 1,000 308
Capital Project and Debt Service Funds
223 Art in Public Places 88,300.00 227 0%
233 LTA/Measure D 10,229,342.00 89
234/6 Transportation Development 216,880.99
255 FEMA/Disaster Recovery/ARPA 6,997,027.49
402 Measure D Bond Proceeds 2,705,000.00 0%
411 Local Capital Projects 1,627,000.01 3%
412 Capital Grants 10,348,024.19 0%
430-6 Development Impact Fees 3,143,950.17 1%
452-64 Development Projects 2,963,456.64 0%
474-6 New River Projects 45,755,047.00 6%
310 Measure H Debt Service 1,001,000.00
Enterprise Funds
513 Water Operations 8,543,701.47 1,400 8,545,101 2,753,606 514 Water Debt Service 835,401.48 835,401 588,215
515 Water Development Fees 0.00
516 Water Capital Program 15,134,500.00 15,134,500 72,387 0% 522 Airport Operations 413,817.74 413,818 248,166
525 Airport Captial 150,000.00 150,000 13,250 9%
544 Wastewater Operations 6,331,281.99 1,400 6,332,682 2,237,291 545 Wastewater Debt Service 1,166,136.64 1,166,137 809,698 546 Wastewater Impact Fees 0.00 14,691,500
547 Wastewater Capital 44,691,500.00 202,760 0%
CFD/Special Districts
261 Bravo Victoria 885,000.00 885,000 19,425 2%
903 Hearthstone 1,014,600.00 1,014,600 326,420
906 Gran Plaza 536,396.00 536,396 339,568
Internal Service Funds
601/2 Active and Retire Medical 5,927,327.45 5,927,327 1,640,671 603 Workers Compensation 1,452,000.00 1,452,000 692,919 604 Unemployment Insurance 69,313.90 69,314 7,668
605 General Liability Insurance 1,134,000.00 1,134,000 589,510 607 Compensated Absence Reserve -
• 601-7 Net Internal Charges (8,582,641) (8,582,641) (2,930,768) 197,779,338 247,400 198.026.738 23,468,090
ATTACHMENT B
2023-24 2nd Quarter Budget Report
CALEXICO General Fund
Fund Balance Projection
2020-21 2021-22 2022-23 2023-24
Pre Audit Actuals Current 2nd Quarter
Actual Actual 2-21-24 Budget Updates Budget
Annual Activity
Revenues
Property Tax $ 6,059,538 $ 6,185,124 $ 6,552,559 $ 6,676,000 380,000 7,056,000 Sales Tax 3,938,933 4,783,443 4,983,361 4,900,000 - 4,900,000 Other General Revenues 2,862,458 3,014,981 3,118,344 3,187,220 (150,000) 3,037,220 Program Revenues 2,986,059 3,314,836 3,516,061 3,740,753 3,740,753 Measure H Transfer 873,388 1,073,000 1,100,000 1,122,000 : 1,122,000 One-time Revenues
16,720,375 18,371,383 19,270,325 19,625,973 230,000 19,855,973 Expenditures
Salaries and Benefits
Gross salary and benefits 11,290,095 12,262,789 13,071,254 14,729,522 55,000 14,784,522 Vacancy Assumption (500,000) (500,000)
Measure H Reimbursement (1,250,000) (1,250,000) (1,250,000) (1,250,000) (1,250,000) Grant/Other Reimbursements (619,723) (544,179) (503,371) (648,384) (20,000) (668,384) 9,420,372 10,468,610 11,317,883 12,331,138 35,000 12,366,138 Operating Costs
Operating Costs 3,741,069 4,145,675 3,979,164 4,710,034 120,000 4,830,034 General Liability Insurance 713,838 522,929 720,181 694,041 694,041 Contribution to CFD 2013 142,052 225,402 225,000 75,000 300,000 Cost Allocation (1,231,285) (980,831) (1,054,706) (1,105,910) (1,105,910) 3,223,621 3,829,824 3,870,041 4,523,166 195,000 4,718,166 Capital and Debt Service
Capital/One-Time Items 644,433 668,416 527,000
Debt Service - Leases 44,356 87,761 13,171 11,000 11,000 Employee Leave Obligation 100,000 100,000
CaPERS - Unfunded Liability 1,573,657 1,841,209 2,108,876 2,025,824 2,025,824 Retiree Medical - Benefit Payments 720,730 417,300 719,292 713,276 : 713,276 Retiree Medical - Amortize Liability 100,000 100,000 178,715 21,569 21,569 3,083,177 3,214,686 3,647,055 2,771,669 2,771,669
Total Expenditures 15,727,170 17,513,120 18,834,979 19,625,973 230,000 19,855,973 Net Annual Operating Results $ 993,205 858,263 435,346 $ (0) $ 0 $ 0 Fund Balance
Beginning Fund Balance 1,005,763 1,998,968 2,857,231 3,289,982 2,595 3,292,577 Annual Operating Results 993,205 858,263 435,346 (0) 0 0 Ending General Fund Balance 1,998,968 2,857,231 3,292,577 3,289,982 2,595 3,292,577 % Annual General Fund Expenditures 17% 17% 17%
Days of General Fund Operations 64 61 61
Measure H Fund 79,294 228,569 344,525 100,000 444,525
Combined General/Measure H Reserve $ 1,998,968 3 2,930,525 $ 3,521,146 3 3,634,507 102,595 ' 3,737.02 % Annual General Fund Expenditures 13% 19% 19%
Days of General Fund Operations 46 61 68 68 69
ATTACHMENT C
2023-24 2nd Quarter Budget Report
CALEXICO General Fund
Revenues
2021-22 2022-23 2023-24
Pre Audit Actuals Current Proposed 2nd Quarter % vs
Actual 2/21/24 Budget Updates Budget PY
General Revenues
Property Tax
Property tax $ 2,148,740 $ 2,310,064 2,330,000.26 60,000 2,390,000.00 1% Property Tax in lieu of MVLF 3,252,615 3,420,501 3,485,999.68 75,000 3,561,000.00 2% Residual Tax Increment 783,769 821,995 859,999.80 245,000 1,105,000.00 5% Residual - Land Sale
6,185,124 6,552,559 6,675,999.74 380,000 7,056,000.00 2% Sales Tax
4,783,443 4,983,361 4,900,000 4,900,000 -2%
Business License
Business License 788,593 883,612 895,000 (120,000) 775,000 1% Cannabis 202,759 170,956 178,500 178,500 4%
991,351 1,054,568 1,073,500 (120,000) 953,500 2%
Franchise Fees
PGE/Cable/Other 226,865 222,929 244,800 : 244,800 10%
Solid Waste 187,343 518,604 534,000 534,000 3%
714,207 741,532 778,800 778,800 5%
Other Taxes 600,000
Transient Tax 529,017 582,508 600,000 3%
:
30% to IVECA Fund 40,800
RI Prop Trns Tx 44,083
Hsg Ath In Lieu 84,401 83,200
710,992 724,000
Money and Property
Investment Earnings 10,222 40,935 18,000 18,000
Rents And Concessions 252,222 243,233 246,000 246,000
Water/Wastewater Leases 318,362 266,913 274,920 274,920 580,806 551,081 538,920 538,920
Other Miscellaneous Revenue
State VLF 46,771 39,693 42,000 : 42,000 6%
Misc Income 2,460 20,477
Sale of Assets -
49,230 60,170 42,000 42,000 -30%
Subtotal, General Revenues 13,983,547 14,654,263 14,763,220 230,000 14,993,220 1% Program Revenues
Police
Vehicle Code Fines 18,612 15,533 20,000 - 20,000
Alarm Permits 800 750 1,000 1,000
SRO Program
Special Service /Misc Revenue 34,138 36,795 34,000 34,000 Towing Fees 40,906 30,812 40,000 40,000
Livescan 32,946 35,062 33,000 33,000
POST 12,825 7,071 5,000 5,000
Federal Grant/Bulletproof Vest 8,476
133,952 142,517 153,893 153,893
Assessment District 2005-01
Prkg Mtrs/Lots 273,196 272,916 275,000 275,000
Traffic Control Grant 150,000 150,000 150,000 150,000
Parking Citations 192,766 200,966 204,000 204,000
Misc Fees/Services 450 637 5,000 5,000
Animal Licenses/Control 6,823 5,884 7,140 7,140
905,891 898,043 928,033 928,033
Continued
ATTACHMENT C, Continued
2023-24 2nd Quarter Budget Report
ELIE General Fund
CALFYICO
Revenues
3/5:tewater Funds 2021-22 2022-23 2023-24
Pre Audit Actuals Current Proposed 2nd Quarter % vs
Continued Actual 2/21/24 Budget Updates Budget PY
Fire 1,100,000
Ambulance Fees 927,550 911,463 820,000 280,000 -10%
Fire Prevention 282,298 287,392 281,000 281,000 -2%
1,846 14,854 9,200 9,200 -38%
Fire Late and Other Fees
1,211,693 1,213,710 1,110,200 280,000 1,390,200 -9%
Planning & Building
Building 547,000
Building permits 409,750 393,390 700,699 78%
Mechanical permits 45,685 35,499 40,800 27,000 15%
Plumbing permits 39,059 19,508 35,700 16,000 83%
Electrical permits 71,526 83,818 132,600 94,000 58%
Other permits 4,738 10,160 3,570 10,500 -65%
Plan Check Fees 100,009 152,740 153,000 200,000 0%
Code Enforcement 607 2,398 1,530 3,000 -36%
Books, Maps and Publications 651 1,620 1,020 250 - 37%
Engineering :
Grading permits 1,020 (20) 1,000
Encroachment Permits 68,339 58,916 81,600 50,000 39%
Plan Check Fees-Engineering 49,254 41,829 1,020 1,000 -98% Engineering/Inspection Fees 45,089 44,454 1,530 25,000 -97% Books, Maps and Publications 2,210 50 3,060 250 6020%
Planning
Plan Check Fees 74,453 71,400 25,000 -4%
Inspection Fees 600 62,504 71,400 14%
Other 19 11,802 51 (51) -100%
837,536 993,141 1,300,000 1,000,000 31%
Public Works
State Highway Maintenance 36,749 39,050 39,000 39,000 0% Fees 1,693 2,400 2,400
36,745 40,743 39,000 2,400 41,400 -4%
Parks, Recreation, and Library
Recreation program fees 33,446 65,332 34,170 15,830 50,000 -48% Library fines and penalties 2,389 3,041 2,856 1,584 4,440 -6% Community Center activities 27,560 38,305 28,050 200 28,250 -27% Parks activities and events 4,839 7,559 5,100 (3,300) 1,800 -33% Leases 13,200 13,200 13,464 (264) 13,200 2%
CDCAC 5,391 3,550 3,550
81,434 132,828 83,640 17,600 101,240 -37%
Administration/Other -
199,853 198,346 235,000 235,000 18%
Successor Agency Admin Fee
Special District Admin Fee 41,680 39,180 44,880 : 44,880 15% Other 70
Subtotal, Program Revenues 3,314,836 3,516,061 3,740,753 3,740,753 6% Interfund Transfers
Measure H 1,073,000 1,100,000 1,122,000 1,122,000 2%
1,073,000 1,100,000 1,122,000 1,122,000 2%
Total General Fund Revenues $ 18,371,383 $ 19270355 $ 19,625,973 230,000 $ 19,855,973 2% % Increase vs Prior Year 10% 2% 3%
Attachment D
2023-24 2nd Quarter Budget Report
-mae
CALEXICO General Fund
Expenditure Summary
Caln iher heet Pt
2021-22 2022-23 2023-24
Budget
Pre Audit Actuals Current Proposed 2nd Q Actual % Budget Actual 2/21/24 Budget Updates Budget YTD 12-28-23 Used
General Fund in Total
Salaries and Benefits $ 6,730,937
Salary and Benefits $ 12,262,789 13,071,254 $ 14,729,522 $ 55,000 $ 14,784,522 47% Vacancy Assumption (500,000) • ' (500,000)
Reimbursement - Measure H (1,250,000) (1,250,000) (1,250,000) (1,250,000) (625,000) 50% Reimbursement - Other Funds (544,179) (503,371) (648,384) (20,000) (668,384) (325,384) 49% 10,468,610 11,317,883 12,331,138 35,000 12,366,138 5,780,553 47% Operating Costs
Materials/Supplies 790,975 843,887 1,043,807 1,043,807 393,210 38% Repairs/Maintenance 283,761 249,291 443,004 443,004 82,803 19% Contracts/Professional Services 2,752,134 2,602,126 2,813,600 120,000 2,933,600 1,045,665 36% General Lability Insurance 522,929 720,181 694,041 694,041 286,269 41% Administration/Office Costs 318,805 283,861 409,623 409,623 103,228 25% Contribution to CFD 2013-1 142,052 225,402 225,000 75,000 300,000 150,000 0% Cost Allocation (980,831) (1,054,706) (1,105,910) (1,105,910) (552,955) 50% 3,829,824 3,870,041 4,523,166 195,000 4,718,166 1,508,221 32% Capital and Debt Service
Capital/One-Time Items/Transfers 668,416 527,000 11,000 11,000 5,296 Debt Service/Leases 87,761 13,171 : 48%
Employee Leave Obligation 100,000 100,000 1,023,689
Pension - Unfunded Liability 1,841,209 2,108,876 2,025,824 2,025,824 51% Retiree Medical - Benefit Payments 417,300 719,292 713,276 713,276 356,638 50% Retiree Medical - Amortize Lability 100,000 178,715 21,569 21,569 10,785 50% 3,214,686 3,647,055 2,771,669 2,771,669 1,396,408 50%
$ 17,513,120 18,834,979 $ 19,625,973 $ 230,000 $ 19,855,973 $ 8,685,182 44% Summary by Department
Police
Salaries and Benefits $ 4,182,174 4,639,242 5,090,296 15,000 5,105,296 $ 2,420,112 47% Vacancy Assumption
Reimbursement - Measure H (850,000) (850,000) (850,000) (850,000) (425,000) 50% Reimbursement - Grant Funds (323,356) (257,760) (401,000) (20,000) (421,000) (150,000) 36% Reimbursement - Dispatch (50% Fire) (257,868) (368,019) (395,773) (395,773) (197,887) 50% Pension - Unfunded Liability 702,537 819,371 806,551 806,551 403,276 50% Materials/Supplies 176,739 179,235 200,996 200,996 77,389 39% Repairs/Maintenance 90,683 96,511 153,002 153,002 16,613 11% Contracts/Professional Services 531,887 575,513 705,698 705,698 272,021 39% General Lability Insurance 100,421 129,865 126,335 126,335 42,112 33% Administration/Office Costs 86,998 72,393 116,448 116,448 25,446 22% Debt Service - Leases
4,549,104 5,036,351 5,552,554 (5,000) 5,547,554 2,484,083 45% Continued
Attachment D, Continued
General Fund Expenditure Summary
2021-22 2022-23 2023-24
Budget
Continued Pre Audit Actuals Current Proposed 1st Quarter Actual 2/21/24 Budget Updates Budget
Traffic Control/Parking
Salaries and Benefits 284,050 291,974 316,396 15,000 331,396 Pension - Unfunded Liability 28,276 31,005 27,633 27,633 Materials/Supplies 53,018 40,523 65,422 65,422
Repairs/Maintenance 5,222 10,174 9,398 9,398
Contracts/Professional Services 390,089 377,987 316,741 316,741 General Liability Insurance 8,368 10,253 9,718 9,718
dministration/Office Costs 8,970 8,554 20,018 20,018
Debt Service - Vehicle Lease 41,761 13,171 11,000 11,000 819,753 783,641 776,325 15,000 791,325
Animal Control
Salaries and Benefits 141,269 184,620
Pension - Unfunded Liability 18,850 18,422
Materials/Supplies 11,480 15,424
Repairs/Maintenance 53 552 14,949 2%
Contracts/Professional Services 19,010 6,051 48%
General Liability Insurance 5,579 6,479
Administration/Office Costs 613 995 1,784
196,854 247,729
Fire
Salaries and Benefits 4,011,130 4,625,904 4,407,250 4,407,250 2,369,285 54% Reimbursement - Measure H (400,000) (400,000) (400,000) (400,000) (200,000) 50% Reimbursement - Grant Funds (132,500) (157,887) (130,000) (20,000) (150,000) (75,000) 50% Reimbursement - Dispatch (50%) 257,868 368,019 395,773 395,773 129,209 33% Pension - Unfunded Liability 656,194 750,151 722,436 722,436 361,218 50% Materials/Supplies 224,955 256,029 264,892 264,892 98,989 37% Repairs/Maintenance 57,332 32,661 60,900 60,900 8,310 14% Contracts/Professional Services 202,368 281,441 319,922 319,922 49,382 15% General Liability Insurance 78,105 95,690 90,702 90,702 30,234 33% Administration/Office Costs 17,085 16,382 41,218 41,218 4,372 11% 4,987,913 5,868,390 5,773,093 (20,000) 5,753,093 2,775,999 48% Planning, Engineering, Building
Salaries and Benefits 604,054.71 572,358 1,008,367 1,008,367 32% Vacancy Assumption (150,000) (150,000)
Pension - Unfunded Liability 65,976.72 82,681 82,898 82,898 • • 50% Materials/Supplies 36,390.31 37,024 53.732 53,732 34%
Repairs/Maintenance 6,009.05 5,561 14,770 14,770 19%
Contracts/Professional Services 314,926.03 98,545 82,751 82,751 00 69% General Liability Insurance 19,526.05 27,340 29,154 29,154 33% Administration/Office Costs 27,446.12 19,521 37,748 37,748 17% 1,074,329 843,029 1,159,420 1,159,420 36%
Public Works 367,02 48%
Salaries and Benefits 579,026 634,113 922,252 922,252
Vacancy Assumption (150,000) (150,000)
Reimbursement - Grant Funds (89,788) (63,450) (60,173) 20,000 (40,173) (28,276) 70% Pension - Unfunded Liability 72,480 79,444 92,478 92,478 57,016 62% Materials/Supplies 155,978 161,504 205,995 205,995 112,122 54% Repairs/Maintenance 65,819 30,990 106,198 106,198 29,149 27% Contracts/Professional Services 67,674 86,111 119,006 119,006 38,930 33% General Liability Insurance 46,556 54,304 75,185 75,185 25,062 33% Administration/Office Costs 37,816 35,875 45,459 45,459 8,464 19% 935,561 1,018,890 1,356,399 20,000 1,376,399 609,567
Attachment D, Continued
General Fund Expenditure Summary
2021-22 2022-23 2023-24
Budget
Continued Pre Audit Actuals Current Proposed 1st Quarter Actual % Budget Actual 2/21/24 Budget Updates Budget YTD 12-28-23 Used
Library 49%
Salaries and Benefits 226,750 256,927 355,818 355,818 154,376 Vacancy Assumption (40,000) (40,000)
41,340 36,844 18,422 50%
Pension - Unfunded Liability 37,701 36,844
Materials/Supplies 42,166 45,006 68,756 68,756 22,024 32% Repairs/Maintenance 8,511 10,431 13,277 13,277 2,489 19% Contracts/Professional Services 64,425 85,002 95,567 95,567 51,997 54% General Liability Insurance 11,157 13,670 12,957 12,957 4,319 33% Administration/Office Costs 11,832 12,909 21,391 21,391 7,378 34% 465,287 564,610 564,610 261,004 46%
402,542
Recreation 50%
Salaries and Benefits 373,014 394,648 461,134 461,134 208,467 Vacancy Assumption (40,000) (40,000) 20,725
Pension - Unfunded Liability 42,414 46,508 41,449 41,449 50% Materials/Supplies 40,559 55,655 85,700 85,700 17,112 20% Repairs/Maintenance 7,261 9,222 19,100 19,100 6,877 36% Contracts/Professional Services 34,904 43,520 73,299 73,299 19,607 27% General Liability Insurance 12,552 15,379 14,577 14,577 4,859 33% Administration/Office Costs 3,815 4,082 6,048 6,048 2,136 35% Capital Outlay/One Time Items 0%
569,013 661,305 661,305 279,782 42%
514,519
Housing
Salaries and Benefits 104,106 96,696
Vacancy Assumption -
Pension - Unfunded Liability 23,563 20,670
Materials/Supplies 808 567
Repairs/Maintenance -
Contracts/Professional Services 25,238 14,393
Administration/Office Costs 1,076 1,052
Cost Allocation to Housing Funds
133,379
154,790
Administration, Finance, Non-Dept
Salaries and Benefits 1,757,216 1,404,844 1,983,391 25,000 2,008,391 699,929 37% Vacancy Assumption (120,000) (120,000)
Reimbursement - Other Funds 1,465 (24,274) (57,211) (57,211) (3,430) 6% Employee Leave Obligations 100,000 100,000
Pension - Unfunded Liability 193,217 217,036 197,113 197,113 98,557 50% Retiree Medical - Benefits 417,300 719,292 713,276 713,276 356,638 50% Retiree Medical - Unfunded 100,000 178,715 21,569 21,569 10,785 50% Materials/Supplies 48,882 58,286 82,891 82,891 19,986 24% Repairs/Maintenance 42,871 53,189 51,410 51,410 13,149 26% Contracts/Professional Services 1,101,614 1,028,702 1,094,565 120,000 1,214,565 404,500 33% General Liability Insurance 240,664 366,845 328,934 328,934 164,467 50% Administration/Office Costs 123,155 112,100 119,509 119,509 45,968 38% Contribution to CFD 2013-1 142,052 225,402 225,000 75,000 300,000 150,000 50% Transfer Out to Capital Fund 517,500 527,000 11105910)
Cost Allocation (980,831) (1,054,706) (1,105,910) (552,955) 50% 3,877,755 3,912,430 3,534,538 220,000 3,754,538 1,407,592 37% Total General Fund Expenditures $ 17,513,120 $ 18,834,979. $ 19,625,973 $ 230,000 $ 19,855,973 $ 8,685,182 44% Attachment E
2023-24 2nd Quarter Budget Report
CALEXICO Measure H
Fund #120
Purpose of Fund
Measure His 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 an annual allocation for Police and Fire personnel. During periods of fiscal distress, beginning in 2015 through 2021, the City General Fund drew remaining Measure H balances to sustain current operations and to rebuild its fund balance 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 includes three objectives:
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 by 2030.
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 $2.0 million target reserve by 2030 (Updated 2-21-23)
7-Year Projection
2022-23 2023-24 2025-26 2027-28 2029-30
Actual Projection Projection Projection (Sunset) Notes
Beginning Fund Balance $79,294 $ 538,040 924,336 $1,588,289 213 2 5000
Revenues
Measure H Sales Tax 3,587,998 3,624,000 3,637,725 3,821,885 4,015,590 5% 2% 2.5% 2.5% 2.5%
Expenditures
Transfer to Debt Fund
For Measure H Bond 995,250 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 2% 2% 2% 2%
Recreation Programs 93,473 35,000 60,000 60,000 60,000
3,438,723 3,408,044 3,478,375 3,525,537 3,574,604 Reserve Policy:
Net Annual Activity 10% of Annual
Addition to Reserve Fund 149,275 215,956 159,350 296,348 440,986 Revenue % of Revenues 6% 4% 8% 11% Emergency Reserve
Ending Fund Balance $ 228,569 $ 444,525 $ 697,390 $ 1,220,685 $ 2,029,275