AGENDA
ITEM
4 AGENDA
ITEM
CALEXICO California
WHERE CALIFORNIA AND MEXICO MEET
DATE: June 26, 2024
TO: Mayor and City Council
APPROVED BY: Juan A. Contreras, Acting City Manager Use PREPARED BY: Sandra L. Fonseca, Interim Finance Director SF SUBJECT: Annual Budget Resolution for Fiscal Year July 1, 2024 to June 30, 2025 ========= -----ASS ========================================== ===== Recommendation:
It is recommended that the City Council consider a resolution to adopt the 2024-25 Annual Budget.
Background:
The City Council received a presentation on the 2024-25 Proposed Budget on June 12, 2024. A Budget Workshop was conducted on June 20, 2024 during which each City department presented details about their operations and budget requests.
Updates to Proposed Budget
This report recommends one update to the Proposed Budget that incorporates a new total for the operating grants available in Fund #221, the Library Grant Fund. $ 80,078 Revised Library Grant Expenditures
$167,484,832 Revised Net City-wide Expenditures
Budget Recommendations Based Upon Current Financial Information The City's budget resolution requires that the annual budget adoption agenda report include information about the status of the City's annual audited financial statements, general ledger analysis, and bank reconciliations to endure that budget recommendations are based upon current financial information.
The City Council received the June 30, 2023 audited financial statements along with a presentation from the City's auditor on June 5, 2024. General ledger analysis and bank reconciliations are complete through the 3rd quarter of the 2023-24 fiscal year. A 2023-24 3d quarter budget status result was presented to the City Council on May 15, 2024. Accordingly, the 2024-25 budget recommendations are based upon current financial information.
Additional Budget Workshop Comments, Clarifications and Future Priorities Summer Swim Program Clarification
The Recreation Department's Summer Swim Program is fully funded for FY 2024-25. The early and late summer portions of the 2024 season is funded from #255 ARPA Funds. The early summer 2025 portion is funded from Measure H. Prospective swim seasons are also funded within the Measure H Fund long- term projection listed on the #120 Measure H Budget Book Page. Further, a dedicated revenue account to track new summer swim fee collections has been established in the General Fund for City Council's discretion to apply to future summer swim budget allocations.
ARPA Status
During the budget workshop, information about the status of the City's federal ARPA grant was requested.
The ARPA grant is tracked in Capital Projects Fund #255 and a detailed listing of cumulative ARPA allocations, spending, and available balances is available in the Proposed Budget book on page 144 and 145. A copy of these detailed ARPA pages is also included with this agenda report for your reference as Attachment A.
The 2024-25 proposed budget restores ARPA funding of $770,000 for emergency response equipment.
This allocation, along with proposed Measure H funding of $330,000, provides for the $1.1 million capital project replacement budget for fire department rolling stock/apparatus. This is an important budget allocation to set up at this time because of the long, two-year projected delivery window for fire apparatus, and because of the age of the current equipment. The reallocation of ARPA funds is possible because alternate funding has been identified for two other prior ARPA allocations, including the Cordoba Park and development fee study projects.
City Council Feedback for Future Budget Allocations
During the budget workshop, City Council members expressed support for future budget priorities for equipment, as funds become available, including:
• Technology efforts, such as Code Enforcement, and
• Library Air Conditioning Unit replacement, for the remaining 2 of 5 units identified Attachments:
1. Resolution
2. Exhibit 1 to the Resolution
3. Attachment A: ARPA Allocations, Spending, and Available Balances RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALEXICO APPROVING THE BUDGET FOR FISCAL YEAR JULY 1, 2024 TO JUNE 30, 2025 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 2024- 25 Proposed Budget on June 12, 2024 and conducted a budget workshop on June 20, 2024; NOW, THEREFORE, be it resolved, determined, and ordered by the City Council of the City of Calexico:
Section 1. Expenditure Authority
The fiscal year 2024-25 Budget, attached hereto as Exhibit 1, shall be the budget for the City of Calexico for the fiscal year 2024-25. 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 provide contingency funds in the event of economic or other disruption in City operations, as follows:
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
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 proposing annual budget adoption and quarterly budget updates will include information about the status of the City's annual audited financial statements, general ledger analysis, and bank reconciliations.
PASSED, ADOPTED and APPROVED this _ day of June, 2024, by the City Council of the City of Calexico.
Camilo Garcia, Mayor
ATTEST:
Veronica L. Alvarado, City Clerk
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 certify that the foregoing Resolution No. 2024-xx was passed and adopted by the City Council on the _th day of June 2024 by the following vote to-wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Veronica L. Alvarado, City Clerk
EXHIBIT 1 to Resolution City of Calexico
2024-25 Budget
CALEXICO City-wide Expenditures
Summary of Expenditures by Fund
2023-24 2024-25
Gross Projection Salaries/ Other Capital/ Debt Inter-fund Including Transfers Benefits Operations One Time Items Service Transfers Total General Fund
111 $ 20,165,973 5 17,666,610 $ 5,065,940 $ 212,254 $ 22,944,804 120 3,408,044 586,000 3,817,000 4,403,000
221
: :
222
224
231 Gas Tax
237
241
242
243
245 HIDTA
246
258
281 2,523,755
299 270,085
712
Housing Funds
802 100,000 100,000
840 8,500 8,500
841 6,000 6,000
61,500 61,500
846 1,000 1,000
223 88,300 21,000 68,000 89,000
233 150,000 150,000 12,695,534 12,845,534
234/6 35,754 25,000 11,000 182,000 218,000
255 2,441,748 4,546,720 4,546,720
402 2,705,000 2,705,000
210,875 1,561,500 1,561,500
411
412 6,170 13,284,487 13,284,487
41,964 2,233,868 2,233,868
2,027,683 2,027,683
27,345,685 24,154,815 24,154,815
1,000,600 1,002,000
Enterprise Funds
513
514
515 :
516
522
544
LO
545
546
547
:
906
5,723,752 5,723,752
1,564,000 : : • • • 1,564,000
603
604 73,574 73,574
605 1,453,500 1,453,500
607
(7,361,325) (1,453,500) (8,814,825)
Total 26,418,344 $ 16,102,529 $ 120,485,671 $ 4,478,288 $ 7,614,665 $ 175,099,497 167,484,832
Attachment A
City of Calexico As of 6-12-24
ARPA Allocations, Spending, and Available Balances
Allocations Expenditures Encumb Available
2024-25
Budget Adjusted Cumulative
Reclass Balance Expenditures
Police/Fire Vehicle Replacements
255-91-907-56000-000 Public Safety Vehicles
37,000 37,000
255-91-907-56000-001 Fire Rescue Ambulance
255-91-907-56000-002 Fire Utility Vehicles 200,000 200,000 255-91-907-56000-003 Ford Explorer Patrol Vehicles 46,038 99,962 255-91-907-56000-004 Pickup Truck Patrol Vehicles 148,000 103048 255-91-907-56000-005 Fire Ambulance Repair 230,000 126,954 255-91-907-56000-006 Police Equipment 63,704 62,855 250 255-91-907-56000-007 Police Gear 39,825 0 10,483 29,342 255-91-907-56000-008 Firearms/Ammunition 42,902 38,998 3,904 255-91-907-56000-009 Firearms Training Program/Equip 39,993 14,898 25,095 255-91-907-56000-010. Police - 30 Computers 30,000 14,568 15,432 255-91-907-56000-011 Dispatch Chairs 8,000 1,992 1,323
4,685
Sub-Total 1,174,424 680,304 0 12,056 482,064
Employee Essential Workers
5ub-Tolal Employee Payments 1.028,834 1.028,835
1.028,834 1,028,835
Downtown Rehabilitation
255-91-908-56000-000 Downtown Rehabilitation 76,354 15,130 76,354 255-91-908-56000-001 Pressure Washer 15,130
255-91-908-56000-002 Local Assessment Center 44,730 44,730 255-91-908-56000-003 Elec Upgrades for Veh Charging 38,000 34,005 3,995 255-91-908-56000-004 Downtown Light Fixing 35,000 10,745 10,657 13,599 255-91-908-56000-005 Christmas Tree 3,500 3,500
255-91-908-56000-012 Downtown Cooling Center
Sub-Total 212,713 108,109 10,657 93,947
Essential Worker Relief Program
255-91-909-56000-000 Essential Worker Relief Program 462,387 462,387 Sub-Total 462,387 462,387 100
Outreach Specialist
255-91-910-56000-000 Outreach Specialist 180,000 180,000 -138,088 10000 - 138,088
111912 -41,912
Sub-Total
Emergency Response/Ambulance
255-91-911-56000-000 90-916 May 2022 Fire Station #1 0
255-91-911-56000-001 ER Res/Pub Safe-Police Veh Con 210,000 210,000 255-91-911-56000-002 ER Res/Pub Safe-Fire Hose 9,000 6,705 2,295 255-91-911-56000-003 ER Res/Pub Safe-Narcotics Prog 5,952 5,952 255-91-911-56000-004 Fire Apparatus 770,000 770,000 770,000 Sub-Total 770,000 994,952 0 216,7050 00 778,241
Public Facilities/IT Upgrades
255-91-912-56000-000 Public Facilities/IT upgrades
Sub-Total 0 0 0
City Broadband Infrastructure
City Broadband Infrastructure
5u5- o-813-5600-000 1010
Emergency Park Infrastructure
255-91-914-56000-000 Emergency Park Infrastructure 170,575 6,719 1,094 162,763 255-91-914-56000-001 Emergency Park Infrast-Parks 272,000 69,391 202,609 255-91-914-56000-002 Emergency Prk Infrast-Baseball 45,000 37,443 7,557 255-91-914-56000-003 Emergency Park Infrast-Cordova -675,000 500.00° 0 255-91-914-56000-004 Emergency Park Infrast- Nosotros Park 1,784 1,112 497,104 255-91-914-56000-005 Border Friendship par 250,000 0 250,000 255-91-914-56000-006 Rodriguez Baseball Fiel 150,000 11,378 150,000 255-91-914-56000-007 Soccer Posts 20,000 8,625
255-91-914-56000-008 Ceramic oven 15,000 15,000
Sub-Total -675,000 1,422,575 126,712 2,205 1,293,658
Continued
Allocations Expenditures Encumb Available
2024-25
Budget Adjusted Cumulative
Reclass Balance Expenditures
Continued
Drainage Basin Valves/Construction
255-91-915-56000-000 Drainage Basin Valves/Construction 255-91-915-56000-001 Drainage Basin Valves/Construction 64,000 34,850 255-91-915-56000-002 Drainage Basin Valves/Construction 29,150 131,000 0 131,000
Sub-Total 195,000
34,850 0
160,150
Fire Station Improvement
255-90-916-56000-000 Fire Station Improvement 200,000 200,000 Sub-Total 200,000 200,000
Facilities Projects
255-91-923-56000-000 Unassigned
255-91-923-56000-001 Fire Station 2/Mold Mitigation 00
255-91-923-56000-002 E.C.M Library, restrooms, roof 665,350 597,632 255-91-923-56000-003 67,718
Police Onf Room&Disp/Roof Repa 90,000 90,000
255-91-923-56000-004 Community Senior Hall/Roof Rep 135,344 121,500 255-91-923-56000-005 Fire Station 1/Roof Repair 13,844
247,350 222,300 25,050
255-91-923-56000-006 Water Distr Breakroom/Roof Rep 87,350 78,300 9,050
255-91-923-56000-007 CIx International Airport/Roof 129,350 116,100 13,250
255-91-923-56000-008 City Hall/Council Chamber/Roof 75,000 255-91-923-56000-009 75,000
City Hall/Carpet Replacement 60,000 33,079 26,647
255-91-923-56000-010 275
Carnegie Tech Center/3 AC unit 35,000
255-91-923-56000-011 Senior Hall Air Conditioning 35,000 27,800 22,568 5,232
255-91-923-56000-012 Restrooms/Various Water Heater
10,000 638 9,362
255-91-923-56000-013 827 E.7th St/United Fam/Roof R
178,344 160,200 18,144
255-91-923-56000-014 827 E.7th St/United Fam/New AC 20,000 9,944 10,056
255-91-923-56000-015 Community Center Lighting 32,000
28,338 3,662
255-91-923-56000-016 Fire Radios 37,000
37,000
255-91-923-56000-017 Laptop, C.C. Chamber projector 75,000 3,548 71,452
255-91-923-56000-018 Temp Police/Traffic SubStatio 50,000 50,000
255-91-923-56000-019 Police Dept. Parking Lot Pavement 120,000 120,000
255-91-923-56000-020 Library Parking Lot Pavement
120,000 120,000
255-91-923-56000-021 Community Center Parking Lot Pavement 72,000 0 255-91-923-56000-022 Police and Fire Dept. Server Assesment 72,000 25,000 25,000
255-91-923-56000-023 Renovation to Calexico Fire Station No. 2 305,883 Sub-Total 305,883
2,597,771 1,431,148 26,647 1,139,976
Planning/Building Contracts
255-91-924-56000-001 Development Fee Study -95,000
324 324
255-91-924-56000-002 Update Housing Element 0
255-91-924-56000-003 Operations/Process Update
Sub-Total -95,000 324
324
City Equipment/One-Time Items
255-91-927-56000-008 Traffic Ctr - Computers 3,090
3,090
255-91-927-56000-009 Traffic Ctri - Laptops 10,000 000
255-91-927-56000-010 10,000
Traffic Ctri - Equipment 12,175 11,873
255-91-927-56000-011 Animal Control - Truck 80,000
255-91-927-56000-012 Fire Breathing Apparatus + Turn Outs 22,803 395,000
255-91-927-56000-013 Planning - Consultant 154,676
255-91-927-56000-014 Engineering -Computer/Supplies 5,500 255-91-927-56000-015 5,500
Public Works - Fleet - Vehicles/Equipment 65,000 65,000 255-91-927-56000-016 Public Works - Parks - Lawn Mowers 30,000 255-91-927-56000-017 0 30,000
Facilities - Chamber of Commerce 5,000
255-91-927-56000-018 Facilities - United Families 25,000 5,000 0 25,000
255-91-927-56000-019 Facilities - City Hall 140,000
255-91-927-56000-020 Library Books 131,139
5,000 0 43
255-91-927-56000-021 Recreation - Community Ctr 80,000
0 80,000
255-91-927-56000-022 Recreation - Computer Replace 10,000 68 255-91-927-56000-023 Recreation - Community Ctr 20,000 0 255-91-927-56000-024 20,000
Recreation - Arts Center Stage 15,000 15,000
255-91-927-56000-025 City Clerk - Agenda Manager Software 10,000 00 10,000 255-91-927-56000-026 City Clerk - Public Request Software 6,000 0 Sub-Total 6,000
1,071,441 610,937 19,987 440,517
Summer Swim Program (22,23,24)
255-50-520-53029-602 Recreational Programs 23,000 17,184 240 255-50-520-53029-608 Recreational Programs-Tree L 4,000 1,500 255-50-520-55025-000 Summ Swim Other Operating Cnts
139,065 62,595 76,470
Sub-Total 0 166,065 79,780 240
386,045
Total 9,526,487 4,979,767 71,792
4474,928