BACKGROUND:
The City of Cathedral City utilizes a biennial budget process – two separate, one-year budgets during the same approval cycle. Doing so has proven to be a good, effective strategy for these reasons:
•Cost and time savings reducing staff preparation time
•Allows more time for program review and analysis of expenditures •More conducive to long-term strategic planning, forecasting and analysis/results of decisions
•De-politicize the budget process by adopting biennial budgets in non-election years
There are government agencies utilizing an annual budget process, creating more pressure on staff with almost simultaneous actions to:
•Close the previous year’s budget
•Administer the new year’s budget, and
•Plan the following year’s budget
DISCUSSION:
Fiscal Year (FY) 2022/2023 is year two of the City’s current biennial budget. With the volatility encountered during the COVID-19 pandemic, we have experienced a varying degree of instability and unknowns impacting our ability to complete our work on a timely basis, including:
•Staff vacancies and shortages related to turnover/retention unsuccessful/delayed and multiple recruitments for the same positions •Resulting in delays in work, e.g., CIP projects using Maintenance of Effort (MOE) and Parks Improvements
•Extraordinary increased costs related to inflation; insurance – cyber, natural disaster, etc; fuel costs; delays in supply deliveries resulting in operating (non-personnel) operating budget adjustments:
oFY 2021/2022 rolling over to FY 2022/2023 (one-time)
oFY 2022/2023 adjustments
At the September 1, 2022, City Council Study Session meeting to review and discuss FY 2022/2023 proposed budget adjustments, Council provided Staff direction to submit operating budget adjustments for final review and concurrence. At a future date, personnel-related budget adjustments for FY 2022/2023 will be reviewed.
FY 2021/2022 Non-Personnel Rollover to FY 2022/2023
General Fund Budget Adjustments total $1,391,572, comprised of the following elements:
•Council Community Assistance $40,725
•Desert Recreation District formation activities $150,000 •Development Impact Fee Study $53,775
•Maintenance of Effort (MOE) match for SB-1 $509,072
•Parks Improvement and Maintenance Plan $593,000
•POA Premium Pay $45,000
Other Funds Budget Adjustments total $890,300 comprised of:
•Development Impact Fee Fund $640,300
•Environmental Fund $250,000
FY 2022/2023 Operating (Non-Personnel) Budget Increases General Fund Budget Adjustments total $1,350,411, comprised of the following elements and amounts:
•CVAG Homeless $50,000
•Fleet $92,411
oFuel $78,904
oInsurance $13,507
•Insurance (Crime / Cyber / Deadly Weapon / Liability/Property / Workers Comp / Medical / Dental / Vision / Short-term Disability / Long-term Disability totalling $1,050,000
•National Pollution Discharge Elimination System (NPDES) Contractor Reviews $35,000
•Parks Turf Revitalization and Maintenance totaling $85,500, comprised of:
oMaterials and Supplies $20,000
oMaintenance and Operations $30,500
oWater $35,000
•Dog Park Maintenance $30,000
•Flock Maintenance for Three Cameras $7,500
Other Funds Budget Adjustments total $1,127,866, comprised of the following elements and amounts:
•Blow Sand $65,000, comprised of:
oGas Tax $20,000
oMeasure A $20,000
oEnvironmental Fund $25,000
•Fleet $12,866
oFuel $11,096
oInsurance $1,770
•Insurance (Crime / Cyber / Deadly Weapon / Liability/Property / Workers Comp / Medical / Dental / Vision / Short-term Disability / Long-term Disability $1,050,000 from the Insurance Fund
FISCAL IMPACT
The total operational General Fund budget adjustments reflect a total of $2,741,983 and the Other Funds budget adjustments reflect a total of $2,018,166.