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Staff Report
City Council
Item No. 3.G
Meeting Date: September 14, 2022
From: Kevin Biersack, Accounting Services Manager
Title: Fiscal Year (FY) 2022/2023 Operating/Non -Personnel Budget Adjustments
City Council
RECOMMENDATION:
To approve Fiscal Year (FY) 2022/2023 Operating/Non-Personnel Budget Adjustments
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:
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• 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 pr ojects 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:
o FY 2021/2022 rolling over to FY 2022/2023 (one-time)
o FY 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 subm it 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 Adjustme nts total $1,350,411, comprised of the following elements and amounts:
• CVAG Homeless $50,000
• Fleet $92,411
o Fuel $78,904
o Insurance $13,507
• Insurance (Crime / Cyber / Deadly Weapon / Liability/Property / Workers Comp / Medical / Dental / Vision / Short -term Disability / Long -term Disability totalling $1,050,000
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• National Pollution Discharge Elimination System (NPDES) Contractor Reviews $35,000
• Parks Turf Revitalization and Maintenance totaling $85,500, comprised of:
o Materials and Supplies $20,000
o Maintenance and Operations $30,500
o Water $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:
o Gas Tax $20,000
o Measure A $20,000
o Environmental Fund $25,000
• Fleet $12,866
o Fuel $11,096
o Insurance $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.