CITY COUNCIL
AGENDA
Study Session
Wednesday, April 12, 2023
3:00 PM
City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
MAYOR
Rita Lamb
CITY COUNCIL MEMBERS
Mayor Pro Tem
Mark Carnevale
Councilmember
Nancy Ross
Councilmember
Raymond Gregory
Councilmember
Ernesto Gutierrez
• CALL TO ORDER
• ROLL CALL
• AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or continued to another date.
1. PUBLIC COMMENT
This is the opportun ity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. Public Comment will be limited to three (3) minutes.
2. STUDY SESSION
Normally no action is taken on Study Session items, however, the City Council reserves the right to give specific policy direction and take specific action as Cathedral City P a g e 2
necessary. Presentation will be limited to 10 minutes unless other provisions are made in advance.
A. Fiscal Year (FY) 2023/2024 and 2024/2025 Biennial Budget General Fund Overview Discussion
Recommendation: This item is presented for information and discussion only.
ADJOURN
NOTES TO THE PUBLIC:
The City of Cathedral City complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s Office at (760) 770-0322 at least 48 hours prior to the meeting.
If you desire to address the City Council during the meeting, please complete a Request to Speak Form available at the entrance and present it to the City Clerk. Speakers will be called upon at the appropriate time.
Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 68 -700 Avenida Lalo Guerrero during normal business hours. In addition, such documents will be posted on the City’s website at www.cathedralcity.gov.
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Staff Report
City Council
Item No. 2.A
Meeting Date: April 12, 2023
From: Kevin Biersack, Deputy Finance Director
Title: Fiscal Year (FY) 2023/2024 and 2024/2025 Biennial Budget General Fund Overview Discussion
City Council
RECOMMENDATION:
This item is presented for information and discussion only.
BACKGROUND:
The City of Cathedral City is proud to participate in the Government Finance Officer Association’s (GFOA’s) Distinguished Budget Presentation Award program for the City’s Biennial Budget. Since FY 2008/2009, we have received this prestigious award for the past eight (8) budget documents submitted, cover ing the past 15 years. The FY 2023/2024 and FY2024/2025 Biennial Budget will be the City’s 9 th submission to GFOA for this award.
For purposes of the April 12, 2023 Study Session discussion regarding the General Fund, the Biennial Budget workbook under review currently reflects a deficit in the General Fund for each year, reflected as follows:
FY 2023/2024 FY 2024/2025
Revenues $66,957,499 $64,550,726
Expenses $69,165,872 $69,906,706
Surplus/(Deficit) ($ 2,208,373) ($ 5,355,980)
As presented, the proposed budget is structurally balanced for each of the next two fiscal years. Staff has included one -time, extraordinary items/investme nts in the City and for the community to be funded by the extraordinary reserves in our General Fund (100) savings account (Fund Balance). Discretionary expenditures comprise 11% of the General Fund budget totaling $ 7,033,654 (FY 2023/2024) and $ 5,849,030 (FY 2024/2025), consisting of:
• Administrative & PERS Contingencies
• CalPERS & OPEB Annual Allocations
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• One-time Maintenance Repairs
• Infrastructure (above $900K MOE)
DISCUSSION:
During the month of April, there are two Study Session discussions to revie w the budget workbooks and associated Council questions. The April 12th session will be dedicated to the General Fund and the April 26 th session will be devoted to the Special Revenue Funds, Proprietary Funds, the Capital Improvement Project (CIP) Plan and the Parks Improvement Project (PIP) Plan.
The proposed budget will then be included on the May 10 th Study Session Council Meeting. This version will include updates and changes from the two budget reviews/discussions in April. With Council’s concurrence at this meeting, the proposed FY 2023/2024 and FY 2024/2025 Biennial Budget will then be submitted to Council for final approval at the May 24th meeting.
Some of the noteworthy topics influencing this biennial budget include:
• Other Post Employment Benefits (OPEB) Annual Allocation • CA Public Employees Retirement System (PERS) Annual Allocation • Maintenance of Effort (MOE) General Fund match for RMRA (SB 1) Funds – Increased investment in FY 2023/2024
• Fleet Replacement Annual Allocation Fully Funded
• Employee Cashouts by Department/Division with a General Fund Contingency for those not budgeted
• Increased Risk Management Contribution for Increased Insurance Costs
The Budget Workbook is comprised of these sections and tabs:
• General Fund Revenue and Expense Summary
• Detailed Revenue Summary
• Detailed Expense Summary
• Staffing Summary with Budget Changes
Department Summaries
• Department Detailed Expense Summaries
• Department Narratives, including their respective goals, objectives (in meeting both department and Council goals) and accomplishments and strategies, and • Budget Worksheets for the Operating (Non-Salary/Benefit) Expenses
Departments include:
• Elected Officials & Community Organizations
• Legal Services
• City Management:
o City Manager
o Human Resources
o Communications and Events
o City Clerk
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o Economic Development
o Information Technology
• Financial Services:
o Risk Management
o Administration
o Finance
o Facilities
• Development Services:
o Planning
o Building
o Code
• Engineering and Public Works
o Engineering
o Public Maintenance
o Parks (Recreation)
o Street Maintenance, funded through Gas Tax and Measure A o Environmental Conservation, funded through Environment/Recycling Fund • Police
o Administration
o Field Services
o Investigative Services
o Emergency Communication
o Animal Control
• Fire
o Administration
o Emergency Services
o Prevention/Public Education
o Ambulance Services
o Emergency Management
• General Government
FISCAL IMPACT:
As of June 30, 2022, the City’s available cash for the City’s General Fund (100) is $35,628,660. The City’s Fund Balance policy is the City will strive to assign a minimum of 33% of budgeted expenditures and transfers out for cash flow reserves (50%), economic uncertainties (40%) and budget -related reserves (10%). For the currently forecasted FY 2024/2025 expenditures foreca sted to be $69,906,706, the 33% minimum Fund Balance would be $23,302,236.
As presented, the proposed budget is structurally balanced for each of the next two fiscal years. Staff has included one -time, extraordinary items to be funded by the extraordinary reserves in our General Fund (100) savings account (Fund Balance).
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