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Staff Report
City Council
Item No. 7.A
Meeting Date: September 13, 2023
From: Kevin Biersack, Financial Services Director
Title: Fiscal Year (FY) 2023/2024 Operating Budget Adjustments
City Council
RECOMMENDATION:
To approve Fiscal Year (FY) 2023/2024 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 in decision-making
• 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) 2023/2024 is year one of the City’s current biennial budget. For FY 2022/2023 obligations that did not get completed/finalized, we have various items requiring authorization to complete in the new fiscal year (2023/2024 . General Fund Budget Adjustments total $931,891, comprised of the following elements:
AFSCME and POA Premium Pay $ 203,775
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Council Community Assistance $ 68,739
Development Fee Impact Study $ 7,050
Facilities Master Plan $ 26,054
Fountain of Life Conceptual Plan $ 8,200
Pub Provider (PP) – Ground Emer Med Trans - Intgov Tfr Prgm (IGT) $ 485,626 IT Master Plan $ 68,911
Pavement Management Plan $ 15,213
Sphere of Influence Annexation Study $ 46,879
Sarah Street, Phase I $ 4,144
Other Funds Budget Adjustments total $65,385 comprised of an F -250 Engineering Fund 611 (Equipment Replacement).
FISCAL IMPACT:
The total operational General Fund budget adjustments reflect a total of $997,276 comprised of:
• $931,891 General Fund, and
• $ 65,385 Equipment Replacement Fund
FIVE-YEAR STRATEGIC PLAN:
This action will further Goal C – Fiscal Stability and Sustainability
Objective - Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.