2ND QUARTER BUDGET REPORT
FISCAL YEAR 2022
Fiscal Year 2022
Budgetary Notes
• Sales tax revenue anticipated to increase by approximately $3.1 million.
• Both Measure A and Measure P Sales Tax both anticipated to increase by approximately $2.6 million ($5.2M), which will increase the transfers to those respective funds.
• Transfer to the Pension Reserve Fund of $2.4 million from the General Fund prior year fund balance in accordance
with City Council Policy 220-09.
2 Fiscal Year 2022
Budgetary Notes
• Fire Department expenditures projected to exceed budget by approximately $5.1 million for a new Fire Academy ($1 million) and projected personnel costs ($3.8 million)
related to additional overtime.
• Higher than anticipated fuel and maintenance costs are increasing Fleet costs to exceed budget by $0.7 million. • Republic Services strike impact on Franchise Fee revenues or expenditures have not been included in the projections 3 Fiscal Year 2022
Second Quarter Monitoring Report
General Fund Budget
4 General Fund
Revenue Projections
5 General Fund
Expenditure Projections
6 Fiscal Year 2022
Second Quarter Adjustments
General Fund Significant Budget Adjustments
• Non-Departmental
– Increase revenues by $1.1 million for Motor Vehicle License Fee. • Fire Department
– Increase of $1.0 million in revenues and expenditures for overtime related to Strike Teams; and
– Fire Academy expenditures of $986k
• Various Departments
– Increased expenditures of $608k for Internal Service costs due to increased fuel and maintenance costs.
All proposed adjustments result in a net cost increase for the General Fund of $498,485. 7 Fiscal Year 2022
Second Quarter Adjustments
Other Funds Significant Budget Adjustments
• Central Garage Fund – Increase expenditures by $1 million, and revenues by $810k for increased fuel, maintenance costs, and capital equipment. • Public Liability Trust- Appropriate $350,000 from fund balance due to higher than budgeted costs.
All proposed adjustment result in a net cost increase for the Other Funds by $746,430. 8 Next Steps
April • Preliminary City Manager Proposed Budget Council Discussion Item • Fiscal Year 2022 Third Quarter Financial Report
May • Hold public workshop to provide overview of proposed budget • City Manager Proposed Budget document submitted to Council • City Council: Present Fiscal Year 2023 All Funds Budget and CIP Overview
May/June • Public Hearing and Recommend Council adoption of Proposed FY 2023 Budget (All Funds)
9 City Council
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