City of Chula Vista
Fiscal Year 2024
Proposed Budget
Overview
1 Agenda
FISCAL YEAR 2024
PROPOSED BUDGET
FISCAL YEAR 2024 CAPITAL
IMPROVEMENT PROGRAM
NEXT STEPS
2 Budget Process Overview
3 •Development of a preliminary baseline budget; Departmental requests and adjustmentsJan. - April 2023
•Staff conducted two Community Budget Workshops at Civic & Otay Ranch LibrariesApril 19 & 26, 2023
•City Manager’s Proposed Budget Document was submitted to City Council at least 35 days prior to the beginning of the fiscal year, as required by City CharterMay 4, 2023 •Presentation to City Council of the Fiscal Year 2024 City Manager’s Proposed BudgetMay 9, 2023
•Public hearing and Council vote to adopt the Fiscal Year 2024 Proposed BudgetMay 23, 2023 •Fiscal Year 2024 begins, Adopted Budget is implementedJuly 1, 2023 Fiscal Year 2024 Outlook
4 Economic indicators
are mixed
•Interest rate hikes,
strong job growth,
inflation,
manufacturing decline
Recession in FY 2024
is likely
Timing and depth
uncertain
Budget may be
adjusted throughout
the year for economic
impacts
Any revisions to the
budget require a 4/5
vote of the City
Council
Key Economic Factors
• Gross Domestic Product
• Inflation
• Federal interest rates
• Housing Data
• Employment levels
5 National Growth – Gross Domestic Product
6 Consumer Prices / Inflation
7 Federal Interest Rates
8 National Housing Market
9 San Diego Housing Market Overview
10 Source: Greater San Diego Association of Realtors – Monthly Indicators Key Metrics March 2021 March 2022 March 2023 Year over Year Change
Median Sales
Price
$700,000 $845,000 $825,000 (2.4%)
Days on Market 22 18 36 100%
Months Supply 0.7 0.8 1.1 37.5%
National Unemployment Rate
11 San Diego Unemployment Rate
12 Fiscal Year 2024 Service Impacts
13 Improved community
services
• Loma Verde
Community Center
staffing and
programming
• Expansion of
Passport Services to
three Libraries
• New Housing &
Homeless Services
Department
Expanded public safety
• Fire
• Otay Ranch Village
8 West Fire Station
• Fuels Reduction/
Mitigation Program
• Police
• Community Service
Officers
• Drone Program
• Additional Vehicles
Privacy policy
implementation
• Records Manager
position
• Information
Technology Dept.
position
Maintenance of City
assets and
infrastructure
• Measure P funded,
repairs and
improvements to
various public
facilities
• Increases to Public
Works Department
• Parks Maintenance
and Rangers
• CIP Program of $66.6
Million funding
multiple projects
General
Fund
14 15
General Fund
Revenue and Expenditures
(in millions)
General Fund Revenues
(in millions)
16 General
Fund
Revenue
Assumptions
17 $9.3 million increase in General Fund Revenues
Property Tax and MVLF growth of 5.0%
Sales Tax growth is expected taper in FY 2024
TOT is expected to grow by $4 million over prior year
$12.6 million decrease in Other General Fund
Revenues
General Fund Expenditures
(in millions)
18 General Fund Expenditure Assumptions
19 Personnel
$6.0M
• Contracted
salary
increases
• Increased
staffing levels
• 21.0 FTE’s
Mid-Year
• 7.0 FTE’s
FY2024 Adds
Supplies &
Services $6.6M
• Election costs
• Insurance
premium
increases
Utilities/Internal
Service $1.3M
• Rising gas,
electric, and
water costs
• Increase fuel &
maintenance
costs for the
City Fleet
Transfers
($2.4M)
• Reduction in
one-time
transfer
• Increased
Measure A & P
• Increase to
Public Liability
General Fund Departments
(in thousands)
20 General Fund
Expenditures by
Departments
(Excluding Non-
Departmental)
21 Other Funds
22 All Funds Summary
23 All Funds by Fund Category
Revenue and Expenditures
(in thousands)
24 All Funds Staffing Summary
25 FTE – Full Time Equivalent positions
FTE – Full Time Equivalent positions
Fiscal Year 2024 Position Summary
26FTE – Full Time Equivalent positions
Fiscal Year 2024 Position Summary
27FTE – Full Time Equivalent positions
Fiscal Year 2024 Position Summary
28FTE – Full Time Equivalent positions
2018 Measure A Sales Tax Fund
Revenues and Expenditures
(in thousands)
29 2016 Measure P Sales Tax Fund
Revenues and Expenditures
(in thousands)
30 Development Services Fund
Revenues and Expenditures
(in thousands)
31 Transport Services Fund
Revenues and Expenditures
(in thousands)
32 CAPITAL IMPROVEMENT PROGRAM
SUMMARY
33 Capital Improvement Program $66.6M
by Asset Management System
Building
0.94%
Drainage
5.02%
General Gov't
0.09%
Parks
3.49%
Roadway
89.79%
Wastewater
0.68%
34 Capital Improvement Program $66.6M
by Funding Source
Active Trans Program,
19.18%
CDBG, 0.55%
CIP Fund, 2.70%
Gas Tax, 15.31%
Measure P, 9.94%
Sewer Facility, 0.49%Sewer Service, 0.23%
TDIF, 35.74%
Traffic Signal, 1.61%
TransNet, 14.11%
WTDIF, 0.16%
35 PRIOR YEAR HIGHLIGHTS
36 Major Projects
Building
• Loma Verde Community Center
• Multi-Purpose Gymnasium
• Dance, Crafts & Fitness Rooms
• Competition Pool
• Therapy Pool
• Splashpad
• Playground
• Sports Lighting
37 Major Projects
Parks
• Lauderbach Park Rehabilitation
• Sports Field with Synthetic Turf
• Basketball Court
• Walking Path
• Sports Lighting
• Picnic Area
38 FISCAL YEAR 2024 PROJECTS
39 Major Projects
Roadway
• Street Pavement & Rehab ($15.9M)
• Resurfacing
• Pavement Overlays
• Slurry Seals
40 • Transportation DIF Projects
($23.7M)
– Widen Main Street ($8.1M)
• Nirvana Avenue to Heritage Road
• 6-Lane Major
– Widen Heritage Road ($15.6M)
• Main Street to Entertainment Circle
• Heritage Road Bridge Replacement
• 4 Lanes to 6 Lanes
• Sidewalk
• Bike Lanes
Main Street – Nirvana Ave to Heritage Rd
Heritage Road Bridge Replacement
Major Projects - Roadway
41 • Active Transportation Program
Grants ($12.8M)
– F Street Promenade Phase 1 ($9.8M)
• Bay Boulevard to Broadway
• Public Right of Way Improvements
• Round-a-bout at Bay Blvd/Lagoon Dr/F St
– Bayshore Bikeway Segment 6A ($3M)
• Class 1 Bike Path
• Prefabricated Bridge
• High-Visibility Crosswalk
• Pedestrian/Bike Signal (HAWK)
Major Projects - Roadway
Bayshore Bikeway Segment 6A
F Street Promenade Phase 1
42 Major Projects
Roadway
• Traffic Signal Projects ($2.7M)
• Upgrades
• Modifications
• Pedestrian Improvements
• Sidewalk Replacement Projects ($2.4M)
43 Major Projects
Drainage
• Drainage Rehabilitation Projects ($3.3M)
• Outside of Right-of-Way
• Measure P
44 Capital Improvement Program
5-Year Period
by Asset Management System
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
FY20 FY21 FY22 FY23 FY24
Building Drainage General Gov't Parks Roadway Wastewater TOTAL CIP 45 Challenges to Maintaining
a Balanced Budget
46 • Looming Recession
• Impacts from inflation
• CalPERS investment losses
• Labor Negotiations (Spring/Fall 2024)
• Measure P sunset (April 2027)
Next Steps
47 MAY 23RD – STAFF RECOMMENDS CITY COUNCIL
ACCEPT CITY MANAGER’S PROPOSED BUDGET AS
THEIR OWN AND SET MAY 23, 2023, FOR A PUBLIC
HEARING AND ADOPTION OF THE BUDGET
ADDITIONAL COMMENTS CAN BE SUBMITTED ON
CITY’S WEBSITE (CHULAVISTACA.GOV/BUDGET)
Comments / Feedback?
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