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eligibility, and financial viability and recommended full approval for the proposed funding and uses. The City Manager and City Attorney also reviewed the request, affirmed eligibility and recommended full approval.
In conclusion, staff recommends approval of the Resolution approving the Citrus Heights Business Attraction Incentive request by DarkHeart Brewing Sylvan Corners for $86,869.
City Council Strategic Goal/Objective
This staff report aligns with the following Citrus Heights City Council Strategic Plan Objectives from multiple strategic planning cycles:
Goal: Diversify for a resilient economy
November 2022 – May 2023 Objective: Present to City Council program guidelines and recommendations to develop a grant program utilizing ARPA funding that advances economic development goals of effectively attracting and retaining target businesses and industries June 2023 – March 2024 Objective: Effectively market the Business Attraction Incentive Program to generate leads.
Fiscal Impact
City Council allocated $1,000,000 in American Rescue Plan Act (ARPA) funds to activate the Business Attraction Incentive program, which is available through June 2024. Should the request for $86,869 be approved, $913,131 will remain.
This program expires June 30, 2024. The balance of the unallocated funds will be placed back into the American Rescue Plan fund for use in a manner consistent with the ARPA guidelines.
Background and Analysis
City Council established the Citrus Heights Business Attraction Incentive Program on February 23, 2023, to increase competitiveness in attracting desired target industries and business types.
The program was designed to attract uses highly desired by the Citrus Heights community, specifically restaurants, breweries, and entertainment. Staff have proactively marketed the program through various communications and direct targeted outreach.
In February 2024, DarkHeart Brewery announced via social media post that, despite a track record of success, the brewery was unexpectedly closing due to new property ownership at their location, 4339 Auburn Blvd (unincorporated Sacramento County). City staff immediately contacted DarkHeart to ensure awareness of the Business Attraction Incentive Program for ITEM 16 Agenda Packet Page 291
Subject: Citrus Heights Business Attraction Incentive Request for DarkHeart Brewing Date: June 27, 2024
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potential relocation. Since then, staff have worked closely with the DarkHeart team on an extensive site selection search, stewarding entitlement processes, and comprehensive relocation planning. This business incentive request is a culmination of strategic and proactive business attraction efforts to plant a brewery in Citrus Heights.
To be considered for a Business Attraction Incentive, a business owner or representative submits a request that includes details on the proposed project, how it will benefit the community, and supporting documentation. Upon receipt of the request, the Economic Development & Community Engagement Department staff reviewed the application for completeness and completed a fiscal and community impact analysis to determine incentive feasibility. Based on the analysis, EDCE staff prepared a proposed incentive package and agreement for the City Manager and City Attorney to review.
DarkHeart Brewing Sylvan Corners submitted a Business Attraction Incentive Request on June 9, 2024, for $86,869 to be leveraged for a combination of relocation, construction, and initial operating expenses. The request (Attachment 2) details DarkHeart Brewing’s distinct business concept, track record of success, and exciting plans for its Sylvan Corners location. Per program guidelines, the applicant also provided a five-year cash flow analysis projection and a signed lease agreement.
The proposed location for DarkHeart Brewing is
7110 Auburn Blvd; part of Sylvan Corners, a
continued focus area for revitalization and
redevelopment in Citrus Heights. The identified
suite is located in the northern portion of the
14,600 square feet adjacent to Ciro’s Pizza,
which previously served as the retail warehousing
area for the previous tenant, Goodwill. After an
extensive site selection search, this location was
chosen based on a combination of physical
attributes (sufficient production area, roll-up
door, minimum column widths, ceiling heights,
etc.), street visibility, the strength of the local
trade area, and affordability of rent rates. The
space also has the potential to accommodate a
patio or other outdoor seating concepts in the
future.
The Business Attraction Incentive Request and supporting materials have been reviewed by EDCE staff, the City Manager, and the City Attorney, who have determined that the request meets program guidelines. Additionally, all city departments and partner agencies have vetted the site as allowed and as viable for a brewery.
Sylvan Corners Site Plan
*Image from Sylvan Corners marketing materials, not an accurate representation of current suites or tenants of suites
ITEM 16 Agenda Packet Page 292
Subject: Citrus Heights Business Attraction Incentive Request for DarkHeart Brewing Date: June 27, 2024
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In addition to achieving the Business Attraction Incentive Program's core goal of attracting the Citrus Heights community's desired business type and generating community benefit, this request offers additional compelling advantages:
• Cost-Efficiency of Relocation vs. Attraction of Startups/Expansions:
• Established Success: DarkHeart Brewing’s proven track record mitigates the risks typically associated with new businesses. Unlike startups, which may require substantial time and resources to establish themselves, this brewery already has existing equipment, signature recipes, operational expertise, and a loyal customer base. • Lower Attraction Costs: Encouraging the relocation of this successful business is financially prudent. The costs involved in attracting and supporting a new brewery startup or expansion can be significantly higher due to the cost of equipment and the need for more extensive marketing, support services, and potential subsidies during their formative years.
• Immediate Economic Impact: The brewery’s immediate relocation will immediately contribute to the local economy, providing jobs and generating sales tax revenue and new consumers to the area without the ramp-up period needed for a new business.
Additionally, the new business will immediately benefit the surrounding Sylvan Corners restaurants by implementing the proposed food delivery QR code system. • Revitalization and Placemaking at Sylvan Corners and on Auburn Blvd:
• Strategic Location: Sylvan Corners has been identified as a key area for the city’s revitalization efforts. The presence of a well-known brewery will serve as a catalyst for further development, attracting more businesses and visitors to the area. • Community Hub: Breweries often become community gathering spaces, promoting social interactions and enhancing the sense of place. This aligns with the City’s placemaking objectives, fostering a vibrant and attractive business corridor. • Marketing Leadership: As evidenced in their incentive request document, the brewery owners have expressed a keen interest in leading marketing efforts for Sylvan Corners.
Their proactive marketing approach will benefit their business and elevate the profile of the entire Auburn Blvd corridor, drawing in more visitors and potential investors.
Funding Administration
The draft Business Attraction Inventive Grant Agreement is provided as an exhibit to this staff report and will be finalized and executed with the approval of the incentive request. Funding will be released on the following schedule and contingent on the conditions of approval detailed in the agreement:
• Relocation Expenses ($41,165) – released immediately after agreement execution • Construction Materials & Supplies ($16,449) – released upon submission of construction drawings
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Subject: Citrus Heights Business Attraction Incentive Request for DarkHeart Brewing Date: June 27, 2024
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• Preopening Initial Operating Expenses ($9,255) – released at building permit issuance • Post opening Operating Expenses ($20,000) – released at Certificate of Occupancy issuance
The agreement also details conditions of funding approval, claw back provisions for failure to perform, and other terms.
Attachments
1. Resolution approving Citrus Heights Business Attraction Incentive Request for DarkHeart Brewing
2. DarkHeart Brewing Business Incentive Request
Exhibit A: Draft Business Attractive Incentive Agreement for DarkHeart Brewing ITEM 16 Agenda Packet Page 294
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RESOLUTION NO. 2024- ___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,
CALIFORNIA, APPROVING THE CITRUS HEIGHTS BUSINESS ATTRACTION
INCENTIVE REQUEST FOR DARKHEART BREWING
WHEREAS, the City of Citrus Heights has a strategic goal to “Diversify for a resilient economy”;
WHEREAS, On February 23, 2023 City Council approved the Citrus Heights Business Attraction Incentive Program Guidelines and allocated $1,000,000 in American Rescue Plan Act funds to administer the program through June 30, 2024;
WHEREAS, The program goal is to enhance the City’s competitiveness in attracting restaurants, breweries, and other craft beverage businesses, and entertainment; WHEREAS, DarkHeart Brewing submitted a Business Attraction Incentive Request for $86,869 to relocate their existing brewery to Citrus Heights; WHEREAS, City staff reviewed the request and assessed the request meets program guidelines;
NOW THEREFORE BE IT RESOLVED AND ORDERED the City Council hereby approves the Citrus Heights Business Incentive Request for DarkHeart Brewing and authorizes the City Manager, or his designee, to execute the Business Attraction Incentive Agreement, subject to the terms agreed upon by the City Manager and City Attorney.
The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 27th day of June 2024 by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
Bret Daniels, Mayor
ATTEST:
Amy Van, City Clerk
ITEM 16 Agenda Packet Page 295
DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Executive Summary
DarkHeart came into existence in 2019 with a dream of a place where all are welcome to gather and have a pint or two...A refuge for a weary world to find peace and rest, and a place to call Home Port. We built a community space in an old metal building and filled its walls with laughter, music, and life. We struggled and yet survived COVID and the changes that brought to our industry. We have adapted, recycled, and reused and continued to build relationships with our local community. It has been our passion to support local musicians, sponsor local sports teams and a race car (that won again this year) as well as being huge supporters of the SPCA and Rotary. The regulars have become family. Many have made personal connections with each other and celebrate birthdays, anniversaries, and other life moments as a family. We hope to have a new location for that to continue and grow.
DarkHeart Citrus Heights is the perfect location and placement in the community for us to establish a home for our followers and unite. By coming together and collaborating with the other local taprooms and restaurants it will create a destination and change the landscape of our community. Imagine having a central location that exudes vibrancy and has parks filled with its residents, farmers' markets, strolling paths, car shows, and music on the weekends. In essence, a place to thrive and bring our community together. This is what DarkHeart can bring to Sylvan Corners.
Rick Lee, affectionately known as Captain Rick, has hand-crafted over 700 recipes and won multiple awards that we proudly display in our Treasure Cabinet. We are thrilled to announce that Rick won again at the California State Fair taking a gold for the Baltic porter. He has grown a cult following in the Craft Beer Community that is loyal and loves the product. Because of this, we have a huge established following and great brand recognition. We are unique in our catalog with 20 beers on tap as well as a Seltzer for our gluten sensitive clients. We focus on classic styles ...only 4 of the 20 taps are IPAs. Truly, we offer something for everyone.
Our first project was funded by 5 investors and the 3 primary owners. The scope was $250,000, and it transformed the empty shell into a warm, inviting space that was fashioned as the inside of a ship. The new project will be a smaller more refined space for guests with the same inviting feel. We will use the same diligence ITEM 16 Agenda Packet Page 296
DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. with our current materials and recycle and reuse as much as possible. DarkHeart comes to the table with all the equipment for a fully functioning brewery. We will be investing a substantial amount of improvements to the building which will increase the productivity of the space in the future.
The Citrus Heights Business Attraction Incentive program would help ensure a stable and prospering pathway to a successful business. The Incentive funding would be utilized for the following:
• RELOCATION EXPENSES: $41,165
o ABC transfer & Licensing fees $1,848
o Architectural fees $23,000
o Signage $2,000
o Deposit on new building (first and last applicable rent & NNN) $11,200 o City Plan Fees $2,000
o Sewer Impact Fees $1,117
• CONSTRUCTION MATERIALS & SUPPLIES: $16,449
o Paint & Mud materials for interior and exterior $4,400 o Metal & Sheetrock for build out $949
o Electrical materials $3,000
o Glycol piping $200
o Plumbing Materials $1,400
o Concrete $500
o Dumpster for demo $1,000
o Equipment rental Total $3,700
o Telehandler forklift rental for one week to upright equipment $1,300 • INITIAL OPERATING EXPENSES: $29,255
o Five months of start-up salaries to assure financial stability while we relocate and get our systems online (total monthly expense $3,000) $15,000
ITEM 16 Agenda Packet Page 297
DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. o Advertising budget for the first 3 months for Sylvan Corners Cooperative plan $1,500
o New glassware $500
o First year's music license fees to all 4 entities $3,500 o Business License $100
o Rebranded labels ($250 x 21 varieties) $5,250
o Glass Washer $3,000
o Ice maker $405
TOTAL FUNDING REQUEST: $86,869
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DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Opportunity
Problem & Solution
Problem Worth Solving
We are an established brewery brand with a loyal following, poised to make a significant impact in Citrus Heights. This vibrant community is eagerly seeking an anchor brewery, and we are the perfect fit to fulfill their desires. By joining forces, we can create a powerful synergy that not only achieves our goals but also enhances the overall community spirit.
Introducing our brewery to the area will revolutionize the local marketing landscape, fostering a community-based approach that benefits not only us but also the surrounding restaurants. This collaborative effort will drive sales, elevate the quality of life for residents, and infuse new energy into the entire community.
Our Solution
We have established a dedicated social media platform with the purpose of promoting Sylvan Corners and the businesses operating within the vicinity.
Through collaborative marketing efforts, we aim to generate awareness and attract customers to this area. To enhance our offerings, our food program will engage with nearby restaurants. We plan to implement QR code ordering at each table, providing guests with a plethora of choices that will be promptly delivered to their tables. Furthermore, we will host live music performances and incorporate a diverse range of events throughout the week to cater to the interests of beer enthusiasts and further stimulate foot traffic in the area.
Target Market
The craft beer industry has shown significant success in specific areas where multiple beer establishments are clustered together, promoting the events of the local area. In the current economic climate, there has been a positive trend towards smaller, hyper-local breweries. It is crucial for us to establish a partnership with the City of Citrus Heights to actively promote farmers' markets and other community events. It is worth noting that the average craft beer consumer spends ITEM 16 Agenda Packet Page 299
DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. approximately $1,270 per year on beer. Given our proposed location in the heart of Citrus Heights and its close proximity to at least three other craft beer taprooms, we anticipate a favorable and sustainable market environment. Additionally, the introduction of a Stein Club will not only generate capital but also foster a sense of community among our patrons.
Competition
Current Alternatives
Citrus Heights is a city bursting with potential, yet it lacks the vibrant presence of a local brewery. It's time to change that. Currently, the nearest brewery is a staggering 10 miles away in Roseville, leaving a void that must be filled. We have taken the first steps in addressing this need by already servicing half a dozen wholesale accounts with our exceptional beer.
However, we are not satisfied with stopping there. Our vision is to not only provide Citrus Heights with its very own brewery but to triple the number of wholesale accounts we serve within a mere two months. This ambitious goal is not only achievable, but it is also crucial in positioning ourselves as the go-to brewery in the area.
By expanding our reach and establishing strong partnerships with additional wholesale accounts, we will not only solidify our presence but also stimulate the local economy. Imagine the impact of having our beer on the shelves of even more establishments, enticing patrons to sample our unique flavors and experience the excellence that is DarkHeart Brewing.
Our Advantages
Fortunately, DarkHeart Brewing Sylvan Corners Citrus Heights already boasts a sizeable online following, with 5.8K devoted Instagram followers and 4.8K Facebook likes. Furthermore, our esteemed Brewmaster, Rick, curates an impressive selection of 20 beers on tap, encompassing a diverse range of classic styles, not limited to just IPA's. Among these offerings, nine are our highly regarded flagship brews, while the others are seasonal rotating taps, ensuring that our customers always have something new and exciting to try. Additionally, our outstanding reputation extends beyond social media, as evidenced by our remarkable 4.7 rating on Yelp.
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DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
This positive feedback is a testament to the exceptional quality of our craft beer. By establishing strong partnerships with local restaurants, we can devote our full attention to what we excel at: producing outstanding craft beer.
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DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Execution
Marketing & Sales
Marketing Plan
We are excited to announce the launch of the cooperative Sylvan Corners Social Media Platform. This platform will serve as a powerful tool to promote our new program and partnership. Through this platform, we will be able to effectively communicate with our target audience, engage them in meaningful discussions, and create a strong online presence for our brand. By leveraging the power of social media, we are confident that we will be able to reach a wider audience and generate increased interest in our offerings. Stay tuned for updates and exciting content on the Sylvan Corners Social Media Platform!
Sales Plan
Our loyal customer base eagerly anticipates news of our permanent location while keeping a close eye on our progress. We understand the importance of keeping them engaged throughout our journey, which is why we provide them with regular updates. To expand our reach, we are planning to hire a dedicated salesperson who will focus on generating wholesale sales and establishing new accounts.
Additionally, we will implement targeted marketing strategies aimed at local sports and pickleball groups, as well as a hyper-focused approach on social media platforms. Building personal relationships with our local accounts is a priority for us, ensuring that we consistently meet their needs and exceed expectations. We also recognize the significance of actively participating in local events as a way to contribute to our community. As part of our community involvement, we will involve our key customers as ambassadors for our beer, amplifying the impact of our presence.
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DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Operations
Locations & Facilities
When it comes to success, location is crucial. Having a prominent sign that is easily noticeable will definitely attract more customers. Fortunately, our chosen location is at a highly trafficked intersection, ensuring maximum visibility. Additionally, the presence of several restaurants in close proximity provides customers with various dining options, all conveniently within walking distance. Furthermore, the surrounding area boasts a large apartment complex and multiple residential housing developments, indicating a steady flow of potential customers in the vicinity. This prime location offers us the opportunity to tap into a diverse customer base and create a thriving business.
Technology
The utilization of QR codes, as mentioned previously, offers a wide range of food options readily available at everyone's fingertips. These codes provide convenient access to a diverse selection of menu items, ensuring that customers have plenty of choices to suit their tastes.
Equipment & Tools
As a full-production brewery and taproom, DarkHeart Brewing Sylvan Corners Citrus Heights is well-equipped with all the necessary brewing equipment. We will be able to relocate our brew system, fermenters, walk-in cold storage, mills, and kegs from our previous location. With everything in place, we will be ready and eager to dive right into the brewing process. Our state-of-the-art facilities and reliable equipment allow us to create high-quality craft beers, satisfying the discerning palates of our customers.
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DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Company
Overview
Ownership & Structure
DarkHeart Brewing, a Full Production Brewery and Taproom located in Sylvan Corners, Citrus Heights, was established as an LLC in 2018. The company is proud to have three principal owners: Rick Lee, Cynthia Lee, and Leonard Osorio. These individuals bring a wealth of experience and expertise to the business. Additionally, we have been fortunate to receive support from six investor families who have been with us from the inception of our venture.
Company History
Rick and Cynthia have eight years of professional brewing experience under their belts. Prior to that, they were avid home brewers and founding members of PUBS (Placer Ultimate Brewing Society), along with several other brewers who have since gone on to open their own successful breweries. The camaraderie within the brewing community is truly remarkable. Rick has won many awards for his original recipes. Most recently he took gold at the California State Fair.
DarkHeart Brewing officially opened its doors on Labor Day weekend in 2019, and the response was extraordinary. A vacant metal building was transformed into a warm, inviting clubhouse where all are welcome. We experienced several months of exceptional sales and a warm reception from our customers. However, our momentum was abruptly interrupted by the onset of the COVID-19 pandemic.
Nevertheless, we quickly adapted by holding weekly marketing meetings to revamp our business strategy. Despite the challenging circumstances, 2020 and 2021 proved to be remarkable years for us, with significant sales growth. As a result, we were able to successfully manage and pay off all our construction debts, demonstrating our financial stability and commitment to success. As we entered 2022, the beer market started to show signs of strain due to the increased popularity of hard alcohol during the pandemic. However, by closely monitoring market trends, we were able to remain competitive by offering a diverse range of products that went beyond the traditional trend of IPA-focused beers. This adaptability ensured our continued success and customer satisfaction.
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DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Team
Management Team
We are pleased to introduce our exceptional team, who embody the values of integrity, enthusiasm, and unwavering commitment to providing an exceptional experience for our guests. Leading the charge is Captain Rick, our Brewmaster, who brings a wealth of expertise and passion to our brewery. Cynthia Lee is our General Manager and events coordinator who ensures seamless operations. At the heart of our team is our esteemed Taproom Lead, Hollie, who is not just a dedicated member, but also our superhero. In our new facility, Hollie will take charge of building and nurturing our team. As our brewery expands, we recognize the importance of having a skilled brew staff to support Rick in crafting our exceptional beverages. Additionally, we will be seeking the expertise of an outside salesperson who will play a crucial role in establishing and maintaining strong relationships with our local restaurants. Their efforts will not only connect us with the community but also drive our growth in the industry. Together, our team is united in our commitment to delivering an exceptional guest experience, fostering growth, and establishing ourselves as a prominent player in the brewing and hospitality industry.
Advisors
Rick will be supported by a team of experienced brewers, each bringing their own unique expertise and styles to the table. This collaboration will allow us to offer an extensive selection of specialty beers, as well as rotating guest brew taps. With this diverse range of talent, we will be able to cater to a wide range of tastes and preferences, ensuring that our customers always have a unique and exciting beer experience.
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DarkHeart Brewing Sylvan Corners Citrus Heights
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Financial Plan
Forecast
Key Assumptions
Our objective is to achieve annual revenue growth of 20% in taproom sales and 35% in outside sales. We aim to maintain a consistent expansion within our local community to establish a reliable source of income
Financing
Use of Funds
Our financial backing for DarkHeart Brewing Sylvan Corners Citrus Heights will consist of a combination of private funds, work investment, an incentive grant, and crowd funding loans. In order to keep costs down, we plan to keep the business construction simple and utilize the existing structure. Fortunately, we already have all the necessary equipment, so our main expenses will revolve around obtaining a small amount of furniture, cosmetic renovation of the new space, and updating plumbing and electrical in the building. This investment will make long term improvements to the building and the incentive funds will allow us to offset those costs by covering the employment expenses that will be needed to staff the new venture.
roadway to ensure a successful launch.
Sources of Funds
Our funding strategy encompasses a diverse mix of sources, including incentive funding, private investors, scope of work investments, and small crowd funding loans.
ITEM 16 Agenda Packet Page 306
City of Citrus Heights
Business Attraction Incentive Program
Grant Agreement
This Agreement is made on June 27, 2024, by and between the City of Citrus Heights, located at 6360 Fountain Square Drive, Citrus Heights, CA 95621(“Program”), and Cynthia Lynne Lee & Rick Dean Lee, as husband and wife dba DarkHeart Brewing, located at 7519 Old Auburn Road, Citrus Heights, CA 95610 ("Business").
1. Incentives Provided
The Program agrees to provide the following incentives to the Business:
1. A Business Attraction Incentive grant of $86,869 to be used as detailed in the Business Attraction Incentive Request submitted by DarkHeart Brewing Sylvan Corners
2. Funding will be released on the following schedule and contingent on conditions of approval:
• Relocation Expenses ($41,165) – released immediately after agreement execution • Construction Materials & Supplies ($16,449) – released upon submission of construction drawings
• Preopening Initial Operating Expenses ($9,255) – released at building permit issuance
• Post opening Operating Expenses ($20,000) – released at Certificate of Occupancy issuance
2. Conditions of Approval
The Business must meet the following conditions to receive the incentives:
1. Comply with all applicable laws and incentive program guidelines.
2. Obtain all required permits and entitlements.
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June 21, 2024
3. The project must be completed within six (6) months from approval or by December 26, 2024, whichever is earlier, and remain operational within Citrus Heights for at least five years following its completion date.
4. Create and maintain at least 5 full-time jobs within the first 12 months of operation.
5. Allow site visits for compliance verification.
6. Provide a project financial statement outlining expenses consistent with incentive requests supported by receipts or equivalent documentation within 6 months of approval or 45 days after completion, whichever is earlier, to ensure alignment with the project budget and demonstrate appropriate utilization.
7. Any unused funds must be returned to the City within 30 days of report submission.
3. Clawback Provisions
1. The Program reserves the right to reclaim all or part of the Incentives if any of the following conditions occur:
1. Failure to meet the conditions of approval within the specified timeline.
2. Misrepresentation or fraudulent statements by the Business in obtaining or utilizing the Incentives.
3. Violation of any terms and conditions of the Incentive Agreement.
4. Relocation of the Business operations outside of the agreed-upon geographic area before the end of the Incentive period of five years from the start of operation.
In the event one or more of the above-noted conditions occur, the following will take place:
1. The Program will provide written notice of any default of the terms described above.
2. The Business has thirty (30) days to cure the default.
3. If not cured, the Business must repay the incentives within sixty (60) days.
4. The Program may pursue all available legal remedies to enforce repayment.
4. Miscellaneous
1. Term: This Agreement is effective from the date above and continues until all obligations are met.
2. City Manager Discretion: The City Manager has the discretion to modify the conditions of approval if deemed beneficial to the Program.
3. Amendments: This Agreement may be amended by must be done in writing and signed by both parties.
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4. Governing Law: This Agreement is governed by the laws of the State of California and the United States of America.
5. Notices: All notices must be in writing and delivered by electronic mail, by certified mail, or by courier service to the addresses above.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
City of Citrus Heights
By: ____________________________
Ashley J. Feeney
City Manager
DarkHeart Brewing Sylvan Corners
By: ____________________________ By: ____________________________ Cynthia Lynne Lee & Rick Dean Lee
Dba DarkHeart Brewing
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CITY OF CITRUS HEIGHTS
CITY COUNCIL STAFF REPORT
MEMORANDUM
DATE: June 27, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Susan Talwar, Administrative Services Director
Alberto Preciado, Finance Manager
SUBJECT: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review, Financial Forecast Update and Appropriations Limit for Fiscal Year 24/25
Summary and Recommendation
Staff recommends that the City Council:
1) Review updated revenue and expenditure projections for the General Fund and other City funds for Fiscal Year 23/24 and Fiscal Year 24/25; and
2) Review the updated Ten-Year Financial Forecast; and
3) Adopt Resolution No. 2024-__ Resolution of the City Council of the City of Citrus Heights, California, Approving Amendments to the Fiscal Year 24/25 Budget; and 4) Adopt Resolution No. 2024-__ Resolution of the City Council of the City of Citrus Heights, California, Establishing an Appropriation Limit for Fiscal Year 24/25.
Fiscal Impact
Updated projections for Fiscal Year 24/25 reflect General Fund revenues of $45.6 million available to fund expenditures of $45.1 million with a projected year-end increase to General Fund reserves totaling $490,000.
The proposed budget amendments for Fiscal Year 24/25 will increase General Fund revenue appropriations by $946,000 and will increase General Fund expenditure appropriations by $1.2 million.
Background and Analysis
FISCAL YEAR 23/24 BUDGET YEAR END PROJECTION REVIEW
The City’s budget for Fiscal Years 23/24 and 24/25 was adopted by the City Council on May 25, 2023. The City Council received a mid-year budget update on February 22, 2024, and adopted a resolution amending the Fiscal Year 23/24 General Fund budget to incorporate updated revenue ITEM 17 Agenda Packet Page 310
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
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and expenditure projections. The FY23/24 revenue and expenditure projections are presented for informational purposes only and no budget adjustment is requested for this fiscal year.
The Fiscal Year 23/24 adopted budget for all City funds, as amended to date, anticipates revenue of $70.3 million and expenditures of $66.2 million with the difference of $4.1 million budgeted from the accumulated fund balances in 30 of the City’s 46 various funds. As of May 31, 2024, $57.7 million (52 percent) of the total budgeted revenue had been received and $53.1 million (80 percent) of the budgeted expenditures had been incurred. It should be noted that although the City’s fiscal year ends on June 30th, revenues and expenditures for the current fiscal year will continue to be recorded during a sixty-day accrual period – through the end of August.
The City’s main operating fund is the General Fund. The General Fund budget for Fiscal Year 23/24 identifies revenue of $43.9 million to fund expenditures of $39.9 million. As of May 31, 2024, General Fund revenues totaled $39 million (89 percent of the budgeted amount) and General Fund expenditures totaled $31.5 million (79 percent of the annual budgeted amount).
GENERAL FUND REVENUE
The Fiscal Year 23/24 General Fund budget includes anticipated revenue of $43.9 million. Based upon actual revenue received, it is projected that General Fund revenue will total $44.6 million or $749,000 more than the budgeted amount by the end of the fiscal year.
Taxes and Franchises
The largest source of revenue for the General Fund is sales tax. Based upon a combination of decreased gas prices, economic factors influencing some buying decisions and business closures, sales tax was amended on February 22, 2024, due to lower than anticipated projections to total $13.9 million.
Despite the cooling real estate market, increases in property values resulted in slightly higher than anticipated revenue by $8,000 totaling $7.46 million in property tax revenue.
Licenses and Permits
Revenue from licenses and permits was budgeted at $1.8 million. Updated projections indicate that revenues in this category will exceed the budget amount by $427,000. This is due to continued strong building activity. Revenue from building permits, plan check and zone check fees are expected to exceed the budget amount by $393,000. This increase will be partially offset by lower than anticipated revenue from transportation permits.
Fines and Forfeitures
Revenue from red light camera fines is projected to exceed the budgeted amount by $48,000 ($712,000 compared to budget of $664,350).
Intergovernmental Revenue
Revenue from other governmental agencies is projected to total $11.2 million, which is $84,347 over the budgeted amount. This is the net result of slightly higher than budgeted revenue from motor vehicle-in-lieu fees, $108,347, which was offset by lower than anticipated state reimbursements.
ITEM 17 Agenda Packet Page 311
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
Investment Revenue
Increasing interest rates on larger reserves will result in interest earnings budgeted amount by an estimated $1.2 million.
Charges for Service
Charges for Service revenue was budgeted at $1.1 million. While various line items will end the year slightly over and under the budgeted amount, the total revenue from charges for service should match the approved budget.
Other Revenue
Total revenue in this category is projected to total $2.2 million which is $ 154,000 over the budgeted amount. Revenue includes higher than anticipated reimbursements from expenses incurred, rebates, and convenience fees.
A summary of General Fund revenues as of May 31, 2024, is provided on the following page.
ITEM 17 Agenda Packet Page 312
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
FY 2023-24
Budget
FY 2023-24
Amended
Budget (Feb
'24)
YTD Actual
(5/31/2024)
Year-End
Projection
Projected
Over/(Under)
Budget
TAXES AND FRANCHISES
Property Tax 7,404,484 7,455,306 7,463,479 7,463,479 8,173 Sales and Use Tax 14,451,807 13,941,244 10,414,458 13,941,244 - Utility Users Tax 2,600,000 2,600,000 2,210,849 2,600,000 - Franchise Fees 730,000 730,000 331,185 730,000 -
Franchise Fees Solid Waste 650,000 650,000 558,066 650,000 - Property Transfer Tax 360,000 360,000 193,784 360,000 - Transient Occupancy Tax 90,000 90,000 48,412 90,000 -
Total Taxes and Franchises 26,286,291 25,826,550 21,220,233 25,834,723 8,173
LICENSES AND PERMITS
Business License 299,520 299,520 327,872 335,000 35,480 Building Plan Check 241,542 241,542 310,445 312,000 70,458 Engineering Fees Private Dev 12,000 17,000 16,621 17,000 - Zone Check 8,755 10,000 14,966 15,000 5,000
Building Permits 1,032,010 1,032,010 1,348,913 1,350,000 317,990 Engineering Fees Utilities 140,698 140,698 65,023 140,698 - Tree Permit 1,500 1,500 1,915 2,000 500
Transportation Permits 15,450 15,450 11,350 13,000 (2,450) Records Processing/Strong Motion 8,727 8,727 9,926 8,727 - Animal License 46,350 46,350 30,754 46,350 -
Total Licenses and Permits 1,806,552 1,812,797 2,137,786 2,239,775 426,978
FINES AND FORFEITURES
Non-Sufficient Funds Penalty 103 150 197 150 -
Vehicle Fines 105,000 105,000 87,279 105,000 -
Red Light Camera Fines 664,350 664,350 710,360 712,000 47,650 Total Fines and Forfeitures 769,453 769,500 797,836 817,150 47,650
INTERGOVERNMENTAL
State Mandated Reimbursements 25,000 25,000 436 1,000 (24,000) Federal Grants/ Reimbursements - - - - -
State Grants/ Reimbursements -
Motor Vehicle-in-Lieu Fee 11,026,823 11,096,257 11,204,604 11,204,604 108,347 Total Intergovernmental 11,051,823 11,121,257 11,205,040 11,205,604 84,347
USE OF MONEY
Investment Revenue 125,000 1,225,000 570,023 1,225,000 - Total Use of Money 125,000 1,225,000 570,023 1,225,000 -
CHARGES FOR SERVICES
Filing / Copies 5,765 5,765 9,593 9,600 3,835
Product Sales 2,060 2,060 - - (2,060)
Lease Payments 299,737 299,737 299,737 299,737 -
Administrative Fees 37,596 37,596 20,716 37,596 -
Police - Reimbursement Contract Overtime 103,000 103,000 129,186 129,200 26,200 Livescan Fees - - - - -
False Alarm/Alarm Permit Fees 60,000 60,000 38,582 60,000 - Vehicle Release / Towing 82,230 82,230 70,443 82,230 -
Community Center Rentals 426,320 426,320 382,237 426,320 - Planning Fees 90,950 90,950 58,212 90,950 -
Animal Non-Compliance/Boarding Fees 5,150 5,150 - - (5,150) Animal Surrender Fees 2,060 2,300 - - (2,300)
Total Charges for Services 1,114,868 1,115,108 1,008,705 1,135,633 20,525
CONTRIBUTIONS
Donations 5,000 7,920 14,099 14,099 6,179
Developer Contributions - - - - -
Total Contributions 5,000 7,920 14,099 14,099 6,179
OTHER
Miscellaneous Revenue 15,277 15,277 36,123 36,123 20,846 Reimbursement Revenue 18,652 28,000 52,856 52,900 24,900 Internal Service Fund Charges 1,546,995 1,546,995 1,617,909 1,618,000 71,005 Cash Over/Short - - - - -
Recovery of Labor & Benefits 283,180 283,180 234,226 283,180 - Temp Disability Recovery 103,000 103,000 - 40,000 (63,000) Restitution/Public Property Damage Recovery 5,000 35,000 134,991 134,990 99,990 Police Department Sales 6,180 6,180 6,775 6,775 595
Transfers In - - - - -
Total Other 1,978,284 2,017,632 2,082,879 2,171,968 154,336 Total General Fund Revenue $ 43,137,271 $ 43,895,764 $ 39,036,601 $ 44,643,952 $ 748,188
CITY OF CITRUS HEIGHTS
FY 2023-24 General Fund Revenue
As of May 31, 2024
ITEM 17 Agenda Packet Page 313
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
GENERAL FUND EXPENDITURES
The Fiscal Year 23/24 budget includes General Fund expenditure appropriations of $39.9 million, with $31.5 million (79 percent) expended as of May 31, 2024. Preliminary projections indicate that General Fund expenditures will total $38.9 million by the end of the fiscal year, which represents savings of $1 million.
Salary & Benefits
A portion of this anticipated budget savings ($500,000) is the result of labor savings from staff turnover and position vacancies.
Other Operating Expenditures
Overall, the City projects savings from various operating expenditures ($500,000) mostly due to CalPERS Unfunded Actuarial Liability (UAL) being lower than budgeted and savings across all other departments. The engineering division experienced recruiting challenges and had to utilize contract services resulting in higher overall costs.
Projected General Fund expenditure information for each City department is provided in the table below.
ITEM 17 Agenda Packet Page 314
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
As of May 31, 2024
FY 2023-24
Budget
FY 2023-24
Amended
Budget (Feb '24)
FY 2023-24 YTD
5/31/2024
FY 2023-24
Projections
Projected
Over/(Under)
Budget
City Council 160,165 160,165 146,021 160,165 -
City Manager 520,335 520,335 397,712 508,235 (12,100)
City Attorney 327,800 327,800 181,478 300,000 (27,800)
City Clerk 258,538 258,538 229,776 247,008 (11,530)
Elections - - - - -
City Manager's Office 1,266,838 1,266,838 954,987 1,215,408 (51,430) Economic Development 1,010,580 1,010,580 873,353 939,301 (71,279) History & Arts Commission 20,000 20,000 - 15,000 (5,000) Economic Development & Community
Engagement 1,030,580 1,030,580 873,353 954,301 (76,279) Human Resources 729,712 737,712 518,263 728,612 (9,100) Information Services 1,602,947 1,602,947 1,526,338 1,599,353 (3,594) Risk Management 2,640,797 2,640,797 2,072,335 2,756,707 115,910 Finance 957,510 957,510 841,187 943,900 (13,610)
Non Departmental 2,925,900 2,925,900 2,169,033 2,316,877 (609,023) Administrative Services 8,856,866 8,864,866 7,127,156 8,345,449 (519,417) Police 21,971,140 22,091,340 16,553,016 21,673,420 (417,920) Animal Control 667,681 667,681 556,455 663,269 (4,412)
Police 22,638,821 22,759,021 17,109,471 22,336,689 (422,332) Community Events 330,108 330,108 225,527 276,912 (53,196) Community Center Operations 696,193 696,193 672,452 801,537 105,344 Sylvan Community Center 20,430 20,430 13,176 20,218 (212) Sayonara Community Center 17,530 17,530 7,951 10,025 (7,505) Engineering 637,363 637,363 696,209 736,209 98,846
Facility Management 836,894 836,894 613,664 836,483 (411) Fleet Management 736,655 736,655 722,616 733,605 (3,050) General Services 3,275,173 3,275,173 2,951,595 3,414,989 139,816 Housing 100,333 100,333 108,212 110,000 9,667
Planning 517,158 517,158 449,004 495,858 (21,300)
Building Inspection 994,579 994,579 862,059 994,579 -
Planning Commission 12,700 12,700 350 550 (12,150)
Community Development 1,624,770 1,624,770 1,419,625 1,600,987 (23,783) Transfer Out 1,110,000 1,110,000 1,110,000 1,110,000 -
General Fund Expenditures $ 39,803,048 $ 39,931,248 $ 31,546,187 $ 38,977,823 $ (953,425)
CITY OF CITRUS HEIGHTS
Fiscal Year 2023-24 General Fund Expenditures By Department ITEM 17 Agenda Packet Page 315
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
The amended Fiscal Year 23/24 General Fund budget provided for an operating surplus of $4 million. Based upon actual revenues and expenditures during the first eleven months of the fiscal year and updated projections for the remainder of the year, staff are now forecasting a budget surplus of $5.7 million.
Unless other direction is specifically provided by the City Council, any operating surplus/(shortfall) at the end of a fiscal year is added/(deducted from) that fund’s available fund balance. For Fiscal Year 23/24, the projected operating surplus of $5.7 million (less planned capital expenditures) will increase the General Fund reserves from $24.5 million to a projected ending balance of $26.9 million. A healthy reserve fund provides opportunities to minimize service disruptions during periods of economic uncertainty, to fund one time expenditures that are consistent with City Council and community priorities and be opportunistic on pursuing grants that require a match to achieve a strategic infrastructure objective.
FISCAL YEAR 24/25 BUDGET MID-CYCLE ADJUSTMENT REQUEST
GENERAL FUND REVENUE
The Fiscal Year 24/25 budget includes anticipated revenue of $44.6 million. This projection was based upon information available at the time the budget was prepared in early 2023. Based upon information currently available, staff are recommending adjustments to the Fiscal Year 24/25 General Fund revenue budget which will increase budgeted revenue by $946,000, or approximately 2 percent. The proposed adjustments to General Fund budgeted revenue include:
Taxes and Franchises
The Fiscal Year 24/25 budget projected sales tax revenue of $14.7 million. Based upon the level of sales tax revenue received this fiscal year, it is projected that sales tax revenue will total $14.2 million in Fiscal Year 24/25, a decrease of $584,000 to the budgeted amount. The City has been notified that property tax revenue will total $7.9 million which is $151,000 over the amount FY 2023-24
Budget YTD Actual % of Budget
Year-End
Projection
Projected
Over/(Under)
Budget
Revenue $ 43,895,764 $ 39,036,601 89% 44,643,952 $ $ 748,188 Expenditures 39,931,248 31,546,187 79% 38,977,823 (953,425) Operating Surplus/(Shortfall) $ 3,964,516 $ 7,490,413 $ 5,666,129 $ 1,701,613
CITY OF CITRUS HEIGHTS
FY 23/24 General Fund Summary
As of May 31, 2024
ITEM 17 Agenda Packet Page 316
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
originally budgeted. Revenue from the property transfer tax and transient occupancy tax are projected to total $375,000 and $110,000 respectively.
Intergovernmental
The second largest source of General Fund revenue (behind sales tax) is motor vehicle-in-lieu fees. Motor vehicle-in-lieu fee revenue estimates are provided by the State and updated periodically. Total revenue from the City’s intergovernmental was budgeted at $11.54 million.
Updated projections reflect revenue in this category will total $11.5 million, which is a decrease of $32,900 in the amount currently budgeted.
Use of Money
The increase in interest rates has had a positive impact on investment revenue during FY23/24.
Based upon actual revenue received during FY23/24, the projections for FY24-25 indicate similar revenues which will increase investment revenue by $1.1 million to $1.2 million.
Other Revenue
Total revenue in this category is projected to total $2.3 million which is $300,000 over the budgeted amount. The City anticipates utilizing a rebate program offered by the City’s insurance risk pool to offset the increase to the general liability insurance within the Risk division.
A summary of General Fund revenues for Fiscal Year 24/25 is provided on the following page.
ITEM 17 Agenda Packet Page 317
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
FY 2024-25
Budget
FY 2024-25
Forecast
Projected
Over/(Under)
Budget
TAXES AND FRANCHISES
Property Tax 7,732,501 7,883,297 150,796
Sales and Use Tax 14,763,725 14,179,764 (583,961)
Utility Users Tax 2,650,000 2,650,000 -
Franchise Fees 750,000 750,000 -
Franchise Fees Solid Waste 680,000 680,000 -
Property Transfer Tax 375,000 375,000 -
Transient Occupancy Tax 93,000 110,000 17,000
Total Taxes and Franchises 27,044,226 26,628,061 (416,165)
LICENSES AND PERMITS
Business License 300,293 300,293 -
Building Plan Check 248,788 248,788 -
Engineering Fees Private Dev 12,000 12,000 -
Zone Check 9,018 9,018 -
Building Permits 1,062,971 1,062,971 -
Engineering Fees Utilities 144,919 144,919 -
Tree Permit 1,600 1,600 -
Transportation Permits 15,914 15,914 -
Records Processing/Strong Motion 8,989 8,989 -
Animal License 47,741 47,741 -
Total Licenses and Permits 1,852,233 1,852,233 -
FINES AND FORFEITURES
Non-Sufficient Funds Penalty 106 106 -
Vehicle Fines 140,000 140,000 -
Red Light Camera Fines 684,281 684,281 -
Total Fines and Forfeitures 824,387 824,387 -
INTERGOVERNMENTAL
State Mandated Reimbursements 25,000 25,000 -
Federal Grants/ Reimbursements - - -
Motor Vehicle-in-Lieu Fee 11,515,311 11,482,407 (32,904) Total Intergovernmental 11,540,311 11,507,407 (32,904)
USE OF MONEY
Investment Revenue 130,000 1,225,000 1,095,000
Total Use of Money 130,000 1,225,000 1,095,000
CHARGES FOR SERVICES
Filing / Copies 7,547 7,547 -
Product Sales 2,122 2,122 -
Lease Payments 343,987 343,987 -
Administrative Fees 38,565 38,565 -
Police - Reimbursement Contract Overtime 106,090 106,090 - Livescan Fees - - -
False Alarm/Alarm Permit Fees 60,000 60,000 -
Vehicle Release / Towing 80,000 80,000 -
Community Center Rentals 439,136 439,136 -
Planning Fees 90,950 90,950 -
Animal Non-Compliance/Boarding Fees 5,305 5,305 -
Animal Surrender Fees 2,122 2,122 -
Rabies, Spay/Neuter Fees -
Total Charges for Services 1,175,824 1,175,824 -
CONTRIBUTIONS
Donations 5,000 5,000 -
Developer Contributions - -
Total Contributions 5,000 5,000 -
OTHER
Miscellaneous Revenue 15,593 15,593 -
Reimbursement Revenue 18,912 318,912 300,000
Internal Service Fund Charges 1,593,405 1,593,405 -
Cash Over/Short - - -
Recovery of Labor & Benefits 291,676 291,676 -
Temp Disability Recovery 106,090 106,090 -
Restitution/Public Property Damage Recovery 5,000 5,000 - Police Department Sales 6,365 6,365 -
Transfers In - - -
Total Other 2,037,041 2,337,041 300,000
Total General Fund Revenue $ 44,609,022 $ 45,554,953 $ 945,931
CITY OF CITRUS HEIGHTS
FY 2024-25 General Fund Revenue
As of May 31, 2024
ITEM 17 Agenda Packet Page 318
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
GENERAL FUND EXPENDITURES
The Fiscal Year 24/25 amended budget (April 2024) includes General Fund expenditure appropriations of $43.8 million. Based upon a review of each departmental budget, several adjustments are proposed to align the budget with current projected cost estimates. The net impact of these adjustments would be to increase the General Fund budget by $1.25 million ($1.03 million operating and $216,000 in salary and benefits).
The Fiscal Year 2024-2025 General Fund Expenditures table that follows the explanations in this section includes a column titled “Budget Adjustment”. The Budget Adjustment column represents a combination of operating expenses along with salary and benefit adjustments. An explanation of the proposed budget adjustments in the two categories, operating expenditures and salary and benefits is provided as follows:
Salary & Benefits - $216,000
An increase of $335,000 is reflected throughout the divisions’ summary for FY24/25, which includes an increase of $240,000 caused by higher than originally budgeted cost of living adjustment of 0.8%. The US Bureau of Labor Statistics reported in April 2024 a 3.8% cost of living adjustment. Three percent (3%) was budgeted and adopted by Council in May 2023 and further amended in September 2023 as a result of the total compensation study adjustments and adopted labor agreements. Additionally, a $65,000 increase is requested for additional facility attendants due to the uptick in community center events and $30,000 for Police Officer Reserves.
These increases are tempered by savings incurred from staff vacancies and department reorganizations for a net increase of $216,000.
Operating Expenditures (Non-Salary & Benefits) - $1.03 million The proposed budget adjustments listed below, by department, reflect operating expenditures (Non-Salary & Benefits) requests:
Administrative Services Department
Finance –$68,800 includes an increase in auditor and consultant fees and the cost allocation plan study which was identified as the City’s FY24/25 strategic planning objective.
Risk Management - $307,000 includes an increase in municipal general liability insurance costs have increased industry-wide due to increased liability exposure, membership and dues and increase in cost of load bearing vests.
Information Technology - $66,700 is requested to fund increased software licensing costs. The City is required to pay annual licensing fees for the various software utilized for daily business and citizen support activities. The annual license costs have increased with additional increases anticipated next fiscal year.
Non-Departmental - $45,000 payment for property tax on potential property acquisition.
Police Department
Animal Control - $261,700 due to Placer County discontinuing service for fiscal year 24/25 (Placer County has agreed to an extension to cover July 2024 to allow for an orderly transition) and transitioning to Bradshaw Animal Shelter for a total expenditure of $497,000.
ITEM 17 Agenda Packet Page 319
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
Police – $93,300 inclusive of, an increase in costs such as software support, Post Training, booking fees, training costs for the weekly canine training have increased for all five dogs and the addition of reimbursable expenses which is an offset to reimbursable revenue account.
Community Development Department
Housing - $20,000 will be reallocated from FY23/24 to FY24/25 for the preparation of the Community Development Block Grant (CDBG) funding Five-Year Consolidation Plan.
Planning Commission - $2,000 increase to cover the cost of the Planning Commissioner Academy. It has been the City’s practice for commissioners to attend the academy every other year. In FY24/25 the city will have four new commissioners who would potentially attend the conference.
Building - $15,000 to cover additional consulting needs for plan review projects.
Economic Development & Community Engagement Department
Economic Development - $60,000 increase to cover the cost of the grant assistance consultant Townsend as the contract had only been funded for one year to see if results warranted further funding.
General Services Department
Community Center - $32,500 increase which includes maintenance costs carpet cleaning, deep cleaning of kitchen and maintenance on equipment, and gas/electric utility increase.
City Manager’s Office
Council - $4,000 increase in meeting and conference based upon FY23/24 expenditures and a desire to continue professional development opportunities for the City Council in FY24/25.
City Attorney - $54,000 increase due to anticipated contract amendments.
Election - $3,000 increase in County’s election expense fees.
A summary of General Fund budgeted expenditures (combined operating expenditures and salary and benefits) by department/division is provided on the following page.
ITEM 17 Agenda Packet Page 320
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
CITY OF CITRUS HEIGHTS
Fiscal Year 2024-25 General Fund Expenditures By Department As of May 31, 2024
FY 2024-25
Budget
FY 2024-25
Amended
Budget (Apr
'24)
FY2024-25
Forecast
Projected
Over/(Under)
Budget
Budget
Adjustment
City Council 161,780 214,778 218,778 4,000 4,000
City Manager 516,799 533,195 536,649 3,454 3,454
City Attorney 337,700 337,700 391,700 54,000 54,000
City Clerk 263,627 282,160 283,869 1,709 1,709
Elections 54,100 54,100 57,100 3,000 3,000
City Manager's Office 1,334,006 1,421,933 1,488,096 66,163 66,163 Economic Development 1,014,126 1,043,842 1,107,539 63,697 63,697 History & Arts Commission 20,000 20,000 20,000 - -
Economic Development & Community
Engagement 1,034,126 1,063,842 1,127,539 63,697 63,697
Human Resources 743,807 700,275 816,888 116,613 116,613 Information Services 1,704,137 1,717,308 1,789,038 71,730 71,730 Risk Management 2,736,167 2,726,703 3,036,590 309,887 309,887 Finance 985,723 1,086,020 977,317 (108,703) (108,703)
Non Departmental 3,150,250 3,150,250 3,195,250 45,000 45,000 Administrative Services 9,320,084 9,380,556 9,815,084 434,528 434,528 Police 22,778,384 24,668,476 24,900,786 232,310 232,310 Animal Control 679,248 707,844 972,243 264,399 264,399
Police 23,457,632 25,376,320 25,873,029 496,709 496,709 Community Events 417,629 410,044 411,403 1,359 1,359
Community Center Operations 709,678 698,041 732,807 34,766 34,766 Sylvan Community Center 20,850 20,580 20,580 - -
Sayonara Community Center 17,530 17,530 17,530 - -
Engineering 637,287 913,566 782,745 (130,821) (130,821) Facility Management 846,106 796,368 876,711 80,343 80,343 Fleet Management 739,709 802,558 885,900 83,342 83,342
General Services 3,388,789 3,658,687 3,727,676 68,989 68,989 Housing 83,626 228,451 264,137 35,686 35,686
Planning 536,042 513,128 558,779 45,651 45,651
Building Inspection 1,022,425 1,048,817 1,084,512 35,695 35,695 Planning Commission 12,700 12,700 14,700 2,000 2,000
Community Development 1,654,793 1,803,096 1,922,128 119,032 119,032 Transfer Out 1,110,000 1,110,000 1,110,000 - -
General Fund Expenditures $ 41,299,430 $ 43,814,434 $ 45,063,552 $ 1,249,118 $ 1,249,118 ITEM 17 Agenda Packet Page 321
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
The amended Fiscal Year 24/25 General Fund budget provided for an operating surplus of $795,000. Based upon revenue and expenditure adjustments requested, staff are now forecasting a budget surplus of $490,000.
AMERICAN RESCUE PLAN ACT FUND
The City of Citrus Heights was allocated $15,676,972 in American Rescue Plan Act (ARPA) funding. The City received the first ARPA payment of $7,838,486 from the U.S. Treasury in May 2021. The final ARPA payment of $7,838,486 was received on June 6, 2022. To date, the City Council has appropriated $14 million of ARPA funding of which $12.2 million has been committed.
Currently $3.5 million of ARPA funding is available that will need to be obligated by December 2024 and has not been reflected in the FY24/25 budget. Staff will provide a detailed update and plan at the August Council Meeting.
TEN YEAR FINANCIAL FORECAST
As a strategic fiscal planning tool, the City maintains a long-term financial forecast. Because this forecast is based upon data currently available, it is updated periodically to reflect new information regarding anticipated future revenues and expenditures. While the financial forecast covers a ten-year period for the City’s General Fund, Government Finance Officers Association (GFOA) standard and best practice is to cover a five-year period as inflationary and revenue assumptions are typically less predictable beyond five years. The City Council last reviewed the Ten-Year Financial Forecast on February 22, 2024. The Ten-Year Financial Forecast has been updated and includes the following changes:
• Fiscal Year 23/24 – year-end projections added.
• Fiscal Year 24/25 – Mid-Cycle Budget projections updated.
FY 2024-25
Budget
FY 2024-25
Forecast
Proposed Budget
Adjustment
Revenue $ 44,609,022 $ 45,554,953 $ 945,931
Expenditures 43,814,434 45,063,552 1,249,118
Operating Surplus/(Shortfall) $ 794,588 $ 491,401 $ (303,187)
CITY OF CITRUS HEIGHTS
FY 24/25 General Fund Summary
As of May 31, 2024
ITEM 17 Agenda Packet Page 322
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
• An additional column has been added to include Fiscal Year 32/33 projections. • Revenue projections (property tax, sales tax and vehicle in-lieu fees, and transient occupancy tax) and updated labor cost estimates updated for Fiscal Year 23/24 through Fiscal Year 32/33.
A five-year summary of the Ten-Year Financial Forecast is provided below. A version demonstrating the full ten-year period is attached to this report as Attachment 3.
APPROPRIATIONS LIMIT FOR FISCAL YEAR 24/25
Article XIIIB of the California State Constitution was established by the passing of Proposition 4 by California voters in 1979. This legislation, which was later amended by the passage of proposition 111 in 1990, placed limits on the amount of proceeds of taxes that State and local agencies can appropriate and spend. The appropriations limit, which is different for every agency, is calculated each year just prior to the beginning of the fiscal year. The appropriations limit is calculated using the annual change in California per capita income and the percentage change in population for the County of Sacramento.
The appropriations limit for the City of Citrus Heights for Fiscal Year 24/25 is calculated to be $70,121,455. The appropriations subject to the limit are $39,497,883. The City’s appropriations subject to the limit are well under the appropriations limit. The actual calculation is provided below.
General Fund Ten Year Financial Forecast With Partial Street Funding 6/11/2024
FY 2022-23 FY 2023-24 FY 2023-24* FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Actual Budgeted
Apr '24 Mid
Year
Amended
Budget Jun Forecast Budgeted
Apr '24
Amended
Budget
Mid Cycle
Amendement
Request Projected Projected Projected Projected
Beginning Reserve Balance (Unassigned/Committed) 11,932,391 24,355,857 24,355,857 24,355,857 26,818,367 26,818,367 26,818,367 23,309,769 21,301,671 18,893,598 16,882,184 TOTAL REVENUE 44,871,679 43,137,271 43,895,764 44,643,952 44,609,022 44,609,022 45,554,953 46,331,560 46,925,749 48,340,064 49,818,758 TOTAL OPERATING EXPENDITURES 32,448,213 39,803,048 39,931,248 38,977,823 41,299,430 43,814,433 45,063,552 44,339,658 45,333,822 46,351,478 47,393,189 Net Operating Position 12,423,466 3,334,223 3,964,516 5,666,129 3,309,592 794,589 491,401 1,991,902 1,591,927 1,988,587 2,425,569 ARPA 2,796,381 2,796,381 2,796,381
STREET REPAIRS (2,000,000) (2,000,000) (2,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) Auburn Blvd - Phase 2 Match (4,000,000) (4,000,000) (4,000,000) Ending Reserve Balance $ 24,355,857 $ 24,486,462 $ 25,116,755 $ 26,818,367 $ 26,127,960 $ 23,612,956 $ 23,309,769 $ 21,301,671 $ 18,893,598 $ 16,882,184 $ 15,307,753 Minimum Reserve per City Council Policy (17%) $ 5,516,196 $ 6,766,518 $ 6,788,312 $ 6,626,230 $ 7,020,903 $ 7,448,454 $ 7,660,804 $ 7,537,742 $ 7,706,750 $ 7,879,751 $ 8,056,842 Over(under) Reserve Target 18,839,661 17,719,944 18,328,443 20,192,137 19,107,056 16,164,503 15,648,965 13,763,929 11,186,848 9,002,433 7,250,911 City Manager Target Reserve @25% $ 8,112,053 $ 9,950,762 $ 9,982,812 $ 9,744,456 $ 10,324,857 $ 10,953,608 $ 11,265,888 $ 11,084,914 $ 11,333,455 $ 11,587,869 $ 11,848,297 Projected Cashflow 16,243,804 14,535,700 15,133,943 17,073,912 15,803,102 12,659,348 12,043,881 10,216,756 7,560,142 5,294,315 3,459,456 ITEM 17 Agenda Packet Page 323
Subject: Fiscal Years 23/24 and 24/25 Mid-Cycle Budget Review and Financial Forecast Update Date: June 27, 2024
Printed on Recycled Paper
Finance Committee Review
The information presented in this report was reviewed by the Finance Committee on June 11, 2024.
Attachments
1. Resolution Amending Fiscal Year 24/25 Budget
2. Resolution Establishing an Appropriations Limit for Fiscal Year 24/25
3. Ten Year Financial Forecast
ITEM 17 Agenda Packet Page 324
Printed on Recycled Paper
RESOLUTION NO. 2024 - ____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS
HEIGHTS, CALIFORNIA, APPROVING AMENDMENTS TO THE
FISCAL YEAR 2024-25 BUDGET
WHEREAS, on May 23, 2024, the City Council adopted the budget for the City of Citrus Heights for Fiscal Year 2024-25; and
WHEREAS, based upon a review of revenues and expenditures, staff has recommended amendments to the Fiscal Year 2024-25 Budget; and
WHEREAS, the Finance and Administration Committee reviewed the proposed budget amendments on June 11, 2024; and
WHEREAS, the City Council has reviewed information on the status of revenues and expenditures for the 2024-25 Fiscal Year which is the basis for the recommended budget amendments.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Citrus Heights approves amendments to the Fiscal Year 2024-25 Budget as provided for in the attached Exhibit A.
PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 27th day of June 2024, by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
Bret Daniels, Mayor
ATTEST:
Amy Van, City Clerk
Exhibit
A. Fiscal Year 2024/25 Mid-Cycle Budget Adjustments
ITEM 17 Agenda Packet Page 325
Exhibit A
Fiscal Year 2024/25 Mid-Cycle Budget Adjustments
FY 2024-25
Budget
FY 2024-25
Forecast
Projected
Over/(Under)
Budget
TAXES AND FRANCHISES
Property Tax 7,732,501 7,883,297 150,796
Sales and Use Tax 14,763,725 14,179,764 (583,961)
Utility Users Tax 2,650,000 2,650,000 -
Franchise Fees 750,000 750,000 -
Franchise Fees Solid Waste 680,000 680,000 -
Property Transfer Tax 375,000 375,000 -
Transient Occupancy Tax 93,000 110,000 17,000
Total Taxes and Franchises 27,044,226 26,628,061 (416,165)
LICENSES AND PERMITS
Business License 300,293 300,293 -
Building Plan Check 248,788 248,788 -
Engineering Fees Private Dev 12,000 12,000 -
Zone Check 9,018 9,018 -
Building Permits 1,062,971 1,062,971 -
Engineering Fees Utilities 144,919 144,919 -
Tree Permit 1,600 1,600 -
Transportation Permits 15,914 15,914 -
Records Processing/Strong Motion 8,989 8,989 -
Animal License 47,741 47,741 -
Total Licenses and Permits 1,852,233 1,852,233 -
FINES AND FORFEITURES
Non-Sufficient Funds Penalty 106 106 -
Vehicle Fines 140,000 140,000 -
Red Light Camera Fines 684,281 684,281 -
Total Fines and Forfeitures 824,387 824,387 -
INTERGOVERNMENTAL
State Mandated Reimbursements 25,000 25,000 -
Federal Grants/ Reimbursements - - -
Motor Vehicle-in-Lieu Fee 11,515,311 11,482,407 (32,904) Total Intergovernmental 11,540,311 11,507,407 (32,904)
USE OF MONEY
Investment Revenue 130,000 1,225,000 1,095,000
Total Use of Money 130,000 1,225,000 1,095,000
CHARGES FOR SERVICES
Filing / Copies 7,547 7,547 -
Product Sales 2,122 2,122 -
Lease Payments 343,987 343,987 -
Administrative Fees 38,565 38,565 -
Police - Reimbursement Contract Overtime 106,090 106,090 - Livescan Fees - - -
False Alarm/Alarm Permit Fees 60,000 60,000 -
Vehicle Release / Towing 80,000 80,000 -
Community Center Rentals 439,136 439,136 -
Planning Fees 90,950 90,950 -
Animal Non-Compliance/Boarding Fees 5,305 5,305 -
Animal Surrender Fees 2,122 2,122 -
Rabies, Spay/Neuter Fees -
Total Charges for Services 1,175,824 1,175,824 -
CONTRIBUTIONS
Donations 5,000 5,000 -
Developer Contributions - -
Total Contributions 5,000 5,000 -
OTHER
Miscellaneous Revenue 15,593 15,593 -
Reimbursement Revenue 18,912 318,912 300,000
Internal Service Fund Charges 1,593,405 1,593,405 -
Cash Over/Short - - -
Recovery of Labor & Benefits 291,676 291,676 -
Temp Disability Recovery 106,090 106,090 -
Restitution/Public Property Damage Recovery 5,000 5,000 - Police Department Sales 6,365 6,365 -
Transfers In - - -
Total Other 2,037,041 2,337,041 300,000
Total General Fund Revenue $ 44,609,022 $ 45,554,953 $ 945,931
CITY OF CITRUS HEIGHTS
FY 2024-25 General Fund Revenue
As of May 31, 2024
ITEM 17 Agenda Packet Page 326
Exhibit A
ITEM 17 Agenda Packet Page 327
RESOLUTION NO. 2024 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS
HEIGHTS, CALIFORNIA, ESTABLISHING AN APPROPRIATION
LIMIT FOR FISCAL YEAR 2024-25
WHEREAS, Article XIIIB of the California Constitution provides that the total annual appropriations subject to limitation of each governmental entity, including this City, shall not exceed the appropriation limit of such entity of government for the prior year adjusted for changes in population and inflation mandated by Proposition 4 passed in November 1979 and Proposition 111 passed in June 1990 except as otherwise provided for in said Article XIIIB and implementing State statutes;
WHEREAS, pursuant to said Article XIIIB of said California Constitution, and Section 7900 et seq. of the California Government Code, the City is required to set its appropriation limit for each fiscal year. In setting said limit, the City is required to select the following factors: 1) California Per Capita Income, multiplied by 2) the greater of city or county population growth; WHEREAS, the City of Citrus Heights reserves the right to change or revise any growth factors associated with the calculation of the Proposition 111 limit, if such changes or revisions would result in a more advantageous appropriation limit; and WHEREAS, pursuant to Section 7910 of said California Government Code, the City Manager has made available to the public the documentation used in the determination of said appropriation limit.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Citrus Heights that the factors used in determining the 2024-25 appropriation limit will be the California Per Capita Income change and the percentage change in population for the County of Sacramento. The appropriation limit for Fiscal Year 2024-25 is $70,121,455.
PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 27th day of June, 2024, by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
Bret Daniels, Mayor
ATTEST:
Amy Van, City Clerk
ITEM 17 Agenda Packet Page 328
General Fund Ten Year Financial Forecast
With Partial Street Funding
6/11/2024
FY 2022-23 FY 2023-24 FY 2023-24* FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Actual Budgeted
Apr '24 Mid
Year Amended
Budget Jun Forecast Budgeted
Apr '24
Amended
Budget
Mid Cycle
Amendement
Request Projected Projected Projected Projected Projected Projected Projected Projected Beginning Reserve Balance (Unassigned/Committed) 11,932,391 24,355,857 24,355,857 24,355,857 26,818,367 26,818,367 26,818,367 23,309,769 21,301,671 18,893,598 16,882,184 15,307,753 14,194,953 13,426,542 13,167,286TOTAL REVENUE 44,871,679 43,137,271 43,895,764 44,643,952 44,609,022 44,609,022 45,554,953 46,331,560 46,925,749 48,340,064 49,818,758 51,346,733 52,822,691 54,459,242 55,995,092TOTAL OPERATING EXPENDITURES 32,448,213 39,803,048 39,931,248 38,977,823 41,299,430 43,814,433 45,063,552 44,339,658 45,333,822 46,351,478 47,393,189 48,459,533 49,591,101 50,718,499 51,862,346Net Operating Position 12,423,466 3,334,223 3,964,516 5,666,129 3,309,592 794,589 491,401 1,991,902 1,591,927 1,988,587 2,425,569 2,887,200 3,231,590 3,740,744 4,132,746ARPA 2,796,381 2,796,381 2,796,381 STREET REPAIRS (2,000,000) (2,000,000) (2,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) Auburn Blvd - Phase 2 Match (4,000,000) (4,000,000) (4,000,000) Ending Reserve Balance $ 24,486,462 24,355,857 $ 25,116,755 $ 26,818,367 $ 26,127,960 $ 23,612,956 $ 23,309,769 $ 21,301,671 $ 18,893,598 $ 16,882,184 $ 15,307,753 $ 14,194,953 $ 13,426,542 $ 13,167,286 $ 13,300,032 $ Minimum Reserve per City Council Policy (17%) $ 5,516,196 $ 6,788,312 6,766,518 $ 6,626,230 $ 7,020,903 $ 7,448,454 $ 7,660,804 $ 7,537,742 $ 7,706,750 $ 7,879,751 $ 8,056,842 $ 8,238,121 $ 8,430,487 $ 8,622,145 $ 8,816,599 $ Over(under) Reserve Target 18,839,661 17,719,944 18,328,443 20,192,137 19,107,056 16,164,503 15,648,965 13,763,929 11,186,848 9,002,433 7,250,911 5,956,832 4,996,055 4,545,141 4,483,433 City Manager Target Reserve @25% $ 8,112,053 $ 9,982,812 9,950,762 $ 9,744,456 $ 10,324,857 $ 10,953,608 $ 11,265,888 $ 11,084,914 $ 11,333,455 $ 11,587,869 $ 11,848,297 $ 12,114,883 $ 12,397,775 $ 12,679,625 $ 12,965,586 $ Projected Cashflow 16,243,804 14,535,700 15,133,943 17,073,912 15,803,102 12,659,348 12,043,881 10,216,756 7,560,142 5,294,315 3,459,456 2,080,069 1,028,767 487,661 334,445 O:\Budget\23-24 & 24-25 Annual Budget\Mid Cycle\DRAFT 10-Year Forecast Mid-Cycle HDL, ADJ requests and Assumptions v10 ITEM 17
Agenda Packet Page 329
Printed on Recycled Paper
RESOLUTION NO. 2024-___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS
HEIGHTS, CALIFORNIA, APPROVING AMENDMENTS TO THE
FISCAL YEAR 2024-25 BUDGET
WHEREAS, on May 25, 2023, the City Council adopted the budget for the City of Citrus Heights for Fiscal Year 2024-25; and
WHEREAS, based upon a review of revenues and expenditures, staff has recommended amendments to the Fiscal Year 2024-25 Budget; and
WHEREAS, the Finance and Administration Committee reviewed the proposed budget amendments on June 11, 2024; and
WHEREAS, the City Council authorizes the City Manager to execute an amended contract for City Attorney services with the Jones Mayer Law firm; and WHEREAS, the City Council has reviewed information on the status of revenues and expenditures for the 2024-25 Fiscal Year which is the basis for the recommended budget amendments.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Citrus Heights approves amendments to the Fiscal Year 2024-25 Budget as provided for in the attached Exhibit A.
PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 27th day of June 2024, by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
Bret Daniels, Mayor
ATTEST:
Amy Van, City Clerk
Exhibit
A. Fiscal Year 2024/25 Mid-Cycle Budget Adjustments
ITEM 17
Exhibit A
Fiscal Year 2024/25 Mid-Cycle Budget Adjustments
FY 2024-25
Budget
FY 2024-25
Forecast
Projected
Over/(Under)
Budget
TAXES AND FRANCHISES
Property Tax 7,732,501 7,883,297 150,796
Sales and Use Tax 14,763,725 14,179,764 (583,961)
Utility Users Tax 2,650,000 2,650,000 -
Franchise Fees 750,000 750,000 -
Franchise Fees Solid Waste 680,000 680,000 -
Property Transfer Tax 375,000 375,000 -
Transient Occupancy Tax 93,000 110,000 17,000
Total Taxes and Franchises 27,044,226 26,628,061 (416,165)
LICENSES AND PERMITS
Business License 300,293 300,293 -
Building Plan Check 248,788 248,788 -
Engineering Fees Private Dev 12,000 12,000 -
Zone Check 9,018 9,018 -
Building Permits 1,062,971 1,062,971 -
Engineering Fees Utilities 144,919 144,919 -
Tree Permit 1,600 1,600 -
Transportation Permits 15,914 15,914 -
Records Processing/Strong Motion 8,989 8,989 -
Animal License 47,741 47,741 -
Total Licenses and Permits 1,852,233 1,852,233 -
FINES AND FORFEITURES
Non-Sufficient Funds Penalty 106 106 -
Vehicle Fines 140,000 140,000 -
Red Light Camera Fines 684,281 684,281 -
Total Fines and Forfeitures 824,387 824,387 -
INTERGOVERNMENTAL
State Mandated Reimbursements 25,000 25,000 -
Federal Grants/ Reimbursements - - -
Motor Vehicle-in-Lieu Fee 11,515,311 11,482,407 (32,904) Total Intergovernmental 11,540,311 11,507,407 (32,904)
USE OF MONEY
Investment Revenue 130,000 1,225,000 1,095,000
Total Use of Money 130,000 1,225,000 1,095,000
CHARGES FOR SERVICES
Filing / Copies 7,547 7,547 -
Product Sales 2,122 2,122 -
Lease Payments 343,987 343,987 -
Administrative Fees 38,565 38,565 -
Police - Reimbursement Contract Overtime 106,090 106,090 - Livescan Fees - - -
False Alarm/Alarm Permit Fees 60,000 60,000 -
Vehicle Release / Towing 80,000 80,000 -
Community Center Rentals 439,136 439,136 -
Planning Fees 90,950 90,950 -
Animal Non-Compliance/Boarding Fees 5,305 5,305 -
Animal Surrender Fees 2,122 2,122 -
Rabies, Spay/Neuter Fees -
Total Charges for Services 1,175,824 1,175,824 -
CONTRIBUTIONS
Donations 5,000 5,000 -
Developer Contributions - -
Total Contributions 5,000 5,000 -
OTHER
Miscellaneous Revenue 15,593 15,593 -
Reimbursement Revenue 18,912 318,912 300,000
Internal Service Fund Charges 1,593,405 1,593,405 -
Cash Over/Short - - -
Recovery of Labor & Benefits 291,676 291,676 -
Temp Disability Recovery 106,090 106,090 -
Restitution/Public Property Damage Recovery 5,000 5,000 - Police Department Sales 6,365 6,365 -
Transfers In - - -
Total Other 2,037,041 2,337,041 300,000
Total General Fund Revenue $ 44,609,022 $ 45,554,953 $ 945,931
CITY OF CITRUS HEIGHTS
FY 2024-25 General Fund Revenue
As of May 31, 2024
ITEM 17
Exhibit A
ITEM 17