1 Kim Sitton
Finance Director
June 15, 2022
FY 2023
Budget Adoption
Agenda
✓ FY 2023 Budget Overview
✓ Proprietary Funds
• Enterprise Funds – Water and Sewer
✓ General Fund
• Measure X
• General Fund Forecast
2 FY 2023 Budget Overview
3 Strategic Goals
4 Financial Stability
Strong Economy
Sound Infrastructure
Safe Community
Sense of Place
High Performing Government
FY 2023 Budget Process
5 1 3 5
2 4 6
Jan/Feb
Departments
prepare budget
information for
next fiscal year
April
• April 7, 2022 Spring
Financial Workshop
• CFD/LMD budget
preparation
June
June 15, 2022
Budget Adoption
March
Review/consolidation
of FY 2023 budget
information
May
• FY 2023 Overview to
City Council
• CIP information to
Commissions
July
July 1, 2022
FY 2023 Begins
6 Estimated FY 2023 Revenue Estimates $473.9 Million – All Funds Governmental Funds
General Fund $ 194,749,508
Special Revenue 56,157,430
Capital Projects 53,031,148
Subtotal 303,938,086
Proprietary or Business Type
Enterprise 129,387,193
Internal Service 24,187,003
Subtotal 153,574,196
Fiduciary Funds
Agency Funds 7,160,891
Private Purpose Trust 9,189,289
Subtotal 16,350,180
Total $ 473,862,462
Governmental
Funds
$303.9 M
64.1%
Proprietary
or Business
Type
$153.6 M
32.4%
Fiduciary
$16.4 M
3.5%
May 11, 2022 Workshop = $472.1 M. Net increase of $1.8 M. • Special Revenue +$2.7 M (RMRA, PLHA Grant, and CFD/LMD Funds) • Internal Service Funds -$0.8 M (Liability/Risk Retention Fund) • General Fund -$50 K (Aquatics)
• Capital Projects -$44 K (Grant funding correction)
7 Proposed FY 2023
$400.8 Million
Expenditure Budget – All Funds
Governmental
Funds
$226.1 M
56.4%
Proprietary
or Business
Type
$164.9 M
41.1%
Fiduciary Funds
$9.8 M
2.5%
May 11, 2022 Workshop = $394.1 M. Net increase of $6.7 M. • General Fund +$8.8 M (Service Change Requests)
• Special Revenue -$2.5 M (RMRA, Measure A, Service Change Requests) • Enterprise Funds +$0.2 M (Service Change Requests)
• Internal Service Funds +$0.1 M (Service Change Requests) • Capital Projects +$20 K (Service Change Requests)
Governmental Funds
General Fund $ 182,426,090
Special Revenue 39,645,443
Capital Projects 4,002,508
Subtotal 226,074,041
Proprietary or Business Type
Enterprise 140,527,622
Internal Service 24,380,110
Subtotal 164,907,732
Fiduciary Funds
Agency Funds 6,619,446
Private Purpose Trust 3,179,391
Subtotal 9,798,837
Total $ 400,780,610
563
451 411 364 353 364 370 389
489
191
179
176
153 159 162 150 154
164
133
121
121
112 112 113 107 108
117
-
100
200
300
400
500
600
700
800
900
1,000
FY 2007 FY 2009 FY 2011 FY 2013 FY 2015 FY 2017 FY 2019 FY 2021 FY 2023 Miscellaneous (Non-Sworn) Police Fire
8 Full Time Position History – Citywide
887
629
708 751 770
624 639 627 651
Pre-Recession Proposed
PERS Group FY 2007 FY 2023
Miscellaneous
(Non-Sworn) 563 489 (74) -13%
Police 191 164 (27) -14%
Fire 133 117 (16) -12%
Total 887 770 (117) -13%
Change
Proprietary Funds
9 Enterprise Funds – Water and Sewer
10 Proprietary Funds – Enterprise Funds
✓ Self-supporting activities that are supported by rates and/or fees ✓ May also include grants or reimbursements from other government agencies
✓ Enterprise Funds
• Water
• Sewer
• Electric
• Airport
• Transit Services
11 Water Utility
*FY 2022
Expenditures =
Adopted Budget
Millions
Revenues – increase of +6.4%, or $3.8 M
+$2.7 M in Utility Service Charges, +$0.7 M in Fees & Permits, +$0.5 M in Fines, Penalties, and Forfeitures Expenditures – increase of +2.0%, or +$1.4 M, when compared to adopted FY 2022 budget 48% of expenditure budget = materials and supplies, 26% = capital outlay, and 12% = personnel services Compared to FY 2022 adopted budget:
Decrease: -$0.5 M capital projects, $-0.4 M personnel, -$0.8 M bad debt expense Increase: +$1.2 M increase in electric utility, +$0.7 M contract services, +$0.4 M water purchases, +$0.4 M POB debt service, +$0.2 M increase in motor pool
Expenditure budget over revenues = use of existing fund balance/loan from other funds Note: Capitalization has been removed from FY2019-FY2021 actuals to show actual amount expended for capital projects. $52.0 $52.6
$58.4 $59.4 $63.2 $54.0 $56.3 $61.0
$71.3 $72.8
$-
$15.0
$30.0
$45.0
$60.0
$75.0
$90.0
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Actuals
FY 2022
Estimated*
FY 2023
Proposed
Revenue Expenditure Budget
12 Sewer Utility
*FY 2022
Expenditures =
Adopted Budget
Revenues – increase of +0.8%, or $0.3 M
+$0.2 M in Fines, Penalties, and Forfeitures
Expenditures – increase of +17.6%, or +$6.1 M, when compared to adopted FY 2022 budget 46% of expenditure budget = materials and supplies, 26% = capital outlay, and 17% = personnel Compared to FY 2022 adopted budget:
Decrease: -$0.1 M utilities
Increase: +$3.9 M capital projects, +$1.3 M personnel, +$0.8 M materials and supplies, +$0.2 M POB debt service Expenditure budget over revenues = use of existing fund balance Note: Capitalization has been removed from FY2019-FY2021 actuals to show actual amount expended for capital projects. Millions $38.1 $36.3 $34.0 $32.9 $33.1
$38.3
$30.4 $31.1
$34.5
$40.5
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Actuals
FY 2022
Estimated*
FY 2023
Proposed
Revenue Expenditure Budget
Q
Questions and
Discussion on FY 2023
Proposed Budget –
Water and Sewer
13 General Fund
14 Measure X
General Fund Forecast
15 General Fund Inflows – FY 2023 Estimated $195.9 Million $-
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Millions
Sales Tax
Property Tax
Other Taxes
Current Services
Other Revenue
Payments in Lieu of Services
Investment Earnings
Intergovernmental Revenue
Licenses, Fees & Permits
Transfers In
Fines, Forfeitures & Penalties
Special Assessments
These 5
categories make
up 92% of
General Fund
Inflows
16 • FY 2023 estimate is a
decrease of -$216.9 M,
or -52.5%, over
Projected FY 2022.
• Adjusting for Bond
Proceeds, FY 2023
estimate is an increase
of $5.1 M, or +2.7%.
General Fund Inflows – FY 2023 Estimated $195.9 Million FY 2019
Actuals
FY 2020
Actuals
FY 2021
Actuals
FY 2022
Projected
FY 2023
Estimate
Transfers In $1.0 $2.3 $1.2 $1.2 $1.2
Revenue $147.6 $139.9 $148.7 $411.7 $194.7
Total Inflows $148.6 $142.2 $149.9 $412.9 $195.9
$148.6 $142.2 $149.9
$412.9
$195.9
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
Millions
17 General Fund Inflows
Year Over Year Comparison
Totals Inflows Estimated Estimated
Revenues + Transfers In FY 2022 FY 2023
Property Tax $ 53,681,000 $ 55,813,100 $ 2,132,100
Sales Tax 47,121,723 48,012,926 891,203
Sales Tax - Measure X 38,895,000 42,122,000 3,227,000 Other Revenue 11,548,733 11,193,910 (354,823)
Other Taxes 11,613,000 11,896,000 283,000
Proceeds from Long Term
Obligations 222,013,459 - (222,013,459)
Current Services 11,399,773 11,334,877 (64,896)
Payments in Lieu of Services 6,086,383 6,144,200 57,817 Increase in reimbursement for services to other funds (Cost Allocation Plan) Intergovernmental Revenue 3,329,943 2,160,011 (1,169,932) Investment Earnings 2,485,306 2,675,853 190,547
Licenses, Fees & Permits 2,087,500 2,067,250 (20,250) Fines, Forfeitures & Penalties 839,472 741,800 (97,672) Decrease ($52K) Misc. Fines and Penalties, ($28K) Admin. Fines & Penalties Special Assessments 570,746 587,581 16,835 Based on number of units within special assessment areas Total Revenues $ 411,672,038 $ 194,749,508 $ (216,922,530) Transfers In $ 1,200,000 $ 1,200,000 $ -
Total Inflows $ 412,872,038 $ 195,949,508 $ (216,922,530) Change without POB Bond Proceeds $ $ 5,090,929
Change without POB Bond Proceeds % 2.7%
Estimated transfer based on Gas Tax Fund revenues, Section 2107.
Variance Comments
Increases in secured property tax and vehicle license property tax Increase in Sales Tax and Prop 172 Sales Tax Allocation Measure X is estimated to increase by 8% over current fiscal year $108K increase in Transient Occupancy Tax and $150K increase in Franchises
Decrease of $420K for rent/lease agreements and increase of $168K for special district reimbursements
Decrease of $506K in Federal Grant Revenue and decrease of $550K in Fire Mutual Aid Reimbursement
Various increases and decreases throughout the various fees Pension Obligation Bonds - Bond Proceeds in FY 2022
Increase in interest on investments
Various increases and decreases throughout the various fees 18 General Fund FY 2023 Expenditure Budget
Administrative
Depts
$18.4 M
10.1%
Public Safety
Depts
$82.2 M
45.1%
Community
Service Depts
$30.2 M
16.5%
Capital
Improvement
Projects
$4.9 M
2.7%
Debt Service
$21.4 M
11.7%
General
Government
$25.4 M
13.9%
Proposed FY 2023
$182.4 Million
General Fund
City Manager's Office $ 7,154,684
Economic Development 1,345,571
Elected Officials 141,733
Finance 4,441,062
Human Resources 2,677,725
Information Technology 743,292
Legal & Risk Management 1,897,476
Administrative Departments 18,401,543
Fire 32,808,288
Police 49,386,320
Public Safety Departments 82,194,608
Community Services 16,997,894
Planning & Development 8,255,659
Public Works 4,936,451
Community Service Departments 30,190,004
Capital Improvement Projects 4,913,858
Debt Service 21,369,124
General Government 25,356,953
Other 51,639,935
Total Operating Budget $ 182,426,090
19 General Fund FY 2023 Expenditure Budget
Department Personnel Contractual Materials and
Supplies Utilities Capital Outlay & Improvements Grand Total % of Total City Manager's Office $ 3,193,311 $ 3,448,997 $ 498,556 $ 13,820 $ - $ 7,154,684 Economic Development 886,171 264,400 191,100 3,900 - 1,345,571 Elected Officials 101,782 - 36,351 3,600 - 141,733
Finance 3,793,087 604,860 43,115 - - 4,441,062
Human Resources 1,813,921 396,094 466,390 1,320 - 2,677,725 Information Technology 122,517 520,475 300 - 100,000 743,292 Legal & Risk Management 1,745,206 127,395 22,655 2,220 - 1,897,476 Subtotal Administrative Depts. 11,655,995 5,362,221 1,258,467 24,860 100,000 18,401,543 10.1% Fire 28,896,510 387,000 3,464,278 60,500 - 32,808,288
Police 44,330,757 1,274,544 3,418,254 210,765 152,000 49,386,320 Subtotal Public Safety Depts. 73,227,267 1,661,544 6,882,532 271,265 152,000 82,194,608 45.1% Community Services 8,227,148 3,622,665 4,986,442 135,864 25,775 16,997,894 Planning & Development 6,440,824 1,434,630 356,489 23,716 - 8,255,659 Public Works 2,738,028 1,030,000 818,397 15,020 335,006 4,936,451 Subtotal Community Service Depts. 17,406,000 6,087,295 6,161,328 174,600 360,781 30,190,004 16.5% Capital Improvement Projects - - - - 4,913,858 4,913,858 Debt Service - 3,000 21,366,124 - - 21,369,124
General Government 8,771,375 1,441,300 11,573,818 3,570,460 - 25,356,953 Subtotal Other 8,771,375 1,444,300 32,939,942 3,570,460 4,913,858 51,639,935 28.3% Grand Total $ 111,060,637 $ 14,555,360 $ 47,242,269 $ 4,041,185 $ 5,526,639 $ 182,426,090 % of Total 60.9% 8.0% 25.9% 2.2% 3.0%
Economic
Development
3.3%
Public Safety
25.1% Service
Improvements
18.2%
Proactive Debt
Retirement
9.0%
Homelessness
7.3%
Infrastructure
Investments
13.9%
Parks &
Recreation
19.6%
Community
Building/Engagement
3.6%
Category
Prev.
Approved
Recurring
FY 2023
New
Recurring
FY 2023
New One
Time
Total
FY 2023
Funding
FY 2023
Reserves
Economic Development $ 334,644 $ 20,450 $ - $ 355,094 $ 1,000,000 Public Safety 5,048,598 1,071,860 2,026,265 8,146,723 2,000,000 Service Improvements 5,665,360 1,570,374 145,970 7,381,704 - Proactive Debt Retirement 1,662,992 - - 1,662,992 2,000,000 Homelessness 1,887,179 1,047,518 - 2,934,697 -
Infrastructure Investments 145,238 279,217 1,659,249 2,083,704 3,550,000 Parks & Recreation 1,588,331 819,130 981,167 3,388,628 4,534,567 Community Building/Engagement 254,657 384,944 810,265 1,449,866 - Totals $ 16,586,999 $ 5,193,493 $ 5,622,916 $ 27,403,408 $ 13,084,567 FY 2023 Grand Total: Total FY 2023 Funding + FY 2023 Reserves $ 40,487,975 20 Proposed Measure X Allocations – FY 2023 Only
Note: Net of Allowance for Sales Tax Agreements
Economic
Development
3.6%
Public Safety
23.9%
Service
Improvements
16.5%
Proactive Debt
Retirement
7.5%
Homelessness
6.0%
Infrastructure
Investments
18.5%
Parks &
Recreation
21.7%
Community
Building/Engagement
2.3%
21 Proposed Measure X Allocations
Cumulative (FY 2022 + FY 2023)
Category
Cumulative
Recurring
Cumulative
One Time
Cumulative
Funding
Cumulative
Reserves
% of
Total
Economic Development $ 661,242 $ 110,000 $ 771,242 $ 2,000,000 3.4% Public Safety 9,099,654 6,490,305 15,589,959 3,037,531 23.1% Service Improvements 9,805,927 183,240 9,989,167 2,883,056 15.9% Proactive Debt Retirement 1,789,529 - 1,789,529 4,000,000 7.2% Homelessness 4,696,005 - 4,696,005 - 5.8%
Infrastructure Investments 547,504 4,013,201 4,560,705 9,804,372 19.8% Parks & Recreation 3,815,837 4,197,556 8,013,393 8,856,622 22.3% Community Building/Engagement 863,941 960,265 1,824,206 - 2.5% Totals $ 31,279,639 $ 15,954,567 $ 47,234,206 $ 30,581,581 100.0% Grand Total: Cumulative Funding + Cumulative Reserves $ 77,815,787 FY 2022 Estimate 37,327,812
FY 2023 Estimate 40,487,975
Cumulative Total $ 77,815,787
Note: Net of Allowance for Sales Tax Agreements
22 Measure X Investments
Cumulative (FY 2022 + FY 2023)
One Time
21%
Recurring
40%
Reserves
39%
One Time
Recurring
Reserves
Actuals Adopted Projected Proposed Forecast Forecast Forecast FY 2021 FY 2022 FY 2022 * FY 2023 * FY 2024 FY 2025 FY 2026 Revenues $148,705,450 $175,465,864 $411,672,038 $194,749,508 $197,513,394 $202,108,424 $206,707,352 Transfers In 1,159,890 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Inflows 149,865,341 176,665,864 412,872,038 195,949,508 198,713,394 203,308,424 207,907,352 Salaries and Benefits (63,128,730) (69,891,013) (74,499,633) (81,561,945) (83,431,953) (87,195,047) (87,679,098) Excluding Pension and Medical Costs -
Medical Costs (5,894,211) (7,937,179) (7,945,810) (11,574,409) (11,687,168) (11,687,168) (11,687,168) Pension Contributions (23,462,077) (24,621,243) (24,629,020) (10,778,254) (10,760,621) (14,103,440) (15,190,943) Additional Pension Liability Contributions (4,000,000) - - - - - - Retiree Costs / Other Post Employment Benefits (8,809,841) (7,935,340) (7,935,340) (7,146,031) (7,738,952) (7,884,731) (8,033,425) Operating Expenditures (37,810,668) (37,739,700) (39,467,630) (45,082,469) (44,998,977) (45,800,225) (46,042,000) Debt Service / Principal Payments (4,243,041) (4,244,773) (8,833,450) (21,369,124) (22,437,397) (23,186,602) (23,910,057) Capital Improvement Projects (6,775,736) (5,111,052) (17,126,322) (4,913,858) (5,000,000) (5,000,000) (5,000,000) Transfers Out (167,318) (301,409) - - - - -
Service Changes - - - -
POB - Cost of Issuance (One Time) (221,989,149) -
Estimated Savings at Fiscal Year End - 7,400,000
Outflows (154,291,623) (157,781,710) (395,026,353) (182,426,090) (186,055,067) (194,857,213) (197,542,691) Inflows Over Outflows $ (4,426,282) $ 18,884,154 $ 17,845,685 $ 13,523,418 $ 12,658,327 $ 8,451,212 $ 10,364,661 Pension Obligation Reserve 2,530,492
Budget Balancing Measures Reserve 1,895,790
$ 0
23 General Fund Financial Forecast
* To Measure X Reserves:
FY 2022 $17.5 Million
FY 2023 $13.1 Million
24 General Fund 10-Year History & Forecast
From March 2021 Presentation (Without Measure X)
25 General Fund 10-Year History & Forecast
Current
Operating
Surplus/Reserves
End of Last
Recession
Covid-19
Pandemic
Baseline Expenses
Aligned with Revenues
Budget FullyLoaded with
Carryovers
(funds are in
fund balance)
Q
Questions and
Discussion on FY 2023
Proposed Budget –
General Fund and
Measure X
26 FY 2023 Budget Overview
Summary
27 28
Estimated FY 2023 Revenue Estimates $473.9 Million – All Funds Governmental Funds
General Fund $ 194,749,508
Special Revenue 56,157,430
Capital Projects 53,031,148
Subtotal 303,938,086
Proprietary or Business Type
Enterprise 129,387,193
Internal Service 24,187,003
Subtotal 153,574,196
Fiduciary Funds
Agency Funds 7,160,891
Private Purpose Trust 9,189,289
Subtotal 16,350,180
Total $ 473,862,462
Governmental
Funds
$303.9 M
64.1%
Proprietary
or Business
Type
$153.6 M
32.4%
Fiduciary
$16.4 M
3.5%
29 Proposed FY 2023
$400.8 Million
Expenditure Budget – All Funds
Governmental Funds
$226.1 M
Proprietary or 56.4%
Business Type
$164.9 M
41.1%
Fiduciary Funds
$9.8 M
2.5%
Governmental Funds
General Fund $ 182,426,090
Special Revenue 39,645,443
Capital Projects 4,002,508
Subtotal 226,074,041
Proprietary or Business Type
Enterprise 140,527,622
Internal Service 24,380,110
Subtotal 164,907,732
Fiduciary Funds
Agency Funds 6,619,446
Private Purpose Trust 3,179,391
Subtotal 9,798,837
Total $ 400,780,610
What’s Next?
30 ✓ City Council adoption of budget
✓ July 1, 2022 – FY 2023 begins
Questions?
(951) 279-3500
[email protected]
www.CoronaCA.gov