City Council Study Session
March 12, 2024
FY 2023-2024
MID-YEAR PRESENTATION
2 OVERVIEW
• FY 2023-24 General Fund Adopted Budget
• FY 2023-24 Proposed Mid-Year Adjustments
• Capital Improvement Program (CIP) Update
• Status of General Fund Reserves
• FY 2024-25 Budget Calendar
FISCAL YEAR 2023-24
GENERAL FUND
BUDGET OVERVIEW
4 CURRENT YEAR FY 2023-24 HIGHLIGHTS
• City Council approved the All Funds FY 2023-24 budget of $234.0 million on June 2023, with a General Fund Budget of $180.3 million; • Structurally balanced budget with no use of General Fund Reserves or ARPA Funds;
• Dedicated 52% of the General Fund to public safety;
• Fully funded year 4 of the Information Technology Strategic Plan (ITSP); • Continue to maintain a strong credit rating; and
• Prefunded CalPERS Unfunded Accrued Liability (UAL), saving the General Fund approximately $900,000
5 FY 2023-2024
GENERAL FUND EXPENDITURES
(IN MILLIONS)
Category
Adopted
FY 23/24
Projected
FY 23/24
Over /
(Under)
Salaries & Benefits 123.9 121.2 (2.7)
Operating 46.5 50.7 4.2
Subtotal 170.4 171.9 1.5
Transfers Out:
Capital Improvement 6.8 6.8 -
IT Replacement 3.1 3.1 -
Total Expenditures 180.3 181.8 1.5
Total Revenues 180.3 181.9 1.6
6 FY 2023-24
GENERAL FUND REVENUES
(IN MILLIONS)
Category Adopted
FY 23/24
Projected
FY 23/24
Difference
Property Taxes 54.5 55.3 0.8
Sales Tax 82.5 81.9 (0.6)
TOT (hotel tax) 9.5 9.9 0.4
Cannabis Tax 3.0 2.6 (0.4)
Other Revenues 30.8 32.2 1.4
Subtotal 180.3 181.9 1.6
Use of Reserves/ARPA - - -
Total Funding Sources 180.3 181.9 1.6
CITY COUNCIL
GOALS AND PRIORITIES
8 THREE YEAR STRATEGIC PLAN GOALS
• Strengthen Public Safety and Improve Quality of Life
• Achieve Long-Term Fiscal Sustainability
• Diversify, Stabilize and Increase Housing to Reflect Community Needs • Advance Environmental Sustainability and Climate Resiliency • Recruit and Retain High Quality Staff
Strengthen Public Safety
10 • Convert 0.75 part-time to 1.00 full-time Property & Evidence Specialist will assist the Bureau in meeting the increased demands and workload including maintaining the property warehouse, booking and purging property and evidence.
• Convert two part-time positions comprised of 0.48 Sr. Community Services Leader and 0.25 Office Specialist II to 1.00 full-time Permit Processing Specialist to assist in processing animal licensing and provide administrative support to the Animal Services Bureau. • Conduct an organizational assessment of staffing and reporting structure for Public Safety Dispatch Center (9-1-1).
• Consider evaluating a hiring incentive for public safety dispatch and lateral Police Officer transfers.
PUBLIC SAFETY
-
-
Description
Net
FTE
Current Year
Prorated Impact
Annual
Impact
Convert 0.75 part- time to 1.0 full-time Property & Evidence Specialist 0.25 7,224 28,897 Convert 0.48 part-time Sr. Community Services Leader and 0.25 part- time Office Specialist II to 1.0 full-time Premit Processing Specialist 0.27 5,963 28,850 TOTAL 0.52 13,187 57,747
Achieve Long-Term
Fiscal Sustainability
12 • Realign the Finance Department Supervisors to Finance Officers to implement succession planning, address compaction issues and internal alignment.
• The officer classification is a more aligned with other full-service cities.
ACHIEVE LONG-TERM FISCAL
SUSTAINABILITY
13 • Ended last fiscal year with a $6 million surplus and $4 million surplus the year prior; • Strategically utilized ARPA to offset the fiscal impact of the pandemic, including small business grants, rental assistance, project Room Key;
• Provided an ongoing revenue stream for the Equipment Replacement Fund; • Dedicated 1.5 percent to the I.T. Replacement Fund to address replacement of aging technological software and equipment;
• Exceeded the City Council Reserve Fund Balance Policy of $55 million; • Utilized the low interest rate environment to secure a master lease agreement for the purchase of four ambulances, two fire apparatuses, police mobile command unit, and police armored vehicle for an average rate of 2.2 percent; and, • Secured $14.5 million in multiple grant funds (State Senator Dave Min, Assemblywoman Cottie Petrie-Norris, and County Supervisor Katrina Foley).
ACHIEVEMENTS
Diversify, Stabilize and Increase
Housing to Reflect Community
Needs
15 • Request 1.0 Planning and Sustainable Development Manager to lead and administer the numerous long range planning programs including implementation of Measure K and the Housing Element in order to achieve State Housing Element certification. • Request 1.0 full-time Building Technician: The additional staff will assist in providing and processing information through new automated permit system (TESSA) for property owners, developers, contractors, architects, and others.
DEVELOPMENT SERVICES
Description
Net
FTE
Current Year
Prorated
Impact
Annual
Impact
Request 1.0 full time Planning & Sustainable Development Manager 1.00 42,817 171,267 Request 1.0 full time Building Technician 1.00 26,739 106,956 TOTAL 2.00 69,556 278,223
Recruit and Retain
High Quality Staff
17 • Potential implementation of a college/graduate internship program to create a pipeline for future government employees (net neutral). • Negotiations in process for CMFMA to be followed by CMDMA, Confidential Management Unit, Executive Team and the City Council.
RECRUIT AND RETAIN
HIGH QUALITY STAFF
Improve Quality of Life
Parks and Community Services
Department and CIP Update
19 • Convert 0.25 part-time Community Services Leader to 1.0 full-time Recreation Specialist
• Recreation Specialist Position will assist with support in park restoration projects and public education programs. The large amount of grant funded projects for Fairview Park will require additional assistance to complete while continuing to provide regular park programming.
PARKS AND COMMUNITY SERVICES
Description
Net
FTE
Current Year
Prorated Impact
Annual
Impact
Convert 0.25 part-time Community Services
Leader to 1.00 full time Recreation Specialist 0.75 20,152 80,606 -
CIP PROJECTS OVERVIEW
• Project identification/ idea is developed
• Design phase
• Bidding phase
• Contract selection and award
• Construction phase
• Project completion
By definition a
multi-year program
Projects typically not
completed in one year
Projects undergo several distinct
phases over multiple years:
21 • The number of active CIP projects vary
throughout the year
• At the start of FY 2022-23 Fiscal Year, there
were 102 active projects
• At the end of FY 2022-23 Fiscal Year, the
total number of CIP projects were 91
• Total value of 91 projects for carryover -
$53.8 million
FY 2022-23 Rollovers
23 MAJOR PROJECTS UNDERWAY/SCHEDULED
• Fire Station No. 2 Reconstruction
• Fire Station 4 Training Tower
• Adams Avenue Rehabilitation
• Newport Boulevard Rehabilitation
(Bristol Street to 19th Street)
• Westside Restoration Project
• Mesa Del Mar Circulation
Improvements
• Fairview Road (Newport to Fair)
Active Transportation Improvements
• TeWinkle Skate Park Expansion
Major projects underway include:
• Police Department Range Remodel
• Adams Avenue at Pinecreek Drive
Intersection Improvements
• TeWinkle Lakes Improvements
• City Hall Training Room
• Shalimar Park Improvements
• Ketchum-Libolt Park Expansion
• Brentwood Park Improvements
• Costa Mesa Country Club
• Costa Mesa Tennis Center
24 FY 2022-23 Highlights of CIP
Rollovers
In millions
Project Amount
Lions Park Café $1.1
Fire Station #4 Training Tower 5.0
Ketchum-Libolt Park Expansion 1.3
Bus Shelters 0.3
Housing Element and Visioning Plan 2.4
Police Range 1.1
Fire Station #2 Reconstruction 2.1
Golf Course and Tennis Center 1.2
Adams Ave Improvement & Active Transportation 3.5
Sunflower Avenue Rehabilitation 2.6
Shalimar Park Expansion 1.0
Total $21.6
General Fund
Balances
26 FUND BALANCE IN GENERAL FUND
(IN THOUSANDS)
Fund Balance Category FY 20/21
Audited
FY 21/22
Audited
FY 22/23
Audited
FY 23/24
Projected
Committed
Declared Disaster $14,125 $14,125 $14,125 $14,125
Self Insurance 2,000 2,000 2,000 2,000
Economic Reserves 9,000 9,000 9,000 9,000
Assigned
Compensated Absences 5,920 5,584 6,209 6,209
Police Retirement 1% Supplemental Plan 2,275 1,885 1,737 1,737 Workers’ Compensation - 1,000 2,000 2,000
Facilities Reserve - 2,000 2,000 2,000
Strategic Plan Projects - 2,000 2,000 2,000
Restricted
Pension and OPEB 1,778 3,061 3,178 3,178
Non-Spendable 965 604 460 460
Unassigned 17,429 16,517 16,328 16,328
TOTAL $53,492 $57,776 $59,037 $59,037
27 FY 2024-25 Budget Calendar
FY 2024-25 Proposed CIP Budget Study Session City Council April 2024 FY 2024-25 Proposed CIP Budget Review
Finance and Pension Advisory
Committee April/May, 2024
FY 2024-25 Proposed Operating Budget
Finance and Pension Advisory
Committee
May 8, 2024
FY 2024-25 Proposed CIP Budget Review
Parks, Arts and Community
Services Commission
May 9, 2024
FY 2024-25 Proposed CIP Budget Review Planning Commission May 13, 2024 FY 2024-25 Proposed Budget Study Session City Council May 14, 2024 FY 2024-25 Proposed Operating and CIP
Budget Public Hearing City Council June 04, 2024
FY 2024-25 Proposed Operating & CIP Budget
Special Meeting/ Study Session #2 (if necessary) City Council June 11, 2024 FY 2024-25 Proposed Budget Adoption (if necessary) City Council June 18, 2024