Farmersville City Council
Resolution 2022-005
General Plan Amendment 2021-01 (Lakhani)
2. The City has determined the project will not have a significant impact on the environment and is exempt from review, consistent with Section 15061 (b) (3) of the Guidelines of the California Environmental Quality Act (CEQA). A Notice of Exemption is hereby adopted and will be filed.
The proposed action will not have an adverse impact on the health, safety and welfare of residents in the neighborhood or community.
NOW, THEREFORE BE IT RESOLVED THAT General Plan Amendment 2021- 01 as shown on Maps 1 (attached), is hereby approved by the City Council of the City of Farmersville.
The foregoing resolution was adopted upon a motion of Council member ., second by Council member _, at a regular meeting
of the Farmersville City Council on the 28th of February, 2022, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Boyer, Mayor
City of Farmersville
Rochelle Giovani, City Clerk
City of Farmersville
Farmersville City Council
Resolution 2022-005
General Plan Amendment 2021-01 (Lakhani)
Map 1: Proposed General Plan Land Use Designation
VE
COSTNER ST. Y
COSTNER ST.
FARMERSVILLE BLVD
Proposed General Plan
designation:
"General Commercial"
BIRCH ST.
MAGNOLIA AVE.
PECO ST.
1st.
VISALIA ROAD
DODE AVE
north
ORDINANCE NO. 514
AN ORDINANCE OF THE CITY OF FARMERSVILLE, COUNTY OF TULARE, STATE OF CALIFORNIA, AMENDING ORDINANCE NO. 319 (AS AMENDED) OF THE CITY
OF FARMERSVILLE, RELATING TO THE CLASSIFICATION OF THE ZONE OF A PARTICULAR PARCEL OF REAL PROPERTY.
The City Council of the City of Farmersville does ordain as follows:
SECTION 1. Sections 17.12.020 and 17.12.030 of the Municipal Code of the City of SECTION 2. Severability. If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portions of this Ordinance, and the City Council hereby declares that it would have passed the remainder of this Ordinance, as if such invalid portion thereof had been deleted.
SECTION 3. This ordinance shall take effect thirty (30) days after its passage. this Ordinance and to cause the same to be published once in a newspaper of general circulation, published in the County of Tulare.
I hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Farmersville held on the 28th day of February, 2022 passed and adopted at a Regular meeting of the City Council held on the _ _day of March, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Boyer, Mayor
City of Farmersville
Rochelle Giovani, City Clerk
City of Farmersville
Farmersville City Council
Ordinance 514
Map 1: Proposed Zoning
LINNELL AVE
COSTNER ST.
COSTNER ST.
FARMERSVILLE BLVD
Proposed Zoning
"CG" (General Commercial)
MAGNOLIA AVE. BIRCH ST.
PECO ST.
VISALIA ROAD
DODE AVE
north
CITY OF
FRMEESVILLE
City Council
Staff Report 8C
TO: Honorable Mayor and City Council
FROM: Steve Huntley, CPFO, IPMA-SCP
Director of Finance and Administration
DATE: February 28, 2022
SUBJECT: Consider Approving Resolution 2022-004 adopting Mid-Year Budget Amendment for Fiscal Year 2021-22
RECOMMENDED ACTION
Approve Resolution 2022-004 adopting the Mid-Year Budget Amendment for Fiscal Year 2021-22.
INTRODUCTION & PURPOSE
The intent of this document is to give the City Council and the public a brief synopsis of progress made thus far through the budget year. All figures are represented exactly fifty percent (50%) of the way through the Fiscal Year 2021-2022 (FY 2022) which occurred on December 31, 2021.
The Mid-Year Review, while almost always accompanied by a budget amendment, does not necessarily have to include an amendment to the budget. The mid-year point is just a logical milestone by which to measure progress made and make the necessary adjustments needed given the changing variables halfway through a year.
This mid-year report is accompanied by an amendment, and in fact, is the third amendment this year.
The impacts of the pandemic, staffing changes and turnover, and a long list of grant-funded projects are primarily responsible for so many amendments. To help facilitate what has already happened, here is a summary of the budget amendments so far:
1 Amendment Date Resolution Actions)
Modify FRE 2021-02, Fire Engine Purchase to
1 9/27/2021 be made in the current year as a lump sum
2021-022
purchase, off-set by $750,000 in State
Budgeted Funds.
Apply General Fund (01) carryover from FY
2021 to the Budgetary Uncertainty Fund
($250,000), Pre-pay CaPERS UAL costs
2 10/11/2021 ($300,000), Allocate funds to Park
2021-048
Improvements ($400,000), Set aside fund for
Senior Services with CSET ($60,000), and the
remainder to go toward General Fund
balance for projects.
As a result, the discussion about the existing budget will include these two amendments as "original budget" in this report, since they have already been approved and applied to the budget unless otherwise noted.
ORGANIZATION OF DOCUMENTS
This staff report is accompanied by several documents and organized in a certain way to transparently display the changes proposed to the FY 2022 budget. This staff report contains several different portions with the intent of answering the questions "What happened so far?" and "Why?" to each of the proposed changes. Here is a description of the documents and how they are laid out:
1. The Staff report gives a snapshot as of 12/31/2021 and then details the changes needed to the capital budget, the operational budget, and then dives down further specifically on grants and projects. Overall, the staff report has three parts, and two sections in each part:
a. Part One is the update on the progress through the budget for FY 2022 as of 12/31/2021 (50%). The two sections within the first part cover 1) the capital budget and 2) the operations budget.
b. Part Two discusses the proposed amendments to the budget which is discussed in two sections: 1) the capital budget and 2) the operations budget. c. Part Three discusses the financial health as context to this budget amendment by 1) discussing the risk factors and ranking of the City by the State Auditor and 2) discussing current fund balances and how they relate to the health of the City.
2. The budget journal is a simplified accounting document created to show the actual changes to the budget by each accounting line that will take place in the budgeting system for the City.
3. The resolution is the official document the City Council uses to adopt the adjustments to the FY 2022 budget.
4. The Operation and Capital Budget documents are spreadsheets used internally to display the budget in accounting terms, by fund for tracking and entering data into the system. This compares the proposed budget to actual, the original budget, and to prior year budget. 2 5. Capital Budget worksheets detail out each Capital Budget item included in the Five-Year Capital Improvement Plan, as needed.
PART ONE: CURRENT YEAR PROGRESS
The City of Farmersville has officially reached the 50% mark of the year and this report will now breakout any statistically significant variations or other financially significant events impacting the City through the Capital or Operation Budgets for FY 2022. The goal of this part of the report is to answer the question of "What has happened in the first half of the year?" Here are the high-level statistics relevant to the budget progress made so far through the year, first examining the Capital Budget and then the Operations Budget.
CAPITAL BUDGET AS OF 12/31/2021
The City of Farmersville started the year with an audacious Capital Budget of $15,741,876 spread across many City funds for FY 2022.
YEAR L YEAR 2 YEAR 3 YEAR A YEARS
CAPITAL PROJECTS BY FUND 91094692 2022-23 2023-24 2024-25 2025-26 TOTAL 02 WATER UTILITY 183,460 1,136,000 71,000 344,000 1,240,000 2,974,460 03 WATER DEVELOPMENT 366,500 14,400 193,700 574,600
04 SEWER UTILITY 278,460 2,361,450 36,000 2,675,910
05 SEWER DEVELOPMENT 166,500 166,500
12 FEDERAL AND STATE GRANTS 793,000 150,000 875,000 1,342,500 3,160,500 20 STP 640,000 640,000
22 TDA 2,040, 188 645,000 2,685,188
26 MEASURE R FUND 10,300,000 2,000,000 12,300,000
27 RMRA (SB1) FUND 715,000 715,000
31 PARK IMPROVEMENTS 1,385,234 2,721,006 4,106,240
40 CDBG PROGRAM INCOME 333,000 333,000 334,000 1,000,000 71 FIRE DEVELOPER FEES 18,350 60,000 2,500,000 2,578,350 103 GENERAL FUND CAPITAL 743-183 1,379,311 587,967 326,467 466,067 3,502,995 TOTAL 15,741,876 10,673,768 6,417,367 1,198,167 3,048,567 37,079,744, A few of these projects listed above are recommended to be modified in some way or another, which will be covered in the second half of this report in the proposed changes section.
For now, to further breakdown the progress made in the Capital Budget, the following table compares the Capital Budget for FY 2022 to what has been spent on those items as of 12/31/2021. It also reflects that dollar amount as a percent of budget and displays a current status if it is in process, expected to be complete by 6/30, or completed. Most projects that are in process are expected to be completed by 6/30/2022 but may be carried over into FY 2023 if not completed on time (or if they are a larger multi- year project).
The table on the following page reveals that the Capital Budget was about 16% spent as of 12/31/2021.
While this is not close to matching the 50% mark throughout the year, staff anticipates that the spending will begin to catch up near the end of the year with the release of all capital spending by the City Manager.
As of December 31, 2021, there were 36 Capital items budgeted for the FY 2022, of which, 2 are 3 complete, another 15 are anticipated to be complete by the end of the fiscal year, and the rest are either ongoing muter projects or will need to be modified to adjust the scope/timeline. So, at this point, staff is expecting that 17 of the 36 (47%) of projects will be completed or substantially begun with an estimated value of about $2 million by the end of the year with a very small portion of projects delayed or removed. Those specific projects will be covered more in Part 2 of this report It is worth mentioning that there are several purchases (mainly vehicles) that were originally budgeted for the prior year but have not been delivered at the writing of this report due to supply chain disruptions.
These items have been added back into the budget since they did not arrive and were not paid for yet as expected and approved in Fiscal Year 2021. Work is underway on the most extensive road project undertaken by the City at the same time that major park improvements are ramping up. Several projects are related to important planning and forecasting future strategy of the City to do with streetlights, roads, ADA improvements, solar power, downtown, and zoning updates. There are several deferred maintenance projects also underway and ongoing equipment replacement that fills out a very full schedule.
YEAR 1 YTD SPENT PERCENT OF
CAPITAL BUDGET FOR FISCAL YEAR 2021-2022 2021-22 2021-22 BUDGET CURRENT STATUS MUNIS System Upgrades (shared with enterprise) 44,380 11,646 26% COMPLETE BY 6/30 North Farmersville Blvd Widening 10,300,000 2,407,514 23% IN PROGRESS Alley Improvement Design (CDBG PTEC Grant) 250,000 1,760 1% COMPLETE BY 6/30 Update City Standards (LEAP Grant) 39,500 0% IN PROGRESS New Water Well (ARP allocation) 61,250 0% IN PROGRESS
City Hall Parking Lot (Phase 1) 22,000 0% IN PROGRESS
Residential Streetlight Study 50,000 0% IN PROGRESS
Pavement Management Program: Street Repairs Year 1 2,000,000 0% DELAY TO FY 2023 Solar Plant located at new WWTP 66,250 0% REVISED
ADA Sidewalk Improvements 25,000 0% DELAY TO FY 2023
Fire Engine (Budget Amend #1 & #2 2022) 800,000 0% COMPLETE BY 6/30 ADD: Fire Command Vehicle 82,000 0% COMPLETE BY 6/30
Hand Held Radios (3) 32,000 31,835 99% COMPLETED
Radios for Command Vehicle 18,350 16,674 91% COMPLETED
Downtown Specific Plan 125,000 24,263 19% IN PROGRESS
Zoning Ordinance Update 70,000 0% IN PROGRESS
General Plan Update 63,000 0% DELAY TO FY 2023
Patrol Vehicle Replacement (FY20) 51,126 38,345 75% COMPLETE BY 6/30 Patrol Vehicle Replacement (FY22) 56,900 0% COMPLETE BY 6/30 Tablet and Modem Update (Dispatch Hardware) 60,000 0% COMPLETE BY 6/30 Police Office Remodel (Phase 3) 75,000 0% IN PROGRESS
Skate Park 7,500 0% DELAY TO FY 2024
Park Irrigation Upgrade 10,000 0% IN PROGRESS
Sports Park Phase III - CNRA Prop 68 1,082,734 31,277 3% • IN PROGRESS Well 7 Generator (CalOES GRANT) 128,000 0% • COMPLETE BY 6/30 Sports Park Rehabilitation Project 17,000 0% DELAY TO FY 2024 Liberty Park Trail Lighting 114,000 0% IN PROGRESS
ADD: PW Pickup Truck x2 53,398 53,398 100% COMPLETE BY 6/30 ADD: Crew Cab truck 30,132 0% COMPLETE BY 6/30
Bobcat & Trailer 113,411 0% COMPLETE BY 6/30
Civic Center HVAC System 85,220 0% COMPLETE BY 6/30
Well 6 Upgrade and Generator 200,000 0% COMPLETE BY 6/30 WWTP Loader 90,000 0% COMPLETE BY 6/30
Downtown Streetlight Upgrade 40,188 0% IN PROGRESS
Museum & Event Center Exterior Painting 25,000 0% COMPLETE BY 6/30 Freedom Field 295,000 107,484 36% IN PROGRESS
TOTAL 16,583,339 2,724,196
OPERATION BUDGET AS OF 12/31/2021
In addition to the Capital Budget which encompasses many large purchases and projects, the City also employs over 36 employees in multiple departments to meet the required services and other essential needs of the City of Farmersville. Most of the budget relative to the ongoing operations of the City are housed within the General Fund and the Enterprise Funds: Water Utility, Sewer Utility, and the Refuse Utility funds. Therefore, most of the discussion about progress through the year will deal with these four 5 Overall, the budgets for the four main funds listed above are performing as expected half-way through the fiscal year:
GENERAL FUND BUDGET ACTUAL AS OF 12/31/2021 PERCENT DIFFERENCE REVENUES $5,667,850 $2,564,484 45.2%
EXPENSES $5,564,356 $3,052,624 54.9%
SURPLUS/DEFICIT $103,494 ($488,140)
The table above displays a comparison between the budget and actual figures as of 12/31/2021 for the General Fund as well as a percentage difference between budget and actual by account type. At the bottom the anticipated Surplus or Deficit figure is displayed with deficits in red and indicated negative with parenthetical marks. Please note that General Fund Capital costs are excluded from these figures because they are housed in the Capital Fund (103).
Expenses are at 54.9% of budget (2020: 50.2%, 2021: 49%) thus far through the year which is about where staff anticipates this should be. There are no outstanding or surprising trends to report that the City Council has not already been made aware of by staff previously in the year. However, there were some expenses that need to be adjusted associated with staffing and certain one-time purchases necessary for the operation of the City and meeting strategic goals. Those changes will be covered thoroughly in Part 2 of this report.
Revenues are nearly 45.2% (2020: 40.3%, 2021: 46%) which is slightly ahead of where the General Fund normally is at this time of year. However, because the audit was delayed certain revenues have not been moved to the proper fiscal year, which will lower this figure to the trend. Please recall that the City is completely dependent upon revenues from State-wide and local taxation with a smaller portion paid for by cost recovery efforts and fees. Sales Tax revenues are a huge portion of those revenues and lag by two months (about 17%) and other major revenue sources are not paid equally throughout the year.
A few adjustments will be needed in this category to transition from the conservative approach the City took in the early part of the pandemic to align closer with revenue forecasts anticipating more revenue growth along this trend of growth from last year.
WATER UTILITY BUDGET ACTUAL AS OF 12/31/2021 PERCENT DIFFERENCE REVENUES $1,125,568 $580,813 51.6%
EXPENSES $1,208,193 $546,198 45.2%
SURPLUS/DEFICIT ($82,625) $34,615
The table above displays a comparison between the budget and actual figures as of 12/31/2021 for the Water Utility Fund as well as a percentage difference between budget and actual by account type. A he bottom the anticipated Surplus or Deficit figure is displayed with deficits in red and indicatec negative with parenthetical marks. Please note that Water Utility Fund Capital costs are included in these figures.
6 Expenses are tracking at 45.2% (2020: 36%, 2021: 30.6%) thus far through the year which is about where staff anticipates this should be. One of the largest expenses of the year for the fund is the allocation of the overhead expense from the General Fund (about 17% of budget). However, this does not occur until the end of the year. Otherwise, there are no outstanding or surprising trends to report - COVID pandemic impacts are still affecting this fund.
Revenues are at just about 51.6% (2020: 49%, 2021: 52.7%) which is slightly ahead of where the Water Utility Fund normally is at this time of year. This is most likely due to the increased rate charged for the service offsetting delinquent accounts that the City is not allowed to collect upon currently.
This fund is, however, anticipated to still be in an operational deficit (spending more than it earns) at the end of the year. The Water Utility fund is in the fourth year of five years of rate increases that should normalize this negative trend in time. However, until then, the fund spends its precious cash needed for capital, emergency operations, and any other unexpected expenses to keep day to day operations afloat. This is an unhealthy practice which has been slightly aggravated by the pandemic's economic impacts.
SEWER UTILITY BUDGET ACTUAL AS OF 12/31/2021 PERCENT DIFFERENCE REVENUES $2,005,186 $1,723,147 85.9%
EXPENSES $1,814,998 $1,302,627 71.8%
SURPLUS/DEFICIT $190,188 $420,520
The table above displays a comparison between the budget and actual figures as of 12/31/2021 for the Sewer Utility Fund as well as a percentage difference between budget and actual by account type. At the bottom the anticipated Surplus or Deficit figure is displayed with deficits in red and indicated negative with parenthetical marks. Please note that Sewer Utility Fund Capital costs are included in these figures.
Expenses are tracking at 71.8% (2020: 24%, 2021: 33.2%) thus far through the year which is about where staff anticipates this should be given the large budget allocation for the Wastewater Treatment Plant project (and its associated delays). Otherwise, there are no outstanding or surprising trends to report that the City Council has not already been made aware of by staff previously in the year.
However, there were some expenses that need to be adjusted for the operation of the City which will be covered in Part 2 of this report
Revenues are at just about 85.9% (2020: 12%, 2021: 109%). The Sewer Utility Fund has not operated normally for years now because of the new treatment plant construction project associated with it. The fund is beginning to behave more normally (now that grant and loan activity is subsiding) and the primary expenses are only operational and debt service. This revenue figure is extremely high because over $500,000 of delayed reimbursement on the project was paid to the City in this year.
As in previous updates, there is ongoing concern about the operational expenses of this fund in the future, but these true costs aren't yet known until the project is complete and normal operations commence. Therefore, the future of this fund, while stable in the short run, will need to be carefully monitored in order to make sure it can honor its obligations for the long-term and stay solvent.
REFUSE UTILITY BUDGET ACTUAL AS OF 12/31/2021 PERCENT DIFFERENCE REVENUES $890,269 $444,208 49.9%
EXPENSES $885,924 $449,092 50.7%
SURPLUS/DEFICIT $4,345 ($4,884)
The table above displays a comparison between the budget and actual figures as of 12/31/2020 for the Refuse Utility Fund as well as a percentage difference between budget and actual by account type. At the bottom the anticipated Surplus or Deficit figure is displayed with deficits in red and indicated negative with parenthetical marks. Please note that Refuse Utility Fund currently does not have any Capital costs to either include or exclude in these figures. The fund mostly operates as a pass-thru for the outsourced contracted waste-hauler.
Expenses are tracking nearly 50.7% (2020: 43%, 2021: 36%) thus far through the year which is about where staff anticipates this should be given that billing is temporarily behind two months. Staff anticipates normal increases in this category related to the contract with the waste-hauler and other incremental increases normally associated with this type of service as discussed in previous Council meetings. Work is underway to prepare the Proposition 218 hearing and notices to increase the commercial rates and keep this fund operating correctly and in compliance with SB 1383 changes.
Revenues are at just about 49.9% (2020: 50%, 2021: 47%) which is where the Refuse Utility Fund revenue is normally this time of year. The future of this fund, while getting by now, will start sacrificing the cash it has on hand for both street sweeper operations and alley reconstruction work just to meet daily operations. Without the passage of the proposed new rates last year, the cash needed for these programs would have been depleted quickly. The City is in year one of five rate increases now.
PART TWO: DESCRIPTION OF PROPOSED CHANGES
CAPITAL BUDGET - PROPOSED REVISION
So far this year, limited progress has been made with the Capital Budget as there are still impacts of the COVID pandemic being felt. Additionally, many projects are in the starting phases where spending is lower compared to construction phases. Staff and contract staff capacity is also impacting the implementation of projects. There is simply not enough staff to do all these projects listed at one time.
Therefore, what dominates this year's updates to the budget at mid-year is changes needed due to capacity to deliver projects. The City has more staff, has hired more grant managers, has more 8 engineering staff, and yet projects are still being delayed. There are simply too many projects and so those of less priority must be delayed to deliver others on time (many times with hard deadlines associated with grant funding).
There are numerous changes but at a high level, here is a summary of what is proposed in the amendment for capital budgeted items and the Capital Improvement plan:
• 2019-PBW-02: Skate Park Preliminary Design - updating the budget to move this capital cost to Fiscal Year 2023-2024 to align with updated expectations for when granted funded work on this portion of the Sports Park is more likely to occur. • ENG2022-06: City Hall Parking Lot (Phase 1) - design is scheduled to be completed in Fiscal Year 2021-2022 but due to capacity and funding concerns the construction of this project will be delayed to Fiscal Year 2023-2024.
• ENG2022-07: City Hall Parking Lot (Phase 2) - updating the timeline for this capital cost to follow the completion of Phase 1. This aligns with better expectations with other project workloads slated for Fiscal Year 2022-2023 and will now start in Fiscal Year 2023-2024 and complete in 2024-2025.
• ENG2022-09: Pavement Management Program, Year 1 Repairs - this capital cost is being moved to have design work scheduled for Fiscal Year 2022-2023 and construction in FY 2023- 2024. This is a more accurate estimated timeline based upon the current workload and staff capacity.
ENG2022-10: Pavement Management Program, Year 2 Repairs - this capital cost is being moved to have design work scheduled for Fiscal Year 2023-2024 and construction in FY 2024- 2025. This is a more accurate estimated timeline based upon the current workload and staff capacity.
• ENG2022-11: Pavement Management Program, Year 3 Repairs - this capital cost is being moved to have design work scheduled for Fiscal Year 2024-2025 and construction in FY 2025- 2026. This is a more accurate estimated timeline based upon the current workload and staff capacity.
ENG2022-13: Solar Plant at WWTP - this capital project is underway but needs revision to more accurately depict the reality of the timeline involved. Initial scope work will be budgeted for the balance of Fiscal Year 2021-2022, with design work in Fiscal Year 2022-2023, and construction in Fiscal Year 2023-2024.
• ENG2022-16: ADA Sidewalk Improvements - this capital project is now more specific in that it will handle improvements in Sector F (as identified in the ADA study). This update needs to allow for capacity of City staff to work on, and therefore design work is budgeted for Fiscal Year 2022-2023 and construction in Fiscal Year 2023-2024.
• ADD FRE2021-01: Fire Command Vehicle (previous project that was not completed in 2021) was delayed due to supply chain issues during the COVID pandemic. This vehicle will be delivered this year and completed.
• FRE2021-03: SCBA Bottle Filling Station - this capital project was originally budgeted for Fiscal Year 2022-2023 but is being removed completely at the direction of the City Manager.
Existing bottle services are available to the City and project is no longer needed. • FRE2022-01: Handheld Radios (3) - this project is complete, but will also be revised to reflect the purchase of additional radios originally scheduled for Fiscal Year 2022-2023 (listed as FRE2022-04 on the CIP scheduled
9 • FRE2022-04: Handheld Radios (2) - this project was originally scheduled for Fiscal Year 2022- 2023 but since the purchase was already completed, this CIP item will be removed and combined with FRE2022-01.
• PBW2020-04: Jennings Park Remodel - This project will need to be delayed to begin work in Fiscal Year 2023-2024 for several reasons. Although the City has received more program income recently to be able to afford some improvements, there is still a capacity issue of competing tasks with other priorities and grant-funded projects with hard deadlines taking priority.
• PBW2020-16: Back-up Generator for Well 7 - this capital purchase will need to be revised and expanded to cover back up generators for wells 5, 6, and 7. These are all anticipated to be funded with CalOES grant funds that have been advanced to the City. • PBW2020-21: New Corporation Yard for Public Works - This project is now tied to allocation of land from the developer of Eagle Meadows subdivision and is partly dependent upon the timing of that work. This is likely to be a few years out before development and so this project should be adjusted to match.
• PBW2020-23: Sports Park Rehabilitation Project - this was originally budgeted as a progression of work over three fiscal years beginning in Fiscal Year 2021-2022. However, due to existing workloads, priorities, and capacity to complete projects currently, this project is being budgeted for the three fiscal years starting with Fiscal Year 2022-2023. • PBW2020-25: Liberty Park Trail Lighting - this project is in progress but will need to be changed to allow for additional funding to support the cost related to footings (estimated at another $66,000) which will bring the total funding need to $180,000. Improvements to the actual trail in the park will be addressed as a separate project in future years depending upon funding.
• ADD PBW2021-04: Public Works Crewcab Pickup (previous project that was not completed in 2021) was delayed due to supply chain issues during the COVID pandemic. This vehicle will be delivered this year and completed.
• ADD PBW2021-05: Public Works Pickup, 2 units (previous project that was not completed in 2021) was delayed due to supply chain issues during the COVID pandemic. This vehicle will be delivered this year and completed.
• PBW2021-08: Well 5 upgrade and generator - this capital project will need to be revised since the back-up generator will now be handled in PBW2020-16. This project will be only for the upgrades needed to the well itself. The updated quotes allowed for a change in the total cost and will be funded through ARPA.
• PBW2021-09: Well 6 upgrade and generator - this capital project will need to be revised since the back-up generator will now be handled in PBW2020-16. This project will be only for the upgrades needed to the well itself. The updated quotes allowed for a change in the total cost and will be funded through ARPA
• PLN2020-01: Downtown Specific Plan - this project needs to be revised to accommodate an extended period needed to complete the plan and document. The project is underway and has an extended period of performance with the SB2 grant to 9/30/2023. • PLN2020-02: Zoning Ordinance Update - this project needs to be revised to accommodate an extended period needed to complete the plan and document. The project is underway and has an extended period of performance with the SB2 grant to 9/30/2023. • PLN2020-03: General Plan Update - this project also needs to be delayed to start in Fiscal Year 2022-2023. Planning staff has not been able to begin work on this project yet as they are 10 working on the priority of the grant-funded projects of the downtown specific plan and the zoning ordinance update.
Other changes to the Capital Budget are mostly timing related, not financial. Grant funding delays, changes in funding, project timing, and staff capacity issues are primary in the need to not eliminate, but delay some of the scheduled projects.
YEAR 1
CAPITAL BUDGET FOR FISCAL YEAR 2021-2022 2021-22 CHANGE / UPDATE FOR MIDYEAR MUNIS System Upgrades (shared with enterprise) 44,380 NO CHANGE North Farmersville Blvd Widening 10,300,000 NO CHANGE
Alley Improvement Design (CDBG PTEC Grant) 250,000 NO CHANGE Update City Standards (LEAP Grant) 39,500 NO CHANGE
New Water Well (ARP allocation) 61,250 NO CHANGE, GRANT APPLICATION IN PROCESS City Hall Parking Lot (Phase 1) 22,000 CONSTRUCTION DELAYED TO FY 2024 Residential Streetlight Study 50,000 NO CHANGE
Pavement Management Program: Street Repairs Year 1 2,000,000 MOVE TO FY 2023, CONSTRUCTION IN FY 2024 Solar Plant located at new WWTP 66,250 ADD SCOPE, MOVE CONSTRUCTION TO FY 2024 ADA Sidewalk Improvements 25,000 MOVE TO FY 2023
Fire Engine (Budget Amend #1 & #2 2022) 800,000 BUDGET AMENDED BEFORE, NO FURTHER CHANGE ADD: Fire Command Vehicle 82,000 ADD BACK EXISTING PROJECT DELAYED BY COVID Hand Held Radios (3) 32,000 REVISE BUDGET, INCLUDED RADIOS IN FY 2023 CIP Radios for Command Vehicle 18,350 COMPLETED
Downtown Specific Plan 125,000 EXTEND TO FY 2023 TO COMPLETE Zoning Ordinance Update 70,000 EXTEND TO FY 2023 TO COMPLETE General Plan Update 63,000 DELAY TO START IN FY 2023
Patrol Vehicle Replacement (FY20) 51,126 NO CHANGE
Patrol Vehicle Replacement (FY22) 56,900 NO CHANGE
Tablet and Modem Update (Dispatch Hardware) 60,000 NO CHANGE Police Office Remodel (Phase 3) 75,000 NO CHANGE
Skate Park 7,500 MOVE TO FY 2024, ALIGN WITH FUTURE GRANTS Park Irrigation Upgrade 10,000 NO CHANGE
Sports Park Phase III - CNRA Prop 68 1,082,734 NO CHANGE Well 7 Generator (CalOES GRANT) 128,000 NO CHANGE
Sports Park Rehabilitation Project 17,000 MOVE TO FY 2024 Liberty Park Trail Lighting 114,000 REVISED SCOPE & BUDGET, MOVE TO FY 2023 ADD: PW Pickup Truck x2 53,398 ADD BACK EXISTING PROJECT DELAYED BY COVID ADD: Crew Cab truck 30,132 ADD BACK EXISTING PROJECT DELAYED BY COVID Bobcat & Trailer 113,411 NO CHANGE
Civic Center HVAC System 85,220 NO CHANGE
Well 6 Upgrade and Generator 200,000 NOW COVERED BY CALOES GRANT WWTP Loader 90,000 NO CHANGE
Downtown Streetlight Upgrade 40,188 NO CHANGE
Museum & Event Center Exterior Painting 25,000 NO CHANGE Freedom Field 295,000 NO CHANGE
TOTAL 16,583,339
Although there were a few changes to the projects for the year, many are minor and most changes are merely an adjustment of when, not what, will be done. Ultimately, the changes increase the Capital Budget by only 5.3% from $15,741,876 in FY 2021 to $16,583,339. 11 OPERATION BUDGET - PROPOSED REVISION
While capital purchases were delayed, nearly all operational budget lines are on track with where they should be at this time of year. However, not all budgets are used up in a linear fashion, and therefore not all budget lines are 50% spent halfway through the year. That said, there are several known adjustments that can be made to this budget with the understanding that this fiscal year was started with uncertainty as the base assumption.
Now that the City has weathered the first six months of the year, the fiscal outlook is more solid, and there is more information available. The revenue situation has changed slightly, but this does not mean that there is no uncertainty left in the future. So, while there are slight changes, any significant operational changes should be evaluated for the new fiscal year ahead (Fiscal Year 2022-2023). This process is already underway.
A full listing of the detail of the proposed changes can be found in the attached schedule, City of Farmersville Operational Budget for the Year Ending June 30, 2022. In order to streamline the process to tinding all the adjustments to the budget, the following is a summary of the proposed changes for the Operation Budget:
Operation Budget Revision Summary:
• Revised Salary and Benefit Expense to actuals throughout main funds (various changes) • Revised Sales Tax income from 1,100,000 to 1,170,000
• Revised VLF income from 1,100,000 to 1,115,000
• Revised various Property Tax amounts 10,000 to 15,000 • Revised Measure M income from 700,000 to 725,000
• Revised Measure P income from 700,000 to 725,000
• Revised Transfer Out by $1,400,000 to cover Budget Amendment 1 and 2 • Add Expense and Revenue lines of $30,375 for new SHSGAP 2020 Grant • Revised fuel expenses to actuals throughout main funds (various charges) • Revise PW expense for one time cost (Mac Engineering) $30,000 • Revise PW expense for temp workers to assist with projects $20,000 • Revised Gas Tax Revenue from 87,841 to 96,054
• Revised Gas Tax Revenue from 64,529 to 66,995
• Revised Gas Tax Revenue from 39,083 to 40,245
• Revised Gas Tax Revenue from 82,068 to 91,300
• Revise RMRA income from 218,978 to 234,610
Some of the most important changes listed above include an adjustment to the revenue projections of main tax sources up to match trends of growth - a stark difference from the economic uncertainty of 2020. Additionally, an adjustment to the revenue projections for Gas Tax, RMRA (SB1), and TDA/LTF taxes to fund the City's street repairs and improvements. Finally, some operational expenses changed based upon awards of new grants and staffing changes.
The table below tracks the changes to the budget for the General Fund from the original budget in June 2021, the application of the first two budget amendments of July though December of 2021, and finally to the proposed third budget amendment at mid-year (this report).
It is important to note that budget amendment #2, allocated spending from the fund balance of the 12 general fund (carryover from Fiscal Year 2020-2021) of approximately $950,000. If this is removed from the net difference between revenues and expenses to reveal the true expense and revenue for the current year a different story is told. The City should expect a total of $7,238,207 in revenue and $7,009,015 in expense for the period of Fiscal Year 2021-2022 without budget amendment 2 applied This means, despite the spending from fund balance, the City in reality will experience $229,192 in revenues exceeding expense for the period. This is a healthy position to be in but difficult to see given the extra spending allocation in budget amendment #2
General Fund Department Original Budget Revised Budget Proposed Budeet Amount Percen 400: Revenues (4,679,513) (3,279,513) (4,169,513)" (890,000.00) 19% 401: City Council 41,000 41,000 42,102 1,102.00 3%
404: Administration 328,763 628,763 619,090 (9,673.00) -3% 405: Membership Legislation 20,500 20,500 20,500 0%
406: Administrative Overhead 261,917 261,917 262,367 450.00 0% 407: City Sponsorships 6,000 6,000 6,000 0%
411: Police 2,390,376 2,390,376 2,340,314 (50,062.00) -2% 414: Community Development 392,342 452,314 452,314 0%
415: Code Enforcement 110,420 (6,399.00) -6%
117,319 117,319
420: Fire 535,713 535,713 535,068 (645.00) 0%
425: Public Works 408,724 408,724 429,883" 21,159.00 5% 426: Animal Control 73,365 73,365 73,365 0%
Total Revenues (5,667,860) (5,667,850) (6,588,207) (920,357) 16.2% Total Expenses 5,564,356 7,446,795 7,309,015 (137,780) -2.5% Net (103,504) 1,778,945 720,808
Proposed Approved
Revision to FY Budget Actual Cashflow
2022 Budget Amendment 2 for FY 2022
Total Revenues 6,588,207 6,588,207
Total Expenses 7,309,015 950,000 6,359,015
Net 720,808 950,000 (229,192)
(loss) (gain)
*Budget Amendment #2 allocated carryover cash from the prior year to be spent in FY 2022. In order to see the true activity for the period the amendment has been temporarily removed to illustrate the actual cashflow for the period. This reveals that the net result is that the City will spend less than the revenue brought in during FY 2022.
The total change for combined budgets by fund is listed in the following tables. The first table is original budget from June 2021 by fund and type and the second table is the update with all three budget amendments applied and displayed in the identical method for comparison purposes. 13 Fiscal Year 2021-22 Budget by Fund
Maintenance Capital Outlay Total
Fund Personnel Total Revenue
& Operation Expenditure
01 GENERAL FUND 3,143,124 2,425,421 5,568,545 (5,668,264) 102 GENERAL FUND RESERVE
103 GENERAL FUND CAPITAL 743,183 743,183 (743,183)
104 CANNABIS CAPITAL FUND 470.000 743,183 1,213,183 (1,453,673) 02 WATER UTILITY 489,283 415,450 303,460 1,208,193 (1,125,813) 03 WATER DEVELOPMENT (17,960)
04 SEWER UTILITY 465,378 702,160 647,460 1,814,998 (2,006,100) 05 SEWER DEVELOPMENT 243.000 243.000 (28,879)
06 REFUSE 165,954 719,970 885,924 (890,361)
08 SELF INSURED RESERVE
09 CUSTOMER DEPOSITS
11 DRUG ENFORCEMENT (97)
12 FEDERAL AND STATE GRANTS 793,703 793,000 1,586,703 (1,586,703) 14 POLICE DEPT SLESF 194,838 194,838 (151,328)
15 POLICE DEPT AB109
20 STP (755,831)
21 GAS TAX 150,875 160,500 311,375 (278,688)
22 TDA 75,000 2,040,188 2,115,188 (656,292)
23 STORM DRAIN 154,000 154,000 (3,581)
25 STREET MITIGATION FUND
26 MEASURE R FUND 30,000 10,300,000 10,330,000 (10,109,771) 27 RMRA (SB1) FUND (215,775)
30 PARK DEVELOPMENT (1,304)
31 PARK IMPROVEMENTS 1,385,234 1,385,234 (1,377,734)
35 MAINTENANCE DISTRICT 15,995 46,764 62,759 (61,895)
39 CITY PROPERTY FUND 42,700 42,700 (85,826)
40 CDBG PROGRAM INCOME (334,057)
41 HOME PROGRAM INCOME (233)
42 CAL HOME PROGRAM INCOME (1,044)
60 AMERICAN RESCUE PLAN 133,250 133,250 (1,000,000)
71 FIRE DEVELOPER FEES 18,350 18,350 (12,666)
80 EVIDENCE HOLDING (21,271)
81 POLICE DEVELOPER FEES (13)
82 ASSET FORFEITURE
4,625,447 6,035,669 17,350,308 28,011,425 (28,588,343)
14 Proposed Revised Fiscal Year 2021-22 Budget by Fund
Maintenance Total
Fund Personnel Capital Outlay Total Revenue
& Operation Expenditure
01 GENERAL FUND 3,374,226 3,934,789 7,309,015 (6,588,207) 102 GENERAL FUND RESERVE
103 GENERAL FUND CAPITAL 1,525,323 1,525.323 (1,525,323) 104 CANNABIS CAPITAL FUND 470,000 842,323 1,312,323 (1,453,518) 02 WATER UTILITY 482,790 415,450 292.166 1,190,406 (1,125,568) 03 WATER DEVELOPMENT (17,871)
04 SEWER UTILITY 460,442 702,160 619,916 1,782,518 (2,005,186) 05 SEWER DEVELOPMENT 243,000 243,000
(28,642)
06 REFUSE 163,789 719,970 883,759 (890,269)
08 SELF INSURED RESERVE
09 CUSTOMER DEPOSITS
11 DRUG ENFORCEMENT
(93)
12 FEDERAL AND STATE GRANTS 793,703 646,000 1,439,703 (1,586,703) 14 POLICE DEPT SLESF 196,337 196,337 (151,272)
15 POLICE DEPT AB109
20 STP (755,585)
21 GAS TAX 150,012 190,500 16,706 357,218 (299,670)
22 TDA 75,000 40,188 115,188 (656,026)
23 STORM DRAIN 154,000 154,000 (3,545)
25 STREET MITIGATION FUND
26 MEASURE R FUND 30,000 10,300,000 10,330,000 (10,505,485) 27 RMRA (SB1) FUND (234,610)
30 PARK DEVELOPMENT (1,300)
31 PARK IMPROVEMENTS 1,377,734 1,377,734 (1,844,734)
35 MAINTENANCE DISTRICT 15,926 46,764 16,706 79,396 (61,955) 39 CITY PROPERTY FUND 42,700 42,700 (85,816)
40 CDBG PROGRAM INCOME (334,055)
41 HOME PROGRAM INCOME (223)
42 CAL HOME PROGRAM INCOME (1,000)
60 AMERICAN RESCUE PLAN 333,250 333,250 (1,280,193)
71 FIRE DEVELOPER FEES 18,350 18,350 (12,629)
81 POLICE DEVELOPER FEES (21,248)
82 ASSET FORFEITURE (13)
83 LIVE SCAN
4,843,522 7,575,036 16,271,662 28,690,220 (31,470,739)
CONCLUSION AND RECOMMENDATION
After careful consideration of many variables that have impacted the budget this far through the transitional year, and anticipating changes in the next six months, staff recommends that the changes, described in this report, and laid out in the attached journal document, be adopted to amend the FY 2022 budget by Resolution 2022-004. This resolution adoption will enact both the Capital Budget changes and the Operation Budget changes.
15 PART THREE: FINANCIAL HEALTH CONTEXT FOR THE BUDGET
As context to the budget and its amendments for this year, are certain factors directly related to the current Strategic Goal of Financial Sustainability. Budgeting appropriately and accounting for our transactions transparently are essential to good financial health. Essentially, good budgets beget good audits, and good audits beget good budgets.
First, the City is financially healthy, and is considered low risk by the State Auditor, although improvements could always be made.
The California State Auditor analyzed financial information for all 471 California cities with compatible financial information to identify cities that may be at risk for fiscal distress. They were assessed through financial comparisons and calculations known as financial indicators. The State Auditor analyzed the finances related to each city's governmental and business-type activities, including the general fund.
Ten financial indicators were selected, and all the California Cities were scored and then ranked, if applicable.
The Local Government High-Risk Dashboard on the Auditor's website ranks cities from highest to lowest risk for fiscal distress based on the financial indicators (using Fiscal Year 2020 data currently). While these rankings do not reflect all the relevant factors impacting a City, it is a good starting place for most evaluations.
The City of Farmersville was ranked 316 out of 471(2018: 388, 2019: 370) for risk (the higher number, the lower the risk) and is still considered the lowest risk City in all of Tulare County.
Fi ont Farmersville
Turiock
it too
_ Clara
Aturate
a san Jose Merced LOW
Caliform.:
Statewide Rank: 316
Chovichilla
LosBanos General Fund Reserves
ita Cruz Debt Burden
Liquidity
• Hollister
Revenue Trends
Fresno
Pension Obligations
5s Salines
Pension Funding
Pension Costs -
Future Pension Costs
OPEB Obligations
OPEB Funding
Lemoore
King City L....,
Cordoran
Porterville
As indicated in the table below, the State Auditor values General Fund Reserves (30%), Debt Burden (15%), Liquidity (10%), Pension Obligations (10%), and OPEB Obligations (10%) with the greatest impact on risk for a City.
While the City did well overall (top 1/3 of all cities), it scored in only the 20f position for Debt Burden getting a score of only 1.83 out of 15 points. However, all other scores are not only very high comparatively but have consistently improved over the years. 16 California State Auditor's Local Government High-Risk Rating Financial Indicators (2020) Points Possible: Farmersville Score Farmersville Rank Liquidity 10 10 58
Debt Burden 15 1.83 20
General Fund Reserves 30 30 309
Revenue Trends 5 4.75 406
Pension Obligations 10 10 337
Pension Funding 4.1 352
Pension Costs 5 4.17 316
Future Pension Costs 3.89 327
OPE Obligations 10 10 n/a
OPE Funding 5 5 n/a
Total 100 83.74 316
This is why the enactment of the minimum fund balance and budgetary uncertainty fund policy and the establishment of a larger reserve in general in 2019 was so important. While the City has incurred much more debt since 2018, it has also professionalized its reserve practices and policy and eliminated other obligations when possible (specifically pension debt).
Clearly, based upon this evaluation criteria, the priorities that the State thinks should be applied to our budget are:
1. To fully fund and expand the General Fund and Enterprise reserves
2. To pre-pay debt in all funds, if possible
3. To reduce pension obligations
4. To ensure that the City does not incur OPEB obligations These scores point to Farmersville's strengths of good budgeting, avoiding and/or eliminating debt, maintaining reserves, and living within its means by not over-extending departments or programs or incurring excessive debt.
Historically, Farmersville has done well to adhere to the spending allowed in its budgets as indicated in the following chart showing spending consistently within budget each year:
17 General Fund Expense - Budget vs. Actual
4.904.262
4,311,946
3.263.982 3.634,112
2015 2016 2017 2018 2019 2020 2021
*Budget " Actual
The City has also done well projecting revenue conservatively to not overextend and deplete reserves or incur debt unnecessarily:
General Fund Revenue - Budget vs. Actual
655654415
2015 2016 2017 2018 2019 2020 2021
a Budget a Actual
As a whole, this improves the financial health of the City and puts the City Council and Management in a good position to not have to make budget cuts for lack of cash but rather to make decisions on how to allocate additions cash on hand to current priorities.
18 Revenue & Expense Actuals (and FY 2022 Budget)
8,136.
2015 2016 2017 2018 2019 2020 2021 2022
Pises Expense as Revenue - Linear (Expense)
The cash positions of the various funds, while not explicitly relevant because they are not always dollar amounts that are budgeted each year, they are relevant to some degree to show a portion of the financial picture for the City. Cash balances are most relevant to Capital Budgets as ongoing operations and salaries and benefits should not be supported by cash reserves, but only by ongoing cash flows.
General Fund Health and Cash Balances
Cash Positions relative to the General Fund (01), the General Fund Reserve (102), and the General Fund Capital Fund (103) are listed below with a combined total and percent change from year to year.
Positive cash balances in the General Fund (01) are presumed to be spent by year-end or allocated as carryover in the following period and so are generally not available except through the budget. Cash balances are very fluid and fluctuate regularly throughout the fiscal year. Year-end figures and mid-year figures are typically the highest balances throughout the year as they coincide with regular, large revenue receipts.
The City is complying with the Minimum Fund Balance Policy by reserving at least $1,233,624 (25% of average 3 prior year tax revenues) in the General Fund Reserve Fund (102). Funds above the reserve minimum amount are committed for other one-time uses such as funding the Capital Budget or other unexpected expenses or revenue shortfalls.
However, the City, while making progress in the last few years, has still not fully-funded its Budgetary Uncertainty Fund. By policy, this is to be 15% of the average 3 prior year tax revenues. However, this is only 76% at this time with $564,000.
Staff also anticipates the reserve requirement to increase in coming years due to the increases in revenue recently and this cash will be needed to comply with the Minimum Fund Balance Policy.
The cash balance in the Capital Fund (103) are budgeted amounts and only allocated to the fund when budgeted as transfers from other funds.
19 ACCOUNT 6/30/2019 6/30/2020 6/30/2021 12/31/2021
01 GENERAL FUND (2,715.49) 463,212.90 1,347,524.58 (614,049.92) 102 GENERAL FUND RESERVE 1,670,709.50 1,439,868.82 1,439,868.82 1,439,868.82 103 GENERAL FUND CAPITAL 44,081.31 668,054.62
1,667,994.01 1,947,163.03" 2,787,393.40 1,493,873.52
CHANGE
The sharp swing in balances from 6/30/2021 to 12/31/2021 is caused by an unexpectedly good return of revenues (for a variety of reasons) as of 6/30/2021 and then City Council allocating about $1,000,000 of that carryover amount before 12/31/2021. Therefore, this swing is expected and normal. If revenues and expenses stay on budget for the remainder of Fiscal Year 2021-2022 the cash balance will increase As context to this analysis, the entirety of the cash balances of all the relevant funds of the City are listed below. The lines are color-coded to show their affiliation with other funds and/or restrictions on spending: blue for water utility, yellow for sewer utility, green for refuse utility, red for restricted/special revenue funds, and white for unrestricted (General Fund). 20 ENDING CASH POSITIONS OF CITY OF FARMERSVILLE FUNDS FY 2019 TO FY 2021 ACCOUNT 6/30/2019 6/30/2020 6/30/2021 12/31/2021
01 GENERAL FUND (2,715.49) 463,212.90 1,347,524.58 (614,049.92) 02 WATER UTILITY 850,005.45 831,911.33 1,070,986.34 1,146,723.73 03 WATER DEVELOPMENT 562,492.16 380,419.72 387,002.19 297,384.28 04 SEWER UTILITY 5,253,961.63 2,662,446.54 5,568,637.98 5,097,070.10 05 SEWER DEVELOPMENT 980,630.89 1,004,457.45 1,025,088.79 1,030,703.22 06 REFUSE UTILITY 335,393.65 360,391.26 372,826.47 368,732.73 08 RESERVES 401,000.00 401,000.00 551,000.00 801,000.00 09 CUSTOMER DEPOSITS 72,592.06 78,934.66 13,948.70 15,756.03 10 POLICE DEPT SLESF
11 DRUG ENFORCEMENT 19,795.01 16,962.82 17,044.00 17,044.00 12 FEDERAL AND STATE GRANTS (312,256.74) (96,734.92) (426,346.07) (97,519.67) 14 POLICE DEPT SLESF 241,696.58 239,232.43 230,772.30 210,928.86 15 POLICE DEPT AB109
20 STP 1,033,306.84 1,048,578.10 90,021.87 840,021.87
21 GAS TAX 395,613.17 409,523.80 373,625.71 323,172.34
22 TDA / LTF 881,616.01 1,138,543.28 1,612,361.48 1,765,337.85 23 STORM DRAIN DEVELOPMENT 148,616.72 152,931.22 154,642.98 155,552.98 25 STREET MITIGATION 31,631.59 32,090.60
26 MEASURE R 1,565,892.35 1,399,930.99 1,338,077.96 1,336,860.93 27 RMRA (SB1) 125,209.15 256,830.88 115,897.12
30 PARK DEVELOPMENT 17,983.46 18,718.68 18,991.55 19,513.28 31 PARK IMPROVEMENTS (140,334.93) (11,515.72) (100,010.56) 433,151.58 35 MAINTENCE DISTRICTS 80,023.45 (3,602.40) (5,270.14) (10,498.12) 39 CITY PROPERTIES 9,630.73 21,944.80 59,992.15 81,056.06 40 CDBG PROGRAM INCOME 29,772.39 3,527.14 56,606.86 225,596.21 41 HOME PROGRAM INCOME 9,907.21 36,383.73 66,758.58 94,435.58 42 CAL HOME PROGRAM INCOME 69,396.01 123,300.11 259,211.14 264,461.14 50 CHILDCARE FUND
60 AMERICAN RESCUE PLAN (ARPA) 1,280,193.00
71 FIRE DEVELOPMENT 155,850.91 162,774.50 157,505.52 145,960.03 80 EVIDENCE HOLDING 11,202.29 11,364.85 17,779.85 17,779.85 81 POLICE DEVELOPMENT 210,972.36 151,768.42 14,191.96 12,021.09 82 ASSET FORFEITURES 2,727.61 2,767.19 2,297.03 2,297.03 83 LIVE SCAN (3,229.00) (3,765.00) (4,319.00) (5,142.00) 102 GENERAL FUND RESERVE 1,670,709.50 1,439,868.82 1,439,868.82 1,439,868.82 103 GENERAL FUND CAPITAL 44,081.31 668,054.62
104 MEASURE Q (CANNABIS) 383,619.12 1,065,025.91 1,679,992.78 TOTAL "'14,709,093.62" 13,161,898.61'16,775,844.95 ' 19,159,357.40 RESOLUTION 2022-004
A RESOLUTION OF THE COUNCIL OF THE CITY OF FARMERSVILLE
APPROVING AND ADOPTING THE SIXTH BUDGET AMENDMENT
FOR FISCAL YEAR 2021-22
WHEREAS, the adopted budget for Fiscal Year 2021-22 was approved by the City Council on June 14, 2021 by Resolution 2021-021; and
WHEREAS, the City Council has received and reviewed the mid-year review staff report and proposed budgetary amendment on February 28, 2022; and WHEREAS, the City Council has considered the recommended amendment to the budget presented in the attached staff report;
NOW, THEREFORE, BE IT RESOLVED, the Farmersville City Council hereby makes the third budget amendment for Fiscal Year 2021-22, as attached hereto as the supporting staff report, regarding the revenues and expenditures are hereby approved and adopted effective February 28th , 2022.
The foregoing resolution was adopted upon motion of Council Member _ and Council Member seconded the motion at a regular meeting of the City Council held on the 28th day of February, 2022, by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Boyer, Mayor
WITNESS my hand and seal this 28th day of February, 2022.
Rochelle Giovani, City Clerk
50059 9 01
• SE7l Fiscal Year
2021-22
Mid-Year
Budget Update
72 40.
Table of Contents
Introduction & Part One: Current Part Two: Description Part Three: Financial Purpose (p.1) Year Progress (p.2) of Proposed Health Context for • Capital Budget Changes (p.8) the Budget (p.16)
• Operation Budget • Capital Budget • Risk Factors
• Operation Budget • Cash Balances
Amendmeni
Modify FRE 2021-02, Fire Engine Purchase to
Previous 9/27/2021 be made in the current year as a lump sump 2021-022
purchase, off-set by $750,000 in State
Budgeted Funds.
Budget
Apply General Fund (01) carryover from FY
2021 to the Budgetary Uncertainty Fund
Amendments ($250,000), Pre-pay CaPERS UAL costs
($300,000). Allocate fund to Park
10/11/2021 2021-048
Series nice it or rail notor
Already applied to the budget remainder to go toward General Fund and referred to as original budget balance for projects. unless otherwise noted (p.2)
12 Part One: Current Year
Progress
What has happened in the first half of the year?
25 22
26 27 22
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEARS
CAPITAL PROJECTS BY FUND 2021-22 2022-23 2023-24 2024-25 2025-26 TOTAL 183,460 1,136,000 71,000 344,000 1,240,000 2,974,460
03 WATER DEVELOPMENT 366,500 14,400 193,700 574,600
Capital 04 SEWER UTILITY 278,460 2,361,450 36,000 2,675,910 OS SEWER DEVELOPMENT 166,500 166,500
12 FEDERAL AND STATE GRANTS 793,000 150,000 875,000 1,342,500 3,160,500 Budget as of 640,000 640,000
2,040,188 645,000 2,685,188
26 MEASURE R FUND 10,300,000 2,000,000 12,300,000
12/31/2021 27 RMRA (SB1) FUND 715,000 715,000
31 PARK IMPROVEMENTS 1,385,234 2,721,006 4,106,240
40 CDEG PROGRAM INCOME 333,000 333,000 334,000 1,000,000 71 FIRE DEVELOPER FEES 18,350 60,000 2,500,000 2,578,350 Started the year with a Capital: 103 GENERAL FUND CAPITAL 7497183 1.379,311 587,967 326,467 466,067 3,502,995 Budget of over $15,000,000 but TOTAL 15,741,876 10,673,768 6,417,367 1,198,167 3,048,567 37,079,744. also a lot of uncertainty (p.3)
Capital Budget Continued
36 Capital 15 More will be
Budget Items 2 are Complete Complete by
6/30/2022
47% of Budget
Items Anticipated Total Estimated
to be Completed Spending:
This Year $2,000,000
YEAR 10 YTD SPENT PERCENTOF
CAPITAL BUDGET FOR FISCAL YEAR 2021:2022 2021-22 2021-22, BUDGET CURRENT STATUS MUNIS System Upgrades (shared with enterprise) 44,380 11,646 26% COMPLETE BY 6/30 North Farmersville Bivd Widening 10,300,000 2,407,514 23% IN PROGRESS Alley Improvement Design (CD PTEC Grant) 250,000 1,760 COMPLETE BY 6/30 Update City Standards (LEAP Grant) 39,500 IN PROGRESS
New Water Well (ARP allocation) 61,250 0% IN PROGRESS
City Hall Parking Lot (Phase 1) 22,000 0% IN PROGRESS
Residential Streetlight Study 50,000 IN PROGRESS
Pavement Management Program: Street Repairs Year 1 2,000,000 0% DELAY TO FY 2023 Solar Plant located at new WWTP 66,250 REVISED
ADA Sidewalk Improvements 25,000 0% DELAY TO FY 2023
Fire Engine (Budget Amend #1& #2 2022) 800,000 COMPLETE BY 6/30 ADD: Fire Command Vehicle 82,000 0% COMPLETE BY 6/30
Hand Held Radios (3) 15,000 31,835 212% COMPLETED
Radios for Command Vehicle 18,350 16,674 91% COMPLETED
Downtown Specific Plan 125,000 24,263 19% IN PROGRESS
Zoning Ordinance Update 70,000 0% IN PROGRESS
General Plan Update 63,000 DELAY TO FY 2023
Patrol Vehicle Replacement (FY20) 51,126 38,345 COMPLETE BY 6/30 Patrol Vehicle Replacement (FY22) 56,900 COMPLETE BY 6/30 Tablet and Modem Update (Dispatch Hardware) 60,000 0% COMPLETE BY 6/30 Police Office Remodel (Phase 3) 75,000 IN PROGRESS
Skate Park 7,500 DELAY TO FY 2024
Park Irrigation Upgrade 10,000 0% DELAY TO FY 2023
Sports Park Phase III - CNRA Prop 68 1,082,734 31,277 3% IN PROGRESS Well 7 Generator (CalOES GRANT) 128,000 0% COMPLETE BY 6/30 Sports Park Rehabilitation Project 17,000 0% DELAY TO FY 2024 Liberty Park Trail Lighting 114,000 0% IN PROGRESS
ADD: PW Pickup Truck x2 53,398 53,398 100% COMPLETE BY 6/30 ADD: Crew Cab truck 30,132 0% COMPLETE BY 6/30
Bobcat & Trailer 113,411 0% COMPLETE BY 6/30
Civic Center HVAC System 85,220 0% COMPLETE BY 6/30
Well 6 Upgrade and Generator 200,000 COMPLETE BY 6/30
WWTP Loader 90,000 0% COMPLETE BY 6/30
Downtown Streetlight Upgrade 40,188 0% IN PROGRESS
Museum & Event Center Exterior Painting 25,000 0% COMPLETE BY 6/30 Freedom Field 295,000 107,484 36% IN PROGRESS
TOTAL 16,566,339 2,724,196
• Mid-Year Review of Operations Begins on
Operation Page 5:
• General Fund
Budget as of
• Water Utility Fund
12/31/2021
• Sewer Utility Fund
• Refuse Utility Fund
General Fund
Budget to Actual
Capital Costs are Excluded
Revenues are 45% this year
(46% last year) GENERAL FUND BUDGET ACTUAL AS OF 12/31/2021 PERCENT DIFFERENCE REVENUES $5,667,850 $2,564,484 45.2%
Expenses are 55% this year
(49% last year) EXPENSES $5,564,356 $3,052,624 54.9%|
SURPLUS/DEFICIT $103,494 ($488,140)
Located on Page 5
Water Utility Fund
Budget to Actual
Capital Costs are Included
Revenues are 52% this year
(53% last year) WATER UTILITY BUDGET ACTUAL AS OF 12/31/2021 PERCENT DIFFERENCE REVENUES $1,125,568 $580,813 51.6%
Expenses are 45% this year
EXPENSES $1, 208,193 $546,198 45.2%
(31% last year)
SURPLUS/DEFICIT ($82,625) $34,615
Located on Page 6
Sewer Utility Fund
Budget to Actual
Capital Costs are Included
Revenues are 86% this year
(109% last year) SEWER UTILITY BUDGET ACTUALAS OF 12/31/2021 PERCENT DIFFERENCE REVENUES $2,005,186 $1,723,147 85.9%
Expenses are 72% this year
EXPENSES $1,814,998 $1,302,627 71.8%
(33% last year)
SURPLUS/DEFICIT $190,188 $420,520
Located on Page 6
Refuse Utility Fund
Budget to Actual
Capital Costs are not applicable
Revenues are 50% this year
(47% last year) REFUSE UTILITY BUDGET ACTUAL AS OF 12/31/2021 PERCENT DIFFERENCE REVENUES $890,269 $444,208 49.9%
Expenses are 51% this year
(35% last year) EXPENSES $885,924 $449,092 50.7%
SURPLUS/DEFICIT 54,345 ($4,884)
Located on Page 7
Part Two: Description of Proposed
Changes
What meede to bo chanced and wow?
YEAR 1
CAPITAL BUDGET FOR FISCAL YEAR 2021:2022 2021-22 CHANGE / UPDATE FOR MIDYEAR MUNIS System Upgrades (shared with enterprise) 44,380 NO CHANGE North Farmersville Bld Widening 10,300,000 NO CHANGE
Capital Budget Proposed Alley improvement Design (CDBG PTEC Grant) 250,000 NO CHANGE Update City Standards (LEAP Grant) 39,500 NO CHANGE
Revision New Water Well (ARP allocation) 61,250 NO CHANGE, GRANT APPUCATION IN PROCESS City Hall Parking Lot (Phase 1) 22,000 CONSTRUCTION DELAYED TO FY 2024 Residential Streetlight Study 50,000 NO CHANGE
Pavement Management Program: Street Repairs Year 1 2,000,000 MOVE TO FY 2023, CONSTRUCTION IN FY 2024 Solar Plant located at new WWTP 66,250 ADD SCOPE, MOVE CONSTRUCTION TO FY 2024 • Many Changes: ADA Sidewalk Improvements 25,000 MOVE TO FY 2023 Fire Engine (Budget Amend #1 & #2 2022) 800,000 BUDGET AMENDED BEFORE, NO FURTHER CHANGE ADD: Fire Command Vehicle 82,000 ADD BACK EXISTING PROJECT DELAYED BY COVID • Timing Hand Held Radios (3) 32,000 REVISE BUDGET, INCLUDED RADIOS IN FY 2023 CIP Radios for Command Vehicle 18,350 COMPLETED
• Capacity Downtown Specific Plan 125,000 EXTEND TO FY 2023 TO COMPLETE Zoning Ordinance Update 70,000 EXTEND TO FY 2023 TO COMPLETE General Plan Update 63,000 DELAY TO START IN FY 2023
• Scope Patrol Vehicie Replacement (FY20) 51,126 NO CHANGE Patrol Vehicle Replacement (FY22) 56,900 NO CHANGE
Tablet and Modem Update (Dispatch Hardware) 60,000 NO CHANGE • Page 8-10
Police Office Remodel (Phase 3) 75,000 NO CHANGE
Skate Park 7,500 MOVE TO FY 2024, ALIGN WITH FUTURE GRANTS Park Irrigation Upgrade 10,000 DELAY TO START IN FY 2023 Sports Park Phase II! - CNRA Prop 68 1,082,734 NO CHANGE Well 7 Generator (CalOES GRANT) 128,000 NO CHANGE
Sports Park Rehabilitation Project 17,000 MOVE TO FY 2024| Liberty Park Trail Lighting 114,000 REVISED SCOPE & BUDGET, MOVE TO FY 2023 ADD: PW Pickup Truck x2 53,398 ADD BACK EXISTING PROJECT DELAYED BY COVID ADD: Crew Cab truck 30,132 ADD BACK EXISTING PROJECT DELAYED BY COVID Bobcat & Trailer 113,411 NO CHANGE
Civic Center HVAC System 85,220 NO CHANGE
Well 6 Upgrade and Generator 200,000 NOW COVERED BY CALOES GRANT WWTP Loader 90,000 NO CHANGE
Downtown Streetlight Upgrade 40,188 NO CHANGE
Museum & Event Center Exterior Painting 25,000 NO CHANGE Freedom Field 295,000 NO CHANGE
TOTAL 16,583,339
1,000
Operation Budget Proposed
Revision
Q3
Operation Budget Changes
Tax Revenues Street Funding City Staffing
Sales Tax & Adjustments to Turnover,
Other Revenues Revenue Sources Benefit Changes, and
Increasing Increasing Pension Costs Increasing
Summary of
General Fund Department Original Budget
400: Revenues (4,679,513) (3,279,513) (4,169,513) (890,000.00) 19% 401: City Council 41,000 41,000 42,102 1,102.00 3%
Budget
404: Administration 328,763 628,763 619,090 (9,673.00) -3% 405: Membership Legislation 20,500 20,500 20,500 0%
Changes 406: Administrative Overhead 261,917 261,917 262,367" 450.00 0% 407: City Sponsorships 6,000 6,000 6,000 0%
411: Police 2,390,376 2,390,376 2,340,314" (50,062.00) - 2% 414: Community Development 392,342 452,314 452,314
415: Code Enforcement 117,319 117,319 110,420" (6,899.00) -6% 420: Fire 535,713 535,713 535,068 (645.00) 0%
426: Animal Control 73,365 73,365 73,365 0%
Total Revenues (5,667,860) (5,667,850) (6,588,207) (920,357) 16,2% Total Expenses 5,564,356 7,446,795 7,309,015 (137,780) -2.5% Net (103,504) 1,778,945 720,808
Part Three: Financial Health
Context for the Budget
Local Government High-Risk Dashboard
front
Turlock Farmersville
¡lara Atwater
G san Jose Merced Low
Caldera
Statewide Rank: 316
Chestenilje
:: Losearos General Fund Reserves
to Cruz Debt Burden
Liquidity
• Hollister
Revenue Trends
Fresno
Pension Obligations
Ma Salinas
Pensson Funding
Pension Costs
Future Pension Costs
OPE Obligations
OPE Funding
Lemoore
King City
Corepran
Porterville
Farmersville Risk Score
• Farmersville Ranked 316/471 • Risk Assessment Based Upon 10 (Higher Score - Less Risks) Factors
• Highest Rank in Tulare County • Most Significant Factors:
• Not a Raw Score, but a Ranking • General Fund Reserves (30%) • Debt Burden (15%)
• Pension Obligation (10%)
• OPEB Obligation (10%)
Farmersville in Top
1/3 of State
California State Auditor's Local Government High-Risk Rating Financial Indicators (2020) Points Possible Farmersville Rank State's Focus for
Liquidity 10 58
Farmersville: Debt Burden 1.83 20
General Fund Reserves 30 309
1. Fully Fund Reserves Revenue Trends 4.75 406
Pension Obligations 10 337
2. Pre-pay Debt Pension Funding 4.1 352
Pension Costs 4.17 316
Reduce Pension Future Pension Costs 3.89 327
OPEB Obligations 10 10 n/a
Obligations OPEB Funding n/a
Total 100 83.74 316
4. Avoid OPEB
Farmersville
General Fund Expense - Budget vs. Actual
Stays on
Budget
239625 208 100 г
209 190 098'8
2015 2016 2017 2018 2019 2020 2021
* Budget a Actual
Farmersville General Fund Revenue - Budget vs. Actual
Conservatively
Projects
950720911
4003 599
Revenue -62 0262
2015 2016 2017 2018 2019 2021
= Budget # Actual
5,960,252
2021
5.537 461
4423,916
2020
4047.420
4419 315
2019
4.372,231
3,586,436
General Fund Revenue - Budget vs. Actual 2018 • Budget i Actual 3,665,215
3,177,284
2017
3,459,120
2973 232
2016
3,371,470
3,542,904
2015
3,114 957
Cash Position as of
12/31/2021
• Minimum Fund Balance
ACCOUNT 6/30/2019 6/30/2020 6/30/2021 12/31/2021
$1,233,624 01 GENERAL FUND (2,715.49) 463,212.90 1,347,524.58 (614,049.92) 102 GENERAL FUND RESERVE 1,670,709.50 1,439,868.82 1,439,868.82 1,439,868.82 103 GENERAL FUND CAPITAL 44,081.31 668,054.62
• Capital Fund only funded
for budgeted items TOTAL 1,667,994.01" 1,947,163.03 2,787,393.40' 1,493,873.52 CHANGE 17% 43% -46%
• Goal: plan for operations
conservatively and
allocate extra later, not
over-extend and cut later
• Page 20
Approval of
Will Amend Capital and
Resolution Operation Budget for
FY 2021-22
2022-004
Questions?