Business Agenda Item 5c
STAFF REPORT
City Council Business Agenda Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Merritt Perry, City Manager
SUBJECT: Adoption of FY 2022-23 Budget
STAFF RECOMMENDATION:
1. Conduct a Public Hearing to consider the Fiscal Year 2022-23 Proposed Annual Operating Budget.
2. Adopt the City of Fortuna’s Annual Operating Budget for Fiscal Year 2022-23 through the adoption of Resolution 2022-21.
EXECUTIVE SUMMARY:
Staff is pleased to present a balanced budget for Fiscal Year 2022-23. Staff prepared the budget with the intent of providing the maximum amount of services to the community while still presenting a balanced budget. Staff prepared the budget primarily focusing on the following principles:
• Current services will be preserved at existing levels to the highest degree possible. • The budget will comply with State Constitution, City Charter and Municipal Code provisions.
• Working Capital balances will be examined to ensure balances are healthy enough to protect the City from any future uncertainties.
• Staff will strive to balance recurring expenditures with recurring revenues. • Department budgets will be developed to reflect the best estimates possible for the true cost of operations.
The City Council held (2) two public special budget workshops on the proposed fiscal year 2022- 23 Operating Budget. The first workshop was held on May 16 where staff presented the Proposed Budget and reviewed General Fund revenues and expenditures in depth with the City Council. The second workshop, held on May 23, focused on answering outstanding questions from the first workshop as well as reviewing in depth the City’s enterprise funds. An enterprise fund is a selfsupporting governmental fund that sells goods and services to the public for a fee. Monies generated from these funds cannot be used for General Fund purposes. These funds rely more heavily on service charges and less on tax and license revenue resulting in less volatility than the Business Agenda Item 5c
General Fund. The City’s enterprise funds consist of the Water Fund, Wastewater Fund, and Transit Fund.
The changes and adjustments discussed with the City Council at both special budget workshop have been incorporated into the Annual Operating Budget that can be found as attachment ‘B’. All changes made during these workshops are displayed in the below Chart.
In addition to the above line item changes, service alternatives were discussed at the special budget workshops. Staff has incorporated the service alternatives outlined in the below chart into the Annual Operating Budget that can be seen in attachment ‘B’.
Summary of line item Changes from Proposed Budget
Presented to Council 05-16-22 & 05-23-22
Related
Account #
Amount
State AB 109 Realignment Pool Fund (186):
Increased Overtime Expense 186-5170-2000 $ 30,000
Total: $ 30,000
Measure E Fund (101):
Changed Riverwalk Grant Match to General Park Acquisition and Impr. 101-8000-5450 $ (100,000) Changed Riverwalk Grant Match to General Park Acquisition and Impr. 101-6025-9105 100,000 Total: $ -
Citywide Traffic Impact Fund (140):
Increased Engineering Services for CIP Project 9500 (VMT) 140-6005-9500 $ 22,500 Total: $ 22,500
Business Agenda Item 5c
In summary, the General Fund has a net surplus of $24,138. The General Fund and Measure E Fund have combined total operating uses of $9,909,385. $474,300 of those uses are project rollovers, meaning the projects were budgeted in last fiscal year’s budget but have not yet been completed so they have been included in this year’s budget once again. The projects that are being rolled over are for the Storm drain Infrastructure Vulnerability Assessment project, the LID 12th Street project, Storm Drain Maintenance Projects, General Park and Improvement monies, and the Rohner Park Basketball Court Enhancement project.
Measure E, the Cities ¾ cent transaction and use tax, monies will continues to fund 2 Police Officer Detectives, 1 Community Services Officer, 1 Part-time Code Compliance Officer, 1 Recreation Program Supervisor and 1 Parks and Recreation Director. New this year, Measure E will fund a full-time Police Records Clerk. In addition to these positions, Measure E monies will fund the K9 program, abatement program, storm drain maintenance projects, streets maintenance projects, transit assistance for seniors, parkland acquisition/improvements, and support to the Fortuna Senior Center for additional Senior programs.
Staff included in the attached budget the request for additional support from the Chamber of Commerce in the amount of $13,000 as well as an additional $5,000 for in kind support for use of the Riverlodge and Monday Club and $5,000 to support the Retail Strategies program. Council requested additional information from the Chamber prior to committing to including the additional support into the budget. Staff will provide additional detail on this topic at the meeting. The Council has the option to remove the additional support from the budget as part of this item should that be the consensus of the Council.
Summary of Position Changes from Proposed Budget
Presented to Council 05-16-22 & 05-23-22
FTE Change Amount
Public Works Department:
Eliminated 1 Streets Maintenance I Position (0.73) $ (27,617) Eliminated 2 Frozen Streets Maintenance I Positions -
Added 1 Streets Maintenance II Position 1.00 63,577
Total: $ 35,960
Finance Department:
Eliminated 1 Account Clerk III Position (1.00) $ (89,251) Added 1 Accounting Technician Position 1.00 90,151
Eliminated 1 Senior Account Clerk Position (1.00) (121,240) Added 1 Finance Office Supervisor Position 1.00 121,240 Total: $ 900
City Clerk Department:
Reclassified City Clerk / Human Resources Manager Position $ 9,421 Total: $ 9,421
Business Agenda Item 5c
Additional information on the Cities fiscal year 2022-23 budget can be found in the attached budget document.
RECOMMENDED CITY COUNCIL ACTIONS:
1. Receive staff presentation and review Council questions with staff
2. Open the public hearing.
3. Close the public hearing.
4. Motion to adopt Resolution 2022-21; read by title only. Roll call vote.
ATTACHMENTS:
Resolution 2022-21; A Resolution Of The City Council Of The City Of Fortuna Adopting The City of Fortuna’s Annual Operating Budget for Fiscal Year 2022-23 2022-23 Fiscal Year Budget Document