April 18, 2023
City of Fullerton, CA
FY 2023-24 Budget Study Session
Budget Study Session Agenda
Budget Highlights
FY 2022-23 Citywide Accomplishments
FY 2023-24 Proposed General Fund Budget
5-Year Financial Forecast
Capital Improvement Plan (CIP) / Infrastructure
2 Budget Highlights
City’s fiscal condition has improved and is stable.
City’s credit rating of AA affirmed in 2021 during Covid 17% Contingency Reserve levels reached in FY 2021-22 and projected to be maintained through FY 2024-25 $14.3 million for Streets in FY 2023-24; up from $11.8 million in FY 2022-23 Additional $250,000 of Infrastructure funds available to be programed in either FY 2023-24 or FY 2024-25 Proposed Budget includes set aside for Measure M2 Maintenance of Effort to ensure the City continues to receive M2 funding.
Proposed Budget does not fully reflect 2-year Hunt Library implementation plan costs. 3 FY2022-23 Accomplishments
4 FY2022-23 Accomplishments
5 FY 2023-24 Proposed General Fund Budget
6 FY 2023-24 General Fund Revenues
7 FY 2023-24 General Fund Revenues
Total General Fund Revenues $119.7 Million – Increase of $6.1 million (or 5.4%) from FY 2022-23 Adopted levels.
Property Tax – $54.6 million
$2.5 million increase from FY 2022-23 budgeted levels
Consistent, stable year-to-year growth
Sales Tax – $30.2 million
$0.8 million increase from FY 2022-23 budgeted levels
Diverse economic sales tax base & Continued strong economic recovery Transient Occupancy Tax (TOT) – $3.5 million
Rebound to pre-pandemic TOT levels
Aided by Short-Term Rental (STR) TOT revenue
8 FY 2023-24 General Fund Revenues
Planning & Development-Related Fees
Development activity anticipated to increase by 54% in FY 2023-24 Increased activity projected to add additional $1.6 million of cost recovery revenue Continued Use of ARPA Funds (Transfers In)
Initial $2.65 million of ARPA Revenue Replacement to stabilize government finances transfer in FY 2022-23 Remaining $6.95 million of ARPA Revenue Replacement to stabilize government finances transfer in FY 2023-24 9 FY 2023-24 General Fund Expenditures
Total General Fund Operating Expenditures $119.7 Million – Increase of $5.4 million (or 4.7%) from FY 2022-23 Adopted levels.
Salaries & Benefits – $1.5 million increase from FY 2022-23 Approved MOA Increases ~ Police Safety and Fire Safety approved in FY 2022-23 Salary step increases and PERS pension-related adjustments Maintenance & Operations – $2.5 million increase in FY 2023-24 MOE related increases capped at 4.5% and contractual agreements Utilities (gas, electricity and water) projected to increase by $0.9 million CM Proposed Budget Enhancements - $1.4 million in FY 2023-24 Transfers Out (Non-Operating) – $2.7 million increase in FY 2023-24 Infrastructure Fund ~ $1.2 million increase
Projected Property and Sales Tax revenue increases diverted to the Infrastructure Fund Streets Infrastructure ~ $1.5 million to Residential Streets in FY 2023-24 10 FY 2023-24 CM Proposed Budget Adjustments(General Fund Impacts) 11 FY 2023-24 CM Proposed Budget Adjustments Continued(General Fund Impacts) 12 5-Year General Fund Financial Forecast
13 Recommendation
Provide direction on the FY 2023-24 Proposed General Fund Budget and Capital Improvements Projects Plan. 14 CIP / Infrastructure Projects
15 CIP Budget
The following departments have submitted projects for FY 2023-24:
16 Public Works
Engineering
Streets
Sewer
Storm Drain
Water
Traffic
Airport
Public Works
Maintenance
Public Facilities
Library
Parks & Recreation
Note:
PD and Fire have submitted project requests that fall under Public Facilities
CIP / Infrastructure Projects
Street Rehabilitation: Arterial & Local – $14.3 million $5.5 million approved ARPA funding
$3.5 million SB1/RMRA
$2.5 million Measure M2
$1.0 million Infrastructure Fund
$0.3 million CDBG Grant
$1.5 million General Fund (recommended enhancement by City Manager) Miscellaneous Street Projects
$50,000 Measure M2 – Pavement Management Plan
17 FY 2023-24Street Projects
18 FY 2023-24Enhanced Funding Streets
19 Street ProjectHistory2018 - present
20 CIP / Infrastructure Projects
Water Infrastructure – $17.0 million
Water Fund
Sewer Infrastructure – $1.5 million
Sewer Enterprise Fund
Storm Drain Infrastructure – $2.0 million
Drainage Capital Outlay Fund
Storm Drain Repair and Rehabilitation
Curb, Gutter and Sidewalk Reconstruction
Significant projects include:
Water Main Replacement – Multiple Residential Areas
Sewer Main Improvements – Euclid St at UP Railroad
21 Water Main Projects
22 CIP / Infrastructure Projects
Traffic Systems Infrastructure - $1.2 million
$222,000 Measure M2 Regional & Federal Grants
$535,000 Measure M2
$320,000 Gas Tax
$100,000 Traffic Mitigation Fees
Significant projects include:
New traffic signals, equipment replacement and upgrades Euclid Street and Rosecrans Avenue Traffic Signal
State College Blvd and Kimberly Avenue Traffic Signal
23 CIP / Infrastructure Projects
Airport - $822,000
$33,000 Airport Enterprise
$740,00 Federal FAA Grants
$49,000 State Aviation Grants
Significant projects include:
Runway Precision Approach Path Indicator
Perimeter Fencing Enhancement
24 CIP / Infrastructure Projects
Facility & Library Infrastructure - $2.4 million
$0.6 million Facility Capital
$0.1 million General Fund
$1.4 million Infrastructure Fund
$0.3 million Library Foundation
Significant projects include:
Fullerton Transportation Center Accessibility Improvements Library Conference Center Technology Upgrade
Library Elevator Replacement
Fire Station 1 Kitchen
25 CIP / Infrastructure Projects
Parks and Recreation - $1.2 million
$350,000 CDBG Grant
$835,000 Park Dwelling Fund
Significant projects include:
Hillcrest Park Exercise Equipment
Valencia Park Repairs and Accessibility Improvements
Park Playground Equipment Replacement
26 Infrastructure Fund Allocations
Available Revenue for FY 2023-24 is approximately $2.7 million.
Summary of proposed fund allocations:
Project Type
Amount
Comments
Streets
$1,000,000
Citywide ADA Improvements
$150,000
City is required to update access to public facilities
Transportation Center ADA Improvements
$385,000
City is under agreement to update site conditions
Citywide Facility Improvements
$650,000
Multiple facilities have delayed renovation/improvements needs Library Elevator Refurbishment
$100,000
Aged equipment that is difficult to maintain and keep operational Library Material Sorter Replacement
$140,000
Aged equipment that is difficult to maintain and keep operational TOTAL
$2,425,000
Remaining balance will be available for future projects 27 CIP FY 2023-24 Funding
All CIP projects and funding are investment into the community for various infrastructure upgrades 28 Recommendation
Provide direction on the FY 2023-24 Proposed General Fund Budget and Capital Improvements Projects Plan. 29