City of Glendale
Financial Update
December 19, 2023
FY 2022-23 Financial Statements
FY 2022-23 General Fund Results
FY 2023-24 General Fund 1st Quarter Results
Compensation Alignment
Potential Budget Balancing Strategies
Agenda
2 § Once again, City received
an Unmodified Opinion
§ No Material Weaknesses
noted
§ Auditors have no
Disagreements w/
Management
3 FY 2022-23 Financial Statements
$In Millions
Government
Activities
Business
Activities
Total
Revenues $ 498 $ 379 $ 877 Expenses 416 401 817
Increase in Net Position 82 (22) 60
Net Position July 1, 2022 1,018 714 1,732
Net Position June 30, 2023 $ 1,100
$ 692 $ 1,792
4 FY 2022-23 Statement of Activities
City of Glendale
FY 2022-23
General Fund Results
5 $In Millions
22-23
Projected
22-23
Actuals
%
Received
Property Taxes $75.5 $77.1 102.1%
Sales Taxes $56.8 $57.6 101.4%
Sales Taxes (Measure S) $21.7 $21.1 97.2%
Utility Users Taxes $27.5 $29.9 108.7%
Occupancy & Other Taxes $18.8 $21.1 112.2%
Licenses & Permits $10.5 $11.5 109.5%
Revenue from Other Agencies $0.2 $0.7 350.0%
Charges for Services $18.5 $19.7 106.5%
Interfund Revenue $18.7 $18.7 100.0%
Fines & Forfeitures $3.0 $3.4 113.3%
Interest/Use of Money $3.1 $0.2 6.5%
Misc. & Non-Operating $1.2 $1.3 108.3%
Transfers from Other Funds $20.7 $21.9 105.8%
Sub-Total $276.2 $284.2 102.9%
ARPA $18.0 $38.4 213.3%
Grand Total $294.2 $322.6 109.7%
FY 2022-23 General Fund Resources
6 $In Millions
22-23
Projected
22-23
Actuals
%
Expensed
Salaries & Benefits $205.8 $204.5 99.4%
Maintenance & Operation $56.0 $55.7 99.5%
Capital Outlay $0.3 $0.4 133.3%
Transfers Out $10.4 $10.7 102.9%
Sub-Total $272.5 $271.3 99.6%
Measure S $21.7 $15.8 72.8%
Grand Total $294.2 $287.1 97.6%
FY 2022-23 General Fund Expenditures
7 Category Projection Actuals
Revenue $276.2 $284.2
Expenditures $294.2 $287.1
Subtotal ($18.0) ($2.9)
+ARPA $18.0 $38.4
Measure S Carryover/Assigned $0.0 ($5.0)
Net Surplus/(Use) $0.0 $30.5
Ending Reserve $92.7 $123.2
Reserve % 31.5% 39.2%
*Council Reserve Policy is a floor of 25% with a target of 35% FY 2022-23 General Fund Ending Fund Balance
8 City of Glendale
FY 2023-24 First Quarter
General Fund Results
9 $In Millions 23-24
Adopted
23-24
Revised
Actuals
As of Sep 30
%
Received
Property Taxes $80.3 $80.3 $0.1 0.1%
Sales Taxes* $91.1 $91.1 $6.9 7.6%
Utility Users Taxes $29.6 $31.4 $5.2 16.5%
Occupancy Taxes $10.0 $10.0 $2.0 20.0%
Licenses & Permits $10.1 $10.5 $2.3 21.9%
Revenue from Other Agencies $0.4 $0.4 $0.0 0.0%
Charges for Services $29.2 $34.8 $5.0 14.4%
Interfund Revenue $19.1 $19.1 $4.8 25.0%
Fines & Forfeitures $3.2 $3.2 $0.7 21.9%
Interest/Use of Money $3.7 $3.7 $1.2 32.4%
Misc. & Non-Operating $0.8 $0.8 $0.1 12.5%
Transfers from Other Funds $38.5 $41.1 $0.0 0.0%
Total Revenues $316.0 $326.4 $28.3 8.7%
ARPA $20.4 $0.0 $0.0 0.0%
Total Resources $336.4 $326.4 $28.3 8.7%
FY 2023-24 General Fund Resources
*Includes Measure S Sales Tax revenues
10 Slide 11
$In Millions
23-24
Adopted
23-24
Revised
Actuals
Sept 30
%
Expensed
Salaries & Benefits $223.4 $223.5 $51.5 23.0%
Maintenance &
Operation $75.1 $82.1 $16.7 20.3%
Capital Outlay $0.05 $0.9 $0.0 0.0%
Transfers Out $16.0 $19.2 $8.0 41.7%
Total $314.5 $325.7 $76.2 23.4%
FY 2023-24 General Fund Expenditures
11 $ In Millions
23-24
Revised 24-25 25-26 26-27 27-28
Resources $326.4 $318.7 $320.8 $329.1 $337.7
Section 115 Trust 0.0 0.0 5.0 5.0 5.0
Total Resources $326.4 $318.7 $325.8 $334.1 $342.7
Appropriations $309.3 $301.0 $303.4 $307.6 $311.2
Internal Service Funds 4.8 2.8 2.8 2.8 2.8
Additional Labor Costs 0.0 10.8 21.7 33.2 40.2
Capital Improvement 11.8 10.0 10.0 10.0 10.0
Total Appropriations $325.9 $324.6 $338.0 $353.6 $364.2 Net Change $0.5 ($5.9) ($12.2) ($19.5) ($21.5)
Ending Reserve* $123.7 $117.8 $105.6 $86.1 $64.6
38.0% 36.3% 31.3% 24.4% 17.8%
General Fund Five-Year Forecast
FY 2023-24 1st Quarter Report
*Council Reserve Policy is a floor of 25% with a target of 35% 12 • Requesting a total of $305K in appropriation of which $230K is in the General Fund
• Management Services - Requesting $75K from the Cable Access Fund (2800) for the purchase and replacement of various equipment at GTV6 • Police Department - Requesting six new Police Services Officer positions and appropriation from the General Fund for the prorated cost of $230K • Glendale Water & Power - Requesting one Clean Energy Officer position, with the cost being absorbed within GWP’s FY 23-24 budget
Authorized Citywide Salaried Position Count
Current
FY 2023-24
Proposed
FY 2023-24
All Funds 1,613.0 1,620.0
General Fund 937.8 943.8
FY 2023-24 Budget Adjustment Requests
13 City of Glendale
Compensation Alignment
14 Compensation Alignment
• Classifications are reviewed on an annual basis with adjustments proposed for positions on an as needed basis:
Department Classification Adjustment
Community
Development
Permit Services Administrator 5.5%
Principal Building Code Specialist 11.0%
Community
Services & Parks
Assistant Director of Community Services & Parks 12.89% Community Services Manager 11.0%
Homeless Programs Manager 11.0%
Park Operations Supervisor 11.0%
Park Services Administrator 11.0%
Workforce Development Administrator 17.02%
Workforce Development Manager 11.0%
Youth Services Manager 22.44%
Fire Department Ambulance Operator (Hourly) $16.79 to $23.00 GWP AGM Utility/Finance/Risk (Vacant) 30.72%
15 Compensation Alignment
Department Classification Adjustment
Human Resources Benefits Manager 25.1%
Deputy Director of Human Resources 14.5%
Employee Health Coordinator 20.7%
Workers’ Compensation Administrator 16.2%
Public Works Wastewater Maintenance Superintendent 12.88% Executives Chief Information Officer (Vacant) 6.6%
City Clerk 10.0%
Director of Library, Arts & Culture (Vacant) 8.58%
Director of Community Services & Parks 10.0%
Chief Human Resources Officer 8.53%
Director of Finance (Vacant) 5.8%
Police Chief 5.0% + Longevity
New Classifications
City Attorney Claims Support Services Coordinator
Human Resources HR Compliance & Operations Manager
16 City of Glendale
Potential Budget Balancing Strategies
17 Type Description Elected Body
Requirement
Voter
Requirement Examples
General Tax
Revenues generated can be
used for any legitimate
government purpose
4/5 Vote Majority Voter
Approval
Measure S, Hotel
Tax, Property
Transfer Tax
Special Tax
Revenues are restricted and
can only be used for certain
purposes
Majority Vote 2/3 Voter
Approval
Parcel Tax for funding
of public safety,
roads, libraries,
parks, etc.
Local Fees
All government charges are
considered a tax unless
explicitly exempted from
that classification. Examples
of exempt charges include
reasonable costs for providing
services, reasonable
regulatory costs, or fines and
penalties
Majority Vote N/A
Administrative
Citations, Facility
Rentals, Permit Fees,
Plan Check, Parks &
Rec Fees, etc.
Tax Measures and Fees
18 Strategy
Potential
Revenue
Taxes
Business Tax $7.3m - $9.3m
Occupancy Tax Increase $0.8m - $2.5m
Parcel Tax $3.0m
Property Transfer Tax $12.0m - $17.0m
Parking Tax TBD
Other
Citywide Fee Study $2.0m -$3.5m
Reduce 90-minute Free Parking $0.15m - $0.3m
Digital Billboards and Advertising $350k to $1.0m
Ground Lease of City Owned Properties TBD
Increase GWP Electric Transfer TBD
Potential Budget Balancing Strategies
19 Strategy Potential
Revenue Rate Comparison to Other Jurisdictions (If
Applicable)
Taxes
Business
License
Tax
$7.3m-
$9.3m $1/$1000 of Gross income
LA - Range from $1.01 to $4.25/$1000
based on business type
Burbank – One basic tax based on
business type + levy for each employee (not
exceeding 3k employees)
Pasadena – General tax - basic tax + levy
for each employee
Parcel
Tax $3.0m
Scenario 1 –
Flat per Parcel
$70 for all Parcel types
Scenario 2 –
Flat per Parcel Type
$27 for residential (multi)
$54 for Residential (single family),
$325 for Non-Residential
Pasadena – Library Special Tax (Meas. L)
$46 – Residential (single family) or
residential (condominium)
$30 – Residential (multi) non-condominium
$338 – non-residential
Generating about $3.0m in revenues
TOT
Increase
$800k-
$2.5m
Current rate – 12% - $800k per 1%
increase
Burbank – 10%
Pasadena – 12.11%
Anaheim/Malibu – 15%
Potential Budget Balancing Strategies
20 Potential Budget Balancing Strategies
• Property Transfer Tax
• Tax on the price of the property when sold or transferred • Current rate in Glendale is $1.10 per $1,000 of sales price • City receives $.55 cents per $1,000
• LA County receives $.55 cents per $1,000
• Applies to Commercial & Residential parcels
• Is not progressive, tax is applied on the first dollar when tier reached
• City can determine its own rates, tiers, methodology
21 Scenario with City of Santa Monica Rate Structure
Value of Property Rate # of Sales
Glendale
Portion
County Portion
($1.10 per $1k)
$0 to <$5 million $3.00 per
$1,000
947 $3.6m $1.3m
$5 million to <$8
million
$6.00 per
$1,000
13 $0.5m $0.1m
$8 million & Over $56.00 per
$1,000
10 $7.9m $0.2m
Total 970 $12.0m $1.6m
Potential Budget Balancing Strategies
Current Transfer Tax
Rate Glendale County Portion
$1.10 per $1,000 $800k $800k
22 Scenario with City of Los Angeles Rate Structure
Value of Property Rate # of Sales
Glendale
Portion
County Portion
($1.10 per $1k)
$0 to <$5 million $4.50 per
$1,000
947 $5.0m $1.3m
$5 million to <$10
million
$44.50 per
$1,000
13 $4.8m $0.1m
$10 million & Over $59.50 per
$1,000
10 $6.9m $0.2m
Total 970 $17.0m $1.6m
Potential Budget Balancing Strategies
Current Transfer Tax
Rate Glendale County Portion
$1.10 per $1,000 $800k $800k
23 Strategy
Potential Revenue
(In Millions) Rate
Comparison to Other
Jurisdictions (If Applicable)
Fees
Reduce 90-minute Free
Parking
$0.15-$0.3 Reduce to 60 minutes/
30 minutes
Burbank – All public parking
is free
Pasadena – No free parking
offered except for one parking
lot that offers 90-minute free
parking
Citywide Fee Study $2.0-$3.5 Various - Estimate is
based on preliminary
staff recommendations
for fee amounts. Final
study to be presented to
Council in February 2024
N/A
Digital Billboards and
Advertising
$0.35-$1.0 Based on available
sights
N/A
Potential Budget Balancing Strategies
24 Potential Budget Balancing Strategies
• Items staff is still analyzing:
• Increase the Transfer From GWP Electric Fund
• Parking Tax
• Ground Lease of City Owned Properties
25 26
Strategy
Potential
Revenue
Taxes
Business Tax $7.3m - $9.3m
Occupancy Tax Increase $0.8m - $2.5m
Parcel Tax $3.0m
Property Transfer Tax $12.0m - $17.0m
Parking Tax TBD
Other
Citywide Fee Study $2.0m -$3.5m
Reduce 90-minute Free Parking $0.15m - $0.3m
Digital Billboards and Advertising $350k to $1.0m
Ground Lease of City Owned Properties TBD
Increase GWP Electric Transfer TBD
Potential Budget Balancing Strategies
27 City of Glendale
Questions?
28 Reserve % Policy Comparison
Minimum Fund Balance % Target Fund Balance %
Glendale 25.0% 35.0%
Pasadena 20.0% 20.0%
Burbank 25.0% 25.0%
Long Beach 16.7% (i.e. 2 months Ops. Exp) 17.0%
Huntington Beach (2 months of Adopted Budget)
Santa Monica 15.0% 15.0%
Inglewood 25.0% 25.0%
Torrance 20.0% 20.0%
Anaheim 7.0% 10.0%
Santa Ana 18.0% 18.0%
29 $ In Millions
23-24
Adopted 24-25 25-26 26-27 27-28
Revenue $265.7 $273.5 $271.9 $278.9 $286.5
ARPA 20.4 0.0 0.0 0.0 0.0
Measure S 34.2 35.1 35.8 36.5 37.2
Measure S Unallocated Balance 16.1 0.0 0.0 0.0 0.0
Section 115 Trust 0.0 0.0 5.0 5.0 5.0
Total Resources $336.4 $308.6 $312.7 $320.4 $328.7
Appropriations $300.1 $297.8 $300.2 $304.4 $307.9
Internal Service Funds 5.8 2.8 2.8 2.8 2.8
Additional Labor Costs 0.0 10.8 17.1 23.6 23.7
Capital Improvement 8.6 10.0 10.0 10.0 10.0
Total Appropriations $314.5 $321.4 $330.1 $340.8 $344.4 Net Change $21.9 ($12.8) ($17.4) ($20.4) ($15.7)
Ending Reserve $114.6
36.5%
$101.8
31.7%
$84.4
25.6%
$64.0
18.8%
$48.3
14.0%
General Fund Five-Year Forecast as of 6/13/2023
30 Net Pension Liability
(In Millions)
FY 2022-23F FY 2021-22
Measurement date: June 30, 2022 June 30, 2021
Miscellaneous Plan:
Total pension liability $ 1,320 $ 1,262
Total pension asset $ 985 $ 1,083
Net pension liability $ 335 $ 179
Funding % 75% 86%
Safety Plan:
Total pension liability $ 1,021 $ 956
Total pension asset $ 679 $ 746
Net pension liability $ 342 $ 210
Funding % 67% 78%
Total Misc and Safety:
Total pension liability $ 2,341 $ 2,218
Total pension asset $ 1,664 $ 1,829
Net pension liability $ 677 $ 389
Funding % 71% 82%
31 Example: Sales Price of $3 Million Parcel
Value of Property Glendale County
Current $1,650 $1,650
Santa Monica Rate
$3/$1,000 $9,000 $3,300
Los Angeles Rate
$4.50/$1,000 $13,500 $3,300
Potential Budget Balancing Strategies
Example: Sales Price of $5 Million Parcel
Value of Property Glendale County
Current $2,750 $2,750
Santa Monica Rate
$6/$1,000 $30,000 $5,500
Los Angeles Rate
$44.50/$1,000 $222,500 $3,300
Rate Scenarios
Rate Glendale County
$.55/$1,000 $800k $800k
$1.00/$1,000 $1.4m $1.6m
$2.00/$1,000 $2.8m $1.6m
$3.00/$1,000 $4.2m $1.6m
32 33
Potential Budget Balancing Strategies
• Elections and Ballot Measures:
• November 5, 2024, Statewide General Election
• Cost:
• Approximately $420K for one measure on the ballot
• Approximately $10-$15K marginal cost for each additional measure
• Council will need to make finding of Fiscal Emergency by unanimous vote by August 6, 2024
• June 2026, Municipal Election
• Cost:
• Approximately $10-$15K for each measure
• No need for Council to make finding of Fiscal Emergency by unanimous vote