FY 2023/24 & 2024/25
Preliminary Operating
Budget Review
City of Goleta
City Council Workshop
May 2, 2023
1 Operating Budget Overview
Preliminary budget reflect amounts in development process and changes will continue to be made after the workshops, including incorporation of City Council input Balanced budget for both FY 23/24 and FY 24/25
Ongoing operating revenues greater than or equal to ongoing operating expenditures One‐time expenditures match by one‐time revenue sources (fund balance available for use) New transaction and use tax (Measure B) phased in, with operative date January 1, 2024 Cannabis tax revenues remains volatile, assumes reduction from $2 million to $1 million Competing priorities in investments in deferred maintenance, capital projects and implementation of Management Plan and Master Plan documents
Inflationary impacts on supplies, services and construction costs, resulting in higher than anticipated gaps on project costs and contracts
Increased contributions to the Library and Goleta Community Center Overall labor costs continue to rise and police services contract May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 2 Financial Outlook
Financial Outlook ‐ Economic Uncertainties
Stable overall financial outlook as inflationary factors are expected to result in higher tax revenues, however offset by higher expenditure and construction costs
Federal Reserve action of raising the federal funds rate to counter current high inflation, influences Treasury yields, and the City anticipates gradual increases in investment earnings as laddered investments mature and are reinvested in higher market yielding securities, including funds held with LAIF Fed funds rate also influences borrowing costs, and increases are anticipated if the City issues debt or borrows funds City continues to maintain prudent reserves and fund balance to address economic uncertainties , including cost reduction strategies available if needed – Not recommending any cost reduction strategies Ongoing discussions with tax consultants, though revenues anticipated to be stable, but slowdown expected on growth and relatively flat.
Transaction and Use Tax revenue estimates to be updated once actual information is known May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 3 General Fund Summary (Preliminary)
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 4 Indicator of City’s ability to take on debt,
support ongoing programs with cost increases
or new ongoing programs, new personnel and
cost increases
U s e da st h eb a s e l i n et oc a l c u l a t et h e3 3 % contingency reserve. Amount is part of the
overall total ending fund balance.
One‐time expenditures identified. Includes
operating and capital improvement costs.
These costs are supported either by
unassigned fund balance (city’s one‐time
savings), or reserves set aside for specific
purpose, such as any vehicle replacements.
General Fund Operating Budget
Summary
2023/24
Proposed Budget
2024/25
Proposed Budget
Beginning Fund Balance 23,075,099$ 18,849,174 $ Operating Revenues 42,113,909 48,410,809 Operating Expenditures 42,039,798 46,642,480 Net Operating Revenues 74,111 1,768,329 One-Time Expenditures 4,300,036 2,540,641 Total Expenditures (Operating +
One-Time) 46,339,834 49,183,121
Net Change to Fund Balance (4,225,925) (772,312) Ending Fund Balance 18,849,174$ 18,076,861 $ Beginning Fund Balance is based on projected FY 22/23 actuals at June 30, 20 23. The $23 million is an estimate and can change based on final revenue and expenditur es. Pre‐audit numbers will be known by September 2023.
Total estimated ending budgetary
fund balance. Includes
Contingency Reserve, and other
major reserve categories.
Anything left over goes into
Unassigned Fund Balance)
General Fund Revenues
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 5 $25M $26M $28M
$30M $29M
$31M
$38M $37M
$42M
$48M
5% 6% 6% 9%
‐4%
8%
21%
‐1%
13% 15%
‐20%
0%
20%
40%
60%
80%
100%
$0M
$5M
$10M
$15M
$20M
$25M
$30M
$35M
$40M
$45M
$50M
FY 15/16
Actual
FY 16/17
Actual
FY 17/18
Actual
FY 18/19
Actual
FY 19/20
Actual
FY 20/21
Actual
FY 21/22
Actual
FY 22/23
Est. Actual
FY 23/24
Preliminary
FY 24/25
Preliminary
CHANGE FROM PRIOR YEAR
GENERAL FUND REVENUES
MILLIONS
Total General Fund
% Change from Prior Year (General Fund)
General Fund Revenues
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 6 Property Tax
$9.0 M, 21%
Sales Tax
$8.7 M, 21%
Transaction and Use Tax
(Measure B)
$5.3 M, 12%
Transient Occupancy Tax
$13.4 M, 32%
Cannabis Business Tax
$1.1 M, 3%
Franchise Fees
$1.6 M, 4%
Licenses & Service Charges
$2.0 M, 5%
All Other Revenue
$1.0 M, 2%
$42.1 M
FY 2023/24 – Source of Funds
General Fund Revenues
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 7 Property Tax
$9.3 M, 19%
Sales Tax
$9.0 M, 19%
Transaction and Use Tax
(Measure B)
$10.6 M, 22%
Transient Occupancy Tax
$13.8 M, 29%
Cannabis Business Tax
$1.1 M, 2%
Franchise Fees
$1.6 M, 3%
Licenses & Service Charges
$2.0 M, 4%
All Other Revenue
$1.0 M, 2%
$48.4 M
FY 2024/25 – Source of Funds
General Fund Revenues
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 8 General Fund Revenues
FY 22/23
Revised
FY 23/24
Proposed
%
Change
FY 24/25
Proposed
%
Change
Property Tax $ 8,547,387 $ 9,015,100 5.5% $ 9,259,600 2.7% Sales Tax 8,316,500 8,702,900 4.6% 8,950,400 2.8% Transaction and Use Tax - 5,30 0,000 100.0% 10,600,000 100.0% Transient Occupancy Tax 13,100,000 13,400,000 2. 3% 13,800,000 3.0% Cannabis Business Tax 1,100,000 1,130,000 2. 7% 1,140,000 0.9% Franchise Fees 1,592,100 1,558,900 -2.1% 1,637,700 5.1% Licenses & Service Charges 2,011,800 2,014,1 00 0.1% 2,037,300 1.2% Fines & Penalties 141,000 122,000 -13. 5% 125,000 2.5% Interest and Rent Income 334,000 462,2 00 38.4% 463,100 0.2% Reimbursements 326,000 323,000 -0.9% 312,000 -3.4% Other Revenues 119,222 35,000 -70.6% 35,000 0.0% Transfers In from Other Funds 43,800 50,709 15.8% 50,709 0.0% Total Revenues $ 35,631,809 $ 42,113,909 18.2% $ 4 8,410,809 15.0% Property Tax assumes 2.00% CPI increase, and assessed values based on lien date of January 1, 2023.
Sales Tax expected to remain flat when compared to prior‐year projected actuals of $8.6 million.
Transaction and Use Tax (Measure B) ‐ Goes into effect January 1, 2024, conservative estimates
Staff working on implementation with CDTFA in July
Transient Occupancy Tax (TOT) ‐ steady ADR and occupancy rates, but below below historic highs experienced in FY 21/22 and seen in current data
Does not include any future STVR activity
Cannabis Business Tax remains most volatile, downward projections at $1.1 M
Distribution activity previously accounted for 70% to 80% , now 50% to 60%
Retail activity previously accounted for 20% to 30%,
now 40% to 50%
All other revenues reviewed based on historical actuals, activity levels, and adjustments to rates if applicable.
General Fund Expenditures
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 9 $21M $22M
$29M
$25M
$36M
$25M
$31M
$56M
$46M
$49M
‐11%
7%
32%
‐14%
40%
‐28%
22%
79%
‐17%
6%
‐40%
‐10%
20%
50%
80%
110%
140%
170%
200%
$0M
$10M
$20M
$30M
$40M
$50M
$60M
FY 15/16
Actual
FY 16/17
Actual
FY 17/18
Actual
FY 18/19
Actual
FY 19/20
Actual
FY 20/21
Actual
FY 21/22
Actual
FY 22/23
Current
FY 23/24
Preliminary
FY 24/25
Preliminary
% CHANGE FROM PRIOR YEAR
GENERAL FUND EXPENDITURES
MILLIONS
Total General Fund Expenditures
% Change from Prior Year
General Fund Expenditures
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 10 General
Government
$6.5 M, 14%
General
Services
$3.5 M, 8%
Library
$0.9 M, 2%
Finance
$1.9 M, 4%
Planning &
Env. Review
$4.8 M, 10%
Public Works
$12.7 M, 28%
Neighborhood
Services
$3.0 M, 6%
Public Safety
$10.5 M, 23%
Non‐Departmental
$0.9 M, 2%
CIP
$1.6 M, 3%
FY 23/24 Preliminary Budget:
$46.3 M
General
Government
$6.9 M, 14%
General Services
$3.4 M, 7%
Library
$0.9 M, 2%
Finance
$2.0 M, 4%
Planning &
Env. Review
$5.1 M, 10%
Public Works
$15.0 M, 31%
Neighborhood
Services
$3.7 M, 7%
Public Safety
$10.9 M, 22%
Non‐Departmental
$0.9 M, 2%
CIP
$0.6 M, 1%
FY 24/25 Preliminary Budget:
$49.2 M
General Fund Expenditures
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 11 FY 21/22 FY 22/23 FY 23/24 % FY 24/25 %
Actuals Current Proposed Change Proposed Change
General Government 6,401,327 6,417,980 6,521,252 1.6% 6,880,846 5.5% General Services 454,270 3,814,670 3,526,500 -7.6% 3,352,800 -4.9% Library 251,077 434,591 877,510 101.9% 875,800 -0.2%
Finance 1,196,075 1,793,380 1,865,300 4.0% 1,970,800 5.7% Planning & Env. Review 3,382,657 4,954,651 4,824,400 -2.6% 5,066,700 5.0% Public Works 7,525,224 13,343,299 12,744,100 -4.5% 15,001,700 17.7% Neighborhood Services 1,761,892 2,726,634 2,987,600 9.6% 3,650,400 22.2% Public Safety 8,470,638 9,766,000 10,542,436 8.0% 10,911,334 3.5% Non-Departmental 1,452,398 1,847,600 873,000 -52.7% 873,000 0.0% CIP 251,642 10,563,589 1,577,736 -85.1% 599,741 -62.0%
Total Expenditures 31,147,198$ 55,662,394 $ 46,339,834 $ -16.7% 49,183,121 $ 6.1% Expenditures by
Department
Budgets adjusted for regulatory and mandated changes, contractual obligations, and Annual Work Program priorities Measure B programming, which will be further discussed in later slides The CIP budget is still under development and updated numbers will be provided at the CIP Budget Workshop and further refined for final recommended budget.
Preliminary numbers. Will be updated after the workshops.
Personnel Expenditures
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 12 Summary of Recommended New Personnel:
Summary of Recommended Reclassifications:
Department Program Title FY 23/24
Proposed
FY 24/25
Proposed FTE
General Services Fleet Management Facilities & Fleet Coordinator 1 14,488 117,923 1.00 Planning & Environmental
Review Advance Planning Assistant Planner 107,203 110,419 1.00 Total 221,691 228,341 2.00
221,691 228,341 2.00 General Fund Department Program Title and Description FY 23/24
Proposed
FY 24/25
Proposed FTE
General Government Community Relations
Management Assistant
reclassified from 0.75FTE to 1.0
FTE 32,300 33,269 0.25
Planning & Environmental
Review Advance Planning Senior Planning reclassified to Supervising Senior Planner 12,500 12,875 - Total 44,800 46,144 0.25
General Fund 44,800 46,144 0.25 Personnel Expenditures
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 13 Summary of FTEs by Department:
Department FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Amended
FY 2023/24
Proposed
FY 2024/25
Proposed
General Government 17.650 16.900 17.900 18.150 18.150
General Services 0.000 3.000 4.750 5.750 5.750
Library Services 15.375 16.125 17.125 17.125 17.125
Finance 7.000 9.000 12.000 12.000 12.000
Planning Environmental Review 17.500 18.500 19.500 20.500 20.500 Public Works 25.900 29.000 36.000 36.000 36.000
Neighborhood Services 9.000 5.500 10.000 10.000 10.000
Grand Total 92.425 98.025 117.275 119.525 119.525
FY 23/24 personnel budget estimated at $15.8 million or 33.0% of total budget FY 24/25 personnel budget estimated at $16.5 million or 31.5% of total budget Measure B 2022
“To support Goleta’s 9‐1‐1 response/crime prevention; cleanup trash in creeks to maintain coastal waters; address homelessness, fire risks from illegal encampments; maintain public safety, clean/maintain public areas; repair streets/potholes; increase recycled water use for parks; retain local businesses/jobs; maintain open spaces/natural areas and for general government use; shall a measure be adopted establishing a 1¢ sales tax providing approximately $10,600,000 annually until ended by voters, requiring public spending disclosure?” Council Preliminary Priorities:
Public Health, Safety & Infrastructure (51.7%)
Parks, Recreation, Creeks & Sustainability (20%)
Jobs, Economy & Housing (18.3%)
Other Vital Services and Capital Maintenance Projects (10%) Other Considerations
33% one‐time funding of reserves (General Fund Reserve Policies) Impacts to organization operation (finance & support services) and debt capacity estimated at 6.7%
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 14 Funding Reserves
FY 24/25FY 23/24
$10,600,000 $5,300,000TOTAL MEASURE B REVENUES
‐ $1,749,000‐ $1,749,000ADDITION TO POLICY RESERVES
$8,851,000$3,551,000AMOUNT REMAINING FOR MEASURE B PROJECTS Contributions to fund contingency reserves are one‐time.
In future years, only 33% of incremental revenue increases will be set aside May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 15 Public Health, Safety & Infrastructure
FY 24/25FY 23/24Public Health, Safety & Infrastructure
$3,331,000$1,566,000Increase Annual Pavement Program (ongoing) $1,000,000N/ACity’s match for new Train Station project (one‐time) $ 691,000 $ 381,000 Increase maintenance of concrete, trees, signals, ADA (ongoing)
$ 280,000$ 280,000Fund the City’s Homelessness program (ongoing) $5,302,000 $2,326,500 Subtotal Public Health, Safety & Infrastructure May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 16 Parks, Recreation, Creeks & Sustainability
FY 24/25FY 23/24Parks, Recreation, Creeks & Sustainability $ 750,000$ 375,000CWMP Project: San Jose Creek Channel Fish‐Passage (one‐ time)
$ 154,000$ 154,000CWMP Project: San Jose Creek Maintenance (ongoing) $ 541,000$ 530,000Increase funding for maintenance of open spaces, storm drains (ongoing)
$ 200,000$ 200,000Increase funding for Ellwood/Butterfly management (ongoing)
$1,645,660 $1,259,00Subtotal Parks, Recreation, Creeks & Sustainability May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 17 Jobs, Economy & Housing
FY 24/25FY 23/24Jobs, Economy & Housing
$ 250,000$ 200,00Transfer funds to Affordable Housing Fund (ongoing) N/A$ 50,000Creation of a comprehensive Affordable Housing plan (one‐time)
$ 150,000$ 75,000Funding to implement Economic Development plan (ongoing)
$ 250,000$ 50,000Funding for Childcare Programs (ongoing) $ 250,000N/AFunding for Old Town projects and priorities (ongoing) $ 900,000 $ 375,000 Subtotal Jobs, Economy & Housing May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 18 Other Vital Services and Capital
Maintenance
FY 24/25FY 23/24Other Vital Services and Capital Maintenance $ 74,300$ 204,700Address shortfall in book budget for Library (ongoing) $ 50,100$ 50,00010 hours Book Van for all GVL areas (ongoing) $ 82,000GVL Strategic Plan (ongoing)
$ 50,000$ 200,000Design Library facility refresh project (one‐time) N/A$ 330,000Design Lake Los Carneros Footbridge replacement (one‐time) $ 50,000$ 250,000Design Historic Train Station preservation project (one‐time) $ 150,000Design for Community Center Refresh project (one‐time) (see above)$ 75,000Implement Community Center Strategic Plan (ongoing) $ 117,923 $ 114,488 Add new position‐ Facility Maintenance Coordinator $574,323 $1,224,188Subtotal Other Vital Services and Capital Maintenance $ 670,000TBDDebt capacity, Financial & Support Services impacts (ongoing) May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 19 Who Pays for the Region’s Library?
FY 24/25FY 23/24SourceAREA
$774,300$751,790County Per CapitaALL AREAS IN ZONE 4
• Isla Vista & Hope Ranch
• County CSA 3
• City of Goleta
$70,000$67,000Support from Friends and other Donations
$12,700$13,500Library User Fees
$245,200
$375,900
$621,100
$238,100
$365,000
$603,100
Measure “L” ‐ County (CSA 3)
Measure “L” – City
MEASURE “L” AREAS
ONLY
• County CSA 3
• City of Goleta
$132,100$1,700City DIF Fees (FY 24/25 Est.)*CITY OF GOLETA ONLY • City of Goleta $826,600$830,210General Fund Operations Subsidy $50,100$50,000General Fund – Book Van
$495,900$461,420Value of Admin Overhead Not Charged (20%) ‐‐Real Estate (market value)
* The City programs its DIF fees to the budget every year . The County also collects DIF Fees. In theory, these are available to the Library. In practice, the County has not released any of these funds since the City assumed management of the GVL.
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 20 Library Book Van
Budget proposes to provide 10 hours of Library Book Van total Use of Measure B Funds for Book Van will increase City’s General Fund subsidy to Library by $50,000
Service will be distributed among all areas in the GVL Library Service Area:
Will include, but not be limited to Isla Vista (i.e., also Old Town) Will welcome County and/or other government/private/non‐profit sponsorship of additional hours in one particular focus areas
Cost of 10 hours is roughly $50,000 per year
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 21 General Fund Expenditures
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 22 Public Works Pavement Rehabilitation – Expenditure Budget Summary The City’s ongoing average base funding amount has been $2.5 million (shown in FY 22/23) To help reach citywide PCI average of 67, the City identified an ongoing annual funding amount of $5.8 million needed FY 24/25 will be the first year where the ongoing average base funding amount will be at least $6.0 million LSTP funding being confirmed and will be updated in final budget. Staff will continue to recommend additional pavement budget from one‐time funding if available.
FY 22/23 FY 22/23 FY 23/24 FY 24/25
Original Current Proposed Proposed
General Fund 730,000 4,481,241 2,395,500 4,061,000
Gas Tax 745,600 2,437,694 876,000 876,000
RMRA - SB1 619,000 1,403,359 808,000 808,000
Measure A 300,000 816,700 300,000 300,000
LSTP 119,117 415,732 0 0
Total Pavement 2,513,717 $ 9, 554,726$ 4, 379,500$ 6,045,000 $ Pavement Rehabilitation Budget
(All Funds)
General Fund – Five Year Forecast
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 23 Five Year Forecast – Summary of General Fund Revenues
General Fund Revenues
FY 23/24
Projected
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
Property Tax $ 9,015,100 $ 9,259,600 $ 9,555 ,900 $ 9,842,570 $ 10,137,840 Sales Tax 8,702,900 8,950,400 9,227 ,860 9,504,690 $ 9,789,830 Transaction and Use Tax 5,300,000 10,600,000 10,928,600 11,256,450 $ 11,594,140 Transient Occupancy Tax 13,400,000 13,800,000 14,214,000 14,640,420 $ 15,079,630 Cannabis Business Tax 1,130,000 1,140,000 1,162,800 1,186,050 $ 1,221,630 Franchise Fees 1,558,900 1,637,700 1,670,450 1,703,850 $ 1,754,960 Licenses & Service Charges 2,014,100 2,037,3 00 2,078,600 2,120,910 $ 2,164,240 Fines & Penalties 122,000 125,000 126,250 127,510 $ 128,770 Interest and Rent Income 462,200 463,1 00 473,440 473,750 $ 483,220 Reimbursements 323,000 312,000 315,740 318,040 $ 319,610 Other Revenues 35,000 35,000 35,000 35,000 $ 35,000 Transfers In from Other Funds 50,709 50,709 50,700 50,700 $ 50,700 Total Revenues $ 42,113,909 $ 48,410,809 $ 49,839, 340 $ 51,259,940 $ 52,759,570 Total Adjusted Revenues $ 42,113,909 $ 48,410,809 $ 49,839,340 $ 51,259,940 $ 52,759,570 YoY $ Change 6,482,100 $ 6,296,900 $ 1,428,531 $ 1,420,600 $ 1,499,630 $ YoY % Change 18.19% 14.95% 2.95% 2.85% 2.93%
General Fund – Five Year Forecast
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 24 Five Year Forecast – Summary of General Fund Expenditures General Fund Expenditures
FY 23/24
Projected
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
Salaries and Benefits $ 15,801,400 $ 16,555,000 $ 17,051,650 $ 17,563,200 $ 18,090,095 Operating and Maintenance $ 26,238,398 $ 30,087,480 $ 31,167,482 $ 31,933,159 $ 32,717,978 Total Operating Expenditures $ 42,039,798 $ 46,642,480 $ 48,219,132 $ 49,496,358 $ 50,808,073 Total One-Time Expenditures
(Includes Capital) 4, 300,036 2,540,641 831,900 1, 181,900 1,181,900 Total Expenditures 46, 339,834 49,183,121 49,051,032 50,678,258 51,989,973 YoY $ Change (9,322,560) $ 2,843,287 $ (132,089) $ 1,627,227 $ 1,311,715 $ YoY % Change -16.75% 6.14% -0.27% 3.32% 2.59%
General Fund
FY 23/24
Projected
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
Beginning Fund Balance $ 23,07 5,099 $ 18,849,174 $ 18,076,861 $ 18,865,170 $ 19,446,851 Operating Revenues 42,113,909 48,410,809 49,839,340 51,259,940 52,759,570 Operating Expenditures 42,039,798 46,642,480 48,219,132 49,496,358 50,808,073 Net Operating Revenues 74,111 1,768,329 1,620,208 1,763,582 1,951,497 One-Time Revenues or Use of
Fund Balance - - - - - One-Time Expenditures 4,300,036 2,540,641 831,900 1,181,900 1,181,900 Total Expenditures 46,339,834 49,183,121 49,051,032 50,678,258 51,989,973 Net Change to Fund Balance $ (4,225,925) $ (772,312) $ 788,308 $ 581,682 $ 769,597 Ending Fund Balance $ 18,849,174 $ 18,076,861 $ 18,865,170 $ 19,446,851 $ 20,216,448 General Fund
FY 23/24
Projected
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
Fund Balance Categories
Prepaids and Deposits 26,176 26,176 26,176 26,176 26,176 City Hall Solar Removal - - - - - Public Facilities 830,108 830,108 830,108 830,108 830,108 Capital Equipment 666,653 666,653 666,653 666,653 666,653 Compensated Leave 407,606 407,606 407,606 407,606 407,606 Risk Management 200,000 200,000 200,000 200,000 200,000 Litigation Defense Fund 400,000 300,000 300,000 300,000 300,000 Contingency Reserves 13,873,133 15 ,392,018 15,912,313 16,333,798 16,766,664 CIP Project Funding - - - - - Encumbrances - - - - - FMV Adjustment - - - - - Unassigned Fund Balance 2,445,497 254,300 522,313 682,510 1,019,241 Ending Fund Balance 18,849,174$ 18,076,861 $ 18,865,170 $ 19,446,851 $ 20,216,448 $ General Fund – Five Year Fund Balance
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 25 Set at policy goal at 33% of ongoing expenditures. Assist with emergencies, interruptions in cash flow, such as a significant economic slowdown and recessionary impacts are experienced, and liquidity needs. This balance also assists with having available cash on hand until revenues come in, or when City is waiting on reimbursable grants Staff recommends at least $2 million be held for use
throughout fiscal year, and will continue to evaluate the future years
This allows the city to immediately address
unanticipated expenditures and help cover immediate
shortfalls, before going into the Contingency Reserve
Represents the overall Net Change to Fund Balance. Based on the difference of Total Revenues and Total Expenditures
Important indicator of City’s ability to take on debt, support ongoing programs with cost increases or new ongoing programs, new personnel and cost increases in the long run
Pending Items
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 26 Preliminary budgets are still in draft forms and in the development process Changes will continue to be made after the workshops, including incorporation of City Council input and will be finalized before the recommended budget is released in June Revenues and other Fund Balance adjustments:
Property Tax and Franchise Fees – further analysis, and possible increase Expenditure and other Fund Balance Adjustments:
Further evaluation of General Fund and other Special Revenue Funds for unfunded priority CIP Further review of Special Revenue Funds (Gas Tax, SB 1, Library) Future recommendation of setting aside additional funds for OPEB UAL and Pension UAL, with priority on OPEB UAL (may revisit Q4 FY 22/23) Reserve adjustments at year‐end and fair market value adjustments (fair value accounting on investments– GASB 72) Key Dates
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 27 June 2023
Budget
Adoption
July 2023
Jan – March
Sales Tax
Update
August 2023
CalPERS Report
October 2023
April – June
Sales Tax
Update
December 2023
Property Tax
Update
Key milestone dates for updating financial projections:
Monthly: Transient Occupancy Tax (TOT)
January 2024
July – September
Sales Tax Update
April ‐ May 2024
Transaction and Use Tax
receipts
May 2024
October –
December
Sales Tax Update
Looking Ahead and Questions
May 2, 2023, Fiscal Year 2023/24 & 2024/25 Preliminary Operating Budget Review 28 DescriptionDate
CIP Budget WorkshopMay 16
Budget Workshop (backup date)May 23
Budget AdoptionJune 20
FY 22/23 Fourth Quarter Financial Review
(July 1, 2022 – July 30, 2023)
September 19
Questions?