Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 13, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: FY 2023-24 Mid-Year Budget Review and General Fund Forecast
RECOMMENDATION
Receive FY 2023-24 Mid-Year Budget Review including the updated General Fund Financial Forecast; approve mid-year budget augmentations; and provide input and direction to staff.
BACKGROUND
Consistent with the Council’s adopted financial policies, this report provides an update on the City’s financial condition for FY 2023-24 and financial projections over the next five years. The forecast uses current budget data and economic indicators from national and local sources to establish projections for revenue and expenditure as well as illuminate any long-term challenges in balancing council priorities with available resources. Present economic uncertainties include ongoing but moderating inflation, continued uncertainty in cannabis tax revenues, pending employee labor negotiations, and changes to interest rates affecting the costs of financing.
FY 2023-24 Mid-Year Financial Report
The General Fund is the City’s primary fund with taxes and major user fees funding basic public services. The Council adopted a FY 2023-24 General Fund budget of $18.1 million as included in Table 1.
Table 1
FY2023-24
GF Summary Budget Projected
Beginning Reserves 5,053,965 5,053,965
Revenues/Transfers In 19,434,800 19,288,000
Expenditures/Transfers Out 18,170,000 18,162,000
Surplus/(Deficit) 1,264,800 1,126,000
Ending Reserves 6,318,765 6,179,965
Reserves as Percent of Operating 39% 38%
Does not include midyear requests.
Staff Report: FY 2023-24 Mid-Year Budget Review and General Fund Forecast Page 2 February 13, 2024
General Fund Revenues
For FY 2023-24, the City’s top five revenues (sales tax, property tax, cannabis tax, service charges, and transient occupancy tax) comprise 81% of total revenue, excluding transfers and one-time grant funds. Total General Fund revenues are projected to end the fiscal year at approximately $18.7 million compared to $19.2 million budgeted. Revenues are buoyed by a healthy increase of 4% in property tax revenues. However, sales taxes generated by businesses in the city are lower than previously projected, and there are downward revisions to intergovernmental revenues as well as cannabis tax revenues. Projections are determined by historical trends, revenue received in the current year, anticipated business growth, as well as consulting with experts.
The diverse revenue make-up of the city has reinforced its financial position in a period of high uncertainty and volatility. During the COVID-19 pandemic, cannabis tax revenues hit the highest level reported. However, in FY 2022-23 this lowered to roughly $1.2 million or 20% less than the prior year. Staff anticipates similar revenues in the current year and has adjusted projections to compensate. Although sales tax has been a major driver of revenue growth for the last several years, increases are plateauing, and minor gains are largely a result of inflation. However, inflation has remained persistent while moderating in pace. This has led City staff to project slightly higher sales tax revenues than budgeted by 2%.
Table 2 highlights the General Fund’s top five revenues for the FY 2023-24 budget compared to projected revenue at year-end. As shown in the table below, total revenues are anticipated to be slightly higher than budget by approximately $202,000.
Table 2
Budget Projected Over/(Under) Percent of
Budget
1 Sales Tax
6,144,000
6,257,000 113,000 102%
2 Property Tax
5,720,000
5,949,000
229,000 104%
3 Cannabis Tax
1,326,000
1,200,000
(126,000) 90%
4 Service
Charges
985,000
953,000 (32,000) 97%
5 Transient
Occupancy
Tax
900,000
918,000 18,000 102%
Totals 15,075,000 15,277,000 202,000 101%
• Sales Tax, as noted above, is estimated to be higher by approximately 2% compared to the FY 2023-24 budgeted amount. This is mostly due to the strength pooled sales tax revenue which is collected by the County of San Luis Obispo and distributed by the amount apportionable to the jurisdictions. Pooled sales tax figures have done better due to inclusion of major online retailers and vehicle sales which are placed into the pool. For the quarter ending June 30, 2023, Grover Beach showed healthy growth of 9.2% in distributions from the countywide pool from the preceding quarter. However, those portions of sales tax which are not pooled (businesses within the city) show business activity is down across four out of five sectors. The notable exception is business to business which has seen gains of 21%. Overall, business activity is down 3.6% from the prior year for non-pooled sales tax revenues.
Staff Report: FY 2023-24 Mid-Year Budget Review and General Fund Forecast Page 3 February 13, 2024
• Property Tax continues to be a consistent revenue source and is estimated to be on track with budget. The County of San Luis Obispo has estimated a 4% increase in property tax revenue from the prior year, which falls in line with the City’s budgeted numbers. If interest rates continue to fall, it is likely additional homes will be sold. Countywide, the Case-Schiller Index shows a nearly 6% jump in housing price index year-over-year. This increase in housing prices is also seen in Grover Beach where the median sales price of a house was $840,000 in December 2023 which was 10% higher than the previous year. • Cannabis Tax is estimated to be 10% lower than budgeted. This number is based on revenues received through the quarter ending December 31, 2023, along with expectations for activity in the second half of the fiscal year. There are continued challenges facing the industry including the strength of the illicit market, degree of State taxation and regulations, and competition from businesses in other cities.
• Charges for Services are projected to be $32,000 lower than budgeted. This is likely resulting from the slowdown in the larger cannabis industry as a larger part of the Service Charges are composed of cannabis regulatory fees.
• Transient Occupancy Tax (TOT) is estimated to be $18,000 higher than budgeted. The increase is primarily due to costs for lodgings which remain strong even with a limited number of units within the City.
General Fund Expenditures
Table 3 below shows that overall General Fund expenditures are projected to end the year over the budget by $134,000. The projected budget is based on the most current data and historical trends and could change with six months remaining in the fiscal year.
Table 3
Budget Projected Variance
Salaries and Benefits 9,103,000 9,103,000 -
Supplies and Services 7,215,000 7,215,000 -
Minor Capital 85,000 85,000 -
Debt Service 34,000 168,000 (134,000)
CIP (Fund 11) Transfers Out 1,591,000 1,591,000 -
Total 18,028,000 18,162,000 (134,000)
The additional $134,000 estimated in debt service is for higher borrowing costs related leasing new vehicles for the Police and Public Works departments. Notwithstanding the increased costs related to leasing vehicles, there are additional midyear appropriations requests which are outlined further in this staff report.
Water Fund
Water Fund revenues, generated from charges for service, are aligned with budgeted amounts through February 2024. In the fall 2023, a rate study was undertaken to determine whether a new rate structure would be necessary to fund the City’s costs of providing water and wastewater services including needed capital improvement projects. The rate study determined that an increase in water fees was required for the City to obtain necessary funding for increased costs of operations and maintenance as well as capital projects. The rate structure was approved by Staff Report: FY 2023-24 Mid-Year Budget Review and General Fund Forecast Page 4 February 13, 2024
the Council on December 11, 2023 with the first-year increases programmed into the City’s billing system and effective as of February 1. This increase will provide an additional $254,584 in revenue through the end of the fiscal year and close a budget gap this year with funds allocated to financing debt for capital projects and operations and maintenance expenses. Staff would note that a proposed citizen’s initiative to repeal the water and wastewater rate structure would result in the postponement or deferral of numerous water infrastructure projects shown in Attachment 1 to improve the City’s water system.
68% of the Water Fund budget has been expended to date in FY 2023-24, due to annual payments at the beginning of the fiscal year for liability insurance and routine operations and maintenance. Capital projects are still being completed or have not yet started. Overall, Water Fund expenditures are at budgeted levels for the second quarter except for major capital. As shown in Table 4, the fund will end the year with expending $1.67 million from reserves.
Table 4
Water Fund FY 2022-2023
Actuals
FY 2023-2024
Budget*
FY 2023-24
Year-to-Date
Revenue
Charges for Services 3,501,444 4,131,504 2,231,517
Misc. Income 137,405 169,000 27,735
Interest Income 151,132 76,300
Total 3,789,981 4,376,804 2,259,252
Expenditure
Operations and maintenance 3,359,926 3,738,190
Capital 298,743 2,308,623 75,675
Total 3,658,669 6,046,813 2,891,478
Surplus/(Deficit) 131,312 (1,670,009) (632,226)
*2023 Rate Study
Wastewater Fund
The Wastewater Fund is presently running at a deficit due to increasing costs related to wastewater operations and planned capital projects. As part of the same rate structure affecting water rates, the City increased sewer rates to provide additional revenues required for increases to operations and maintenance costs, and to increase the City’s debt capacity to finance the replacement of outdated infrastructure and for planned wastewater capital improvement projects also included in Attachment 1.
Those rates are expected to provide an additional $61,714 in revenue in FY 2023-24 helping to close the existing budget gap and to provide an additional financial hedge against increasing operations and maintenance costs and planned debt service requirements in years to come.
However, as with the Water Fund, the Wastewater Fund will run at a deficit of $950,000 paid from fund reserves. This was outlined in the rate study approved by Council. Similar to the Water Fund, staff would note that a proposed citizen’s initiative to repeal the water and wastewater rate structure would result in the postponement or deferral of numerous wastewater infrastructure projects to improve the City’s wastewater system. This includes a wastewater line upgrade project which was out to bid but put on hold given the uncertainty of the potential initiative which could affect the timing of future street repair projects and housing and other development projects.
Staff Report: FY 2023-24 Mid-Year Budget Review and General Fund Forecast Page 5 February 13, 2024
Table 5
Wastewater Fund FY 2022-2023
Actuals
FY 2023-2024
Budget*
FY 2023-24
Year-to-Date
Revenue
Charges for Services 928,035 1,011,160 565,102
Misc. Income 302,727 409,126
Interest Income 88,278 74,984 0
Total 1,319,040 1,495,270 590,131
Expenditure
Operations and
Maintenance
1,401,670 1,450,526
Major Capital 136,650 4,594,748 2,520
Debt Proceeds 0 (3,600,000) 0
Total 1,538,320 2,445,274 736,765
Surplus/(Deficit) (219,280) (950,004) (146,634)
*2023 Rate Study
Carry-Over of Capital Project Funding and Authorized Appropriations Per Council’s adopted financial policies, any unused appropriations at the end of FY 2022-23 in active capital improvement projects and multi-year programs are re-appropriated for continued use in FY 2023-24. These carryovers include $2 million in the Capital Projects Fund, $307,700 in the Water Fund, and $2.14 million in the Wastewater Fund. A detailed listing is included in Attachment 2.
The financial policies also authorize any remaining balance of one-time authorized appropriations to be carried forward with the approval of the City Manager and Administrative Services Director.
Council previously approved the carryover of $324,782 in FY 2022-23 appropriations and costs that were not expended until FY 2023-24. The list of authorized one-time appropriations that will be carried over to FY 2023-24 for implementation this fiscal year using General Fund are also included in Attachment 2.
Requested Mid-Year Budget Appropriations and General Fund Impact With the fiscal year halfway completed, departments re-evaluated their current operations to identify any unforeseen needs that may need additional funding. Staff is requesting the Council’s approval of mid-year budget appropriation changes for the General Fund totaling $338,988 along with appropriations requested as shown in detail in Attachment 3 and in Table 6 below.
Staff Report: FY 2023-24 Mid-Year Budget Review and General Fund Forecast Page 6 February 13, 2024
Table 6
Dept./Request
101 -
General
Fund
601 -
Water
Fund
603 –
Wastewa
ter Fund
City Manager's Office
Community Center Improvements
15,520
Salary Savings
(15,520)
City Manager Total
0 Police Department
Dispatch Services
310,000
Police Officer Over-hire
61,000
PD Facilities (51 Newport Storage Facility)
120,000
PD Patrol Vehicle Computers
76,000
Salary Savings
(257,000)
Total Police 310,000
Public Works
Hillcrest Water Tank Drainage Improvements
10,000
10,000
Storm Drain Inlet and Outlet Cleaning
30,000
Tire Balancing Machine
6,000
Valve Truck
22,988
Income Survey for Sewer Extension Grant 10,000
Total Public Works 28,988 10,000 50,000
Grand Total
338,988
10,000
50,000
Table 7 on the following page shows the General Fund impact of these recommended mid-year budget appropriations for FY 2023-24 along with the related changes in General Fund reserves from the carry-over of authorized appropriations. There is projected to be a slight variance of $280,800 from FY 2023-24 Budget to Projection and after adding in midyear, carryover, and wastewater fund repayment, the City will have ending reserves of nearly $5.7 million or 35% of operating expenditures.
Staff would note that a major driver of this year’s mid-year appropriations requests is the inclusion of one-time costs for the transfer of dispatch services from the Pismo Beach Police Department to the San Luis Obispo Sheriff’s Office after a determination that continuation of dispatch services provided by Pismo Beach would be prohibitive given a significant cost increase from proposed staffing and building costs. The Police Department is negotiating a multi-year agreement with the Staff Report: FY 2023-24 Mid-Year Budget Review and General Fund Forecast Page 7 February 13, 2024
Sheriff’s Office to provide dispatch services at near the cost currently paid by the City for these services. This agreement will be brought to the Council for approval in March but to prepare for this transition to occur by July 2024, $310,000 in one-time funding for software and other technology equipment is needed now as a mid-year appropriation.
Table 7
General Fund Summary
FY 2023-
2024
Budget
FY 2023-
2024
Projection
Variance
Amount
Variance
Percent
of Budget
(A) (B) (B-A)
Revenues/Transfers In 19,434,800 19,288,000 -146,800 99.24% Expenditures/Transfers Out 18,028,000 18,162,000 134,000 100.74% Surplus/Deficit 1,406,800 1,126,000 -280,800 80.04%
Beginning Reserves 7,410,465 7,410,465 0 100.00%
FY2023 Carryover -2,356,500 -2,356,500 0 100.00%
Wastewater Fund Repayment -142,000 -142,000 0 100.00%
Midyear Requests -338,988 -338,988 100.00%
Ending Reserves 6,318,765 5,698,977 -619,788 95.30%
General Fund Financial Forecast
Economic Trends
The General Fund financial forecast is intended to be a tool which provides a rational forecast of where the City’s financial position will be in five years. Staff annually updates a five-year General Fund financial forecast to evaluate the City’s financial condition and help develop the City’s budget.
The consensus for national economic outlook predicts that federal reserve actions will determine the acceleration of the U.S. economy through 2024. Real GDP for the last quarter of 2023 grew at 4.9%. Compared with 2.9% for the entire year, last quarter’s growth is driven mainly by an increase in consumer spending, asset investments, and government expenditures. Overall, there is lingering uncertainty around inflation which remains at 3.3% year-over-year from December 2022 to December 2023. It should be noted that it was 6.5% in the preceding period of 2021 to 2022. Although interest rates are generally moderating, it is not clear if there will be major revisions based on comments from the Federal Reserve. Statewide, the unemployment rate was
5.1% in December 2023 (up from 4.1% in 2022 and down from 7.7% December 2021).
Based on the latest sales tax forecast ending September 30, 2023, statewide taxable sales down by 3.2% overall compared with the previous year and the Central Coast seeing a slightly smaller decline of 1.4%. Revenue of Autos & Transportation sales tax revenue is up 2.7% year-over-year, and nearly 10% in the last quarter alone. This is likely due to the opening of a new Tesla dealership in the county as well as other new vehicle sales driving sector revenue growth in the local economy. Fuel & Service Stations are up 1.9% from prior year though overall fuel prices have been steadily coming down. In addition, continuing expansion of the electric vehicle market impacts consumption of fuel; electric vehicles accounted for 21.5% of all new vehicles sales in the state for the year ending September 2023. This has created higher sales tax revenues for revenues collected and distributed from the countywide pool versus those collected on a districtwide basis (i.e. Grover Beach) as noted earlier in the report. Therefore, the conservative Staff Report: FY 2023-24 Mid-Year Budget Review and General Fund Forecast Page 8 February 13, 2024
approach taken in this forecast has limited growth in the near term to 2% with steady incremental increases over the five-year forecast horizon.
Statewide, housing sales are expected to jump by 22% in 2024 with analysts factoring in declining mortgage rates. This trend is also seen locally with construction up 26% for the quarter ending September 2023. Drug Stores, including cannabis, had continued declines of 15% from the same period last year. These restrained levels are expected to hold for the foreseeable future not counting any additional business expansion.
City’s Five-Year Forecast
Grover Beach has weathered a challenging business climate due to the diversified tax base in the city. Although there are declines in particular revenues like cannabis, the ability of the City to weather such circumstances and maintain a healthy tax base should be noted as a bullwork against any one single point of failure or a catastrophic situation. Sales tax revenues have decreased slightly in recent months, but this is inevitable in the face of declining inflation.
Ultimately, such declines are often mitigated by the increases in other revenue sources. For instance, property taxes are counter cyclical to a high inflation environment, so when high inflation abates, interest rates will also fall creating higher value to homeowners and greater tax revenues to the City as well as relieving pressure on those unwilling to refinance in a high-rate environment.
This means more revenue through property development and existing home sales.
Although the City still faces significant needs for services and capital improvements, it remains in a strong financial position with reserves over the Council’s 25% goal to meet unforeseen needs.
Also, it is important to note that the pension cost calculated in this forecast uses the latest actuarial report issued in June 2023 and through June 30, 2022, which reflects -6.1% investment loss that was reported by CalPERS for the fiscal year ending June 20, 2022. Such losses are driving significant increases to the City’s unfunded accrued liability (UAL) determined by CalPERS.
Table 8 below shows a summary of this updated five-year forecast with a more detailed version shown in Attachment 4.
Table 8
Overall, the forecast indicates the General Fund is in a positive position over the five-year period though with a small projected surplus in future years with strong reserves. The City forecasts moderate revenue growth and has taken steps to maintain healthy reserves considering the ongoing uncertainties in the national economic picture. Below are some points regarding major revenue sources and guiding assumptions around the forecast:
• Sales Tax. This year’s forecast assumes that general sales tax revenues will increase less than 2% in the current fiscal year but return to a more consistent growth level of 3% in the following fiscal years 2025-29. Significant increases in revenue in prior years have leveled off 2025-26 2026-27 2027-28 2028-29
General Fund Budget Projected Budget Revised Projected Projected Projected Projected Revenues 19,435,000 19,288,000 18,481,000 18,876,000 19,802,000 20,522,000 21,239,000 21,913,000 Total Expenditures 18,028,000 18,162,000 18,761,600 18,765,000 19,404,000 20,147,000 20,805,000 21,268,000 Annual Surplus /(Deficit) 1,407,000 1,126,000 (280,600) 111,000 398,000 375,000 434,000 645,000 Beginning Reserves 5,054,000 5,054,000 5,699,012 5,699,012 5,659,506 5,915,506 6,112,506 6,368,506 Ending Reserves 6,319,000 5,699,012 5,276,412 5,659,506 5,915,506 6,112,506 6,368,506 6,835,506 Reserve as percent of operating. 39% 35% 31% 33% 33% 33% 34% 35% FY 2023-24 FY 2024-25
Staff Report: FY 2023-24 Mid-Year Budget Review and General Fund Forecast Page 9 February 13, 2024
with the reduction in inflation and fiscal stimulus. However, the overall health of the economy and increases in personal income, which has outpaced inflation, have provided some hedge against larger declines.
• Property Tax. Using the County’s revenue estimates, this year’s forecast assumes that the City’s property tax revenues will increase by 4% year-over-year. 4% percent has been consistent over the last 10 years and was provided by SLO County Assessor as expected growth in property rolls. Fiscal years 2024-25 and beyond also assume consistent growth of 4% per year.
• Cannabis Tax. The forecast revises cannabis tax revenue down from $1.32 million for FY 2023-24, to $1.2 million or a 10% decrease from what was budgeted, albeit a slight increase from in FY 2022-23. This forecast takes a conservative approach estimating additional revenues in an incremental approach as fiscal years 2025-28 assume limited growth of 2% per year from the FY 2023-24 revised base of $1.2 million. • Transient Occupancy Tax (TOT). In FY 2022-23 TOT revenues were $925,000, or $125,000 over the budgeted $750,000. This is mainly due to the recovery from the pandemic along with the collection of TOT revenue for permitted short-term rentals. TOT is projected to increase 2% in FY 2023-24 and 3% each year beginning FY 2024-25. The forecast includes TOT for a future hotel project anticipated to be completed in FY 2024-25.
FISCAL IMPACT
The appropriations requested for the current FY 2023-24 midyear budget total $338,988 for the General Fund, $28,988 for the Water Fund, and $50,000 for the Wastewater Fund. Total FY 2022- 23 carryover of special one-time authorized General Fund appropriations total $324,782. CIP project carryovers from FY 2022-23 total $2,031,691 for the General Fund via reserves. Water and Wastewater appropriations will be paid from respective fund reserves at $307,700 and $2,149,018 each.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive the FY 2023-24 Mid-Year Budget Review including the updated General Fund Financial Forecast; approve mid-year budget augmentations; and provide input and direction to staff; or
2. Do not approve mid-year appropriation requests; or
3. Provide staff with alternate direction.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Staff Report: FY 2023-24 Mid-Year Budget Review and General Fund Forecast Page 10 February 13, 2024
Attachments
1. Water and Wastewater CIP
2. FY 2022-23 CIP Carryover to FY 2023-24
2. Mid-Year Appropriation Requests
3. General Fund Five Year Financial Forecast
Attachment 1
Water Fund - 601 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Total Central Coast Blue $2,528,400 $19,676,777 $0 $0 $0 $22,205,177 Water Main Zone Valves 75,000 $75,000
Well Capacity Analysis Improvements 75,000 $75,000
16th Street Booster Station 180,000 780,000 $960,000
Water Meter Replacement Meter Program 300,000 150,000 150,000 150,000 150,000 $900,000 Automated Meter Reading 300,000 $300,000
Reservoir Maintenance 1,577,700 $1,577,700
Total Water CIP $4,556,100 $20,006,777 $930,000 $150,000 $450,000 $26,092,877 Wastewater Fund - 603 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Total Sewer Upgrade for Existing and Future Flows $3,600,000 $3,600,000 Front Street Lift Station Upgrades 144,748 $144,748
South Oak Park Lift Station Upgrades 150,000 $150,000
Sewer Upgrade for Existing Flows 400 3,100 $3,500
Replace Portion of Damaged Strom Drain 140,000 $140,000 Citywide Sewer Lining Project 100,000 100,000 100,000 100,000 100,000 $500,000 Total $4,394,748 $240,000 $100,000 $100,000 $3,200,000 $8,034,748 Water and Wastewater CIP
Attachment 2
FY2023-2024 Carryover 2/9/2024
Capital Projects
Project Description Amount
2004 Train Station Stormwater Alt Compliance 30,000
2278 North 12th Street Sidewalk 9,189
2283 Local Street Rehabilitation Program 50,744
2287 Major Streets: West Grand Ave Streetscape 1,673,960 3002 City Corp Yard Improvements 100,000
3004 Facilities Conditions and Needs Assessment 138,464 Asset Management System 29,333
2,031,691
603 Wastewater
Project Description Amount
5002 Sewer System Upgrades for Existing Flows 1,867,052 5003 Front Street Lift Station Upgrades 81,966
5010 Sewer Upgrade for Existing Flows 200,000
2,149,018
601 Water
Project Description Amount
4007 Water Main Zone Valves 50,000
4008 Well Capacity Analysis and Improvements 75,000
4270 Water Meter Replacement Program 150,000
4391 Reservoir Maintenance Program 32,700
307,700
Department Name Amount
Administrative
Services
Department
Services - Annual Maintenance Agreement for IT
back-up storage and rooftop cable access.
Equipment Purchase Carryover for server and
networking costs. 83,542
Community
Development
Department
Contractual Obligations Community Development
carryover $60k circulation element, $60k noise
element for general plan updates. 100,989
Public Works Contract for electronic filing agreement. 5,000 Police Department Carryover for remainder van acquisition costs. 135,251 Total 324,782
Non-CIP
General Fund Five Year Forecast Attachment 3
2022-2023
Total Activity
2023-2024
Budget
2023-2024
Revised
2024-2025
Budget 2024-2025 Revised 2025-2026 2026-2027 2027-2028 2028-2029
REVENUES
Property Tax 5,547,000 5,720,000 5,949,000 5,876,000 6,187,000 6,434,000 6,691,000 6,959,000 7,237,000 Sales Tax
General: 1% 2,094,000 2,167,000 2,194,000 2,226,000 2,255,000 2,302,000 2,346,000 2,387,000 2,425,000 Measure X: 1/2% 1,336,000 1,274,000 1,302,000 1,309,000 1,343,000 1,418,000 1,508,000 1,593,000 1,672,000 Measure F-20: 1% 2,452,000 2,587,000 2,644,000 2,657,000 2,727,000 2,878,000 3,061,000 3,234,000 3,395,000 State Sales Tax - Public Safety 111,000 116,000 117,000 120,000 120,000 123,000 125,000 127,000 129,000 Transient Occupancy Tax 924,000 900,000 918,000 927,000 946,000 974,000 1,003,000 1,033,000 1,064,000 TOT-est 950 El Camino - - - - 185,000 408,000 416,000 424,000 424,000 Utility Users Tax 206,000 206,000 210,000 193,000 214,000 218,000 222,000 226,000 231,000 Cannabis Tax 1,198,000 1,326,000 1,200,000 1,353,000 1,224,000 1,248,000 1,273,000 1,298,000 1,298,000 Business Tax 157,000 163,000 166,000 166,000 169,000 174,000 179,000 184,000 190,000 Other Taxes - - - - - -
Franchise Fees 704,447 735,000 750,000 948,000 750,000 765,000 780,000 796,000 812,000 Fiber Optic Cable (4 @ $100K) - 100,000 100,000 300,000 300,000 300,000 300,000 300,000 300,000 Total Taxes and Franchises 14,729,447 15,294,000 15,550,000 16,075,000 16,420,000 17,242,000 17,904,000 18,561,000 19,177,000 From Other Governments 832,000 1,015,000 573,000 70,000 70,000 53,000 55,000 57,000 57,000 Licenses and Permits 424,554 223,000 227,000 229,000 232,000 237,000 242,000 247,000 252,000 Service Charges 953,000 985,000 953,000 1,008,000 972,000 1,028,000 1,049,000 1,070,000 1,091,000 Use of Money and Property 255,000 341,000 260,000 344,000 265,000 270,000 275,000 281,000 287,000 Total Revenues 17,194,001 17,858,000 17,563,000 17,726,000 17,959,000 18,830,000 19,525,000 20,216,000 20,864,000
EXPENDITURES
Operating Programs
Salaries and Benefits 8,536,000 9,103,000 9,103,000 9,581,000 9,868,000 10,164,000 10,469,000 10,783,000 11,106,000 Supplies and Services 6,229,000 7,215,000 7,215,000 7,284,000 7,430,000 7,653,000 7,959,000 8,158,000 8,321,000 Minor Capital 667,204 85,000 85,000 -
Total Operating Programs 15,432,204 16,403,000 16,403,000 16,865,000 17,298,000 17,817,000 18,428,000 18,941,000 19,427,000 Interdepartmental Charge 1 - -
Other 75 - -
Major Capital - - -
Debt Service 154,000 34,000 168,000 296,600 267,000 267,000 267,000 267,000 241,000 CIP (Fund 11) Transfers Out 387,000 1,591,000 1,591,000 1,600,000 1,200,000 1,320,000 1,452,000 1,597,000 1,600,000 Total Expenditures 15,973,204 18,028,000 18,162,000 18,761,600 18,765,000 19,404,000 20,147,000 20,805,000 21,268,000
OTHER SOURCES & USES
Cost Allocation Transfers 515,000 532,000 532,000 548,000 564,000 581,000 598,000 616,000 634,000 Other Transfers In 31,000 67,800 240,000 70,000 247,000 254,000 262,000 270,000 278,000 Replacement Fund 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 Long-Term Debt Issued (Proceeds) 840,000 840,000
Transfer Out Rate Increase Contribution (24,000) (30,700) Total Sources and Uses 546,000 1,576,800 1,725,000 755,000 917,300 972,000 997,000 1,023,000 1,049,000 Sources Over (Under) Uses 1,766,797 1,406,800 1,126,000 (280,600) 111,300 398,000 375,000 434,000 645,000 Reserves, Start of Year 5,785,668 5,053,965 5,053,965 5,698,977 5,698,977 5,659,771 5,915,771 6,112,771 6,368,771 End of Year 7,552,465 6,460,765 6,179,965 5,418,377 5,810,277 6,057,771 6,290,771 6,546,771 7,013,771 Wastewater Fund Repayment (142,000) (142,000) (142,000) (142,000) (142,000) (142,000) (178,000) (178,000) (178,000) CIP & Other Carryover (2,356,500)
Midyear Budget Adjustments (338,988) (8,506)
RESERVES, EOY 5,053,965 6,318,765 5,698,977 5,276,377 5,659,771 5,915,771 6,112,771 6,368,771 6,835,771 Reserve as Percent of Operating Programs 33% 39% 35% 31% 33% 33% 33% 34% 35% Attachment 4
Budget Adjustments FY2023-24 Midyear
2/9/2024
Fund Fund Name Department Name FiscalYear Amount
101 101 - General Fund City Manager's Office Community Center Improvements 2023-2024 Revised 15,520 101 101 - General Fund City Manager's Office Salary Savings 2023-2024 Revised (15,520) 101 101 - General Fund Police Department PD Facilities (45 Newport) 2023-2024 Revised 120,000 101 101 - General Fund Police Department PD Patrol Vehicle Computers 2023-2024 Revised 76,000 101 101 - General Fund Police Department Overhire 2023-2024 Revised 61,000 101 101 - General Fund Police Department Dispatch Services Software and Tech. Equipment 2023-2024 Revised 310,000 101 101 - General Fund Police Department Salary Savings 2023-2024 Revised (257,000) 101 101 - General Fund Public Works Valve Truck 2023-2024 Revised 22,988 101 101 - General Fund Public Works Tire Balancing Machine 2023-2024 Revised 6,000 601 601 - Water Fund Public Works Hillcrest Water Tank Drainage Improvements 2023-2024 Revised 10,000 603 603 - Wastewater Public Works Storm Drain Inlet and Outlet Cleaning 2023-2024 Revised 30,000 603 603 - Wastewater Public Works Hillcrest Water Tank Drainage Improvements 2023-2024 Revised 10,000 603 603 - Wastewater Public Works Income Survey 2023-2024 Revised 10,000 Total 398,988
FY24
General Fund 338,988
Water Fund 10,000
Wastewater Fund 50,000