CITY COUNCIL MEETING
FEBRUARY 22, 2022
PRESENTATIONS
PUBLIC HEARING
ITEM #8
LB 22-007
FY 2022
MID-YEAR BUDGET
UPDATE AND
RECEIVING THE
GENERAL FUND
LONG RANGE
FINANCIAL MODEL
UPDATE
1 FY 2022 Mid-Year Budget Review and
General Fund Long Range Financial
Model Update
Nicole Gonzales, Deputy Director of Finance
Dustin Claussen, Director of Finance
2 Summary of Proposed General Fund
Mid-Year Changes (Expenditures)
Previous Council Approved Appropriation FY 2022 Impact ($) Employee Contract Terms - HAME, Local 21, SEIU $1,008,998 STEP Grant Appropriations
Transfer-Out to General Fund CIP Fund for General Plan Update $405,000
$125,561
Hayward Literacy Council Reimbursement $14,285
Previous Council Approved Appropriations Subtotal $1,553,844 Proposed Mid-Year Requests (new)
Net reduction of Expenditures ($598,000)
Increase in Transfer Out to Other Funds $1,863,223
Proposed Mid-Year Requests (new) Subtotal $1,265,223
TOT AL CHANGE IN GENERAL FUND EXPENSES $2,819,067
3 Proposed
FY 2022
Mid-Year
Changes –
General Fund
(in thousands)
FY 2022
Adopted Change
FY 2022
Mid-Year
Revised
Revenue
Real Property Transfer Tax $2,500
Utility Users Tax $0
Transient Occupancy Tax $0
Cannabis Tax $268
Parking Citation revenue $30
Total Revenue $178,634 $4,634 $183,268
Expenditures
No Mid-Year Personnel Requests $0
Employee Contract Terms - HAME, Local 21, SEIU $1,009
Net Staffing Expenses $144,720 $1,009 $145,729
Navigation Center appropriation reduction (City Manager's Office) ($1,000) Supplies & Services (Human Resources) $352
Supplies & Services (Maintenance Services) $50
Transfer-Out to Other Funds $1,863
Previous Council Approved Appropriation - Non-Personnel Expenses $545
Net Operating Expenses $40,067 $1,810 $41,877
Total Expenditures $184,787 $2,819 $187,606
Total Surplus/(Shortfall) ($6,153) $1,815 ($4,338)
4 Updated General Fund 5-Year Forecast
GENERAL FUND FORECAST -
Proposed FY 2022 Mid-Year Changes
in thousands FY 2022
Year 1
FY 2023
Year 2
FY 2024
Year 3
FY 2025
Year 4
FY 2026
Year 5
Revenues $183,269 $190,480 $198,191 $205,976 $213,023
Expenditure 187,606 191,946 199,497 207,690 214,154
Net Change in Reserve - Surplus / (Shortfall) (4,338) (1,466) (1,307) (1,714) (1,131) Beginning Balance* $36,130 $39,042 $44,826 $43,519 $41,805 Net Change in Reserve - Surplus / (Shortfall) (4,338) (1,466) (1,307) (1,714) (1,131) Transfer-In ARPA State and Local Relief Funds 7,250 7,250 Ending Balance $39,042 $44,826 $43,519 $41,805 $40,674
Target to maintain 20% GF Reserves in Operating Expenses $37,521 $38,389 $39,864 $41,503 $42,798 General Fund Reserve Level as % of Total Expenses 20.8% 23.4% 21.9% 20.3% 19.2% Amount Above or (Below) Target 20% $1,521 $6,435 $3,830 $652 ($1,605) Percentage Above or (Below) Target 20% 4.0% 16.8% 9.6% 1.6% (3.8%) 5 Long Range
General Fund
Reserve
Projection
6 Summary of
Proposed
Mid-Year
Changes for
Other and CIP
Funds
(Expenditures)
OTHER FUNDS
CIP FUNDS
in thousands
FY 2022
Impact ($)
Previous Council Approved Appropriations $ 3,905 Previous Council Approved - ARPA Funds $ 18,852
Total Previous Council Approved Appropriations $ 22,757 Proposed Mid -Year Requests (new) $ 2,858
Proposed Mid-Year Request - Measure C Transfer $ 19,875 Total Proposed Mid-Year Requests (new) $ 22,733
TOT AL OTHER FUNDS EXPENSES $ 45,490
in thousands
FY 2022
Impact ($)
Previous Council Approved Appropriations $ 1,361 Proposed Mid -Year Requests (new) $ 4,744
TOT AL OTHER FUNDS EXPENSES $ 6,105
7 Recommendation
That the Council….
1. Review the FY 2022 Mid-Year Budget
2. Adopts a Resolution Providing Amendments to the adopted FY 2022 Operating Budget
3. Adopts a Resolution Providing Amendments to the adopted FY 2022 Capital Improvement Program Budget