MAYOR AND CITY COUNCIL:
Joe Males
Mayor (District 4)
Malcolm Lilienthal
Mayor Pro Tem (District 3)
Jaculin "Jackie" Peterson
Council Member (District 2)
Linda Krupa
Council Member (District 5)
Mark Prestwich
City Manager
Steven Graham
City Attorney
John P. Maier
City Clerk
CITY COUNCIL AGENDA
CITY OF HEMET, CALIFORNIA
Wednesday, May 24, 2023
City Council Chamber
450 E. Latham Ave., Hemet, California 92543
SPECIAL MEETING AT 1:30 P.M.
In accordance with the Governor’s Declarations of Emergency for the State of California (Executive Orders N-25-20 and N-29-20) and the Governor’s Stay at Home Order (Executive Order N-33-20), the City of Hemet is providing alternative measures for the public to attend/view City Council Meetings.
Council Chamber: In-person participation is limited in the Council Chamber in order to maintain social distancing room capacity.
Live Stream: This meeting will be live-streamed on the City's website at hemetca.gov/agenda.
Public Comments: Members of the Public who wish to comment on matters before the Council, in lieu of attending in person, may submit comments on or before 12:00 p.m. the day of the meeting by using the following link: Online Comment Form. Comments will be added to the official meeting record.
Teleconference: Residents may also submit public comments by teleconference during Communications from the Public by using the following Zoom link:
https://us02web.zoom.us/j/81892094558
Webinar ID: 818 9209 4558
Passcode: 745765
Telephone: Dial (for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 253 215 8782
We appreciate your understanding during this unprecedented time of social distancing under the Safer at Home orders. These procedures may be modified in the future as social and public gathering protocols change. Thank you.
Notice Regarding Americans with Disability Act
In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting or if you need agenda documents provide in an alternate format, please contact the City Cl erk’s Office at (951) 765-2307 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made (28CFR 35.102 -35.104 ADA Title II)
Page
SPECIAL MEETING - WORK STUDY SESSION 1:30 P.M.
1. CALL TO ORDER
2. ROLL CALL
3. INVOCATION
4. PLEDGE OF ALLEGIANCE
5. COMMUNICATIONS FROM THE PUBLIC
At this time, members of the public may only comment on items appearing in the Discussion Item section. Please adhere to the following when addressing the Council:
• Comments will be limited to 3 minutes or less.
• Comments should be directed to the Council as a whole and not directed to individual Council Members.
• Please follow the adopted rules of decorum: Resolution No. 4545.
5.A Public Comment for Items Listed on the Agenda
6. DISCUSSION ITEM
6.A Fiscal Year 2023-2024 Budget Workshop
Staff Report #23-170 - Pdf
Recommendation:
Discussion of Fiscal Year 2023-2024 Budget Workshop.
5 - 29
7. ADJOURNMENT
AFFIDAVIT OF POSTING
I, John Paul Maier, MMC, City Clerk for the City of Hemet, declare under penalty of perjury that the foregoing agenda was posted at City Hall located at 445 E. Florida Ave., the Council Chamber located at 450 E. Latham Ave., Hemet, CA, and the City Website.
Date & Time: May 19, 2023 at 1:30 p.m.
Meeting Schedule: The City Council of the City of Hemet regularly meets on the second and fourth Tuesdays of each month at 7:00 p.m., unless otherwise noted. Closed and Special Sessions will be duly noticed as needed.
Council Agendas: Agendas for Regular Meetings are available for public review on the City’s website at hemetca.gov and in the City Clerk’s Office, 445 E. Florida Ave. typically by 4:00 p.m. on th e Thursday prior to the meeting, but no later than 72 hours prior to the meeting. Agendas for Closed and Special Sessions are made available at least 72 hours prior to the meeting when possible, but no later than 24 hours prior to the meeting.
Livestream: Regular City Council Meetings are available for viewing during the meeting at hemetca.gov.
Use of Equipment: Please contact the City Clerk’s Office if reques ting to use the chamber equipment as part of a scheduled presentation 24 hours prior to the meeting at (951) 765-2307
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: Special City Council Meeting - May 24 2023
Department: Administration
Submitted by: Mark Prestwich, City Manager
Mark Prestwich, City Manager;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing
TITLE:
Fiscal Year 2023-2024 Budget Workshop
RECOMMENDED ACTION:
Discussion of Fiscal Year 2023-2024 Budget Workshop.
STRATEGIC PLAN INTEGRATION:
N/A
ATTACHMENT(S):
FY2324 Budget Workshop FINAL
6.A
City of Hemet
FY 2023-24 Budget Workshop
May 24, 2023
1
6.A
Strategic Plan Integration
Quality of Life Partnership &
Collaboration
Organizational
Effectiveness
Community
Engagement
Economic
Opportunity
2
6.A
Purpose
3 • Review Financial Trend History
• Discuss Budget Development Principles
• Discuss Key Cost Drivers Affecting the FY 2023-24 Budget • Receive Feedback
6.A
Housing Element Update
Key Revenue Trends
4
6.A
Housing Element Update
Sales and Measure U Tax Trend
Sales Tax Measure U
2010 Actuals 7,733,925
2011 Actuals 9,436,042
2012 Actuals 9,426,498
2013 Actuals 10,117,563
2014 Actuals 11,042,977
2015 Actuals 11,680,380
2016 Actuals 12,274,937 -
2017 Actuals 12,304,487 1,870,277
2018 Actuals 12,349,256 11,096,607
2019 Actuals 13,248,921 11,736,852
2020 Actuals 13,620,330 11,731,128
2021 Actuals 17,461,758 14,806,142
2022 Actuals 18,499,170 16,566,511
2023 Estimated 18,181,000 16,871,000
2024 Projected 18,066,000 16,840,000
5
6.A
Housing Element Update
General Fund Allocation Methodology
6 GENERAL FUND REVENUE ALLOCATION
Public Safety 54,745,912 79%
Non-Public Safety 14,741,188 21%
General Fund (All) 69,487,100
All General Fund Revenue
69,487,100$
General Fund Measure U
52,647,100$ 16,840,000$
Public Safety - 72% Non-Public Safety - 28% Police - 2/3 Fire - 1/3 37,905,912$ 14,741,188$ 11,226,667$ 5,613,333$
Police - 2/3 Fire - 1/3
25,270,608$ 12,635,304$
6.A
Housing Element Update
General Fund Revenue
In FY21 Vehicle In Lieu of Tax was recategorized from Taxes to Intergovernmental Revenues. 7 His torical data from annual ACFR.
6.A
Housing Element Update
FY 23-24 General Fund
8 Estimated Revenues
6.A
Housing Element Update
General Fund Expenditures
9 His torical data from annual ACFR.
6.A
Housing Element Update
Pension Obligations/OPEB
Pension and OPEB obligations continue to rise creating a significant impact to the City’s overall operational budget.
10 Pension OPEB Total PY Change
2012 7,074,770.65 2,839,176.12 9,913,946.77$ 2013 6,779,238.74 3,115,241.33 9,894,480.07$ (19,466.70)$ 2014 7,673,505.79 3,366,718.09 11,040,223.88$ 1,145,743.81$ 2015 8,300,881.45 3,509,793.66 11,810,675.11$ 770,451.23$ 2016 8,974,366.62 3,647,880.12 12,622,246.74$ 811,571.63$ 2017 9,812,818.39 4,069,351.60 13,882,169.99$ 1,259,923.25$ 2018 10,862,972.39 3,489,596.18 14,352,568.57$ 470,398.58$ 2019 12,626,518.81 3,963,681.15 16,590,199.96$ 2,237,631.39$ 2020 13,080,135.55 4,187,921.10 17,268,056.65$ 677,856.69$ 2021 13,848,155.33 4,588,367.65 18,436,522.98$ 1,168,466.33$ 2022 15,092,993.93 4,658,644.93 19,751,638.86$ 1,315,115.88$ 2023 15,847,600.00 4,970,300.00 20,817,900.00$ 1,066,261.14$ 2024 16,243,790.00 5,119,409.00 21,363,199.00$ 545,299.00$ 2023 is estimated budget cost; 2024 is projected cost
Impactful Pension Debt Factors:
1. Investment Returns
2. Changes in Discount Rate
3. Other Actuarial Assumption Changes
4. Retirement Plan Formula
6.A
11 The below table shows the projected benefit payments for the next 30 years for a closed group of participants (both active employees and existing retirees) who are included in the census data as of July 1, 2021.
Pension Obligations/OPEB (con’t)
6.A
Housing Element Update
FY 23-24 General Fund
12 Appropriations by Department
6.A
FY 23-24 General Fund Requested Budget (Resources)
13 Resources
FY22-23
Amended
FY22-23
Estimate
FY23-24
Recommended
$ Change from
FY22-23 Budget
% Change from
FY22-23 Budget
Sales Tax 16,770,000 18,181,000 17,838,000 1,068,000 6.369% Measure U Transaction Tax 15,000,000 16,871,000 16,840,000 1,840,000 12.267% Property Taxes 8,070,300 9,024,755 9,274,700 1,204,400 14.924% Intergovernmental Motor Vehicle License Fee 7,600,000 8,449,726 8,528,000 928,000 12.211% Franchise Fees 5,602,068 5,055,000 5,055,000 (547,068) -9.765% Community Development Revenues 3,581,648 4,407,419 3,904,200 322,552 9.006% Other/Miscellaneous 2,387,900 2,473,876 2,863,900 476,000 19.934% General Administration 1,215,200 1,215,200 1,297,500 82,300 6.773% Intergovernmental - Other 835,167 525,905 960,000 124,833 14.947% Transient Occupancy Tax 900,000 950,000 900,000 - 0.000% Charges for Services 641,800 602,780 699,100 57,300 8.928% Use of Money & Property 541,150 241,258 472,500 (68,650) -12.686% Business License 361,700 391,900 391,900 30,200 8.349% Fines and Penalties 95,100 136,100 90,100 (5,000) -5.258% Licenses & Permits 74,355 73,805 72,200 (2,155) -2.898% Transfers 300,000 300,000 300,000 - 0.000% TOTAL GENERAL FUND RESOURCES 63,976,388 68,899,724 69,487,100 5,510,712 8.61%
6.A
FY 23-24 General Fund Requested Budget (Uses)
14 Uses
FY22-23
Amended
FY22-23
Estimate
FY23-24
Recommended
$ Change from
FY22-23 Budget
% Change from
FY22-23 Budget
City Council 138,400 132,655 146,700 8,300 5.997% City Manager 1,380,150 1,063,849 1,344,800 (35,350) -2.561% City Clerk 657,300 568,837 729,400 72,100 10.969% Community Development 2,057,789 1,571,236 1,947,500 (110,289) -5.360% Finance 1,324,000 1,320,049 1,354,800 30,800 2.326% City Treasurer 78,900 60,791 81,800 2,900 3.676% Fire - Department of Life Safety 2,612,577 2,258,000 2,577,500 (35,077) -1.343% Fire - General Fund 11,718,735 11,326,473 12,635,300 916,565 7.821% Fire - Measure U 8,596,761 7,605,778 5,613,300 (2,983,461) -34.704% Fire - Measure U (use of one-time fund balance) 70,000 70,000 879,200 809,200 1156.000% Human Resources 796,900 591,743 860,700 63,800 8.006% Library 1,618,489 1,494,773 1,710,000 91,511 5.654% Non-Departmental Animal Regulation 393,000 400,564 600,000 207,000 52.672% Non-Departmental (use of one-time fund balance) 950,000 1,034,331 4,572,000 3,622,000 381.263% Police - General Fund 23,525,030 19,801,830 25,270,600 1,745,570 7.420% Police - Measure U 10,963,070 7,561,255 11,226,700 263,630 2.405% Police - Measure U (use of one-time fund balance) 1,800,000 1,800,000 2,642,400 842,400 46.800% Public Works 3,271,048 2,287,734 3,368,000 96,952 2.964% Transfers 20,000 20,000 20,000 - 0.000% TOTAL ESTIMATED USES 71,972,150 60,969,899 77,580,700 5,608,550 7.79%
6.A
FY 23-24 General Fund Requested Budget (con’t)
15 FY22-23
Amended
FY22-23
Estimate
FY23-24
Recommended
TOTAL GENERAL FUND RESOURCES 63,976,388 68,899,724 69,487,100 TOTAL ESTIMATED USES 71,972,150 60,969,899 77,580,700 Change in Fund Balance (7,995,762) 7,929,825 (8,093,600) Projected Transfer of Continuing Appropriations (5,171,250) Projected FY22-23 General Fund Suplus/(Deficit) 2,758,575
6.A
FY 23-24 Budget Requests Using One -Time Fund Balance
16 FY 2023-24 Supplemental Requests Using One-Time Fund Balance - General Fund Department Description Beginning FB FY23-24 Uses
Projected
Ending FB
Non-Departmental Capital Outlay - City-wide Street Improvement Project 2,000,000 Non-Departmental Capital Outlay - Auto Mall Pavement Improvement Project 1,000,000 Non-Departmental Capital Outlay - Safe and Clean Streets Initiative 500,000 Non-Departmental Capital Outlay - City-wide Façade Improvement Program (Macro) 350,000 Non-Departmental Pension - 115 Trust Contribution 280,000 Non-Departmental Capital Outlay - City Beautification Project (T Enclosures/Roof) 226,000 Non-Departmental Capital Outlay - City-wide Commercial Façade Impr Prgm (Micro) 100,000 Non-Departmental Professional Services - Community Engagement 66,000 Non-Departmental Buildings - City Hall Facility Improvement 25,000 Non-Departmental Buildings - City Hall Patio Upgrades 20,000 Non-Departmental Buildings - City Hall Lactation Room 5,000 Total General Fund One-Time Use of Fund Balance 32,945,716$ 4,572,000$ 28,373,716$
6.A
FY 23-24 Budget Requests Using One -Time Fund Balance
17 FY 2023-24 Supplemental Requests Using One-Time Fund Balance - Measure U Department Description Beginning FB FY23-24 Uses
Projected
Ending FB
Police Professional Services - City Net 1,200,000
Police Vehicles (8) 770,000
Fire Vehicles - Restore Vehicle/Equipment Replacement Fund 683,300 Police Vehicles - Armored Rescue Vehicle (Lenco) 370,000 Police Vehicles - Restore Vehicle/Equipment Replacement Fund 182,400 Police Cameras for Real Crime Center 120,000
Fire Buildings - Station 2 Fence 100,000
Fire Buildings - Covell Building Security/ Technology Upgrades 80,000 Fire Contracts - Prepaid Warranty for Motorola (Yr 3) 15,900 Total Measure U One-Time Use of Fund Balance 13,466,261$ 3,521,600$ 9,944,661$
6.A
Housing Element Update
Expenditure Cost Drivers
18 General Fund Cost Drivers Discretionary Amount
Agreed to 3% MOU increases N 634,300$
Increase Contribution to Pension 115 Trust Y 500,000$
FY 23-24 Citywide Position Changes - Netted Y 482,000$
Increase in IT charges because IT fund balance was used to offset some FY 22-23 costs Y 450,000$ Increase in OPEB costs Y 346,000$
Increase in CJPIA liability costs Y 300,000$
FY 23-24 Fire Fighter / Paramedic (6) upgrades to Fire Engineer / Parmedics (3) and Fire Captains (3) Y 294,000$ Increase to contract for Animal Services N 282,000$ * Increase in Facilities Maint costs from utility rates, janitorial contract costs, supply costs Y 260,000$ Increase to PERS UAL N 181,500$
Increase in Workers' Compensation costs N 155,000$
Continuation of FY 22-23 Mid-Year Staffing Requests: (1) Community Development - Associate Planner N 110,000$ Contract services for on/off site engineering plan checks; grading/precise plan check; engineering map plan check; entitlement reviews. Y 100,000$ Increase in Fleet Maint costs from liability cost increases and parts/supplies increases Y 90,000$ Increase in Overtime - All Departments Y 74,000$
Increase in Legal Services for Labor Contract Negotiations N 70,000$ Duty & Training Ammunition/Weapons, Uniform/Safety Equipment Y 60,500$ * Animal Control is a placeholder based on a contract increase to $600,000 and may increase with pending future negotiations.
6.A
Housing Element Update
General Fund Balance
19
6.A
Housing Element Update
General Fund Balance (con’t.)
20 General Fund Measure U 20% Reserve Total
FY 2012-13 17,377,198 - 4,661,216 22,038,414$ FY 2013-14 11,895,184 - 7,017,962 18,913,146$ FY 2014-15 9,747,500 - 7,169,035 16,916,535$ FY 2015-16 7,483,940 - 7,727,108 15,211,048$ FY 2016-17 3,364,296 1,208,719 8,294,791 12,867,806$ FY 2017-18 1,493,718 6,960,117 8,241,977 16,695,812$ FY 2018-19 2,352,346 11,680,431 8,213,633 22,246,410$ FY 2019-20 5,331,177 13,400,650 8,171,672 26,903,499$ FY 2020-21 15,168,097 16,194,263 8,232,991 39,595,351$ FY 2021-22 25,608,761 19,896,092 8,555,534 54,060,387$
6.A
Housing Element Update
General Fund Balance (con’t.)
FY 2021-22 Itemized Fund Balance
Non-spendable
General Fund 49,646$
Measure U 2,064,374$
Restricted 1,925,711$
Committed
General Fund 8,555,535$
Measure U 17,831,718$
Assigned 1,749,367$
Unassigned 21,884,037$
54,060,387$
21 20% Reserve $8,555,535 20% Reserve $3,566,344
Unassigned $21,884,036 Committed $14,265,374
25% Reserve $10,694,418 25% Reserve $4,457,930
Unassigned $19,745,153 Unassigned $13,373,789
30% Reserve $12,833,301 30% Reserve $5,349,515
Unassigned $17,606,270 Unassigned $12,482,203
Reserve Options
Reserve Requirement Measure U
Reserve Options
6.A
Housing Element Update
City Comparison of GF and Public Safety Budget
22 City General Fund
Budget
Public Safety
Budget Police Budget Fire Budget
Percent
of
Budget
Approx.
Population
Per Capita
July 2021
Median
Household
Income 2021
Hemet* $66,288,700 $52,072,300 $35,006,700 $17,065,600 79% 90,436 23,123$ 46,194$ Moreno Valley $124,521,412 $77,516,117 $53,936,492 $23,579,625 62% 211,600 23,914$ 73,635$ Cathedral City $59,955,600 $36,772,275 $21,991,231 $14,781,044 61% 52,220 30,108$ 56,671$ San Jacinto $32,220,931 $18,974,554 $16,316,987 $2,657,567 59% 55,290 22,610$ 62,144$ Victorville $88,697,307 $50,938,868 $33,626,758 $17,312,110 57% 135,950 23,063$ 61,206$ Temecula $91,960,495 $52,284,552 $41,061,970 $11,222,582 57% 110,846 39,318$ 103,546$ Menifee $86,059,273 $47,237,176 $27,592,345 $17,929,254 55% 106,401 36,542$ 80,741$ Riverside $389,457,874 $209,528,014 $138,258,718 $71,269,296 54% 317,261 28,771$ 76,755$ Banning $27,189,023 $14,314,749 $10,764,525 $3,550,224 53% 30,273 24,938$ 46,834$ Yucaipa $33,770,040 $17,259,667 $12,130,256 $5,129,411 51% 54,739 32,829$ 75,456$ Redlands $109,430,426 $55,104,126 $35,335,442 $19,768,684 50% 73,288 42,127$ 87,184$ Perris $57,867,120 $28,617,483 $23,105,279 $5,512,204 49% 78,700 22,038$ 70,910$ Corona $182,509,502 $82,197,909 $49,386,320 $32,811,589 45% 159,743 34,752$ 95,268$ Beaumont $53,291,770 $21,699,190 $17,028,229 $4,670,961 41% 55,280 32,061$ 92,797$ Palm Springs $232,172,414 $72,484,405 $45,474,713 $27,009,692 31% 45,019 56,196$ 61,597$ Source: City's FY 22-23 Budget
*Includes Measure U
6.A
Housing Element Update
FTE Summary by Department
23 FTE Summary by Department
Adopted
FY 22-23
Proposed
FY23-24
City Council 5.0 5.0
City Manager 4.7 5.0
City Clerk 3.0 3.0
Finance 16.3 16.0
City Treasurer 1.0 1.0
Human Resources 4.5 4.0
Information Technology 4.0 4.0
Police (Sworn) 82.0 90.0
Police (Non-Sworn) 54.3 58.4
Fire (Sworn) 55.0 65.0
Fire (Non-Sworn) 8.0 22.5 * Library 9.0 8.0
Community Development 19.5 9.0 * Public Works 71.0 82.5 ** 337.3 373.4
* Building and Code Compliance programs were reassigend from Community Development to Fire. ** Increase in Public Works is due to additional positions which include 4.5 ARPA Maintenance Aides.
6.A
Housing Element Update
Discussion/Feedback
24 • Feedback on Revenue Assumptions
• Feedback/direction on General Fund Reserve Levels
• Questions?
6.A