Midyear Budget
Update FY 21-22
CITY COUNCIL MEETING
FEBRUARY 22, 2022
Purpose of Midyear Review/Update
The Midyear Budget Review is an essential element in
maintaining financial stability.
It provides the City Council an opportunity to:
Review the General Fund operating results for the first half of the year. Make adjustments to achieve a more accurate budget for the current fiscal year (resulting in a greater budget transparency); and
Help shape the development of next year’s budget
Tonight’s Objectives
Presentation
Receive update on General Fund financial projections
ARPA Fund priority projects and proposed spending plan Proposed Midyear budget amendment request
Action
Consider resolution to amend the FY 21-22 budget
FY 21-22 Midyear Budget Review
General Fund Highlights
General Tax revenues not impacted by COVID-19 pandemic Mandatory closure continues to affect Parks & Recreation programs Minimal midyear operating expenditure requests
Allocation of American Recovery Plan Act (ARPA)
Proposed Midyear Budget Amendment
General Fund and ARPA
•Increasing beginning available balance by $896K based on FY 20-21 positive results
•Reducing both Parks & Recreation program revenues and expenditures by $1 million
•Upgrading the part-time to full-time position for Administrative Support for $45K
•Recognizing one-time revenues from ARPA for the calculated loss of revenues $2.9M
•Recommended priority projects using ARPA
•Adjustment to IT budget by $125K reimbursed by the Insurance General Fund
FY 21-22 Midyear Projection
Adopted Midyear Midyear
Budget Adjustments Proposal
Beginning Balance $1,241,944 $896,882 $2,138,826
Revenues
Operations 16,845,000 (1,000,000) 15,845,000
One-time 1,056,000 - 1,056,000
Expenditures
Operations 16,233,000 (955,000) 15,278,000
One-time 2,666,500 2,666,500
Net Annual Activity
Operations 612,000 (45,000) 567,000
One-time (1,610,500) - (1,610,500)
Ending Balance $243,444 $851,882 $1,095,326
American Recovery Plan Act (ARPA)
Priority Projects
General Fund AR PA
Revenue Eligible
Loss Projects Total
$2,918,338 $224,551 $3,142,889
Proposed Uses of Fund:
Strategic Communication Plan 50,000 50,000
Willow/Palm Sidewalk Installation (Transit
Center)
250,000 250,000
Refugio Tennis Court Tree Maintenance 6,000 6,000 Sidewalk and Safe Walkways 100,000 100,000
Community Swim Center Safety Fence
Replacement
100,000 100,000
Community Swim Center Gym Floor
Replacement & Other Building and
Deferred Maintenance
250,000 250,000
E-Gift Card Program 65,000 65,000
Total, Use of Fund 756,000 65,000 821,000 $2,162,338 $159,551 $2,321,889
First Tranche
Remaining Balance Available for
Appropriation in FY 22-23 Budget
First Tranche of ARPA funding received
in July 2021
General Fund
Five-Year Forecast
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
FY 20-21
Actuals
FY 21-22
Midyear
FY 22-23
Projections
FY 23-24
Projections
FY 24-25
Projections
FY 25-26
Projections
FY 26-27
Projections
Revenues Revenues w/o UUT Expenditures
IIf the UUT is
discontinued, there
will be a projected
ongoing deficit of
approx. $2 million
starting FY 25-26
Master Fee Schedule
Effective July 1, 2022
Due to timing and competing priorities, staff
recommends applying the same process to update the
fee on July 1, 2022, by automatically increasing
specific fees using the change in the CPI or ENR and
coming back to Council at Midyear to update the fee
schedule as a result of the study.
Next Step
Staff is currently in the process of preparing the FY 22-23 budget which will be introduced to the City Council on April 26, 2022. The table below outlines key Council meeting dates at which budget information will be provided.
Date Action/Topic
February 22, 2022 FY 21-22 Midyear Review & Budget Amendments March 22, 2022 Budget Workshop to discuss Capital Improvement Plan and project priorities, including developing an ARPA spending plan
April 26, 2022 Introduction of FY 22-23 Budget and Five-year Capital Improvement Plan
June 7, 2022 Public Hearing on the Preliminary FY 22-23 Budget and Five-year Capital Improvement Plan
June 21, 2022 Adoption of FY 22-23 Budget and Five-year Capital Improvement Plan
Questions?