Proposed Budget
Introduction of General Fund and
Other Restricted Funds
FY 22-23
MAY 10, 2022
1 Budget Discussion
Proposed General Fund Base Budget
American Rescue Plan Act (ARPA)
Non-General Fund Programs
Proposed Additions to the Financial Principles and
Policy
2 3Proposed FY 22-23 General Fund Budget
(Loss
Revenue
Component)
Operating One-time ARPA Total
Beginning Balance $953,026 $1,897,838 $2,850,864
Revenues $16,916,000 $16,916,000
Expenditures $16,329,422 $786,025 $225,000 $17,340,447
Net Results $586,578 ($786,025) ($225,000) ($424,447)
Ending Balance $586,578 $167,001 $1,672,838 $2,426,417
General Fund
Revenue Assumptions
Sales Tax – 5% Increase compared to FY 20-21 Actual Receipts Utility User’s Tax (UUT) – Estimated to stay flat compared to FY 20-21 Actual Receipts and will sunset on January 1, 2025
Property Tax – applied CPI factor of 2%
Transient Occupancy Tax – Expected to increase by $100,000 due to new development
Parks & Recreation Programs – Projected equal to 75% pre-pandemic Fees for Services – Based on the fees adopted in the Master Fee Schedule
Cell Tower Leases – Projected to increase by 4%
4 General Fund
Expenditure Projections
Salaries and Benefits
Include a 3% wage increase as placeholder pending results of the labor negotiations
CalPERS Actuarial Rates applied
Medical, Dental and Vision assumed a 3% increase
Overall expenditures were estimated to increase by 5% One-Time Expenditures include payment to DOF and other capital projects
5 American Rescue Plan Act (ARPA) 6
General Fund
(Loss Revenue
Component)
Other Eligible
Projects Total
Beginning Balance $1,897,838 $3,302,440 $5,200,278
Proposed Uses of Fund
Building Facilities Plan $75,000 $75,000
Parks Master Plan $150,000 $150,000
Business Assistance Program $50,000 $50,000
Business Rental Assistance Grants $150,000 $150,000
Total, Use of Funds $225,000 $200,000 $425,000
Ending Balance $1,672,838 $3,102,440 $4,775,278
Special Revenue Funds
Budget Highlights
1. Landscape & Lighting Districts
The Engineer’s report outlines the district budget and shows the amount of the assessment for each district. Additional analysis will be performed for Victoria by the Bay due to the fund deficit.
2. Storm Water Fund
Continues to see increased costs due to State mandates.
Recycling related revenue is being used to offset a portion of its operating deficit.
7 Debt Service Obligations
Governmental Fund
8 Principal Interest Total
2020 PFA Lease Revenue Refunding Bonds $386,663 $125,606 $512,269 2009 PFA Taxable Lease Revenue Bonds $235,000 $672,371 $907,371 SunTrust Lease $100,180 $2,369 $102,549
Equipment Lease Purcchase Agreement (Engie) $114,900 $111,531 $226,431 Total, Debt Obligations $836,743 $911,877 $1,748,620
Proposed Policies
1. Service Level Expectations
2. Reserve Policy
3. Long-Term Capital Improvement
Project Funding
4. General Fund Surplus Allocation
9 Policy Questions
1. ARPA
Does the City Council desire to set aside ARPA funding for one-time non-profit grants? If so, how much funding should be set aside for the one-time grant program?
2. Reserve Policy
Does the City Council agree that the reserve policy should be increased from 16% to 25%?
3. Long-Term Capital Improvement Project Funding
Does the City Council agree that a funding model be employed that proactively funds long-term capital improvement projects from existing resources and operating transfers into capital improvement reserves?
10 Policy Questions (Cont’d)
4. General Fund Surplus Allocation – 25% to
Pension/OPEB
Does the City Council agree that 25% of any available general fund surplus should be put into a Trust Fund or directly into paying off the CalPERS unfunded liability?
5. General Fund Surplus Allocation – 25% to Operating
Reserve
Does the City Council agree that 25% of the available general fund surplus should be put into Operating Reserves up to 25% of the General Fund?
11 Policy Questions (Cont’d)
6. General Fund Surplus Allocation – 50% to
Unmet/Deferred Maintenance Needs
Does the City Council agree that 50% of the available general fund surplus should be put into Long-Term Capital Improvement Project Funding?
12 Budget Process and Schedule
Budget Introduction: Five-Year CIP, FY 22-23 Proposed Budget for Sewer Enterprise and Internal Service Funds – April 26, 2022 Budget Introduction: FY 22-23 Proposed Budget for General Fund and Other Restricted Funds – May 10, 2022
Finance Commission Review – May 18, 2022
City Council Budget Public Hearing – June 14, 2022
Council Continued Public Hearing & Budget Adoption – June 28, 2022 13 Questions &
Comments
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