FISCAL YEAR 2022-23
FI
RST QUARTER BUDGET REVIEW
Dec
ember 6, 2022
Attachment 1
- 2 -
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 3 -
T A B L E O F C O N T E N T S
Page
Executive Summary ............................................................................................................................ 4 Status of FY 2022-23 Budget, Budget Amendments and Reserves:
General Fund .......................................................................................................................... 6 Water District .......................................................................................................................... 7 Streets Maintenance ............................................................................................................... 8 FY 2022-23 September 30, 2022 Year-To-Date Revenue Review:
Major Funds Revenue Summary ............................................................................................ 9 General Fund Revenues ......................................................................................................... 10 Community Development Block Grant Revenue ..................................................................... 12 Hesperia Housing Authority Revenue ..................................................................................... 12 Street Related Funds Revenue ............................................................................................... 13 Other City Funds Revenue ..................................................................................................... 14 Water District Revenue ........................................................................................................... 15 Department FY 2022-23 Budget Expenditure Status Summary ........................................................... 17 FY 2022-23 Total Expenditures By Department and Program ............................................................. 17 Proposed Budget Amendments – Summary ........................................................................................ 24 Proposed Budget Amendments – Narrative ......................................................................................... 24 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 4 -
E
XECUTIVE SUMMARY
T
he following chart compares the FY 2022-23 Budget and September 2022 year-to-date (YTD) revenue and expenditure totals. The percentage comparisons for revenues and expenditures are based on comparing the September 2022 YTD to the FY 2022- 23 Amended Budget. The Amended Budget is used to accurately reflect any changes to t he adopted budget that occur from City Council approving budget amendments during the first three months of the fiscal year.
Status of Overall City Fiscal Year 2022-23 Budget
• Revenue: Based on the analysis of first quarter performance to date, revenue totals collected is $26.3 million, which is $2.1 million or 9% more than was received through first quarter FY 2021-2 2. Additional details are provided further within the report.
• Expenditures: At 17% utilized, the FY 2022-2 3 Budget is proceeding as planned. Overall, the September 2022 YTD expenditures of $22,330,25 6 are $3.3 million or 17% more than the September 2021 YTD of $19,025,150. It should be noted that there are two (2) budget amendments totaling $68,695 included in this report. • Reserves: The cash reserve policy for the General Fund and Water District (operating and capital) exceed the City Council’s minimum policy of two (2) months of the annual expenditures be held in cash. The following estimated reserve calculations are based on the June 30, 2021 ending cash balances included in the June 30, 2021 audited Annual Comprehensive Financial Report (ACFR). Using the ACFR audited data assures that the estimated reserves are based on actual information. The ending cash balance will be revised in the Mid-Y ear report with the June 30, 2022 ACF R figures. In addition, the two (2) First Quarter Budget Amendments, totaling $68 ,695, are reflected below where appropriate:
2022-23 2022-23 Sep tember Revised %
Budget Revised 2022 YT D Received/Expended
Revenue 144,010,399$ 144, 010,399$ 26,327,273$ 18% Use of Reserves 13,088,386 13,088,386
Net Transfers 0 0
Total Resources 157,098,785 157,098,785
Expenditures 133,605,549 133,704,180 22,330,256 17% Difference 23,493,236$ 23,394,605$
10% Cash Reserves (Council/Board Policy) 4,435,933$ 10% 3,676,115$ 10% Cash Reserves Above 10% Reserve 9,938,569 22% 18,907,884 51% Total Estimated Cash Reserves 14,374,502 $ 32% 22,583,999$ 61% Months of Cash 3.9 7.6
Water DistrictGeneral Fund
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 5 -
EXECUTIVE SUMMARY (Continued)
Proposed Budget Amendments – Two (2) Budget Amendments are proposed for $68,695 The FY 2022-23 First Quarter Budget Review includes two (2) items as proposed budget amendments totaling $68,695.
A complete discussion of the budget amendments is included on page 24 . The proposed budget amendments are included in the fund balance analyses where appropriate:
Revenues and Expenditures through September 30, 2022 for the City’s main funds are summarized as follows:
General Other
FY 2022-23 1st Quarter Budget Requests Fund Funds Totals
1. Contract Inspection Services $ 50,000 $ 0 50,000$
2. Traffic Signal Head 0 18,695 18,695 Total 1st Quarter Budget Amendments Requests 50,000$ 18,695$ 68,695$ General Fund
Amended
Budget September
% of Amend.
Received
Amended
Budget September
%
Expended
City Council 798,121$ 169,224$ 21%
City Manager 3,906,794 1,188,504 30%
Management Services 6,554,383 2,679,103 41% Economic Development 371,111 112,089 30% D.S.-Community Development 2,182,132 680,801 31% D.S.-Code Compliance 4,783,822 1,229,780 26% D.S.-Public Works (G.F.) 2,326,289 623,808 27% Police 20,613,786 5,086,481 25%
Total General Fund 44,295,907$ 5,003,284$ 11% 41,536,438$ 11,769,790$ 28% Community Development Block Grant 1,528,620 49,702 3% 1,438,687 19,144 1% Hesperia Housing Authority 121,416 71,000 58% 72,586 6,257 9% D.S.-Public Works 1,944 18,765 965% 3,977,636 909,374 23% Streets CIP Funds 48,420,798 1,806,898 4% 47,348,744 3,491,986 7% Other City Related Funds 3,012,355 260,281 9% 2,585,012 13,316 1% D.S.-Water Operating and Capital 28,788,988 5,880,135 20% 25,701,021 4,152,518 16% D.S.-Sewer Operating and Capital 6,099,444 1,352,667 22% 9,913,241 874,666 9% Fire District 8,036 37,537 367% 1,130,815 1,093,205 97% Sub -Total 132,277,508$ 14,480,269$ 11% 133,704,180$ 22,330,256$ 17% American Rescue Plan Act Grant 11,732,891 11,847,004 101% 0 0 n/a Total 144,010,399$ 26,327,273$ 18% 133,704,180$ 22,330,256$ 17% 2022-23 Revenue 2022-23 Expenditures
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 6 -
STATUS OF CITY GENERAL FUND 2022-23 BUDGET, BUDGET AMENDMENTS, AND RESERVES
2022-23 2022-23
Budget Revised Dollars Percent
RESOURCES
General Fund Operating Revenue 44,295,907$ 44,295,907$ 0$ 0% Transfers In
1. Fund 255 - AB 3229 COPS Grant 200,000 200,000 Total Transfers In 200,000 200,000
Budgeted Reserves 0 0
Total Budgeted Reserves 0$ 0$
Total General Fund Resources 44,495,907$ 44,495,907$ 0$ 0%
EXPENDITURES
Total General Fund Operating Expenses 41,748,438$ 41,736,438$ Transfers Out
1. Fund 210 - HFPD CalPERS 1,130,815 1,130,815
1,442,075 1,442,075
Total Transfers Out 2,572,890 2,572,890
Total General Fund Expenditures & Transfers Out 44,321,328$ 44,309,328$ (12,000)$ 0% First Quarter Budget Amendment Requested
1. Contract Inspection Services 0$ 50,000$ Total First Quarter Budget Amendments 0 50,000 Total Expenditures and Amendments 44,321,328$ 44,359,328$ 38,000$ 0% DIFFERENCE TOTAL RESOURCES/TOTAL EXPENDITURES 174,579$ 136,579$ (38,000)$ -22% Fund Balance
July 1 Beginning Balance 22,105,355$ 22,105,355$
Total Budgeted Reserves 0 0 Difference Total Resources/Total Expenditures 174,579 136,579 Estimated June 30 Ending Fund Balance 22,279,934$ 22,241,934$ (38,000)$ 0% Months of Cash to Pay Expenditures and Transfers Out
Beginning Cash July 01, 14,287,923$ 14,287,923$
Estimated Resources Less Budgeted Reserves 44,495,907 44,445,907 Estimated Expenditures (44,321,328) (44,359,328)
14,462,502$ 14,374,502$
Months of Cash to Pay Expenditures and Transfers Out 3.9 3.9 Estimated Cash Reserves Percentage 33% 32%
Estimated Ending Cash June 30,
Change
2. Fund 402 - 2012 Water Rights Acquisition Debt Service 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 7 -
STATUS OF WATER DISTRICT 2022-23 BUDGET, BUDGET AMENDMENTS, AND RESERVES
2022-23 2022-23
Resources Budget R evised Dollars Percent
Revenue
Water Operating and Capital 28,411,024$ 28,411,024$ Sewer Operating and Capital 6,099,444 6,099,444 Reclaimed Water Operations 377,964 377,964
Total Revenue 34,888,432 34,888,432 0 0% Budgeted Reserves 3,815,097 3,815,097
Total Water District Resources 38,703,529$ 38,703,529$ 0$ 0% Expenditures by Program
Water Operating and Capital and Transfer Out 25,445,365$ 25,445,365$ 0$ 0% Sewer Operating and Capital 9,913,241 9,913,241 Reclaimed Water Operations 255,656 255,656
Total Water District Expenditures & Transfers Out 35,614,262$ 35,614,262$ 0$ 0% Establishment of Reserve Balances
Permanent Water Rights $ 1,146,888 1 ,146,888$
Total Reserve Balances 1,146,888 1 ,146,888
Total Water Expenditures & Reserve Balance Funding $ 36,761,150 $ 36,761,150 Difference Total Resources/Total Expenditures 1,942,379$ 1,942,379$ July 1 Beginning Balance 109,340,730$ 109,340,730$
Budgeted Reserves (3,815,097) (3,815,097)
Difference Resources/Expenditures 1,942,379 1,942,379 Reserve Balances 1,146,888 1,146,888
Estimated June 30 Ending Fund Balance 108,614,900$ 108,614,900$ Months of Cash to Pay Expenditures
Beginning Cash July 01, 23,309,829$ 23,309,829$
Estimated Resources Less Budgeted Reserves 34,888,432 34,888,432 Estimated Expenditures (35,614,262) (35,614,262)
22,583,999$ 2 2,583,999$
Months of Cash to Pay Expenditures and Transfers Out 7.6 7.6 Total Estimated Cash Reserves Percentage 63% 6 3%
Estimated Ending Cash June 30,
Change
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 8 -
STATUS OF STREET MAINTENANCE FUND 2022-23 BUDGET, FUND BALANCE, AND RESERVES
2022-23 2022-23
RESOURCES Budget R evised Dollars Percent
Street Maintenance Operating Revenue 1,944$ 1,944$ 0$ 0% Transfers In
Fund 100 - General Fund 0$ 0$
Fund 204 - Measure I - Renewal 1,750,000 1,750,000
Fund 205 - Gas Tax Fund 1,400,000 1,400,000
Fund 206 - Gas Tax Swap 595,794 595,794
Total Transfers In 3,745,794 3,745,794
Total Revenues 3,747,738 3,747,738
Budgeted Reserves 229,898 229,898
First Quarter Budget Amendment Reserves 0 18,695 Total Street Maintenance Resources 3,977,636$ 3, 996,331 $ EXPENDITURES 3,977,636$ 3, 977,636 $ 0$ 0% First Quarter Budget Amendment Request
1. Traffic Signal Head 0 18,695
Total First Quarter Budget Amendments 0 18,695 Total Expenditures and Amendments 3,977,636$ 3, 996,331 $ 18,695$ 0% DIFFERENCE RESOURCES/EXPENDITURES 0$ 0$ 0$ n/a Fund Balance
July 1 Beginning Balance 289,130$ 289,130$
Total Budgeted Reserves (229,898) (248,593)
Difference Resources/Expenditures 0 0 Estimated June 30 Ending Balance 59,232$ 40,537$
Change
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 9 -
FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW
Overall – First quarter analysis reveals that $26.3 million or 1 8% percent of the total budgeted revenue has been collected. It should be noted that changes in the local state and national economic environments can impact each of these revenue sources and trends going forward; however, in this section, discussions will pertain to the revenue activity during the first quarter of Fiscal Year (FY) 2022-23.
General Fund revenue is trending as expected, with 11% of revenue received the first quarter of FY 2022 -23. Through September 2022, revenue received is $5,003,284 , which is $866,080 or 21% more than September 2021 YTD revenue of $4,137,204.
As a whole, the Water District is in a healthy position with 21% of revenue received the first quarter of FY 2022-23. This revenue source is being monitored as delinquent accounts are being applied to the tax roll to recapture the missing revenue.
Staff will continue to monitor the FY 2022 -23 revenue and make any necessary recommendations for revisions during the Mid-Year Budget Review in February 202 3. The following pages will detail the current revenue collections for each fund.
September Change From
2022-
23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
General Fund 44,295,907$ 5,003,284$ 11% 44,295,907$ 0$ Community Development Block Grant 1,528,620 49,702 3% 1,528,620 0 Hesperia Housing Authority 121,416 71,000 59% 121,416 0 Street Related Funds 48,422,742 1,825,663 4% 48,422,742 0 Other City Related Funds 3,012,355 260,281 9% 3,012,355 0 Water Operating 26,330,124 5,154,867 20% 26,330,124 0 Water Capital 2,075,000 639,000 31% 2,075,000 0 Water Reserves 383,864 86,269 23% 383,864 0 Total Water Operating, Capital, & Reserves 28,788,988 5, 880,135 20% 28,788,988 0 Sewer Operating 5,539,344 1,153,242 21% 5,539,344 0 Sewer Capital 558,800 191,444 34% 558,800 0 Sewer Reserves 1,300 7,980 614% 1,300 0 Total Sewer Operating, Capital, & Reserves 6,099,444 1, 352,667 22% 6,099,444 0 Water District 34,888,432 7,232,802 21% 34,888,432 0 Sub-total 132,277,508 14,480,269 11% 132,277,508 0 American Rescue Plan Act Grant 11,732,891 11,847,004 101% 11,732,891 0 Total All Funds 144,010,399$ 26,327,273$ 18% 144,010,399$ 0$ 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 10 -
FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
General Fund Revenue Comments:
In total, General Fund is trending as expected for First Quarter. As demonstrated in the discussions to follow, there tends to be a lag of revenue collection at the beginning of the fiscal year. This is normal and much of the revenue, especially tax based, typically is received during October and November.
Sales and Use Tax – For the first quarter of FY 2022-23, the City received $1,066,935 for one (1) month (July 2022) of activity, which is 5% or $46,575 more than the $1,020,360 for the July 2021 activity collected September 2021.
Although the FY 2022-23 first remittance is ahead of FY 2021-22, Sales Tax will be monitored in the coming months as data is received. There is typically a two month delay from the month close to when the State reports to the City. For example, the second installment of $1,065,739 for the month of August 2022 was received in October 2022 and therefore, was not included as part of this first quarter report.
Vehicle License Fee (VLF) – This revenue is based on the City’s assessed valuation of the properties within the City.
As the assessed valuation changes from the prior year, this revenue changes by the same percentage. There is no revenue reported through September 2022, as the first installment of the VLF is expected to be received during January 2023.
Franchise Fees – The City receives f ranchise fees for Cable TV, Advance Disposal, Southwest Gas, Southern California Edison, and Water service providers within the City as “rent” for the use of streets and public right -of-way within our municipality. Revenue through September 2022 YTD total $62,500, which is the same amount received for September 2021 YTD. Please note that the majority of franchise fees are received in the second half of the fiscal year.
Transient Occupancy Tax (TOT) – TOT is a tax of 10% applied to the cost of hotel and other lodging stays of less than 30 days. Through September 2022, the City collected $282,761 , which is a decrease of $39,632 or 12% less than the September 2021 YTD of $322,393. This decrease is due to a reduction in hotel occupancy compared to the prior year.
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
Sales and Use Tax 13,900,000$ 1,066,935$ 8% 13,900,000$ 0$ Vehicle License Fees 80,000 0 0% 80,000 0 Franchise Fees 4,090,296 62,500 2% 4,090,296 0 Total Top Three Revenues 18,070,296 1,129,435 6% 18,070,296 0 General & Administrative Recovery 3,085,930 771,483 25% 3,085,930 0 Transient Occupancy Tax 1,500,000 282,761 19% 1,500,000 0 Property Transfer Tax 400,000 70,081 18% 400,000 0 Secured Property Tax 1,033,459 0 0% 1,033,459 0 Business License 783,600 255,896 33% 783,600 0 Commercial Cannabis Tax 481,000 106,661 22% 481,000 0 Community Facilities District 2005-1 324,734 90,282 28% 324,734 0 Leased Water Rights 2,063,685 0 0% 2,063,685 0 Development Related Revenues
Planning 358,773 267,359 75% 358,773 0 Building & Safety 2,352,208 992,097 42% 2,352,208 0 Engineering 667,700 312,452 47% 667,700 0 Sub-Total Development Related Revenues 3,378,681 1,571,908 47% 3,378,681 0 Sub-Total Top 12 Revenue Sources 31,121,385 4,278,506 14% 31,121,385 0 All Other General Fund Revenues 13,174,522 724,778 6% 13,174,522 0 Total General Fund Revenues 44,295,907$ 5,003,284$ 11% 44,295,907$ 0$
GENERAL FUND REVENUES
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 11 -
FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
General Fund Revenue Comments (Continued):
Property Transfer Tax – This revenue is based on the change in property valuation upon change of ownership within the City. This revenue source is very volatile and is forecast to decrease due to a reduction in assessed values of local properties. As of September 30, 2022, YTD total of $70,081 reflects two receipts and is a 12% decrease over September 2021 YTD of $79,935, which also reflected two receipts. Staff will continue to monitor this revenue source and will provide an update at Mid-Year Budget Review.
Secured Property Tax – The first remittance from the County will be received in November 2022; therefore, there is no revenue to report through September 2022.
Business License – The City taxes businesses for conducting business within the City. FY 2022 -23 First Quarter collections of $255,896 represents a $46,002 or 22 % increase from the September 2021 collections of $209,894. The $255,896 in revenue through September 2022 is 33% of the FY 2022- 23 Budget amount of $783,600. While this revenue source can vary throughout the year based upon the timing of annual license renewal payments and new business license issuances, revenue collection is trending as expected.
Commercial Cannabis Tax – All commercial cannabis businesses operating within the City pay a 4% tax, on gross receipts from business operations. The September 2022 YTD receipts of $106,661 is 28% less than the September 2021 YTD of $148,116. The decrease is due to the revocation of 4 business licenses for non- compliance and a reduction in reported cannabis sales compared to the first quarter of last fiscal year. The City currently has fifteen ( 15) businesses operating within the City compared to the nineteen (19) in September 2021.
Community Facilities District 2005-1 – This special assessment district (generally west of Maple Avenue and south of Main Street), was formed to refinance the bonds of CFD 91-3 and assesses the properties within the district to repay the bonds. Part of the annual assessment includes a public safety portion to offset some of the costs that residential development places on the City’s public safety providers. The September 2022 YTD of $ 90,282 is being received as budgeted.
Leased Water Rights – The permanent water rights owned by the General Fund can be leased annually and th e lease revenue is used to pay for the 2012 Bonds, which financed the purchase of the water rights. The leasing of water rights will occur later during the fiscal year.
Development Related Revenue – This revenue source accounts primarily for development related fees such as Planning, Building and Safety , and Engineering. As of September 30, 2022, YTD actual receipts of $1,571,908 represents a 41% or $460, 930 increase from the prior year receipts of $1,110,978. This increase is mainly due to Building and Safety permit Fees and Engineering Inspection Fees collected related to the 1,226 ,589 industrial square foot Hesperia Commerce Center 1 (Building 2) , Pacific Communities tract homes and Sunset View Apartments . The budget anticipates issuing 240 new single-family residential (SFR) building permits. Through September 2022, the City has issued 30 permits, which is nine (9) less than September 2021. This revenue source is cyclical and can fluctuate based on the timing of payments for individual projects.
All Other General Fund Revenue – All Other General Fund Revenue accounts are $724,778 or 6% collected through September 30, 2022.
FY 2021-22 FY 2022-23
Division September 2021 September 2022 Amount Percentage Planning 248,994$ 267,359$ 18,365$ 7% Building & Safey 625,343 992,097 366,754 59% Engineering 236,641 312,452 75,811 32% Total 1,110,978$ 1,571,908$ 460,930$ 41% Change
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 12 -
FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
Community Development Block Grant Revenue Comments:
These revenues are grant reimbursements that promote economic and housing development and rehabilitation projects, with an emphasis on activities that create jobs, build or enhance infrastructure, and provide affordable housin g to Hesperia residents. This grant must be spent prior to submitting for reimbursements. The FY 20 22-23 Budget revenue estimates represent anticipated reimbursements to be claimed during the fiscal year. It is anticipated that the majority of the reimbursements will be received after December 2022.
CDBG Neighborhood Stabilization Program (NSP) – This represents interest income and is typically received after the first quarter.
All Other CDBG Revenues – This revenue includes CDBG Program income and interest revenue for the HOME Grant fund and the CDBG Revolving Loan fund. These revenues are more one -time in nature and are not received on a time schedule as other revenue. First Quarter revenue of $ 49,702 has been received, which is for loan repayment related to Housing Rehabilitation Loan Program and 1999 HOME repayment program.
Hesperia Housing Authority (HHA) Revenue Comments:
This program was developed to promote projects that improve the City’s housing stock and provide affordable h ousing opportunities. As of September 30, 2022, 58 % of revenue budgeted has been collected, which is attributed to interest income and changes in the market value on investments. The largest revenue source for the HHA are loan repayments, which typically are received later in the year.
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
CDBG Administration Reimbursement 1,509,086$ 0$ 0% 1,509,086$ 0$ CDBG Neighborhood Stabilization Program 7,632 0 0% 7,632 0 Sub-Total 1,516,718 0 0% 1,516,718 0 All Other CDBG Revenues 11,902 49,702 418% 11,902 0 Total CDBG Revenues 1,528,620$ 49,702$ 3% 1,528,620$ 0$
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) REVENUE
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
Interest Income 23,832$ 47,925$ 201% 23,832$ 0$ Loan Repayments 91,084 0 0% 91,084 0 Miscellaneous Income 3,000 0 0% 3,000 0 Sub-Total HHA Revenue 117,916 47,925 41% 117,916 0 VVEDA Housing Authority Revenue 3,500 23,075 659% 3,500 0 Total HHA Revenue 121,416$ 71,000$ 58% 121,416$ 0$
HESPERIA HOUSING AUTHORITY (HHA) REVENUE
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 13 -
FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
Street Related Funds Revenue Comments:
Measure I - Renewal – This fund is used to account for the renewed Measure I sales tax based on revenue generated from the ½ cent added tax on sales tax in San Bernardino County. For Hesperia , there are no distinctions for Arterial, Local, or Transit, and the revenue is remitted by San Bernardino County Transportation Authority (SBCTA) to the City.
Due to a lag in receiving the revenue, there are no remittances to report as of September 2022; however, the first installment received in October is $338,122, which is $39,160 more than the first installment of FY 2021-22.
Gas Tax – As of September 30, 2022 YTD, Gas Tax revenue primarily consists of one installment totaling $ 143,416, which is $31,198 more than the first installment received September 2021 of $112,218. This increase is an indication of higher fuel consumption along with higher fuel prices.
Gas Tax S wap – As of September 30, 2022 YTD, Gas Tax Swap revenue largely consists of one installment totaling $99,308, which is $3,937 higher than the first installment in FY 2021 -22. This increase is a reflection of increased fuel consumption and fuel prices.
Local Transportation – This revenue source is funded by the county ¼ cent sales tax. There is no revenue reported through September 2022. The annual payment of $872,556 from SBCTA was received in October 2022.
Gas Tax RMRA – This revenue source is State- funded and took effect November 2017 during FY 2017 -18. This revenue is used to repair and maintain roads, freeways, and bridges. SB 1, the Road Repair and Accountability Act of 2017, increased the gas tax by 12 cents and 20 cents for diesel, which is adjusted for inflation each July starting in July 2020. The vehicle registration fee also increased depending on the value of the vehicle. There is no revenue reported through September 2022, as the first payment is expected to be received during November 2022 and will be reported in the FY 2022-23 Mid-Year report.
Public Works-Street Maintenance – The estimated revenues are primarily interest earnings. In addition, this fund will occasionally receive miscellaneous reimbursem ents on an inconsistent basis, making comparisons to prior years irrelevant. The revenue received through September 2022 of $18,765 primar ily consists of proceeds from the sale of surplus equipment.
September Change From
2022-23 2022- 23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
204 Measure I - Renewal 3,598,916$ 96,189$ 3% 3,598,916$ 0$ 205 Gas Tax Fund 1,854,203 155,051 8% 1,854,203 0 206 Gas Tax Swap Fund 947,632 110,276 12% 947,632 0 207 Local Transportation Fund 877,402 28,468 3% 877,402 0 209 Gas Tax - RMRA 2,193,113 28,524 1% 2,193,113 0 254 AQMD Fund 61 296 486% 61 0 263 Public Works Street Maintenance Fund 1,944 18,765 965% 1,944 0 300 Development Impact Fee-Streets 148,890 13,203 9% 148,890 0 301 Development Impact Fee-Storm Drain 27,358 37,415 137% 27,358 0 306 Development Impact Fee 2018 - Streets 11,055,223 992,574 9% 11,055,223 0 307 Development Impact Fee 2018 - Drainage 1,032,902 101,991 10% 1,032,902 0 313 Development Impact Fee 2018 - A-04 Drainage 210,780 242,911 115% 210,780 0 Sub-Total DIF Streets & Storm Drain 12,475,153 1,388,094 11% 12,475,153 0 504 City Streets CIP 26,474,318 0 0% 26,474,318 0 Total Street Related Funds 48,422,742$ 1,825,663$ 4% 48,422,742$ 0$
STREET RELATED FUNDS REVENUE
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 14 -
FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
Street Related Funds Revenue Comments (Continued):
Development Impact Fees for Streets and Storm Drain/Drainage – Through September 202 2 YTD, the combined revenue received is $1,388,094, which is $85,983 or 7% more than September 2021 YTD revenue of $1,302,111. The primary reason for the increase between the two periods is due to the fees paid related to Single Family Residential and Multi-Family Residential properties. This revenue source varies each fiscal year depending on the completion of individual projects. Development Impact Fees are not due to the City until just prior to receiving a final approval on the project. These projects that pay their General Fund Building Permit fees at the beginning of the project can differ from the payment of their Development Impact Fees at the completion of the project by several months, or even span a fiscal year.
City Streets CIP – This fund tracks grant/reimbursement funded projects such as the Ranchero Road Improvements (7 th
Avenue to Mariposa Road), Walnut Street H -01 Retention Basin, the T raffic Signal at Main Street, Sultana Street/Timberlane Avenue and the Ranchero Aqueduct crossing. The bulk of the budgeted revenue is for the reimbursement of Ranchero Road with the expectation of a reimbursement to be received later in the fiscal year.
Other City Funds Revenue Comments: Revenue for other City funds are comprised of various grants, assessments, charges for services, intergovernmental, and other sources. Many of these funds only receive interest income during the fiscal year.
AB3229 Supplemental Law Fund – The passage of Senate Bill (SB) 89 allowed for the continued funding of the Supplemental Law Enforcement Funding (SLE SF). The City expects to receive $237,584 of SLESF funding , which is typically received later in the fiscal year. Through the first quarter 6% or $13,993 has been received.
Environmental Programs Grant – This fund tracks various grant reimbursements for various environmental events.
Disaster Preparedness Grant – As of September 30, 2022, $548 has been collected, which is attributed to interest income.
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
105 Pension Obligation Trust 0$ 16,516$ n/a 0$ 0$ 255 AB3229 Supplemental Law Fund 237,584 13,993 6% 237,584 0 256 Environmental Programs Grant 63,525 2,901 5% 63,525 0 260 Disaster Preparedness Grant 117 548 468% 117 0 262 SB 1383 Local Assistance Grant 0 563 n/a 0 0 302 Development Impact Fee-Fire 25,181 17,887 71% 25,181 0 303 Development Impact Fee-Police 6,205 4 0% 6,205 0 304 Development Impact Fee-Public Services 16,537 12 0% 16,537 0 308 Development Impact Fee 2018 - Fire 1,315,090 74,590 6% 1,315,090 0 309 Development Impact Fee 2018 - City Hall 1,196,058 58,296 5% 1,196,058 0 310 Development Impact Fee 2018 - Animal Control 65,455 21,443 33% 65,455 0 311 Development Impact Fee 2018 - Records Storage 58,510 3,063 5% 58,510 0 312 Development Impact Fee 2018 - Police Facilities 22,573 1,102 5% 22,573 0 Sub-Total 302, 303, 304, 308, 309, 310, 311, and 312 2,705,609 176,397 7% 2,705,609 0 402 2012 Water Rights Acquisition 1,454 24,449 1682% 1,454 0 403 2013 Refunding Lease Revenue Bonds 4,066 24,914 613% 4,066 0 Sub-total 3,012,355 260,281 9% 3,012,355 0 261 American Rescue Plan Act Grant 11,732,891 11,847,004 101% 11,732,891 0 Total Other City Funds 14,745,246$ 12,107,285 $ 82% 14,745,246$ 0$
OTHER CITY FUNDS REVENUE
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 15 -
FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
Other City Funds Revenue Comments (Continued):
Development Impact Fees-Fire, Police, Public Services, City Hall, Animal Control, and Records Storage – The combined total of $176,397 for September 2022 YTD is $10,558 or 6% less than September 2021 YTD of $186,955.
American Rescue Plan Act (ARPA) Grant – Coronavirus State and Local Fiscal Recovery Funds – This revenue is the Coronavirus State and Local Fiscal Recovery Funds in which the City received a total amount of $23.4 million in two installments of $11.7 million. The first allocation was received in September 2021, and the second allocation in September 2022. This ARPA funding must be spent on eligible costs incurred during the period that began on March 3, 2021 and ending on December 31, 2024 . Eligible costs inclu de expenditures for necessary improvements to water infrastructure to improve access to clean drinking water, wastewater treatment infrastructure, projects that address the impacts of climate change, projects for managing and treating storm water or subsurface drainage water, facilitating water reuse, and securing publicly-owned treatment works.
Water District Revenue Comments:
The Hesperia Water District began applying liens to properties with outstanding water bills. Failure to pay within 60 days from the original bill due date, results in the Water District mailing the tenant and property owner a notice of lien. If the bill remains outstanding after an additional 10 days, the Water District will apply a lien on the property. During May of each year, all outstanding property liens will be converted to property tax liens. By doing so, the County will collect outstanding balances as part of property tax collections during the following year. The Water District is utilizing such liens in lieu of water disconnections and traditional collection services as the primary mechanism for collections.
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
Water Operating Revenue
Water Sales 24,864,250$ 4,756,931$ 19% 24,864,250$ 0$ Interest Income 19,420 0 0% 19,420 0 Property Taxes 538,254 0 0% 538,254 0 Sub-Total 25,421,924 4,756,931 19% 25,421,924 0 All Other Water Operating Revenues 908,200 397,936 44% 908,200 0 Total Water Operating Revenues 26,330,124 5,154,867 20% 26,330,124 0 Capital Facilities Charges 2,000,000 639,000 32% 2,000,000 0 Grant Reimbursement 75,000 0 0% 75,000 0 Total Water Capital Revenue 2,075,000 639,000 31% 2,075,000 0 Reclaimed Water 377,964 46,713 12% 377,964 0 All Other Water Related Revenues 5,900 39,555 670% 5,900 0 Total Water Operating, Capital, & Related Revenues 28,788,988$ 5,880,135$ 20% 28,788,988$ 0$ Sewer Operating Revenue
Sewer Billing 5,301,042$ 981,599$ 19% 5,301,042$ 0$ All Other Sewer Operating Revenues 238,302 171,644 72% 238,302 0 Total Sewer Operating Revenue 5,539,344 1,153,242 21% 5,539,344 0 Sewer Connections 550,000 153,722 28% 550,000 0 All Other Sewer Capital Revenues 8,800 37,722 429% 8,800 0 Total Sewer Capital Revenue 558,800 191,444 34% 558,800 0 All Other Sewer Related Revenues 1,300 7,980 614% 1,300 0 Total Sewer Operating, Capital, & Related Revenues 6,099,444$ 1,352,667$ 22% 6,099,444$ 0$ Total Hesperia Water District Revenue 34,888,432$ 7,232,802$ 21% 34,888,432$ 0$
WATER DISTRICT REVENUE
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 16 -
FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
Water District Revenue Comments (Continued):
Water Sales – For the f irst quarter of FY 2022 -23, Hesperia Water District collected $4,756,931 of sales revenue or 19% of the budgeted amount. The revenue collected is $316,970 or 7% more than the amount collected through September 2021. The increase over the prior year is pr imarily due to the implementation of the final annual water rate change in December 2021 from the approved water rate study. Another factor for the revenue increase is the implementation of the Water District lien process. Property owners who receive the notice of lien are submitting payments on behalf of tenants to avoid a property lien and subsequently, having the balance applied to the tax roll
The collection of water sales also positively affected by the Low Income Household Water Assistance Program (LIHWAP). On December 2020, Congress funded the program to help low -income households pay down their outstanding residential water or wastewater bi lls. The LIHWAP provides financial assistance to Californians to help manage their residential water and wastewater utility costs to up to $2,000 per qualifying low -income household. The City started collecting these payments at the beginning of Fiscal Y ear 2022-23 and as of September 30, 2022, collected $21,939.
Property Taxes – Property tax revenue is normally received from November 2022 through July 2023.
Other Water Operating Revenue – Through September 2022, $397,936 has been received, which is $170,081 or 75% more than September 2021 YTD of $ 227,855. This increase is mainly due to the increase of Water Inspection fees received this quarter.
Capital Facilities Surcharge – This revenue source consist of fees for new water meter installations based on new developments. Revenue through September 2022 YTD is $639,000, which is $341,099 or 115% more than September 2021 YTD of $297,901. This increase can largely be attributed to the meter fees paid on 96 units for the new apartment complex development “The Villas at Hesperia” in the first quarter of FY 2022-23.
Sewer Billing – Revenue through September 202 2 is $ 981,599, which is $ 69,422 or 8% more than the revenue received in the First Quarter of 20 21-22. This increase is primarily attributed to the final 6% sewer rate increase from the 2017 rate study, which took effect in December 2021.
Sewer Connections revenue through September 20 22 YTD is $ 153,722, which is $ 94,192 or 38% less than the $247,914 received through September 2021 YTD. The decrease between the two periods is a result of fewer customers connecting to sewer.
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 17 -
DEPARTMENT FY 2022-23 BUDGET EXPENDITURE STATUS SUMMARY
Total City Expenditures – With the excep tion of the two (2) first quarter budget amendments totaling $68,695, the overall assessment of the City’s expenditures through the first quarter of the fiscal year is that expenditures are expected to stay within the FY 202 2-23 Amended Budget. Refer to page 24 for the detail pertaining to the requested budget amendments.
FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS
The overall City Council Departmental expenditures are at 21% expended through September 2022. Contributing to the lower than anticipated City Council Division’s expended percentage , budgeted items are typically expended later during the fiscal year, such as $50,000 for the Community Assistance Program, annual memberships, and community outreach programs and events. The City Attorney Division is 23% expended, which reflects only the July 2022 invoices; however, $52,448 in billing for the month of August was received and paid for in October.
The City Manager Department, which consists of the City Manager Division and the Information Technology (IT) Division, is 30% expended; City Manager Division is 29% expended due to the annual City Manager Department portion of CalPERS unfunded liability payment. At the July 19, 2022 City Council Meeting, an amendment was approved to transfer $12,000 in dedicated funds for food recovery services related to SB 1383 Local Assistance Grant Program from Fund 100 to Fund 262. Additionally, IT is 31 % expended du e to the lump sum payments of annual software licenses during the first quarter.
September Amended
2022-23 2022-23 2022 Y TD Percent
Department Expenditure Summary Budget Amended Expenditures Expended City Council 798,121$ 798,121$ 169,224$ 21% City Manager 3,918,794 3,906,794 1,188,504 30% Management Services 6,554,383 6,554,383 2,679,103 41% Economic Development 1,882,384 1,882,384 137,490 7% Development Services - Community Development 2,182,132 2,182,132 680,801 31% Development Services - Code Compliance 4,783,822 4,783,822 1,229,780 26% Development Services - Public Works 6,303,925 6, 303,925 1,533,182 24% Streets Capital Improvement Project (CIP) Funds 47,348,744 47,348,744 3,491,986 7% Other City Related Funds 2,474,381 2,585,012 13,316 1% Development Services - Water 25,701,021 25,701,021 4,152,518 16% Development Services - Sewer 9,913,241 9,913,241 874,666 9% Police 20,613,786 20,613,786 5,086,481 25% Fire District 1,130,815 1,130,815 1,093,205 97% TOTAL CITY EXPENDITURES 133,605,549$ 133, 704,180$ 22,330,256$ 17% September Amended
2022-23 2022-23 2022 Y TD Percent
City Council Budget Amended Expenditures Expended
100 100 City Council 348,121$ 348,121$ 66,637$ 19% 100 102 City Attorney 450,000 450,000 102,587 23% Total City Council 798,121$ 798,121$ 169,224$ 21% September Amended
2022-23 2022-23 2022 YTD Percent
City Manager Budget Amended Expenditures Expended
100 200 City Manager 1,573,041$ 1,561,041$ 449,751$ 29% 100 215 Information Technology 2,345,753 2,345,753 738,753 31% Total City Manager 3,918,794$ 3,906,794$ 1,188,504$ 30% 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 18 -
FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)
The Management Services Department is currently at 41 % expended. Similar to years in the past, the increased expenditures for Finance and Human Resources, at 37 % and 65 % respectively, are due to the lump sum payment to CalPERS for the unfunded accrued liability and annual insurance premiums that are due at the beginning of the fiscal year. Non-Departmental expenditures are 12% expended.
The Economic Development Department is 7% expended through the First Quarter. This department is made up of three (3) Divisions: Economic Development, Community Development Block Grant (CDBG), and Hesperia Housing Authority (HHA) funds.
The Economic Development Division performs the economic development functions for the City. General Fund funded, Economic Development is 30% expended, as with other areas, is due to the Division’s lump sum portion of the annual unfunded accrued liability assessed by CalPERS.
Community Development Block Grant Administration is 1% expended of the adopted budget. This fund administers the City’s CDBG program and related activities. FY 20 22-23 includes $ 1,354,600 in budgeted funds for two street improvement projects (FY 2019-20 and FY 2021- 22 CDBG Street Improvements). Through the First Quarter, $7,206 has been expended on these Capital Improvement Projects (CIP). The majority of CIP expenditures will be expended during the third and fourth quarters.
The Hesperia Housing Authority (HHA) funds oversee the affordable housing within the City. Through the end of September, the HHA funds are 9% expended, with the majority of the budgeted expenditures for affordable housing monitoring and annual financial audit reporting which occur later in the fiscal year.
The Community Devel opment Division is currently 3 1% expended through the First Quarter, with Planning 29% expended and Building & Safety 33% expended. This Division’s portion of the CalPERS unfunded liability payment is the reason for increased First Quarter expenditures . One budget amendment of $50,000 has been requested for contract inspection services.
September Amended
2022-23 2022-23 2022 YTD Percent
Management Services Budget Amended Expenditures Expended 100 220 Finance 2,103,642$ 2,103,642$ 776,208$ 37% 100 225 Human Resources/ Risk Mgmt. 2,578,569 2,578,569 1,677,850 65% 100 229 Non-Departmental 1,872,172 1,872,172 225,045 12% Total Management Services 6,554,383$ 6,554,383$ 2,679,103$ 41% September Amended
2022-23 2022-23 2022 YTD Percent
Economic Development Budget Amended Expenditures Expended 100 Economic Development 371,111$ 371,111$ 112,089$ 30% 251 CDBG Administration 1,438,687 1,438,687 19,144 1% 370 Hesperia Housing Authority 72,586 72,586 6,257 9% Total Economic Development 1,882,384$ 1,882,384$ 137,490$ 7% September Amended
2022-23 2022-23 2022 Y TD Percent
D. S. - Community Development Budget Amended Expenditures Expended 100 3000 Planning 979,314$ 979,314$ 288,047$ 29% 100 3020 Building & Safety 1,202,818 1,202,818 392,754 33% Total D. S. - Community Development 2,182,132$ 2,182,132$ 680,801$ 31% 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 19 -
FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)
The Code Compliance Division, which is comprised of Code Enforcement and Animal Control , is 26% expended. As shown by the table, Code Enforcement and Animal Control are both 26% expended and are trending as expected during First Quarter.
Through the end of September, the Public Works Division is 24 % expended , which is as expec ted. Engineering , Building Maintenance, and Street Maintenance are trending as expected. Traffic at 18% expended, is lower than expected due to pending items such as the purchase of maintenance materials, traffic cabinet, guardrail replacement, as well as pending contractual items for engineering, street sweeping, and street striping. There is one budget amendment request in the amount of $18,695 for the purchase and installation of a left turn traffic signal head at the intersection of Mariposa Road and Ranchero Road.
Streets Capital Improvement expenditures will increase as progress continues on projects such as design of the Golf Course Trails, FY 2021-22 Street Improvement Project , Ranchero Road Improvements and Aqueduct Crossing, and other streets related projects. As these projects move forward, the percentage of actual expenses to budget will increase accordingly.
The classication of Other City Related Funds is largely comprised of the principal and interest payments for the 2012 Water Rights Acquisition and 2013 Refunding Lease Revenue Bonds , which payments will be reflected in the second quarter. An amendment for $19,401 was approved at the July 19, 2022 City Council Meeting to allocate funds for the CalRecycle Waste Tire Amnesty Grant Program, which is a reimbursable grant. In June 2022, the City received $136,396 in grant funds to be used for the SB 1383 Local Assistance Grant Program. Due to the timing of the grant award and budget adoption, the total grant award was not included in the budget; therefore staff received approval from the City Council to amend the budget by transferring $15,000 in dedicated funds for education and outreach and food recovery services from Fund 100 and Fund 256 to Fund 262, a newly created fund specifically for the state mandated program and for the appropriation of an additional $79,230 for record keeping and reporting software.
September Amended
2022-23 2022-23 2022 Y TD Percent
D. S. - Code Compliance Budget Amended Expenditures Expended 100 3010 Code Enforcement 2,467,764$ 2,467,764$ 638,483$ 26% 100 5000 Animal Control 2,316,058 2,316,058 591,297 26% Total D. S. - Code Compliance 4,783,822$ 4,783,822$ 1,229,780$ 26% September Amended
2022-23 2022-23 2022 YTD Percent
D. S. - Public Works Budget Amended Expenditures Expended 100 3100 Engineering 967,725$ 967,725$ 241,173$ 25% 100 3110 Building Maintenance 1,358,564 1,358,564 382,635 28% 263 3150 Street Maintenance 2,098,161 2,098,161 566,531 27% 263 3170 Traffic 1,879,475 1,879,475 342,843 18% Total D. S. - Public Works 6,303,925$ 6,303,925$ 1,533,182$ 24% September Amended
2022-23 2022-23 2022 Y TD Percent
Budget Amended Expenditures Expended
Streets Capital Improvement Project (CIP) Funds 47,348,744$ 47,348,744$ 3,491,986$ 7% September Amended
2022-23 2022-23 2022 YTD Percent
Budget Amended Expenditures Expended
Other City Related Funds 2,474,381$ 2,585,012$ 13,316$ 1% 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 20 -
FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)
Overall, the Water Operating and Capital funds are 1 6% expended through September 30, 20 22. The following narrative details the progression of each program.
• Source of Supply’s primary responsibility is to secure make-up water lease rights to remedy overproduction. During First Quarter, the District has not purchased permanent water rights. • At the end of the First Quarter, Production has expended 21 % of the budget. The primary reason expenditures are lower than expected is the timing of receiving electricity invoices. During First Quarter, only two months of summertime activity has been expended. The average summer month bill is approximately $0.2 million. • Distribution has utilized 30 % of its budget, which is primarily due to the purchase of a new backhoe during August 2022.
• Pipeline Maintenance is 23 % expended and will increase as material (pipe) is purchased for the pipeline replacement program, as identified in the Fiscal Year (FY) 2022-23 Budget. • Engineering is currently 19% expended and proceeding as expected. • Customer Service is 23% expended and as progress is made with Advanced Metering Infrastructure (AMI) program, expenditures will increase.
• Utility Billing is 37 % expended, which is due to the $144,000 write-offs of water service . It is anticipated that the account write-off expenditure will decrease in the coming years as the District has transitioned to a tax lien model for collection. The vast majority of the $144,000 represent uncollectible accounts with balances prior to July 1, 2021.
• Administration is a t 26% of the budget, which is primarily due to the Water District’s monthly general and administrative re-payment to the City for the annual indirect cost allocation. • Property Management is 19% expended for the First Quarter. Facility maintenance costs are expected to increase as maintenance projects are completed throughout the fiscal year. • Reclaimed Water Operations expenditures will increase later in the second half of the fiscal year when Debt Service payments are due.
September Amended
2022-23 2022-23 2022 Y TD Percent
D.S. Water Operating & Capital Budget Amended Expenditures Expended 4010 Source of Supply 4,825,015$ 4,825,015$ 20,720$ 0% 4020 Production 4,596,134 4,513,782 942,454 21% 4030 Distribution 1,847,563 1,929,915 574,997 30% 4035 Pipeline Maintenance 1,000,419 982,150 226,824 23% 4040 Engineering 1,019,812 1,019,812 190,732 19% 4050 Customer Service 2,504,758 2,504,758 566,344 23% 4060 Utility Billing 1,302,662 1,302,662 485,155 37% 4070 Administration 4,064,384 4,069,153 1,051,872 26% 4080 Property Management 459,618 473,118 89,217 19% 720 Reclaimed Water Operations 255,656 255,656 2,705 1% Total Water Operatiions 21,876,021 21,876,021 4,151,020 19% 701 Water Capital 3,825,000 3,825,000 1,498 0% 711 Sewer Capital 3,845,000 3, 845,000 5,557 0% Total D.S. Water Operating & Capital 29,546,021$ 29,546,021$ 4,158,075$ 14% 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 21 -
FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)
D.S. Water Operating and Capital (Continued):
• Pending Projects in Water and Sewer Capital have $7.7 million allocated in capital funds and are 0% expended.
Expenditures will increase as projects such as the I -15 Corridor water and sewer , Recoating the exterior of water tank at Plant 23, Plant 14A & 25 Roof Replacement and Re pair, FY 2019-20 Water Service Line Relocation, Maple Avenue sewer line replacement, Township Wastewater Improvements, and Hesperia Wastewater Treatment Plant projects progress. The I -15 Corridor is out to bid currently, with an anticipated contract award in December 2022.
Additionally, the RFP has been released for design/build of the Hesperia Wastewater Treatment Plant.
Sewer Operating and Capital Funds overall are 9% expended. More detailed information within each program is detailed below.
• Sewer Operations expenditures are 12% expended and proceeding as planned. It should be noted that only one month of treatment fees ( 65.92 MG) for July 2022 has been received for Victor Valley Wastewater Reclamation Authority (VVWRA).
• Sewer Engineering is currently 16% expended and proceeding as planned. • Sewer Utility Billing is 27% expended, which is expected for the first three months of the fiscal year. • Sewer Administration is proceeding as planned with 2 6% expended and mainly due to the monthly general and administrative re-payment for the annual indirect cost allocation.
The Police Department budget is 25% expended, which is expected for the first three months of the fiscal year for the monthly law enforcement services . First Quarter year -to-date does not include the quarterly invoice, which is for overtime, grant expenses, etc. as the County of San Bernardino has not provided to the City.
During FY 2018- 19, the City transferred all Hesperia Fire Protection District (Fire District) assets and liabilities to San Bernardino County Fire, with the exception of the former personnel obligations, for which the Fire District will continue to function with dedicated funding. The Fire District is 97% expended, which is due to paying the annual contractual retirement obligations related to the former Fire District employees at the beginning of the fiscal year versus paying monthly. The $37,610 in savings will be used to retain the funds in a trust for the payment of former Fire District personnel obligation.
September Amended
2022-23 2022-23 2022 YTD Percent
D. S. - Sewer Operating Budget Amended Expenditures Expended 4200 Operations 4,809,563$ 4,809,563$ 569,173$ 12% 4240 Engineering 267,166 267,166 42,965 16% 4260 Utility Billing 243,465 243,465 64,986 27% 4270 Administration 748,047 748,047 191,985 26% Total D. S. - Sewer Operating 6,068,241$ 6,068,241$ 869,109$ 14% September Amended
2022-23 2022-23 2022 Y TD Percent
Budget Amended Expenditures Expended
Police 20,613,786$ 20,613,786$ 5,086,481$ 25% September Amended
2022-23 2022-23 2022 Y TD Percent
Budget Amended Expenditures Expended
Fire District 1,130,815$ 1,130,815$ 1,093,205$ 97% 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 22 -
FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS
September
DEPARTMENT AND PROGRAM 2022-23 2022-23 2022 YTD Percent EXPENDITURES SUMMARY Budget Amended Expenditures Expended City Council
100 100 City Council 348,121$ 348,121$ 66,637$ 19% 100 102 City Attorney 450,000 450,000 102,587 23% Total City Council 798,121$ 798,121$ 169,224$ 21% City Manager
100 200 City Manager 1,573,041$ 1,561,041$ 449,751$ 29% 100 215 Information Technology 2,345,753 2,345,753 738,753 31% Total City Manager 3,918,794$ 3,906,794$ 1,188,504$ 30% Management Services
100 220 Finance 2,103,642$ 2,103,642$ 776,208$ 37% 100 225 Human Resources/Risk Mgmt. 2,578,569 2,578,569 1,677,850 65% 100 229 Non-Departmental 1,872,172 1,872,172 225,045 12% Total Management Services 6,554,383$ 6,554,383$ 2,679,103$ 41% Economic Development
100 Economic Development 371,111$ 371,111$ 112,089$ 30% 251 CDBG Administration 1,438,687 1,438,687 19,144 1% 370 Hesperia Housing Authority 72,586 72,586 6,257 9% Total Economic Development 1,882,384$ 1,882,384$ 137,490$ 7% Development Services - Community Development
100 3000 Planning 979,314$ 979,314$ 288,047$ 29% 100 3020 Building & Safety 1,202,818 1,202,818 392,754 33% Total D. S. Community Development 2,182,132$ 2,182,132$ 680,801$ 31% Development Services - Code Compliance
100 3010 Code Enforcement 2,467,764$ 2,467,764$ 638,483$ 26% 100 5000 Animal Control 2,316,058 2,316,058 591,297 26% Total D. S. Code Compliance 4,783,822$ 4,783,822$ 1,229,780$ 26% Development Services - Public Works
100 3100 Engineering 967,725$ 967,725$ 241,173$ 25% 100 3110 Building Maintenance 1,358,564 1,358,564 382,635 28% 263 3150 Street Maintenance 2,098,161 2,098,161 566,531 27% 263 3170 Traffic 1,879,475 1,879,475 342,843 18% Total D.S. - Public Works 6,303,925$ 6, 303,925$ 1,533,182$ 24% Streets Capital Improvement Project (CIP)
100 Capital Improvement Program 200,000$ 200,000$ 0$ 0% 204 Measure I -2010 Renewal 1,652,933 1,652,933 18,445 1% 207 Local Transportation Fund 248,800 248,800 0 0% 209 - Gas Tax - RMRA 1,998,500 1,998,500 0 0% 300 Streets Development Impact Fee 203,600 203,600 0 0% 301 Storm Drain Development Impact Fee 1,065,149 1,065,149 0 0% 306 Streets 2018 Development Impact Fee 12,895,201 12,895,201 1,356,821 11% 313 A-04 Drainage Development Impact Fee 952,000 952,000 0 0% 504 City Streets CIP 28,132,561 28,132,561 2,116,720 8% Total Streets CIP Funds 47,348,744$ 47,348,744$ 3,491,986$ 7% 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 23 -
FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)
September
DEPARTMENT AND PROGRAM 2022-23 2022-23 2022 YTD Percent EXPENDITURES SUMMARY Budget Amended Expenditures Expended Other City Related Funds
256 Beverage Recycling Grant 66,156$ 82,557$ 8,316$ 10% 262 SB 1383 Local Assistance Grant 0 94,230 5,000 5% 309 City Hall Facilities 2018 Development Impact Fee 85,000 85,000 0 0% 402 Water Rights Acquisition 1,442,075 1,442,075 0 0% 403 2013 Refunding Lease Rev Bonds 881,150 881,150 0 0% Total Other City Related Funds 2,474,381$ 2,585,012$ 13,316$ 1% Development Services - Water
Water Operating
4010 Source of Supply 4,825,015$ 4,825,015$ 20,720$ 0% 4020 Production 4,596,134 4,513,782 942,454 21% 4030 Distribution 1,847,563 1,929,915 574,997 30% 4035 Pipeline Maintenance 1,000,419 982,150 226,824 23% 4040 Engineering 1,019,812 1,019,812 190,732 19% 4050 Customer Service 2,504,758 2,504,758 566,344 23% 4060 Utility Billing 1,302,662 1,302,662 485,155 37% 4070 Administration 4,064,384 4,069,153 1,051,872 26% 4080 Property Management 459,618 473,118 89,217 19% Total Water Operating 21,620,365 21,620,365 4,148,315 19% 701 Water Capital Project 3,825,000 3,825,000 1,498 0% 720 Reclaimed Water Operations 255,656 255,656 2,705 1% Total D.S. Water Operating & Capital 25,701,021$ 25,701,021$ 4,152,518$ 16% Development Services - Sewer
Sewer Operating
4200 Operations 4,809,563$ 4,809,563$ 569,173$ 12% 4240 Engineering 267,166 267,166 42,965 16% 4260 Utility Billing 243,465 243,465 64,986 27% 4270 Administration 748,047 748,047 191,985 26% Total Sewer Operating 6,068,241 6,068,241 869,109 14% Sewer Capital 711 3,845,000 3,845,000 5,557 0% Total D.S. Sewer Operating & Capital 9,913,241$ 9,913,241$ 874,666$ 9% Police 100 510 20,613,786$ 20,613,786$ 5,086,481$ 25% Fire District 1,130,815$ 1,130,815$ 1,093,205$ 97%
Total City Expenditures 133,605,549$ 133,704,180$ 22,330,256$ 17% 2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 24 -
PROPOSED BUDGET AMENDMENTS – SUMMARY
The FY 2022-23 First Quarter Budget Review includes two (2) budget amendments totaling $68,695. The following listing categorizes the proposed budget amendments, with the following pages providing detail on each request:
PROPOSED BUDGET AMENDMENTS – NARRATIVE
Development Services
Community Development Building & Safety – Contract Inspection Services $50 ,000 (100 -29-300-3020) – Unanticipated
The Fiscal Year 2022 -23 O perating Budget included $50,000 for contract inspection services and through September 2022, $46,000 has been expensed. Additional contract inspection services are being requested to ensure that inspections meet the City ’s timely standard turnaround due to high demand from the building community. The current turnaround time is five to ten business days. If the budget amendment is approved, the City can return to the one to two business day turnaround.
Public Works-Street Maintenance/Traffic – Traffic Signal Head $18,695 (263-29-310-3170) – New This request is for the installation of a left turn traffic signal head at the intersection of Mariposa Road and Ranchero Road. This is a highly used instersection for commuters and residents, where the north and south bound directions do not have a specific left turn on the traffic signal, which has caused numerous traffic collisions. Therefore, staff is requesting $18,695 for the purchase and installation of a traffic signal head.
General Other
FY 2022-23 1st Quarter Budget Requests Fund Funds Totals
1. Contract Inspection Services $ 50,000 $ 0 50,000$
2. Traffic Signal Head 0 18,695 18,695 Total 1st Quarter Budget Amendments Requests 50,000$ 18,695$ 68,695$ General Other
R
EQUESTED: Fund Funds Totals
General Fund
50,000$ 0$ 50,000$
Total General Fund 50,000$ 0$ 50,000$ Development Services
Traffic Signal Head (Public Works-Street Maintenance/Traffic) 0$ 18,695$ 18,695$ Total Development Services 0$ 18,695$ 18,695$ Total City Expenditures 50,000$ 18,695$ 68,695$ Source of Funds:
General Fund - 100 50,000$
Street Maintenance - 263 18,695
Total Source of Funds 68,695$
Contract Inspection Services (Community Development-Building & Safety)