DATE:
May 16, 2023
TO:
Mayor and Council Members
Chair and Board Members, Hesperia Housing Authority
Chair and Board Members, Hesperia Fire Protection District Chair and Board Members, Hesperia Water District
FROM:
Nils Bentsen, City Manager
BY:
Rachel Molina, Assistant City Manager
Casey Brooksher, Director of Administrative Services
SUBJECT:
FY 2023-24 Budget Workshop #2 – Budget Update
RECOMMENDED ACTION
It is recommended that the City Council/Boards receive and file this staff report, which provides information about the current status of the City of Hesperia’s proposed operating budget for FY 2023-24, and adopt Joint Resolution No. 2023-30, HHA 2023-04, HFPD 2023-02, and HWD 2023-06 amending the Financial Policies.
BACKGROUND
In compliance with the City Council’s policy direction, staff annually develops an expenditure budget. While the budget gives the City the legal authority to secure goods and services, it is also a communication tool that provides information to the citizens about the City’s programs and projects. To ensure that the budget is developed to meet the City Council’s direction, a series of budget workshops have been developed. The first workshop focused on the General Fund and Water District’s current financial health. This second workshop will highlight updates to the operating budget, along with a snapshot of the Streets Maintenance Fund, which includes the use of reserves.
ISSUES/ANALYSIS
This second budget workshop will provide a brief overview of the total budget. The operating budget includes planned ongoing revenues and expenditures for the upcoming fiscal year, as well as revisions to the FY 2022-23 Budget.
Financial Policies
Resolutions are included to amend the annual Financial Policies for the City. These policies, which follow current practices, serve as guidelines for the financial management of the City; particularly in the area of budgeting, accounting for capital improvements, revenue, management of budgeted reserves, transfers of available budget within a fund, fiscal management, capital assets exceeding $5,000, and long-term debt management.
For FY 2022-23 a revision is recommended for the Council’s consideration and is shown as Exhibit A Item X. Unfunded Liability, which is the addition of a new policy regarding Section 115 Trusts. The new policy will include the following:
The City will annually contribute a minimum of five percent (5%) of the annual CalPERS required employer unfunded liability payment into the 115 Trust for the City miscellaneous and safety plan. The City will review the annual CalPERS actuarial valuation report and include into the budget the 5% calculation as transfer to the 115 pension plans.
The City will annually review the OPEB billing from CalPERS and contribute a minimum 15% to the 115 Trust of OPEB. The City will use the current year OPEB billing to be included in the next year budget. For example, the FY 2022-23 billing will be used for the FY 2023-24 Budget.
FISCAL IMPACT
There are no financial impacts at this time, as this is a workshop to discuss the proposed FY 2023-24 operating budget.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Joint Resolution No. 2023-30, HHA 2023-04, HFPD 2023-02, and HWD 2023-06 Exhibit A Financial Policies Clean and Track Changes
Page PAGE 2 of NUMPAGES 2
Staff Report to the Mayor and City Council/Board Members Budget Workshop #2
May 16, 2023
City of Hesperia
STAFF REPORT