DATE:
June 20, 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:
Rachel Molina, City Manager
BY:
Casey Brooksher, Director of Administrative Services
SUBJECT:
Fiscal Year (FY) 2023-24 Operating Budget Adoption
RECOMMENDED ACTION
It is recommended that the City Council/Board’s adopt the following Resolutions approving the FY 2023-24 Operating Budget for the City of Hesperia, Hesperia Housing Authority, Hesperia Fire Protection District, and Hesperia Water District:
City of Hesperia Resolution No. 2023-37 adopting the Fiscal Year 2023-24 Budget City of Hesperia Resolution No. 2023-38 adopting the GANN Appropriations Limit Hesperia Housing Authority Resolution HHA 2023-06 adopting the Fiscal Year 2023-24 Budget Hesperia Fire Protection District Resolution HFPD 2023-06 adopting the Fiscal Year 2023-24 Budget Hesperia Fire Protection District Resolution HFPD 2023-07 adopting the GANN Appropriations Limit Hesperia Water District Resolution HWD 2023-11 adopting the Fiscal Year 2023-24 Budget Joint Resolution No. 2023-34, HHA 2023-05, HFPD 2023-04, and HWD 2023-09 re-adopting the Financial Policies
BACKGROUND
In compliance with the City Council’s policy direction, staff has prepared the FY 2023-24 Operating Budget for the City of Hesperia, the Hesperia Housing Authority, Hesperia Fire Protection District, and the Hesperia Water District Board’s consideration and action. The information contained in this staff report follows two workshops regarding the City’s FY 2023-24 Operating Budget which began in May 2023.
ISSUES/ANALYSIS
The City Council/Board’s expenditure plan and related resources to fund the Fiscal Year (FY) 2023-24 Operating Budget have been presented and staff is available to answer questions that the legislative bodies may have. Included with this staff report and attached resolutions is the FY 2023-24 combined operating budget of $87,506,252, made up of: operating expenditures of $77,429,556, expenditures from non-operating funds of $3,677,153, capital outlay in operating funds of $1,404,494, and debt service of $4,995,049. The Capital Improvement Program (CIP) budget of $49,490,312 will also be presented for City Council consideration on June 20, 2023. With both items combined, the FY 2023-24 Budget is proposed to be $136,996,564.
Staff requests authority to make technical corrections, minor edits, etc. to the FY 2023-24 Proposed Budget document to be incorporated into the final FY 2023-24 Budget as approved by the City Council.
Financial Policies
Resolutions are included to re-adopt the annual Financial Policies for the City. These policies, which follow current practices, will serve as guidelines for the financial management of the City; particularly in the area of budgeting, accounting for capital improvements, revenue, reserves, transfers of available budget within a fund, fiscal management, capital assets, long-term debt management, and Section 115 Trusts to address unfunded liabilities.
Gann Limit
Proposition 4, approved by the California voters in 1979, requires cities and special districts to calculate and establish an appropriation limit each year. The limit is based on the actual appropriation in the fiscal year 1978-79 or year of incorporation, and increases with population growth and inflation. The FY 2023-24 Gann Limit for the City is $117,544,125 while the Fire District is $27,409,256.
FISCAL IMPACT
See Fiscal Year 2023-24 Proposed Budget.
ALTERNATIVE
Provide alternate direction to staff.
ATTACHMENTS
Resolution No. 2023-37
Resolution No. 2023-38
Resolution HHA 2023-06
Resolution HFPD 2023-06
Resolution HFPD 2023-07
Resolution HWD 2023-11
Joint Resolution No. 2023-34, HHA 2023-05, HFPD 2023-04, and HWD 2023-09 (Financial Policies) Exhibit A Financial Policies clean and track changes
Page PAGE \* Arabic \* MERGEFORMAT 2 of NUMPAGES \* Arabic \* MERGEFORMAT 2 Staff Report to the Mayor and City Council/Board Members Fiscal Year 2023-24 Operating Budget Adoption
June 20, 2023
Page PAGE 1 of NUMPAGES 1 - PAGE 1 -1Page PAGE 1 of NUMPAGES 1 - PAGE 1 -1 City of Hesperia
STAFF REPORT