1 March 14, 2022 Item 5.2
City of Lathrop
Mid-Year Budget Review
2 Overview
• In June 2021, the City Council adopted the Biennial Budget for Fiscal Years 2021/22 and 2022/23.
• At the mid-point of the fiscal year, staff is updating Council on the City’s financial status. • Items for Council review include:
• Mid-Year Budget Report for Year 1of Biennial Budget FY 2022 and 2023 • Amendments to Year 1 of the Biennial Budget FY 2022 including:
• Program Requests
• New/ Revised Job Description’s
• Amended Grade Step Table
• Amended Position Control Roster
3 Mid-Year Update
• Over the last 5 years Lathrop’s population has grown by almost 25%. During the pandemic, Lathrop’s Building Department processed almost 2,000 building permits. This reflects approximately 5 years’ worth of building permits in a 2-year period. • Last year Lathrop was the 3rd fastest growing City in the State of California. With the growing population there comes a need for additional staffing to provide services to our residents. • The City’s tax base and development activity have become solid indicators that Lathrop needs additional staffing to be able to continue to deliver the high level of service that the community has come to expect from City Hall.
• In addition, the City has several employees in key positions ready for retirement. In order for the City to ensure they have qualified and experienced staff in place, the mid-year includes several reclassifications and new positions.
• The following slides summarize the proposed reclassifications and new/unfunded positions created as a result of population growth, retirements and restructuring. 3 4
Mid-Year Staffing Requests – NEW POSITIONS (10)
Information
Systems
Director of
Information
Systems
Parks, Recreation
and Maintenance
Services
Parks and
Facility
Manager
Streets and
Maintenance
Operations
Manager
Recreation
Supervisor
Parks, Recreation
and Maintenance
Services (cont.)
Administrative
Assistant I/II
Public Works
Permit
Technician
Assistant
Engineer
Assistant
Engineer
Senior Civil
Engineer
Community
Development
Senior Planner
5 Mid-Year Staffing Requests – UNFUNDED POSITIONS (4)
Parks, Recreation
and Maintenance
Services
Deputy Director of
Parks, Recreation
and Maintenance
Services
Public Works
Land
Development
Manager
Police
Crime and
Intelligence
Analyst
Animal Control
Assistant
6 Mid-Year Staffing Requests - RECLASSIFICATION
City Attorney
Senior
Administrative
Assistant to Legal
Secretary
Human
Resources
Human Resource
Analyst I/II to
Human Resource
Technician
Adjust Grade for
Human Resources
Manager
Information
Systems
Administrative
Assistant II to
Management
Analyst II
Chief Information
Officer to Director
of Information
Systems
Community
Development
Senior
Administrative
Assistant to
Executive Assistant
Principal Planner
to Assistant
Community
Development
Director
Adjust Grade for
Assistant/
Associate/ Senior/
Principal Planner
7 Mid-Year Staffing Requests - RECLASSIFICATION
Parks, Recreation
and Maintenance
Services
Management
Analyst II to
Recreation
Manager
Maintenance
Services Supervisor
to Landscape &
Irrigation Specialist
Adjust Grade for
Recreation
Leader/ Senior Rec
Leader
Finance
Accounting
Specialist II to
Customer Service
Representative I
Accounting
Technician to
Customer Service
Representative II
Accounting
Manager to
Customer Services
Manager
Finance (cont.)
Accountant II to
Management
Analyst I/II
Management
Analyst II to Senior
Accountant
Public Works
Senior
Administrative
Assistant to
Management
Analyst II
Adjust Grade for
City Engineer,
Utility Operator
and Meter Reader
8 Mid-Year Staffing Requests - SUMMARY
10 Proposed
Positions
4 Unfunded
Positions
6 FTE Increase
to Position
Control Roster
$563k
Annual
Increase
$333k MidYear
Increase
$330k
Annual
Contract
Staff Cost
Savings
9 Mid-Year General Fund Program Requests
The following program/project requests require additional funding from the General Fund to address a specific need:
1. Parks, Recreation and Maintenance Services: Increase alarm services in the amount of $13,000 for the purchase of KeyPer System, an electronic key and asset management system for additional security at the City’s corporation yard.
2. Finance: Expenditure increase of $193,000 is attributed to building permits being paid for through the City’s eSuite online portal that has become very popular during the pandemic.
The City has seen an increase in the fees associated with the use of online payments for permits but is also recovering these costs through a 3% service charge that is being passed on to credit card transactions that exceed $1,500.
10 General Fund Summary
• Current revenue trends in property tax and sales tax
seem favorable and will be evaluated at the end of
Year 1 (FY 2022) to recommend additional
adjustments to projections if needed.
• Expenditures are projected to end the year at $25.6
million.
• The City’s Reserve Policy has established an
acceptable reserve balance range of 10%-50% of
operating expenditures, with a primary goal of 50%.
• Current projected unallocated Fund Balance is
29% of operating Expenses
• Staff will continue to update Council as additional
financial and economic data becomes available.
GENERAL FUND MID-YEAR REQUESTS SUMMARY
(in millions) FY 2022
Amended
FY 2022 MidYear
Begin Balance $8.1 $8.1
Revenue $25.2 $25.6
Expenditures $25.2 $25.6
Unallocated Fund Balance $8.1 $8.1
11 Notable Mid-Year Non General Fund
Program Requests
• Lathrop’s share of cost for the SJCOG’s Roth Road Corridor Study. Fund 2080- $75,000 • Seal Master Crack Seal equipment applicator/material to repair cracks in roads, etc. Fund 2080- $25,000
• Primex services for the M2 Stormwater Pump Station rehabilitation. Fund 2570- $47,620 • Purchase and installation of three streetlights on Johnson Ferry Road. Fund 2080- $25,000 • ICU Technologies to provide and install new Avigilon multi-sensor cameras and network video recorder (NVR) at the Stanford Crossing Water Station. Fund 5620- $22,550 • City Hall Emergency Generator installation. Fund 3010- $50,000 12 SSJID Surface Water Budget Increase
• South San Joaquin Irrigation
District, Increased operation
costs for FY 2021-22 and FY
2022-23, including Lathrop’s
share of the unfunded
pension liability
• $900,000 Increase for each
Fiscal Year 2022 and Fiscal
Year 2023
• Single largest increase in
Mid-Year Request
• SSJID made decision
without consulting City
partners, Manteca and
Tracy face large increases
as well
13 Council Action
Staff recommends that the City Council:
• Adopt the proposed resolution amending Year 1 (FY 2022) of the adopted Biennial Budget for various funds and projects as identified
• Approve New & Revised Job Description’s
• Amend the City’s Grade Step Table
• Amend the City’s Position Control Roster
14 QUESTIONS