1 March 11, 2024 Item 5.3
City of Lathrop
Mid-Year Budget Review
2 Overview
• In June 2023, the City Council adopted the Biennial Budget for Fiscal Years 2023/24 and 2024/25.
• 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 2024 and 2025 • Amendments to Year 1 of the Biennial Budget FY 2024 including:
• Program Requests
• New/ Revised Job Description’s
• Amended Grade Step Table
• Amended Position Control Roster
3 Mid-Year Update
• Current revenue trends in property tax and interest earnings from the City’s investment portfolio are better than projected; therefore, staff is recommending increasing property tax revenue by $200,000, property tax in lieu of VLF by $200,000, and interest earnings by $100,000. Staff will continue to evaluate revenues at the end of Year 1 (FY 2024) to recommend additional adjustments to projections if needed.
• Last year Lathrop was the 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 new facilities and equipment that need to be staffed. 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 mid-year staffing requests to add/ create/ unfund positions as well as proposed reclassifications 3 4 Mid-Year Staffing Requests – Add/ Create/ Unfund
Information
Systems
Unfund
(Vacant) Chief
Information
Officer
Add Information
Technology
Technician
Add Information
Technology
Engineer I/II
Parks,
Recreation &
Fleet
Unfund
Recreation
Leader Part-time
Add Fleet
Attendant Parttime
Police
Add Police
Lieutenant
Add Crime and
Intelligence
Analyst
Add/ Create/
Reclass Property
and Evidence
Manager
Public Works
Unfund (Vacant)
Senior Civil
Engineer
Add Principal
Engineer
Add/ Update
Project Manager
5 Mid-Year Staffing Requests - RECLASSIFICATION
City Attorney
Administrative
Assistant III to
Legal Secretary
Legal Secretary to
Legal Assistant
Finance
Customer Service
Representative I to
Accountant I/II
Parks,
Recreation
and Fleet
Recreation
Manager to Parks
and recreation
Manager
Landscape &
Irrigation Specialist
to Maintenance
Services Supervisor
6 Mid-Year Staffing Requests - RECLASSIFICATION
Police
Police Officer
to Police
Corporal
(5 FTE)
Police
Commander to
Police Captain
(2 FTE)
Public
Works
Assistant
Engineer to
Associate
Engineer (2 FTE)
7 Mid Year Staffing Requests - SUMMARY
16 Proposed
Reclassified
Positions
3 Unfunded
Positions
5 FTE Increase
to Position
Control Roster
$870k
Annual
Increase All
Funds Add/
Unfund
Positions
$(228k)
Savings
Associated
with Midyear
Position Add/
Unfund
$41k Mid-Year
Reclassification
Costs
8 Mid-Year General Fund Program Requests
The following program/project requests require additional funding from the General Fund to address a specific need:
1. City Council: Increase training & travel in the amount of $7,500 for anticipated in state training and travel.
2. City Clerk: Increase professional services by $26,000 to cover Phase II Record Management Improvements.
3. Information Technology: Increase subscription and computer equipment in the amount of $440,000 for the purchase of various software and hardware to become compliant with the Department of Homeland Security’s requirements for cyber security posture while complying with the recommendations to lower our cyber security insurance.
4. Parks and Recreation: Increase Leisure contracts in the amount of $30,000 to cover the growth of the programs that are performing better than expected, this will be offset by service charge revenue of $30,000.
9 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 2024) to recommend
additional adjustments to projections if
needed.
• Expenditures are projected to end the year at
$34.6 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 24% 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 2024
Amended
FY 2024 MidYear
Begin Balance $8.8 $8.8
Revenue $34.2 $34.8
Expenditures $34.6 $35.1
Unallocated Fund Balance $8.4 $8.5
10 Notable Mid-Year Non General Fund
Program Requests
• $200,000 for Measure C for the Streets CIP PS24-30 Pedestrian Safety Enhancement to upgrade existing facilities as well as construct new facilities to increase pedestrian safety and access throughout the City
• $64,731 for Sewer Fund Communication Equipment Repair for PRIMEX services to update SCADA control hardware and software
• $55,770 for Water Fund Communications Equipment Repair associated withPRIMEX services to update SCADA control hardware and software PLC/ OIT • $79,390 for Water Fund Professional Services for Sustainable Groundwater Management Act Compliance for Lathrop’s proportionate share of Tracy Sub basin GSP Implementation
• $25,000 for Crossroads Storm Drain Zone 1A for repair of radiator and oil cooler at the Crossroads Storm Drain Pump Station
• $12,000 for Measure C for the purchase and installation of two pipe swing gates at the Lathrop Generation Center
11 Council Action
Staff recommends that the City Council:
• Adopt the proposed resolution amending Year 1 (FY 2024) 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