Revised 10/2021 4/27/2022 12:11 PM
For information regarding this Agenda please contact:
Olivia Nashed
City Clerk
Telephone: (209) 333-6702
A. Call to Order / Roll Call
B. Topics
B-1 Receive Presentation Regarding Fiscal Year 2022/23 General Fund and Measure L Budget and Five- Year General Fund and Measure L Forecast. (ISD)
C. Comments by Public on Non-Agenda Items
THE TIME ALLOWED PER NON -AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.
Public comment may only be made on matters within the Lodi City Council's jurisdiction (Government Code Section 5495
4.3, Lodi City Council Protocol Manual Section 6.3l) . The Council cannot take action or deliberate on items that are not on this agenda unless there is an emergency and the need to take action on that emergency arose af
ter this agenda was posted (Government Code Section 54954.2(b)(2)). All other items may only be referred for review to staff or placement on a future Council agenda.
If you wish to address the Council, please refer to the Notice at the beginning of this agenda. Individuals are limited to one appearance during this section of the Agenda.
D. Adjournment
Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day. ____ __________________________
Olivia Nashed
City Clerk
LODI CITY COUNCIL
Carnegie Forum
305 West Pine Street, Lodi
Notice Regarding Public Comments
Public Comment may be submitted in the following ways:
• In-person – The Carnegie Forum is open to the public in accordance with CDPH and CalOSHA guidelines.
• Zoom Webinar
Meeting ID: 872 2014 2274
Passcode: 401448
Phone number: +1 720 07 2699 or +1 253 215 8782
Link:
https://us06web.zoom.us/j/87220142274?pwd=dzYySXc2bTkvZ0ZFdlpMTkRZdW9XZz09 • Email – [email protected]
Received no later than 4:30 p.m. on the business day prior to the meeting. • Mail – City Clerk’s Office, P.O. Box 3006, Lodi, CA 95241 • Hand delivered to: City Clerk’s Office, 221 W. Pine Street, Lodi, CA 95240
AGENDA – Shirtsleeve Session
Date: May 3, 2022
Time: 7:00 a.m.
All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. Agendas and staff reports are also posted on the City’s website at www.lodi.gov . If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation contact the City Clerk’s Office as soon as possible and at least 72 hours prior to the meeting date. Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure availability. Contact Olivia Nashed at (209) 333- 6702. Solicitudes de interpretación de idiomas deben ser recibidas por lo menos con 72 horas de anticipación a la reunión para ayudar a asegurar la disponibilidad. Llame a Olivia Nashed (209) 333-6702.
Meetings of the Lodi City Council are telecast on SJTV, Channel 26. The City of Lodi provides live and archived webcasts of regular City Council meetings. The webcasts can be found on the City's website at www.lodi.gov by clicking the meeting webcasts link.
Members of the public may view and listen to the open session of this teleconference meeting at www.facebook.com/CityofLodi/ or https://us06web.zoom.us/j/87220142274?pwd=dzYySXc2bTkvZ0ZFdlpMTkRZdW9XZz09.
AGENDA ITEM B-01
COUNCIL COMMUNICATION
APPRO
VED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2022/23 General Fund and Measure L Budget and Five-Year General Fund and Measure L Forecast MEET
ING DATE: May 3, 2022
PRE
PARED BY: Deputy City Manager
RECO
MMENDED ACTION: Receive presentation regarding Fiscal Year 2022/23 General Fund and Measure L budget and the five-year General Fund and Measure L forecast.
BA
CKGROUND INFORMATION: Staff has planned a series of presentations to provide the City Council and public an opportunity to review and comment on basic assumptions within the FY 2022/23 budget to be proposed to Council later this month.
The draft budget will be released and made available for public review Online once the draft is finalized. This session is designed to provide information on the general economic conditions facing City staff and Council in allocating resources to most effectively deliver services, with particular focus on the General Fund and Measure L.
Inc
luded in the presentation will be a discussion of Fiscal Year 2022/23 General Fund and Measure L expenditures and the General Fund and Measure L five-year forecast. The forecast is a critical planning tool for staff and Council to use to anticipate future resource or service level adjustments. The forecast presented will include a baseline scenario that keeps normal operations with no change in service levels.
Fut
ure Council presentations will focus on other aspects of the City budget beyond the General Fund and Measure L. The first opportunity for the City Council to adopt the Fiscal Year 2022/23 budget will be at its regular meeting on June 1, 2022.
FIS
CAL IMPACT: There is no impact from this informational presentation.
FU
NDING AVAILABLE: The draft General Fund and Measure L budgets for Fiscal Year 2022/23 is projected at $73,892,170 for both revenues and expenditures. ___
____________________________________
Andrew Keys
Deputy City Manager/Internal Services Director
Fiscal Year 2022/23 Budget
General Fund
Presented by Andrew Keys, Deputy City Manager
Overview
• General Fund
Assumptions/Revenues/Expenses
Key Inputs
Five Year Forecast
• Overall revenues are projected at a small increase
over mid-year projections when adjusted for ARPA
and FEMA reimbursements
• Expenditures are showing increases primarily in
PERS Unfunded Liability, additional support for
vehicles and equipment replacement funds;
additional support to Library and PRCS operations
and general goods and services cost increases
• Increase of 6.4 positions
General Fund Assumptions
General Fund
Revenues $73,892,170
Revenue
Budget
FY 2022/23
Tax Revenues 54,280,830$
Revenue from Others 7,482,890$
Operating Transfers In 7,115,470$
charges for Services 1,857,180$
Property Revenue 1,756,000$
Fines & Forfeitures 815,100$
Other Revenue 523,500$
Licenses & Permits 61,200$
Total 73,892,170$
General Fund
Expenditures $73,892,170
General Fund Expenditures by Department
Budget
FY 2022/23
Police 29,997,060$
Fire 17,730,630$
Non-Dept 11,080,340$
Internal Services 6,546,100$
Public Works 3,751,040$
Parks, Rec & Cultural Srvs (Measure L support 1,045,250$ City Attorney 825,880$
City Clerk 801,930$
City Manager 791,680$
Eco Development 500,240$
Com Improvement 484,700$
Library (Measure L support) 337,320$
Total 73,892,170$
• Net increase of 6.4 full-time positions
General Fund Key Inputs
Job Title Department +/-
Management Analyst * Fire +0.4
Administrative Analyst Internal Services +1
Budget Manager ** Internal Services +1
Administrative Assistant Police +1
Police Sergeant (Traffic) Police +1
Property & Evidence Tech ** Police +1
Management Analyst Public Works +1
Net Increase 6.4
* This position has been split 60/40 in PRCS and is now recommended ** These positions are for succession planning and are temporary 100% in General Fund
• Increased base operational support to Library and
Parks, Recreation and Cultural Services by 8.48%
• Library: $119,140 funded by Measure L
• PRCS: $302,880 funded by Measure L
• Continue transfer to Parks Capital Fund
• $400,000 funded by Measure L
• Transfers to Police and Fire Vehicle Replacement
Fund
• Police: $1,260,000 an increase of $786,000
• Fire: $400,000 funded by Measure L
General Fund Key Inputs
• General Fund support for Parks, Recreation and
Cultural Services:
• Operational Support of $4,295,600
• $3,225,950 General Fund base support
• $147,540 of FY 22 mid-year new staff support
• $645,250 Measure L base support
• FY 22 base $342,370
• FY 23 base $302,880
• $85,000 for vehicle replacement fund
• $38,000 for new Administrative Analyst
• $153,860 to close revenue gap
Parks, Rec & Cultural Svs. Support
$5,961,520
• General Fund support (cont.)
• Cost of Services of $830,010
• Debt Service of $435,910
• Ongoing Capital Support of $400,000 funded by
Measure L
• In addition to the listed FY 23 items, the General
Fund transferred $6,960,000 in FY 22 1x monies to
Parks capital accounts to support major
infrastructure needs such as Lodi Lake
improvements, playground replacements, parking
lot overlay, sports lighting and building renovations.
Parks, Rec & Cultural Svs. Support
$5,961,520
• Revenues: $9,118,800
• Expenditures: $9,118,800
Measure L
Measure L Funded Positions
FY 2021/22
Budget
FY 2022/23
Budget Cost:
Police Officers 20 26 $3,979,290
Firefighters 8 8 $1,119,040
Librarian 1 1 $98,140
Street Maintenance Wrk III 0.2 0.2 $31,360
Total Full-Time 29.2 35.2 $ 5,227,830
$1,779,120
$84,020
$349,520
$233,060
$645,250
$400,000
Fire Vehicle Replacement $400,000
Measure L Total $ 9,118,800
Public Safety Overtime
Part-Time Community Service Officers (2)
Supplies, Materials, Training
Library Operations
Parks, Recreation & Cultural Srvs Operations
Parks Capital
Vehicle Replacement Fund
Vehicle
Replacement
Funds
FY 23 Straight Line
Depreciation
Requirement
FY 23
Recommended
Funding
Annual Funding
Surplus/(Shortage)
Comm. Dev. $4,570 $45,000 $40,430
Fire Dept. $216,051 $400,000 $183,949
Community Imp. $3,328 $0 ($3,328)
Police Dept. $279,508 $1,260,000 $980,492
PRCS $36,056 $88,300 $52,244
PW-GF $15,345 $20,000 $4,655
Grand Total $554,858 $1,813,300 $1,258,442
*PRCS straight line depreciation reduced as compared to FY 22 due to reclassification of some items as equipment, following an inventory review.
Vehicle
Replacement
Funds
6/30/22 YE
Est Fund Bal
2022/23
Proj Rev
2022/23
Est Exp
6/30/23 YE
Est Fund Bal
Fund
Target*
Over/(Under)
Target
Comm. Dev. 90,788 45,000 45,000 90,788 48,846 41,942
Fire Dept. -164,860 400,000 0 235,140 1,379,098 (1,143,958) Community Imp. 82,500 0 0 82,500 45,967 31,670
Police Dept. 1,091,436 1,260,000 610,000 1,741,436 1,891,045 (149,609) PRCS 359,012 88,300 116,000 331,312 893,728 (586,987)
PW-GF 80,144 20,000 45,000 55,144 168,111 (112,967)
Grand Total 1,539,020 1,813,300 816,000 2,536,320 4,426,795 (1,919,909) *Fund Target is the straight line depreciation value of vehicle stock that should be set aside for future replacements using Fleet Services estimated useful life expectancies by vehicle type. 5 Year Forecast - Assumptions
• FY 2023 budget as recommended is projected forward
• Includes continued contributions to PRCS capital and
network infrastructure started in FY 2022, and new
positions being recommended in FY 2023
• Labor contracts expire June 30, 2022 or December 31,
2022
• No specific assumptions for future contracts are included, but a general allowance for salary increases is factored based on labor discussions with Council
• Assumes 100% full employment (no vacancies)
• Continued, strong growth is projected, albeit at a more measured pace than the past few years
5 Year Forecast - Assumptions
Revenue Category FY 22/23 B FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Property Taxes - Secured 4.9% 3.7% 3.7% 3.7% 3.7% 3.7%
Sales & Use Taxes 2.0% 3.0% 3.5% 3.5% 3.5% 3.5%
Transient Occupancy Tax 5.0% 5.0% 5.0% 3.0% 3.0% 3.0%
Business License Tax 8.6% 10.0% 10.0% 3.5% 3.5% 3.5%
Other Taxes -0.4% 3.0% 3.0% 3.0% 3.0% 3.0%
EU Pilot 1.8% 0.5% 0.5% 0.5% 0.5% 0.5%
Property Tax in Lieu VLF 7.0% 3.7% 3.7% 3.7% 3.7% 3.7%
Transfers In 9.8% 2.0% 2.0% 2.0% 2.0% 2.0%
Property Taxes - CFD 26.2% 10% 10% 5% 5% 5%
Measure L 2.0% 3.0% 3.5% 3.5% 3.5% 3.5%
Other Revenues 16.1% 2.0% 2.0% 2.0% 2.0% 2.0%
Expens e Category FY 22/23 B [1] FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Salaries [2] N/A 3.0% 3.0% 3.0% 2.0% 2.0%
PERS Normal Cost N/A 3.0% 3.0% 3.0% 2.0% 2.0%
PERS UAL N/A 7.5% 7.5% 5.0% 5.0% 5.0%
Other Benefits N/A 2.0% 2.0% 2.0% 2.0% 2.0%
Operations N/A 2.0% 2.0% 2.0% 2.0% 2.0%
Debt [3] N/A 0.2% 0.2% -0.1% -0.1% 0.1%
Transfers N/A 0.5% 0.5% 0.5% 0.5% 0.5%
City of Lodi 5 Year General Fund Forecast
Assumptions
Revenue FY 21/22 E FY 22/23 B FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Property Taxes 12,456,500 13,070,000 13,554,000 14,056,000 14,577,000 15,117,000 15,677,000 Sales & Use Taxes 16,325,000 16,651,000 17,151,000 17,752,000 18,374,000 19,018,000 19,684,000 Transient Occupancy Tax 1,500,000 1,575,000 1,654,000 1,737,000 1,790,000 1,844,000 1,900,000 Business License Tax 1,750,000 1,900,000 2,090,000 2,299,000 2,380,000 2,464,000 2,551,000 Other Taxes 3,777,970 3,761,790 3,875,000 3,992,000 4,112,000 4,236,000 4,364,000 EU Pilot 7,432,690 7,564,240 7,603,000 7,642,000 7,681,000 7,720,000 7,759,000 Property Tax in Lieu VLF 6,375,000 6,820,000 7,073,000 7,335,000 7,607,000 7,889,000 8,181,000 Transfer In 6,478,410 7,115,470 7,258,000 7,404,000 7,553,000 7,705,000 7,860,000 Property Taxes - CFD 507,000 640,000 704,000 775,000 814,000 855,000 898,000 Measure L 8,940,000 9,118,800 9,393,000 9,722,000 10,063,000 10,416,000 10,781,000 Other Revenues 4,889,080 5,675,870 5,790,000 5,906,000 6,025,000 6,146,000 6,269,000 Total Revenue 70,431,650 73,892,170 76,145,000 78,620,000 80,976,000 83,410,000 85,924,000 Revenue Growth [1] 8.2% 4.9% 3.0% 3.3% 3.0% 3.0% 3.0%
5 Year Forecast - Revenue
5 Year Forecast - Expenses
5 Year Forecast – Fund Balance
5 Year Forecast – Fund Balance
Risks
• Recession
• Inflation (particularly fuel and food)
• Global conflict
• Consumer demand?
• Labor Negotiations – mitigated by set asides in budget • CalPERS UAL or other assumptions changes – minimal given current ALS cycle appears on track to not make significant changes
• Pace of Development
• Additional service needs/demands from the public
Opportunities
• Recent revenue trend line is above the forecast base case • Economic development
• Loan program
• Substantial new municipal capital spending ($9.72 million one time General Fund Surplus and $15 million for the animal shelter and parks projects)
• Revenue enhancement
• Vacancies
• Workforce Demographics
5 Year Forecast –
Risks/Opportunities
19 Questions?