PowerPoint Presentation — Manhattan Beach City Council, May 10, 2022

“Note: This PowerPoint presentation is
intended solely as a visual aid to an oral
staff presentation of an agenda report topic.

In the event of any differences between the
presentation and the agenda report, the
information in the agenda report prevails.”
FISCAL YEAR 2022-2023

PROPOSED BUDGET
MAY 10, 2022
2CITY OF

3CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is
intended solely as a visual aid to an oral staff
presentation of an agenda report topic. In
the event of any differences between the
presentation and the agenda report, the
information in the agenda report prevails.”
• Revenues have recovered and are expected at or
above pre-pandemic levels in FY 2022-2023
• City’s AAA credit rating re-affirmed by S&P in 2021
• Updated Financial Policies
• Overall financial position allows re-investment in our infrastructure, maintenance and service levels in
alignment with:
• Community Opinion Survey conducted in Dec. 2021
• City Council Work Plan
• American Rescue Plan Act allocation of $8.4 million
• FEMA reimbursement submittals of $1.6 million

FISCAL OUTLOOK
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
4CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is
intended solely as a visual aid to an oral staff
presentation of an agenda report topic. In
the event of any differences between the
presentation and the agenda report, the
information in the agenda report prevails.”
• Investments aligned with Community Opinion Survey:
• $4.0 million transfer to CIP Fund for important
facilities and parks projects
• $1.0 million for deferred parks maintenance
• $525,000 for business area beautification
• Staffing resources for Public Works Maintenance to
address cleanliness and perform quality assurance
inspections
• Staffing resource for Emergency Preparedness
• Funding included to maintain essential services

BUDGET OVERVIEW
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
5CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is
intended solely as a visual aid to an oral staff
presentation of an agenda report topic. In
the event of any differences between the
presentation and the agenda report, the
information in the agenda report prevails.”
• City Council Work Plan initiatives included:
• Restoration of Sand Dune Park
• $1.2 million – CIP Fund
• Joslyn Center Façade Improvements
• $320,000 - CIP Fund
• Annual Parks Improvements Program
• $150,000 – CIP Fund
• Consultant to develop Outdoor Dining & Business
Use Program
• $245,000 – General Fund

BUDGET OVERVIEW
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
6CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is
intended solely as a visual aid to an oral staff
presentation of an agenda report topic. In
the event of any differences between the
presentation and the agenda report, the
information in the agenda report prevails.”
• Service Delivery Investments totaling $1.4 million:
• Eleven new full-time positions
• General Fund Five Positions $455,050
• Water Fund Three Positions $280,420
• Wastewater Fund Two Positions $179,418
• IT Fund One Position $66,070
• Other staffing adjustments include position
upgrades and reclassifications totaling $404,386
• Offset by:
• Elimination of three “frozen” positions
• Early Retirement Incentive resulted in reduction of five positions at approximate cost savings of $500,000 annually

FISCAL OUTLOOK
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
7CITY OF

TOTAL CITYWIDE BUDGET
REVENUES $145.1 million
EXPENDITURES 146.8 million
Operating
117.3 million
CIP & Equipment

19.0 million
Debt Service

10.5 million

GENERAL FUND BUDGET
REVENUES $86.45 million
EXPENDITURES 85.24 million
OPERATING SURPLUS $1.21 million
8CITY OF

Transfers to support operations and one-time projects:
• CIP Fund (one-time) - $4.0 million
• Stormwater Fund - $1.5 million
• Street Lighting & Landscape Fund - $222,333
Transfers as a result of UAL Pension Policy:
• CIP Fund - $798,292
• PARS Pension Stabilization Fund - $1.2 million
FY 2022-2023 SUMMARY
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
PARS Fund Balance projected to be $3.8 million in FY 2022-2023 9CITY OF

PERFORMANCE MEASURES
10CITY OF

CITYWIDE REVENUES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
$145,061,092
11CITY OF

CITYWIDE EXPENDITURES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
$146,757,902
By Department
12CITY OF

GENERAL FUND REVENUES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
$86,453,227
13CITY OF

GENERAL FUND REVENUES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
$30.3 $32.1 $34.0 $36.8 $39.2 $40.7
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Estimate
2023
Budget

PROPERTY TAX
$9.0 $9.3 $8.4 $8.0
$9.7 $10.0
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Estimate
2023
Budget

SALES & USE TAX
$3.8 $4.4
$3.6
$2.4
$4.6 $5.4
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Estimate
2023
Budget

TRANSIENT OCCUPANCY TAX
$3.7 $4.1 $3.7 $3.8 $3.8 $4.0
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Estimate
2023
Budget

BUSINESS LICENSE TAX
14CITY OF

GENERAL FUND REVENUES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
$3.6 $3.6
$3.0
$2.0
$2.8 $3.3
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Estimate
2023
Budget

PARKS & RECREATION REVENUES
$3.9 $3.7 $3.0 $3.4 $3.5 $3.7
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Estimate
2023
Budget

BUILDING PERMITS & PLAN

CHECK FEES

15CITY OF

GENERAL FUND EXPENDITURES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
$85,243,018
By Category
16CITY OF

GENERAL FUND EXPENDITURES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
$85,243,018
By Department
17CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is
intended solely as a visual aid to an oral staff
presentation of an agenda report topic. In
the event of any differences between the
presentation and the agenda report, the
information in the agenda report prevails.”
• Salaries and Benefits increasing $1.2 million based on recently approved MOUs and associated benefits
• Vacancy factor of 4.0% built-in
• Staffing adjustments summary:
• Five new full-time positions ($455,050)
• Upgrades and reclassifications ($382,255)
• Debt service category includes $5.2 million for POB
payments
• Internal Service Charges increasing $1.3 million
primarily due to Insurance Reserve Fund charge-outs

GENERAL FUND EXPENDITURES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
18CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is
intended solely as a visual aid to an oral staff
presentation of an agenda report topic. In
the event of any differences between the
presentation and the agenda report, the
information in the agenda report prevails.”
• Materials & Services increasing $5.0 million due to:
• Reinstatement of contract services, departmental
supplies and employee training
• Inflationary increases affecting costs of Contract
Services, Utilities, and other materials
• Significant “one-time” Contract Services additions:
• $1.0 million for deferred parks maintenance
• $525,000 for business area beautification
• $330,000 for Engineering Project Management to help
with execution of Capital Improvement Projects
• $245,000 for consultant to develop Outdoor Dining
and Business Use program

GENERAL FUND EXPENDITURES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
19CITY OF

REVENUES & EXPENDITURES
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
*Chart excludes FY 2021 POB Proceeds
and UAL Payoff of $90.8 million Dashed lines represent forecasted projections General Fund
20CITY OF

ESTIMATED GENERAL FUND BALANCE
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
$14,937,974 $15,004,887 $14,624,838 $15,539,658 $17,048,604 $17,122,542 $17,626,465 $18,085,376 $18,640,049 $4,000,000 $4,000,000 $4,000,000
$4,000,000
$4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000
$6,440,510 $6,162,324
$12,069,633
$15,107,221
$7,508,126 $6,686,462 $4,998,870 $3,412,199 $1,025,691
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Projection
FY2023
Budget
FY2024
Forecast
FY2025
Forecast
FY2026
Forecast
FY2027
Forecast
Financial Policy Designation Reserve for Economic Uncertainty Unreserved Fund Balance 21CITY OF

BUDGET RECAP
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022
• Strong revenues and balanced budget
• Essential services maintained
• Re-investments aligned with Survey and Work Plan:
• Maintenance
• Infrastructure
• Service delivery
• Next steps
• May 10 & 24: Budget Study Sessions
• Email comments to [email protected]
• June 7: Public Hearing and Budget/CIP Adoption
22CITY OF

QUESTIONS
FY 2022-2023 PROPOSED BUDGET MAY 10, 2022

Manhattan Beach City CouncilMay 10, 2022

Manhattan Beach City Council
May 10, 2022