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FISCAL YEAR 2023-2024
PROPOSED BUDGET
MAY 2, 2023
2CITY OF
MANHATTAN BEACH
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FY 2023-2024 BUDGET TIMELINE
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
3CITY OF
MANHATTAN BEACH
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• Spending plan supports City Council’s priorities of public safety and maintaining essential services
• Revenues are stable and growing in key areas
• City’s AAA credit rating re-affirmed by S&P in 2021
• Overall financial position allows re-investment in our infrastructure, maintenance and service levels in
alignment with:
• Community Priorities
• City Council Work Plan
• Pending FEMA reimbursement submittals total $900,000
• Approximately $81,000 in final obligation status
FISCAL OUTLOOK
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
4CITY OF
MANHATTAN BEACH
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• City Council Work Plan initiatives included:
• Consultant to develop comprehensive, long-term
outdoor dining & business use program
• $250,000 – General Fund
• Historic Preservation Resource Survey
• $20,000 – General Fund
• Comprehensive Parking Management Study
• $250,000 – Parking Fund, County Lots Fund and State
Pier Lots Fund
• Redesign and repurpose slab fountain in the Metlox
Plaza
• $250,000 – Parking Fund
BUDGET OVERVIEW
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
5CITY OF
MANHATTAN BEACH
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• Proposed Budget includes full impacts of public safety positions added in current year
• Eight Sworn Positions
• Seven in Police and One in Fire
• Five Civilian Positions
• Three in Police and Two in Fire
• Service Delivery Investments across all funds total
$523,242:
• Two new full-time positions totaling $215,207
• Added part-time positions totaling $258,044
• Other staffing adjustments totaling $49,991
BUDGET OVERVIEW
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
6CITY OF
MANHATTAN BEACH
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FY 2022-2023 SUMMARY
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
TOTAL CITYWIDE BUDGET
REVENUES $180.0 million
EXPENDITURES 188.5 million
Operating $126.0 million
CIP & Equipment 52.0 million
Debt Service 10.5 million
GENERAL FUND BUDGET
REVENUES $93.3 million
EXPENDITURES 92.8 million
OPERATING SURPLUS $485,017
7CITY OF
MANHATTAN BEACH
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General Fund Reserve Projections after FY 2023-2024
20% of Expenditures Policy $18.6 million
Economic Uncertainty $ 4.0 million
Unreserved Fund Balance $ 4.0 million
General Fund Balance impacted by transfers out to other funds:
Transfers to support operations and one-time projects:
• CIP Fund - $1.0 million for Senior and Scout Community Center • Stormwater Fund - $2.7 million
• Street Lighting & Landscape Fund - $293,253
Transfers as a result of UAL Pension Policy:
• CIP Fund - $994,920
• Pension Stabilization Fund - $492,380 (Reduced for SSCC) FY 2023-2024 SUMMARY
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
Pension Stabilization Fund Balance projected to be $3.3 million in FY 2023-2024 8CITY OF
MANHATTAN BEACH
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FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
PERFORMANCE MEASURES
9CITY OF
MANHATTAN BEACH
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CITYWIDE REVENUES
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
$179,994,390
General Fund
$93,300,981
52%
Special Revenue
Funds
$36,478,453
20%
Enterprise Funds
$27,142,612
15%
Internal Service
Funds
$19,027,557
11%
CIP Fund
$2,072,438
1%
Trust & Agency
Funds
$1,972,349
1%
10CITY OF
MANHATTAN BEACH
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CITYWIDE EXPENDITURES
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
$188,541,885
By Department
Public Works
$90,140,116
48%
Police
$36,563,005
19%
Fire
$17,381,471
9%
Parks and Rec
$12,369,875
7%
Human Resources
$10,435,451
6%
Community Development
$7,851,987
4%
Management
Services
$4,772,336
3%
Information
Technology
$4,516,563
2%
Finance
$4,511,081
2%
11CITY OF
MANHATTAN BEACH
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GENERAL FUND REVENUES
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
$93,300,981
Property Taxes
$42,563,634
46%
Sales & Use Tax
$11,050,000
12%
Service Charges
$8,799,812
9%
Transient
Occupancy Tax
$7,250,000
8%
Business License
Tax
$4,850,000
5%
Other Revenues
$4,684,030
5%
Use of Money &
Property
$4,676,400
5%
Licenses & Permits
$3,681,843
4%
Other Taxes
$2,753,262
3%
Fines & Forfeitures
$2,524,000
3%
Other Governments
$468,000
0%
12CITY OF
MANHATTAN BEACH
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GENERAL FUND REVENUES
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
$28.2 $34.0 $36.8 $38.7 $40.9 $42.6
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Estimate
2024
Budget
PROPERTY TAX
$9.0 $8.4 $8.0
$10.5 $10.5 $11.1
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Estimate
2024
Budget
SALES & USE TAX
$4.4 $3.6
$2.4
$5.6 $6.0
$7.3
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Estimate
2024
Budget
TRANSIENT OCCUPANCY TAX
$3.6 $3.7 $3.8
$5.2 $4.5 $4.9
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Estimate
2024
Budget
BUSINESS LICENSE TAX
13CITY OF
MANHATTAN BEACH
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GENERAL FUND REVENUES
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
$3.6
$3.0
$2.0
$3.6 $3.7 $4.2
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Estimate
2024
Budget
PARKS & RECREATION REVENUES
$3.1 $3.0 $3.4 $4.0 $3.5 $3.6
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Estimate
2024
Budget
BUILDING PERMITS & PLAN
CHECK FEES
14CITY OF
MANHATTAN BEACH
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GENERAL FUND EXPENDITURES
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
$92,815,964
By Category
Salaries & Benefits
$55,609,456
60%
Materials & Services
$19,161,007
21%
Internal Service
Charges
$12,012,711
13%
Capital Projects &
Equipment
$395,320
0%
Debt Service
$5,637,470
6%
15CITY OF
MANHATTAN BEACH
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GENERAL FUND EXPENDITURES
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
$92,815,964
By Department
Police
$35,878,624
39%
Fire
$16,595,215
18%
Parks and
Recreation
$11,606,474
13%
Public Works
$10,340,170
11%
Community
Development
$7,851,987
8%
Management
Services
$4,772,336
5%
Finance
$4,072,716
4%
Human Resources
$1,698,442
2%
16CITY OF
MANHATTAN BEACH
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• Salaries and Benefits increasing $4.7 million based on recently approved MOUs and associated benefits
• Vacancy factor of 5.0% built-in
• General Fund staffing adjustments summary:
• Full impact of public safety positions added in FY 2023 • Two new full-time positions ($215,207)
• Upgrades and part-time adjustments ($129,044)
• Debt service includes $5.2 million for POB payments
• Internal Service Charges increasing $2.0 million
primarily due to Insurance Reserve Fund and
Information Technology charge-outs
GENERAL FUND EXPENDITURES
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
17CITY OF
MANHATTAN BEACH
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• Materials & Services increasing $802,555 due to:
• Inflationary increases affecting costs of Contract Services, Utilities, and other materials
• One-time Contract Services (e.g. Long-term Outdoor Dining and Business Use Program added for $250,000)
• Legal Services increasing $367,400
• SBRPCA Communications increasing $160,655
• Utilities increasing $164,496
• Increases are partially offset by lower costs in
Departmental Supplies and Elections
GENERAL FUND EXPENDITURES
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
18CITY OF
MANHATTAN BEACH
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*Chart excludes FY 2021 POB Proceeds and UAL
Payoff of $90.8 million. Surpluses in FY 2021 &
FY 2022 higher due to $4.2 million in ARPA funds. Dashed lines represent forecasted projections General Fund
19CITY OF
MANHATTAN BEACH
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ESTIMATED GENERAL FUND BALANCE
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
20CITY OF
MANHATTAN BEACH
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Parking Citation Fees
• Staff recently surveyed parking citation fees
• Average parking citation fee currently set at $53
and has remained unchanged since 2015
• Recent survey results show other similar cities have
parking citation fees ranging from $55 to $71 (Beverly
Hills, Culver City, Huntington Beach, Los Angeles,
Santa Monica and Newport Beach).
• A $2 increase (from $53 to $55) would result in
approximately
$166k revenue growth
• Potential increase would support increasing public
safety costs
REVENUE ENHANCEMENTS
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
21CITY OF
MANHATTAN BEACH
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BUDGET RECAP
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023
• Strong revenues and balanced budget
• Essential services maintained
• Re-investments aligned with community priorities and
Work Plan items
• Next steps
• May 9: Budget Study Session
• May 16: Potential Budget discussion at Regular Meeting • May 23: Budget Study Session (if needed)
• Email comments to [email protected]
• June 6: Public Hearing and Budget/CIP Adoption
22CITY OF
MANHATTAN BEACH
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QUESTIONS
FY 2023-2024 PROPOSED BUDGET MAY 2, 2023