City Council Study Session
June 14, 2023
Fiscal Year 2023-24
Preliminary Budget
ATTACHMENT 2
2 City Manager City Attorney City Clerk Community
Development
Engineering Finance Fire
Department
Human
Resources
Information
Technology
Police
Department Public Works
Recreation &
Community
Services
Budgeting Mindset – It Takes All of Us
ATTACHMENT 2
3 Agenda
Strategic
Approach Objectives Changes Assumptions
Mid-Year Budgets Discussion Questions
ATTACHMENT 2
Strategic Approach
• Today & Tomorrow
• Slow & Steady
• Team Approach
• Employees
• Residents
• Businesses
• Visitors
Commitment
• Utility Rate Studies
• Expand Revenue
Sources
• Commence Polling
• Leveraging ARPA Funds
• Put House in Order
• One-time Funds
Action
• Update Rates
• Live Within Means
• Make the Hard
Decisions
Progress
• ClearGov Website
• Tax Measure Exploration
• Social Media Education
Transparency
4 ATTACHMENT 2
Objectives
• Stabilize City Finances
• Economic Development & Vitality
• Expand Homelessness & Affordable
Housing Options
• Plan for Updating Infrastructure &
Facilities
• Expand Quality of Life Services
Council Priorities
• Financial State of City
• General Fund
• Enterprise
• Other Funds
• Staying on budget
Balanced Budget
5 ATTACHMENT 2
Changes
• Distributions
• Ongoing Negotiations
• Internal Service
Funds
• Cost Allocation Plan
Cost Allocations
• Vehicle (Fleet)
• Engineering
• Fire/Govt. Facilities
• Gas Tax/SB1
• Parks Fees (old/new)
Fund Transitions
• Layout
• Commentary
Document Design
6 ATTACHMENT 2
Assumptions
• Inflation
• Projections
• Cost Allocation
• Working Fund Balance
Fund Level
• Vacant Positions
• Vacancy Savings
• Step Increases
• Health Insurance
• Pension/OPEB
Personnel
Costs
• Inflation
• Professional Services
• Insurance/Risk
Operation
Costs
• Inflation
• Supply Chain
• Workload vs. Staffing Level
• Timing of Projects to Needs
• Planning for the Future
Capital
Projects
7 ATTACHMENT 2
Budgets
8 ATTACHMENT 2
Budget : General Fund, All Other Funds, City-Wide Total General Fund All Other Funds Citywide Total
Revenues 67,876,429 147,477,849 215,254,278
Operational Revenues 67,876,429 145,477,849 213,354,278 Transfers - 1,900,000 1,900,000
Expenditures (67,865,452) (161,936,906) (229,802,358)
Personnel (43,068,523) (40,973,399) (84,041,922)
Operations (22,896,929) (66,873,809) (89,770,738)
Capital - (48,056,431) (48,056,431)
Transfers (1,900,000) - (1,900,000)
Debt Service - (6,033,267) (6,033,267)
Net 10,977 (14,559,057) (14,548,080)
9 ATTACHMENT 2
Budget : Citywide Revenues & Expenses by Department
Department Revenues Expenses
City Attorney - (2,123,558)
City Clerk - (1,174,445)
City Manager 3,629,957 (25,088,454)
Community Development 5,715,000 (6,723,446)
Engineering 2,015,000 (5,737,545)
Finance - (3,829,290)
Fire Department 2,783,300 (16,951,847)
Human Resources 8,691,723 (10,012,029)
Information Technology - (4,728,895)
Police Department 1,362,000 (27,019,082)
Public Works 86,072,535 (80,556,200)
Recreation & Community Services 1,097,325 (1,932,753)
Non Departmental 103,887,438 (43,924,814)
Total 215,254,278 (229,802,358)
10 Revenues
48% Expenses
52%
ATTACHMENT 2
Budget : General Fund Trends
11 47,720,528 49,800,801 52,425,824 57,683,771
65,980,848 67,876,429
(50,234,703) (45,142,629) (49,367,705) (52,927,865)
(68,310,761) (67,865,452)
(2,514,176)
4,658,172 3,058,119 4,755,906
(2,329,913) 10,977
FY 2019 Actual FY 2020 Actual FY 2021 Projected FY 2022 Projected FY 2023 Budget FY 2024 Preliminary Budget
ATTACHMENT 2
Budget : General Fund
FY 2022-23 Budget FY 2023-24 Preliminary
Revenue 65,980,848 67,876,429
Revenue 65,980,848 67,876,429
Expenses (68,310,761) (67,865,452)
Personnel (42,552,763) (43,068,523)
Operations (22,522,998) (22,896,929)
Capital (1,737,500) -
Transfers (1,497,500) (1,900,000)
Net (2,329,913) 10,977
Personnel
63%
Operations
34%
FY 2024
12 ATTACHMENT 2
Budget : Measure M
Personnel
98%
FY 2024
13 FY 2022-23 Budget FY 2023-24 Preliminary
Revenue 10,242,029 10,555,800
Revenue 10,242,029 10,555,800
Expenses (9,844,414) (9,313,634)
Personnel (9,642,815) (9,117,134)
Operations (201,599) (196,500)
Net 397,615 1,242,166
ATTACHMENT 2
Budget : Water Funds
Personnel
29%
Operations
63%
Capital
6%
FY 2024
14 FY 2022-23 Budget FY 2023-24 Preliminary
Revenue 22,087,721 21,151,200
Revenue 22,087,721 21,151,200
Expenses (34,712,017) (22,580,624)
Personnel (5,609,432) (5,850,333)
Operations (13,233,326) (12,723,041)
Capital (13,114,859) (1,260,000)
Debt Service (2,754,400) (2,747,250)
Net (12,624,296) (1,429,424)
ATTACHMENT 2
Budget : Sewer Funds
Personnel
21%
Operations
31%
Capital
38%
Debt
Service
10%
FY 2024
15 FY 2022-23 Budget FY 2023-24 Preliminary
Revenue 27,292,107 25,839,500
Revenue 26,846,607 25,339,500
Transfers 445,500 500,000
Expenses (35,653,127) (34,402,275)
Personnel (7,342,621) (7,255,025)
Operations (13,173,666) (10,680,733)
Capital (11,810,950) (13,180,500)
Debt Service (3,325,890) (3,286,017)
Net (8,361,020) (8,562,775)
ATTACHMENT 2
Budget : Solid Waste Funds
Personnel
36%
Operations
61%
FY 2024
16 FY 2022-23 Budget FY 2023-24 Preliminary
Revenue 16,565,379 16,010,587
Revenue 16,565,379 16,010,587
Expenses (19,581,285) (16,905,889)
Personnel (6,107,523) (6,143,862)
Operations (11,558,466) (10,205,079)
Capital (1,915,296) (556,948)
Net (3,015,906) (895,302)
ATTACHMENT 2
ARPA Remaining Revenue: One-time Use
• Spilt remaining funds with each
council district for specific
district projects
• All remaining funds go to
street, road projects, and
sidewalks
Option 1
• Economic Development EffortsLocal Business Grants and Property Improvement Grants
• Recreation Program ExpansionDog Park Downtown, Cricket Field, Playground Equipment
Updates
Other Options
• American Legion Community
Center Project
• Evaluate Green Energy
Solutions- Solar on City
Facilities
• Funds used for Emergency
Response Training and
equipment
Other Options
17 Based on the Council Goal Setting, input, and guidance, Staff recommends the following projects to receive ARPA funding that is remaining for Councils consideration and guidance during the budget process.
ATTACHMENT 2
Thank you!
Budget Adoption set for June 20, 2023
Questions?
ATTACHMENT 2