Proposed Budget
Fiscal Year 2022/2023
City of Marysville | May 17, 2022
Don’t tell me what you value, show me
your budget, and I’ll tell you what you
value.
~Joe Biden
Presentation
Agenda
• Economy Big Picture
• Why We do a Budget
• General Fund Overview
• Proposed New Expenses
• ARPA Overview
• Enterprise Capital Projects
• Planning for the Future
• Next Steps
Economy Big Picture
• Unemployment has been decreasing since the peak in April 2020
• Inflation is on the rise
• Interest rates begin to increase
• Gas prices are increasing
• California cities continue to receive funding from the American Rescue Plan Act
Why we do a
Budget:
Key
Characteristics
of the Budget
Process
Budgeting has the following key
components:
▪ An awareness/review of how much
money is generated
▪ Attention to how much money is
being expended
▪ Spending habits of departments and
obligations
▪ Reviewing the past to plan for the
future
▪ Financial goals set by the Council
Why we do a Budget:
Mission of the Budget
Process
To help decision makers make
informed choices about the
provision of services
and capital assets and to promote
both management, employee, and
citizen participation in the process.
General Fund Overview
5 Year Revenue vs. Expense Comparison
$11.04
$11.59
$15.59 $15.75
$16.36
$10.70 $10.82
$12.50
$13.18
$14.46
FY 2018-2019 (ACTUAL) FY 2019-2020 (ACTUAL) FY 2020-2021 (ACTUAL) *$804,000 GOLF COURSE
FY 2021-2022 (PROJECTED)
**$1,539,000 ARPA
FY 2022-2023 (PROPOSED)
***$1,539,000 ARPA
Revenue (Millions) Expenses (Millions)
*
**
***
General Fund Overview
Balances, Revenues, and Expenses
Projected Beginning Fund Balance: $9,383,354
• As of June 30, 2022
Projected Revenues: $16,362,973
• Includes $1,415,433 Grant Revenue & $1,539,240 in ARPA Projected Expenses: $16,413,713
• Includes $1,437,433 Grant Expenses, $692,764 One-time, & $1,950,000 ARPA Projected Ending Fund Balance: $9,332,614
• As of June 30, 2023
Projected Reserve Balance: 56.86%
• As of June 30, 2023
General Fund - Top Revenues
Budgeted & Projected FY 2021/2022
$2.62
$3.67
$2.42
$0.98 $1.04
$3.44
$0.90
$2.63
$3.94
$2.47
$1.17 $1.06
$3.67
$0.81
GENERAL SALES TAX MEASURE C PROPERTY TAX LICENSES & PERMITS INTERGOVERNMENTAL OTHER REVENUE MEASURE F Revenue by Source
FY 2021-22 Budgeted & Projected
FY 2021/2022 (Amended) Millions FY 2021/2022 (Projected) Millions General Fund Overview
Revenues by Fund - FY 2021/2022
$15.07
$0.80
$3.33
$15.75
$0.82
$2.61
GENERAL FUND SPECIAL REVENUE FUNDS CAPITAL PROJECT FUNDS Revenues by Fund
Budgeted & Projected
(Enterprise Fund Not Included)
FY 2021/2022 (Amended) Millions FY 2021/2022 (Projected) Millions General Fund - Expenses by Department
Budgeted & Projected FY 2021/2022
$3.36
$2.72
$2.26
$0.67
$3.22
$1.57
$3.19
$2.67
$2.20
$0.64
$2.88
$1.60
POLICE DEPARTMENT FIRE & FLEET CD & PW CITY
MANAGER/FINANCE
ALL OTHER
DEPARTMENTS
HUMAN RESOURCES
Expenses by Department
FY 2020-21 Budgeted & Projected
FY 2021/2022 (Amended) Millions FY 2021/2022 (Projected) Millions General Fund – Top Revenues by Source
Three Year Comparison
$3.89
$2.39
$2.86
$0.75
$5.70
$3.94
$2.47 $2.63
$0.76
$5.95
$3.90
$2.58 $2.69
$0.77
$6.42
MEASURE C PROPERTY TAXES SALES TAXES RECOLOGY FEES OTHER REVENUES General Fund Top Revenue Sources
Projected & Actual
FY 2020-21 (Actual) Millions FY 2021-22 Projected FY 2022-23 Proposed Budget General Fund - Expenses by Department
Three Year Comparison
$2.99 $2.94
$1.82
$0.70
$1.22
$3.19
$2.67
$2.20
$0.64
$1.60
$3.52
$2.72 $2.74
$0.65
$1.51
POLICE DEPARTMENT FIRE & FLEET CD & PW CITY MANAGER/ADMIN HUMAN RESOURCES Expenses by Department
Projected & Actual
FY 2020-21 (Actual) Millions FY 2021-22 Projected FY 2022-23 Proposed Budget General Fund
Overview
Grant Revenue
Community Development
▪ HCD SB2 Grant – finish Housing Element
▪ Up to $11,000 – No match
▪ HCD LEAP Grant – Zoning Plan
▪ Up to $65,000 – $17,000 match
▪ HCD REAP Grant – Specific Plan
▪ Up to $463,165 – No match
▪ SACOG 2019 Grant – Economic
Revitalization – project TBD
▪ Up to $65,000 – $5,000 match
General Fund Overview
Grant Revenue
Fire
▪ SAFER Grant – three FF – final year
▪ Up to $54,730 – 75% match
Total General Fund Grants
▪ $1,415,433 to be received
▪ $22,000 General Fund match
Proposed One-Time Expenses
General
▪ General Plan $429,964
City Council
▪ Cap to Cap – Two Council Members $12,000
Parks
▪ Sign for Bryant Field (offset by revenue) $25,000
Building
▪ Contracted Building Inspector – nine months $74,800
Proposed One-Time Expenses
Fire
▪ Pyramid Repeaters for Engines $15,000
▪ Fire Repeater Upgrade – Radio Project $20,000
▪ New Metal Building for Apparatus Storage
$70,000 to $100,000
Street Fund
▪ Tow Behind Compressor $25,000
▪ Trailer for Bobcat $25,000
Proposed Ongoing Expenses
City Council
▪ Greater Sacramento Economic Council $4,800
Economic Development
▪ Meal Reimbursements $5,200
General Debt
▪ Five New GM Lease Vehicles – Police Dept. $69,376
▪ Radio Encryption Project (five years) $132,926
Fire Department
▪ Annual Oregon Peak Repeater Lease $5,750
Proposed New
Personnel
▪ Part Time to Full-time Parks
Maintenance Worker $43,000
▪ Full-time Police Record Clerk $55,264
▪ Cost Absorbed from Savings
▪ Public Works Director (25%) $38,423
▪ Total Cost $153,690 Split Between
General Fund, Street and Enterprise
Enterprise Capital Projects
Sewer Main Repairs (to be paid through the Sewer
Refund Revenue Bonds, Series 2021A)
▪ Greeley Drive Sewer Main Repair Project
$235,000
▪ Aldridge Drive Sewer Main Repair Project
$263,000
ARPA Overview
American Rescue Plan Act (ARPA) $3,078,000
FY 22-23 FY 23-24
Digital Encryption 1,000,000
22nd Street Reconstruction 200,000 550,000
Deferred Maintenance on City Hall
HVAC 250,000
Roof Replacement 100,000
Paint and Windows 150,000
Enhancement of Gavin Park Playground 50,000
Retaining Wall - Bryant Park 100,000
Economic Development/Marketing Grants 100,000 100,000
$1,950,000 $650,000
Remaining to be Allocated $478,000
Planning for the
Future
Rising Costs, Potential Loss of Revenue &
Limits to Growth
Measure C – Expires 2026
Aging Infrastructure (i.e., Roads) and City
Facilities (i.e., City Hall)
Personnel Salaries & Benefits
~ Fiscal challenges with maintaining
market-rate salaries
Systems and Process Efficiencies ~
Continue to evaluate potential “money
left on the table,” including cost recovery
and updated Master Fee Schedule
Planning for the Future - Next Steps
▪ Continually look for revenue sources
through economic opportunities
▪ Continue to monitor sales tax, cannabis,
and other revenues
▪ Continually update 5-Year Financial Model
with new data
▪ Maintain General Fund reserves
▪ Continue to look for opportunities to
reduce expenses and improve efficiencies
Next Steps
7 June 2022
Second City Council
Budget Workshop
21 June 2022
Final FY 2022/2023
Budget Workshop
& Recommended Council
Approval
28 June 2022
Tentative City Council
Meeting for
Budget Approval (if not
approved on June 21)
Questions and Discussion