PROPOSED BUDGET
FISCAL YEAR 2023/2024
City of Marysville | May 16, 2023
PRESENTATION
AGENDA
Economy Big Picture Why We do a Budget General Fund Overview Proposed New Expenses Streets Capital Projects Enterprise Capital Projects ARPA Overview Planning for the Future Next Steps 2 ECONOMY
BIG
PICTURE
Unemployment has decreased since the
peak in April 2020, however, is starting to
rise in the local economy.
Inflation reached a peak in June 2022
and is slowly decreasing but future
uncertain.
Interest rates have been increased seven
times since 2022 to curb inflation.
3 WHY WE DO A BUDGET:
MISSION OF THE
BUDGET PROCESS
This is managements recommendation for
Council’s deliberation in arriving at a final
budget for the provision of services and
capital assets and to promote both
management, employee, and citizen
participation in the process.
4 4
GENERAL FUND OVERVIEW
5 YEAR REVENUE VS. EXPENDITURE COMPARISON
$11.21
$13.41
$13.87 $14.23 $14.14
$9.96 $11.02 $12.15
$12.63 $13.44
$0.38
$2.18 $2.69 $2.57
$1.69
$0.86
$1.48 $1.66 $2.18
$8.27
FY 2019-2020 (ACTUAL) FY 2020-2021 (ACTUAL) FY 2021-2022 (ACTUAL) FY 2022-2023 (PROJECTED)
FY 2023-2024
(PROPOSED)
Revenue Ongoing Operational Expenditures Ongoing Operational Revenue Non-Recurring Expenditures Non-Recurring Shown in Millions
5 GENERAL FUND OVERVIEW
BALANCES, REVENUES, AND EXPENDITURES
Projected Beginning Fund Balance as of June 30, 2023: $10,915,013 Projected Operating Revenue $14,149,107
Projected Non-Recurring Revenue * $ 1,685,200
Total Revenue $15,834,307
Projected Operating Expenditures $13,438,249
Projected Non-Recurring Expenditures ** $ 8,267,200
Total Expenditures $21,705,449
Projected Surplus/(Deficit) for FY 23-24 -$ 5,871,142
Projected Ending Fund Balance as of June 30, 2024: $ 5,043,871 Projected Reserve Balance as of June 30, 2024: 37.53% 6 * Includes $1,460,200 Grant Revenue & $225,000 One-Time Funds ** Includes $1,519,812 Grant Expenses, $887,388 One-time Expenses, $2,160,000 ARPA, & $3,700,000 Street Projects
GENERAL FUND - TOP REVENUES
BUDGETED & PROJECTED FY 2022/2023
$2.84
$4.04
$2.69
$0.14
$1.19
$0.76
$2.34
$1.24
$1.53
$2.76
$4.02
$2.92
$0.16
$1.24
$0.77
$2.49
$0.91
$1.53
GENERAL SALES TAX MEASURE C PROPERTY TAX INTERGOVERNMENTAL LICENSE & PERMITS MEASURE F OTHER REVENUE Shown in Millions
Amended, Ongoing Operational Amended, Non-Recurring Projected, Ongoing Operational Projected, Non-Recurring Total
$1.38 Total
$1.07
Total
$3.87
Total
$4.02
7 FUNDS OVERVIEW
REVENUES BY FUND - FY 2022/2023
$14.00
$3.90
$0.88
$2.77
$0.89
$14.36
$4.17
$1.10
$2.44
$0.76
GENERAL FUND ENTERPRISE FUND SPECIAL REVENUE FUNDS CAPITAL PROJECT FUNDS Shown in Millions
Amended, Ongoing Operational Amended, Non-Recurring Projected, Ongoing Operational Projected, Non-Recurring Total
$16.77
Total
$16.80
8 GENERAL FUND – TOP REVENUES BY SOURCE
THREE YEAR COMPARISON
$3.99
$2.88 $2.56
$0.82
$3.62
$2.69
$4.02
$2.76
$2.98
$0.77
$3.70
$2.57
$4.06
$2.93 $2.90
$0.75
$3.50
$1.69
MEASURE C SALES TAXES PROPERTY TAXES MEASURE F OTHER REVENUES Shown in Millions
FY21-22 Actual Ongoing Operational FY21-22 Actual Non-Recurring FY22-23 Projected Ongoing Operational FY22-23 Projected Non-Recurring FY23-24 Proposed Ongoing Operational FY23-24 Proposed Non-Recurring Total
$6.31
Total
$6.27
Total
$5.19
9 GENERAL FUND - EXPENDITURES BY
DEPARTMENT
BUDGETED & PROJECTED FY 2022/2023
$3.81
$2.64
$2.24
$1.52
$0.71
$2.39
$0.20 $0.96
$2.59
$3.55
$2.67
$2.12
$1.51
$0.74
$2.04
$0.14
$0.52
$1.52
POLICE DEPT FIRE & FLEET CD & PW HUMAN RESOURCES ADMINISTRATION ALL OTHER DEPTS Shown in Millions
Amended, Ongoing Operational Amended, Non-Recuring Projected, Ongoing Operational Projected, Non-Recurring Total
$2.84
Total
$2.81
Total
$3.20 Total
$2.64
Total
$4.98
Total
$3.56
10 GENERAL FUND - EXPENDITURES BY
DEPARTMENT
THREE YEAR COMPARISON
$3.19
$2.48
$1.83
$2.34
$0.63
$0.22
$0.29
$3.55
$2.67
$2.02
$1.51
$0.75
$0.14
$0.62
$3.93
$2.71
$2.10
$1.55
$0.77
$0.43
$0.63
POLICE DEPT FIRE & FLEET CD & PW HUMAN RESOURCES ADMINISTRATION Shown in Millions
FY21-22 Actual Ongoing Operational FY21-22 Actual Non-Recurring FY22-23 Projected Ongoing Operational FY22-23 Projected Non-Recurring FY23-24 Proposed Ongoing Operational FY23-24 Proposed Non- Recurring Total
$2.73 Total
$2.64 Total
$2.12
Total
$3.14 Total
$2.81 Total
$2.70
11 GRANT REVENUE OVERVIEW
(PAGE 1 OF 2)
Community Development
HCD LEAP Grant – Zoning Plan
Up to $65,000 – $17,000 match
HCD REAP Grant – Specific Plan
Up to $323,459 – No match
Parks
Yuba Water Agency Grant – Ellis Lake Water Project
Up to $27,168 – $42,612 match
12 GRANT REVENUE OVERVIEW
(PAGE 2 OF 2)
Fire
SAFER Grant – Three Firefighters
Grant ended FY22-23 all three position fully absorbed Other – Pass-throughs
Prop 64, CalVIP, PLHA
Up to $1,002,173 – No match
Total General Fund Grants
$1,460,200 to be received
$59,612 General Fund match
13 PROPOSED ONE-TIME GENERAL
FUND EXPENDITURES
General
General Plan $372,488
Enhanced Project at Gavin Park $50,000
IT
Security Cameras for City Hall / PD $12,000
Police
Radars for Patrol Units (nine) $27,900
Fire (up to $225,000 in one-time funds from D10)
Drone for Prevention/Safety $10,000
Training Tools and Props $15,000
Storage Apparatus Building $400,000
Total Proposed One-Time Expenses $887,388
14 PROPOSED GENERAL FUND ONGOING
EXPENDITURES
Finance
ClearGov Budgeting Software $17,500
Police
Body/In Car Cameras (five-year lease) $49,544
LPR Cameras $26,350
Parks
Cemetery Headstone Maintenance $10,000
General Debt
Police Dept. Ford Explorer Lease (five units) $92,066 Total Proposed Ongoing Expenditures $195,460
15 PROPOSED
CHANGES TO
PERSONNEL
Transition from Seasonal Firefighter
Program to one FTE Firefighter -
$6,400 Increase
Permanent Firefighter (i.e., floating 8-8-8-
24-8 schedule)
Additional $16,000 increase to future years
Building Inspector
Continue with contracted services until more
certainty in the economy.
16 STREET CAPITAL PROJECTS
22nd Street Rehab $750,000
Misc. Local Street Rehabilitation $2,160,000
Misc. Local Street Slurry Seals $790,000
Total Proposed Street Projects $3,700,000
17 ENTERPRISE CAPITAL PROJECTS
Sewer Main Repairs (to be paid through the Sewer Refund Revenue Bonds, Series 2021A)
Aldridge Drive Sewer Main Repair Project TBD
Repairs to Lift Stations TBD
Sewer Analysis & Master Plan TBD
18 ARPA OVERVIEW
American Rescue Plan Act (ARPA) $3,078,000
FY 22-23 FY 23-24
(Spent) (Proposed)
Digital Encryption 800,000
22nd Street Reconstruction Engineering 40,000 50,000
Deferred Maintenance on City Facilities 1,500,000
Fire Department Radio Coverage Imp. 500,000
Economic Development/Marketing Grants 110,000 110,000
$950,000 $2,160,000
19 PLANNING FOR
THE FUTURE
Rising Costs, Revenue Uncertainty &
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 marketrate salaries
Systems Process Efficiencies ~ Continue to
evaluate potential “money left on the
table,” including cost recovery and updated
Master Fee Schedule
20 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 7-Year Financial
Model with new data
Maintain General Fund reserves
(recommended 30%)
Continue to look for opportunities to
reduce expenses and improve efficiencies
Extend Measure C on 2024 ballot?
21 NEXT STEPS
6 June 2023
Second City Council Budget
Workshop
20 June 2023
Final FY 2023/2024 Budget
Workshop
& Recommended Council
Approval
27 June 2023
Tentative City Council
Meeting for
Budget Approval (if not
approved on June 20)
22 Questions and Discussion
23