Item #03
Date: June 6, 2023
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
James Schaad, City Manager
Subject: Fiscal Year 2023-24 Budget Workshop #2
Recommendation:
Pass a Motion to 1) review and discuss the Fiscal Year 2023-24 recommended budget and 2) provide direction to staff.
Rational for Recommendation:
Chapter 2.10.040(6) of Title 2 of the Marysville Municipal Code requires the City Manager to prepare and submit the preliminary Annual Operating and Capital Improvement Budget to the Council prior to June 30th of each year. The budget preparation process includes a thorough analysis of all revenues and expenditures for all City operating funds, as well as proposed new revenues and expenses and any increases or decreases in expenses.
Background:
The City of Marysville’s Fiscal Year 2023-24 Recommended Operating Budget includes $22.01 million in ongoing and non-recurring revenues and $27.45 million in ongoing and non-recurring expenditures.
Taken as a whole, the operating budget anticipates spending approximately $5.44 more than will be collected in revenues. This will result in several infrastructure and street projects through the General Fund that are described in greater detail in the attached Executive Summary. The budget format addresses revenues and expenditures for all budgeted fund types citywide, while providing an expanded, comprehensive budgetary analysis of the General Fund – the City’s main operating fund.
Discussion & Analysis:
The budget development process consists of the operational and fiscal resources required to deliver a defined level of City services. Every year, City generated revenue is appropriated to expend and fulfill the following four required components in order to provide key services to the public:
▪ Employee Salaries and Benefits: Costs to hire and maintain City employees. ▪ Services and Supplies: Departmental costs for services, supplies, contractual obligations, and other non-staffed operational costs.
▪ Capital Outlay: Costs incurred for equipment, infrastructure, and major capital projects.
Item #03
▪ Debt Service: Costs incurred to service debt obligations for capital and operating activities that are financed over a defined amortization schedule.
The City’s budget is comprised of five Governmental fund type categories (General Fund, Special Revenue Funds, Debt Service, Capital Project Funds, and the Enterprise Fund). The General Fund serves as the main operating fund for City services. Within the General fund, there are several departments that provide core community services such as Community Development (e.g., Economic Development, Planning, and Building), Public Works (e.g., Park Maintenance, Streets, Wastewater, Public Buildings), Public Safety (e.g., Police, Fire Protection and Dispatch), as well as additional vital support functions such as Administration and Management, Finance, Legal, Human Resources and Information Technology. These core City services are supported by major revenue sources such as property tax, sales tax (general and Measure C) and cannabis business tax (Measure F).
Specific budgetary changes, increases and decreases are detailed in the Executive Summary (Attachment 1) and the Detailed Department Budget Worksheets (Attachment 2).
Alignment with City Council Goal(s):
The proposed budget is consistent with all five of the Council’s goals.
Fiscal Analysis:
There is no Fiscal Year 2022-23 fiscal impact associated as this is an informational item only.
Attachments:
1. Executive Summary – FY 2023-24 Budget
2. Detailed Department Revenue and Expense Worksheets – FY 2023-24