Fiscal Year 2023/24 First Quarter
Budget Update
Presented by Jennifer Terry, Finance Manager
Geovanny Calvopina, Financial Analyst
November 21, 2023, City Council Meeting, Agenda Item No.8 Received After Agenda Printed
11/21/23 - Regular Meeting
Item 8 - Staff Presentation
Overview
• 1st Year of the Biennial (two-year) Budget
• First Quarter Updates (7/1/23-9/30/23)
• Year-to-Date Revenues & Expenditures
• Quarter-to-Quarter Comparisons
• Approval of First Quarter Budget Adjustments
• Request to Appropriate Sustainability Reserves
• Future Budget Updates
Fiscal Year 2023/24 First
Quarter Budget Update
Citywide Overview- Revenue & Expenditures with Proposed Budget Fiscal Year 2023/24 First Quarter Budget Update
FY 2023/24
Amended Budget
YTD thru
9/30/2023
% Received
thru 9/30/2023
Proposed
Adjustments
FY 2023/24
Proposed
Amended Budget
Revenues
Taxes-Sales Tax 58,450,800$ 4,255,959$ 7% -$ 58,450,800$ Taxes-Property 29,257,137 - 0% - 29,257,137 Charges for Services 21,150,219 2,825,715 13% - 21,150,219 Other Misc Revenue 19,347,771 12,717,102 66% - 19,347,771 Transfer In 12,443,508 10,157 0% - 12,443,508 Special Assessments 11,604,336 92,993 1% - 11,604,336 Taxes-VLF/Property Tax Comp 9,830,800 - 0% - 9,830,800 Tax-Special Tax 9,674,724 4,879 0% - 9,674,724 Taxes-Franchises 4,710,000 3,825 0% - 4,710,000 Taxes-Other 4,049,700 547,786 14% - 4,049,700 Taxes-Transient Occupancy Tax 3,955,000 330,362 8% - 3,955,000 License/Permit Fees 1,918,875 556,240 29% - 1,918,875 Taxes-Business Licenses 1,014,700 304,715 30% - 1,014,700 Taxes-Property Transfer 800,000 90,999 11% - 800,000 Chrg for Svc-Waste Management 550,000 - 0% - 550,000 Chrg for Svc-ApplealslAdmin Fee 250 - 0% - 250 Loan/Bond/Lease Proceeds - 2,300 100% - - Total Revenue 188,757,820$ 21,743,031$ 12% -$ 188,757,570$ FY 2023/24
Amended Budget
YTD thru
9/30/2023
% Used
thru
9/30/2023
Proposed
Adjustments
FY 2023/24
Proposed
Amended Budget
Expenditures
Personnel Costs 89,518,515$ 16,709,348$ 19% 5,465,843$ 94,984,358$ Operations & Maintenance 59,425,261 9,326,295 16% 805,611 60,230,872 Capital Outlay 5,951,717 1,404,948 24% 542,850 6,494,567 Allocations 9,859,971 1,116,773 11% - 9,859,971 Transfer Out 12,443,508 10,157 0% - 12,443,508 Total Expenditures 177,198,972$ 28,567,521$ 16% 6,814,304$ 184,013,276$ Contribution to/(Use of) Fund
Balance 11,558,849$ 4,744,295$
CITYWIDE
• 12% of Revenue Budget Collected to
Date
• Most Significant Revenue Sources
• Certain Revenues are Collected
Periodically Throughout the Year
Citywide Overview- Revenue Year-to-Date
Fiscal Year 2023/24 First Quarter Budget Update
FY 2023/24
Amended Budget
YTD thru
9/30/2023
% Received
thru 9/30/2023
Revenues
Taxes-Sales Tax 58,450,800$ 4,255,959$ 7% Taxes-Property 29,257,137 - 0% Charges for Services 21,150,219 2,825,715 13% Other Misc Revenue 19,347,771 12,717,102 66% Transfer In 12,443,508 10,157 0% Special Assessments 11,604,336 92,993 1% Taxes-VLF/Property Tax Comp 9,830,800 - 0% Tax-Special Tax 9,674,724 4,879 0% Taxes-Franchises 4,710,000 3,825 0% Taxes-Other 4,049,700 547,786 14% Taxes-Transient Occupancy Tax 3,955,000 330,362 8% License/Permit Fees 1,918,875 556,240 29% Taxes-Business Licenses 1,014,700 304,715 30% Taxes-Property Transfer 800,000 90,999 11% Chrg for Svc-Waste Management 550,000 - 0% Chrg for Svc-ApplealslAdmin Fee 250 - 0% Loan/Bond/Lease Proceeds - 2,300 100% Total Revenue 188,757,820$ 21,743,031$ 12%
CITYWIDE
Citywide Overview- Revenue Quarter to Quarter Comparison Fiscal Year 2023/24 First Quarter Budget Update
FY23 YTD
thru 9/30/2022
FY24 YTD
thru 9/30/2023
$ Change Over
Base Year
% Over
Base Year
Revenues
Other Misc Revenue 10,836,234 12,717,102 1,880,868 17% Taxes-Sales Tax 4,408,074 4,255,959 (152,116) -3% Charges for Services 3,657,101 2,825,715 (831,386) -23% License/Permit Fees 793,714 556,240 (237,475) -30% Taxes-Other 522,719 547,786 25,066 5% Taxes-Transient Occupancy Tax 291,949 330,362 38,414 13% Taxes-Business Licenses 223,601 304,715 81,114 36% Special Assessments 90 92,993 92,903 103479% Taxes-Property Transfer 142,196 90,999 (51,197) -36% Transfer In 2,361,356 10,157 (2,351,199) -100% Tax-Special Tax - 4,879 4,879 0% Taxes-Franchises 895 3,825 2,930 328% Loan/Bond/Lease Proceeds - 2,300 2,300 0% Chrg for Svc-Waste Management 350,000 - (350,000) -100% Taxes-Property 16,844 - (16,844) -100% Taxes-VLF/Property Tax Comp - - - 0% Chrg for Svc-ApplealslAdmin Fee - - - 0% Total Revenue 23,604,774$ 21,743,031$ (1,861,743)$ -8%
CITYWIDE
Revenue (Sales Tax)
Fiscal Year 2023/24 First Quarter Budget Update
Citywide Overview- Revenue Types
Fiscal Year 2023/24 First Quarter Budget Update
• 16% Expended
• Personnel Budget Includes
Several Unfilled Positions
• One Month Delay in Billing
for Services
• Timing of Expenditures
Varies throughout the Year
Citywide Overview- Expenditure Year-to-Date
Fiscal Year 2023/24 First Quarter Budget Update
FY 2023/24 Amended
Budget
YTD thru
9/30/2023
% Used
thru
9/30/2023
Expenditures
Personnel Costs 89,518,515$ 16,709,348$ 19% Operations & Maintenance 59,425,261 9,326,295 16% Capital Outlay 5,951,717 1,404,948 24% Allocations 9,859,971 1,116,773 11% Transfer Out 12,443,508 10,157 0% Total Expenditures 177,198,972$ 28,567,521$ 16%
CITYWIDE
Citywide Overview- Expenditure Quarter to Quarter Comparison Fiscal Year 2023/24 First Quarter Budget Update
FY23 YTD
thru 9/30/2022
FY24 YTD
thru 9/30/2023
$ Change Over
Base Year
% Over
Base Year
Expenditures
Personnel Costs 15,160,257$ 16,709,348$ 1,549,091$ 10% Operations & Maintenance 19,778,662 9,326,295 (10,452,367)$ -53% Capital Outlay 1,016,469 1,404,948 388,479$ 38% Allocations 1,773,706 1,116,773 (656,932)$ -37% Transfer Out 2,361,356 10,157 (2,351,199)$ -100% Total Expenditures 40,090,450$ 28,567,521$ (11,522,929)$ -29%
CITYWIDE
Proposed Budget Adjustments
Fiscal Year 2023/24 First Quarter Budget Update
• $681k Developer Agreement
• $56k Santa Stops Program
• $38k Freeway Signs
• $505k CIP Budget Adjustments
FY 2023/24 Amended
Budget
Proposed
Adjustments
FY 2023/24
Proposed
Amended Budget
Expenditures
Personnel Costs 89,518,515$ 5,465,843$ 94,984,358$ Operations & Maintenance 59,425,261 805,611 60,230,872 Capital Outlay 5,951,717 542,850 6,494,567 Allocations 9,859,971 - 9,859,971 Transfer Out 12,443,508 - 12,443,508 Total Expenditures 177,198,972$ 6,814,304$ 184,013,276$
CITYWIDE
Sustainability Reserves
Fiscal Year 2023/24 First Quarter Budget Update
Estimated
Beginning
Fund Balance
Contribution to
Res erves
General Fund
Contribution to
Res erves
Meas ure T
Fund
Contribution to
Res erves
Information
Services Fund
Us e of Res erves
General Fund
Use of
Res erves
Meas ure T
Fund
Us e of Res erves
Information
Services Fund
Estimated
Ending Fund
Balance
General Fund Operating Reserves - 30% 16,795,491 3,620,839 - - - - - 20,416,330 Measure T Operating Reserves - 30% 3,812,350 - 1,120,458 - - - - 4,932,808 Fire District Operating Reserves - 30% 5,605,198 - 1,609,391 - - - - 7,214,589 CSD Operating Reserves - 30% 1,089,062 - 491,704 - - - - 1,580,766 Library District Operating Reserves - 30% 747,833 - 246,152 - - - - 993,985 Total Operating Reserves 28,049,933 3,620,839 3,467,705 - - - - 35,138,477 Economic Contingency (110) 4,510,443 45,273 - - - - - 4,555,716 Economic Contingency (111) 2,544,284 - - - - - - 2,544,284 Fleet Replacement (111) 1,153,000 2,000,000 300,000 - - - - 3,453,000 Fire Fleet Replacement (111) 2,415,443 - 1,400,000 - - - - 3,815,443 Fleet Replacement (715) 1,015,909 - - - - - - 1,015,909 Total Fleet Replacement 4,584,352 2,000,000 1,700,000 - - - - 8,284,352 Information Services (726) 282,000 - - - - - 282,000 Total Information Services 282,000 - - - - - - 282,000 Facility Repair (111) 1,100,000 - 800,000 - - (450,000) - 1,450,000 CSD Facility Repair (111) 1,105,850 4,500,000 - - - - 5,605,850 CSD Facility Repair (110) 2,000,000 - 2,000,000 Fire Facility Repair (111) 35,000 900,000 - - - - 935,000 Fire Facility Repair (110) 1,000,000 1,000,000
Information Technology (110) - 1,000,000 - - - - - 1,000,000 Pension 115 Trust (PARS) (111) 3,000,000 2,000,000 5,000,000 Pension 115 Trust (PARS) (110) 2,000,000 2,000,000 OPEB 115 Trust (CERBT) (111) 1,000,000 - - - - 1,000,000 OPEB 115 Trust (CERBT) (110) - 1,000,000 - - - - 1,000,000 Continuing Operations (110) 6,000,000 (4,000,000) 2,000,000 Continuing Operations (111) 25,000 - - - - - 25,000 Totals 45,236,862 18,620,839 14,367,705 - (4,000,000) (450,000) - 73,820,679 Sustainability Reserves Fiscal Year 2023/24
Estimated Fund Balance
Fiscal Year 2023/24 First Quarter Budget Update
Fund
Est. Beg.
Unassigned
Fund Bal., 7/1/23
Proposed
Amended
Revenues
Proposed
Amended
Transfers In
Proposed
Amended
Expenditures
Proposed
Amended
Transfers Out Capital Outlay
Use of
Reserves
Transfer to
Reserves
Est. End.
Unassigned Fund
Bal., 6/30/24
General Fund 35,280,022 69,542,037 - (72,197,282) (1,139,715) 98,000 (4,000,000) (18,620,839) 8,962,223 Measure T 20,513,967 30,524,800 (17,366,299) (10,082,199) (1,960,648) (450,000) (14,367,705) 6,811,916 Fire District Fund 34,953 17,088,121 7,131,187 (25,558,229) - - - (1,303,968) CSD Fund (7,661) 2,594,972 2,945,577 (5,434,569) - - - - 98,319 Library Fund 635,960 2,534,294 143,773 (3,393,880) - - - (79,853) Total 56,457,241 122,284,224 10,220,537 (123,950,259) (11,221,914) (1,862,648) (4,450,000) (32,988,544) 14,488,637 Fiscal Year 2023/24
Future Budget Updates
• December 2023 Fiscal Year 2022/23 Year-End (4th Quarter)Budget Update • February 2024 Fiscal Year 2023/24 Mid-Year (2nd Quarter) Budget Update • May 2024 Fiscal Year 2023/24 3rd Quarter Budget Update • December 2024 Fiscal Year 2024 Year-End (4th Quarter) Budget Update Fiscal Year 2023/24 First Quarter Budget Update
Recommended Actions
• Accept the report;
• Adjust the Fiscal Year 2023/24 Operating Budget as defined in the Fiscal Year 2023/24 First Quarter Proposed Budget Amendments;
• Adjust the Fiscal Year 2023/24 Capital Budget as defined in the Fiscal Year 2023/24 First Quarter Proposed Budget Amendments for projects 08094,13058, 21034, and • Appropriate General Fund Continuing Operations Reserves.
Fiscal Year 2023/24 First Quarter Budget Update