Fiscal Year 2023/24 Third Quarter
Budget Update
Presented by Jennifer Terry, Finance Manager
Geovanny Calvopina, Financial Analyst
May 7, 2024, City Council Meeting, Agenda Item No. 20
Received After Agenda Printed
05/07/2024 - Regular Meeting
Item 20 - Staff Presentation
Overview
• 1st Year of the Biennial (two-year) Budget
• Personnel Changes
• Approve the Updated Schedule of Authorized Positions List • Year-to-Date Revenues & Expenditures (7/1/23-3/31/23) • Discuss Changes to the General Fund, Measure T, and other significant changes
• Approval of Third Quarter Budget Adjustments
• Future Financial Updates
Fiscal Year 2023/24 Third
Quarter Budget Update
Personnel Changes
Fiscal Year 2023/24 Third Quarter Budget Update
Citywide Overview- Revenue & Expenditures
Fiscal Year 2023/24 Third Quarter Budget Update
FY 2023/24
Adopted Budget
FY 2023/24
Amended Budget
YTD thru
3/31/24
% Received
thru 03/31/24
Proposed
Adjustments % Change
FY 2023/24
Proposed
Amended Budget
Revenues
Taxes-Sales Tax $ 58,450,800 $ 58,450,800 $ 32,105,737 55% $ (3,891,660) -7% $ 54,559,140 Taxes-Property 29,257,137 29,257,137 18,214,105 62% $ 1,012,876 3% 30,270,013 Charges for Services 21,700,469 21,700,469 11,712,924 54% $ (1,124,732) -5% 20,575,737 Other Misc Revenue 15,904,960 23,636,146 29,192,859 124% $ 7,077,304 44% 30,713,450 Special Assessments 11,604,336 11,604,336 6,099,429 53% $ - 0% 11,604,336 Taxes-VLF/Property Tax Comp 9,830,800 9,830,800 5,448,517 55% $ - 0% 9,830,800 Tax-Special Tax 9,674,724 9,674,724 4,987,576 52% $ - 0% 9,674,724 Taxes-Franchises 4,710,000 4,710,000 1,740,389 37% $ - 0% 4,710,000 Taxes-Other 4,049,700 4,049,700 2,044,550 50% $ (1,046,320) -26% 3,003,380 Taxes-Transient Occupancy Tax 3,955,000 3,955,000 1,120,273 28% $ (1,860,000) -47% 2,095,000 License/Permit Fees 1,918,875 1,918,875 1,589,481 83% $ 136,000 7% 2,054,875 Taxes-Business Licenses 1,014,700 1,014,700 824,363 81% $ - 0% 1,014,700 Taxes-Property Transfer 800,000 800,000 369,754 46% $ (250,000) -31% 550,000 Loan/Bond/Lease Proceeds - - 7,544 100% $ 7,544 0% 7,544 Total Revenue $ 172,871,501 $ 180,602,687 $ 115,457,501 64% $ 61,012 0% $ 180,663,699 FY 2023/24
Adopted Budget
FY 2023/24
Amended Budget
YTD thru
3/31/24
% Used
thru 3/31/24
Proposed
Adjustments % Change
FY 2023/24
Proposed
Amended Budget
Expenditures
Personnel Costs $ 89,591,715 $ 95,036,807 $ 60,607,479 64% $ (1,126,920) -1% $ 93,909,887 Operations & Maintenance 58,264,963 68,412,889 38,620,235 56% $ 1,351,167 2% 69,764,056 Capital Outlay 2,615,785 13,651,148 4,999,668 37% $ (793,484) -30% 12,857,664 Allocations 9,859,971 9,859,971 7,560,618 77% $ (964,646) -10% 8,895,325 Total Expenditures $ 160,332,434 $ 186,960,816 $ 111,787,999 60% $ (1,533,883) -1% $ 185,426,932 Contribution to/(Use of) Fund
Balance $ 12,539,067 $ (6,358,129) $ 1,594,895 $ (4,763,234)
CITYWIDE
General Fund and Measure T Overview- Revenue Year-to-Date Fiscal Year 2023/24 Third Quarter Budget Update
GENERAL FUND
2023/24
AMENDED BUDGET YTD THRU 03/31/24 % RECEIVED
Revenue
Taxes-Sales Tax $ 27,926,000 $ 15,349,928 55%
Taxes-VLF/Property Tax Comp $ 9,830,800 $ 5,448,517 55% Taxes-Property $ 9,780,700 $ 6,536,543 67%
Other Misc Revenue $ 4,980,224 $ 12,079,303 243%
Charges for Services $ 4,747,960 $ 2,801,243 59%
Taxes-Franchises $ 4,652,000 $ 1,720,950 37%
Taxes-Transient Occupancy Tax $ 3,955,000 $ 1,120,273 28% License/Permit Fees $ 1,908,375 $ 1,584,846 83%
Taxes-Business Licenses $ 1,014,700 $ 824,363 81%
Taxes-Property Transfer $ 800,000 $ 369,754 46%
Loan/Bond/Lease Proceeds $ - $ 7,544 0%
Transfer In $ - $ 27 0%
Total Revenue $ 69,595,759 $ 47,843,292 69%
MEASURE T
2023/24
AMENDED BUDGET YTD THRU 03/31/24 % RECEIVED
Revenue
Taxes-Sales Tax $ 30,524,800 $ 16,755,808 55%
Total Revenue $ 30,524,800 $ 16,755,808 55%
Revenue (Sales Tax)
Fiscal Year 2023/24 Third Quarter Budget Update
Revenue (Sales Tax)
Fiscal Year 2023/24 Third Quarter Budget Update
Revenue (Sales Tax)
Fiscal Year 2023/24 Third Quarter Budget Update
Riverside County
General Fund and Measure T Overview- Expenditure Year-toDate Fiscal Year 2023/24 Third Quarter Budget Update
GENERAL FUND
2023/24
AMENDED BUDGET YTD THRU 03/31/24 % USED
Expenditures
Personnel Costs $ 49,998,664 $ 31,650,372 63%
Operations & Maintenance $ 15,901,084 $ 9,323,281 59%
Allocations $ 6,561,200 $ 4,920,900 75%
Capital Outlay $ 2,210,107 $ 275,283 12%
Transfer Out $ 1,070,344 $ 802,758 75%
Expenditures $ 75,741,399 $ 46,972,593 62%
MEASURE T
2023/24
AMENDED BUDGET YTD THRU 03/31/24 % USED
Expenditures
Personnel Costs $ 12,328,810 $ 8,509,761 69%
Operations & Maintenance $ 3,106,925 $ 1,094,309 35%
Allocations $ 797,270 $ 597,953 75%
Capital Outlay $ 2,493,801 $ 2,383,900 96%
Transfer Out $ 10,049,859 $ 7,537,394 75%
Expenditures $ 28,776,665 $ 20,123,316 70%
General Fund- Proposed Changes-Revenue
Fiscal Year 2023/24 Third Quarter Budget Update
2023/24
AMENDED BUDGET
NET
CHANGES
%
CHANGE
2023/24 PROPOSED
AMENDED BUDGET
Revenue
Taxes-Sales Tax $ 27,926,000 $ (1,869,300) -7% $ 26,056,700 Taxes-VLF/Property Tax Comp $ 9,830,800 $ - 0% $ 9,830,800 Taxes-Property $ 9,780,700 $ 385,000 4% $ 10,165,700
Other Misc Revenue $ 4,980,224 $ 1,789,642 36% $ 6,769,866 Charges for Services $ 4,747,960 $ (330,840) -7% $ 4,417,120 Taxes-Franchises $ 4,652,000 $ - 0% $ 4,652,000
Taxes-Transient Occupancy Tax $ 3,955,000 $ (1,860,000) -47% $ 2,095,000 License/Permit Fees $ 1,908,375 $ 136,000 7% $ 2,044,375 Taxes-Business Licenses $ 1,014,700 $ - 0% $ 1,014,700
Taxes-Property Transfer $ 800,000 $ (250,000) -31% $ 550,000 Loan/Bond/Lease Proceeds $ - $ 7,544 0% $ 7,544
Transfer In $ - $ - 0% $ -
Total Revenue $ 69,595,759 $ (1,991,954) -3% $ 67,603,805
GENERAL FUND
• Align Sales Tax with
current estimates
• Account for better-thanexpected interest
income
• Account for the delayed
opening of the Murrieta
Hot Springs Resort
General Fund- Proposed Changes-Expenditures
Fiscal Year 2023/24 Third Quarter Budget Update
2023/24
AMENDED BUDGET
NET
CHANGES
%
CHANGE
2023/24 PROPOSED
AMENDED BUDGET
Expenditures
Personnel Costs $ 49,998,664 $ (859,046) -2% $ 49,139,617 Operations & Maintenance $ 15,901,084 $ 421,130 3% $ 16,322,215 Allocations $ 6,561,200 $ (584,036) -9% $ 5,977,164
Capital Outlay $ 2,210,107 $ (699,200) -32% $ 1,510,907 Transfer Out $ 1,070,344 $ - 0% $ 1,070,344
Expenditures $ 75,741,399 $ (1,721,152) -2% $ 74,020,246
GENERAL FUND
• Decreases to due
unfilled positions
• Increases for contract
services
• Decreases due to
reconciliation of Risk
related expenses (all
funds)
• Decreases in postponed
purchases of equipment
Measure T- Proposed Changes Revenue and Expenditures
Fiscal Year 2023/24 Third Quarter Budget Update
2023/24
AMENDED BUDGET
NET
CHANGES
%
CHANGE
2023/24 PROPOSED
AMENDED BUDGET
Revenue
Taxes-Sales Tax $ 30,524,800 $ (2,022,360) -7% $ 28,502,440 Total Revenue $ 30,524,800 $ (2,022,360) -7% $ 28,502,440 2023/24
AMENDED BUDGET
NET
CHANGES
%
CHANGE
2023/24 PROPOSED
AMENDED BUDGET
Expenditures
Personnel Costs $ 12,328,810 $ (191,402) -2% $ 12,137,408 Transfer Out $ 10,049,859 $ - 0% $ 10,049,859
Operations & Maintenance $ 3,106,925 $ (214,876) -7% $ 2,892,049 Capital Outlay $ 2,493,801 $ (94,284) -4% $ 2,399,517
Allocations $ 797,270 $ (125,160) -16% $ 672,110
Expenditures $ 28,776,665 $ (625,722) -2% $ 28,150,943
MEASURE T • Align Sales Tax with
current estimates
• Decreases to due
unfilled positions
• Decreases in O&M
• Decreases in Capital
Outlay
Remaining Citywide- Proposed Changes
Fiscal Year 2023/24 Third Quarter Budget Update
Revenues
Increases
• Interest Income $1.6 mil
• Federal & State
Reimbursement of $1.7mil
• Developer Impact Fees of
$840k
• Measure A - $918k
Decreases
• $1 mil in Gas Tax Revenue
Expenditures
-Increase in O&M in the amount
of $1.8 mil for the Los Alamos
Water system.
-Decreases of $1.1 mil for Risk
Related Expenditures.
Sustainability Reserves
Fiscal Year 2023/24 Third Quarter Budget Update
Estimated
Beginning Fund
Balance
Contribution to
Reserves
General Fund
Contribution to
Reserves
Measure T Fund
Contribution to
Reserves
Information
Services Fund
Use of Reserves
General Fund
Use of
Reserves
Measure T Fund
Use of Reserves
Information
Services Fund
Estimated
Ending Fund
Balance
General Fund Operating Reserves - 28% 16,795,491 3,620,839 - - - - - 20,416,330 Measure T Operating Reserves - 27% 3,812,350 - 1,120,458 - - - - 4,932,808 Fire District Operating Reserves - (FD) 3,787,453 - - - - - - 3,787,453 Fire District Operating Reserves - (MT) 1,817,745 - 1,609,391 - - - - 3,427,136 CSD Operating Reserves - (CSD) 1,039,015 - - - - - - 1,039,015 CSD Operating Reserves - (MT) 50,047 - 491,704 - - - - 541,751 Library District Operating Reserves - (LF) 747,833 - - - - - - 747,833 Library District Operating Reserves - (MT) - - 246,152 - - - - 246,152 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) 3,827,168 - - - - - - 3,827,168 Fleet Replacement (111) 1,153,000 300,000 - - - - 1,453,000 Fleet Replacement (110) - 2,000,000 2,000,000
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 - - (533,000) - 1,367,000 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) 4,025,000 - - - - - 4,025,000 Totals 50,519,746 18,666,112 14,367,705 - (4,000,000) (533,000) - 79,020,563 Sustainability Reserves Fiscal Year 2023/24
Estimated Fund Balance
Fiscal Year 2023/24 Third Quarter Budget Update
Fund
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 36,610,663 67,603,805 - (72,949,902) (1,070,344) (1,789,173) 4,000,000 (18,666,112) 13,738,937 Measure T 16,794,503 28,502,440 - (18,101,084) (10,049,859) (1,701,289) 533,000 (14,367,705) 1,610,006 Fire District Fund (53,642) 18,283,035 7,131,187 (25,525,014) - (169,611) - - (334,045) CSD Fund (7,661) 2,631,472 2,945,577 (5,418,904) - 40,509 - - 190,993 Library Fund 640,303 2,638,264 143,773 (3,296,933) - 4,342 - - 129,749 Total 53,984,166 119,659,016 10,220,537 (125,291,838) (11,120,203) (3,615,222) 4,533,000 (33,033,817) 15,335,640 Fiscal Year 2023/24
Future Finance Updates
• June 2024 Fiscal Year 2025-2029 Capital Improvement Plan Adoption • June 2024 Fiscal Year 2025 Murrieta Fire District Operating Budget (FD) Adoption • Fall 2024 Fiscal Year 2025 First Quarter Budget Update • Fall 2024 Fiscal Year 2024 Year-End (4th Quarter) Budget Update Fiscal Year 2023/24 Third Quarter Budget Update
Recommended Actions
• Accept and File the report;
• Amend the Fiscal Year 2023/24 Operating Budget as defined in the Fiscal Year 2023/24 Third Quarter Proposed Budget Amendments;
• Amend the Fiscal Year 2023/24 Capital Budget as defined in the Fiscal Year 2023/24 Third Quarter Proposed Budget Amendments for project 21034; and • Approve the Updated Schedule of Authorized Positions List.
Fiscal Year 2023/24 Third Quarter Budget Update
Citywide Overview- Revenue Types
Fiscal Year 2023/24 Third Quarter Budget Update