Staff Report: First Quarter Fiscal Year 2023 Budget Review
Expenditures
Expenditure Type FY 23 FY 22 change
Personnel Services $9,617,253 $15,301,085 $(5,683,832)
Maintenance & Operations (M&O) $730,472 $739,288 $(8,816) Capital Projects $10,861 $220,770 $(209,909)
Internal Service Charges $2,095,456 $1,909,594 $185,862 Total $18,138,887 $ 18,100,633 $(5,716,695)
Although Personnel Services costs in the General Fund are $5.7 million less than fiscal year 2022’s through the first quarter, the primary driver of this is refinancing of the unfunded accrued liability (“UAL”) portion of the City’s annual pension contribution which had been paid in July. If we disregard the changes to the UAL, standard personnel expenditures saw a combined increase of $1.5 million due to compensation increases authorized as part of the labor group agreements in 2022, as well as increases to health care and retirement rates. These costs are being continuously monitored and projections will be compared to the budget in the mid-year budget status report.
Fiscal-year-to-date 2023 M&O expenditures as of September 30th are $9,000 lower than in fiscal year 2022. Although there are increases and decreases across the various accounts within the category, overall year-to-date expenditures are in line with prior fiscal years.
Capital outlay expenditures are $210,000 less than first quarter 2022 due to miscellaneous facilities upgrades, traffic system improvements, and expenditures on the Paradise Creek Park Remediation project that took place in the first quarter of 2022.
Internal service charges for the first quarter of fiscal year 2023 are $185,861 higher than the same point last fiscal year. This is due to the increase in annual budgeted building services charges and information systems maintenance charges.
Conclusion / Budgetary Outlook
As noted above, the adopted fiscal year 2023 estimated an increase of General Fund unassigned fund balance of $364,000. At such an early point in the fiscal year, the ability to project year-end revenue and expenditure totals and actual use of fund balance is limited. A clearer picture can be drawn mid-year when the City will have received multiple months of sales tax receipts and received our initial secured property tax allocation in December.
Staff Report: First Quarter Fiscal Year 2023 Budget Review
Expenditures
Expenditure Type FY 23 FY 22 change
Personnel Services $9,617,253 $15,301,085 $(5,683,832)
Maintenance & Operations (M&O) $730,472 $739,288 $(8,816) Capital Projects $10,861 $220,770 $(209,909)
Internal Service Charges $2,095,456 $1,909,594 $185,862 Total $12,454,042 $ 18,170,737 $(5,716,695)
Although Personnel Services costs in the General Fund are $5.7 million less than fiscal year 2022’s through the first quarter, the primary driver of this is refinancing of the unfunded accrued liability (“UAL”) portion of the City’s annual pension contribution which had been paid in July. If we disregard the changes to the UAL, standard personnel expenditures saw a combined increase of $1.5 million due to compensation increases authorized as part of the labor group agreements in 2022, as well as increases to health care and retirement rates. These costs are being continuously monitored and projections will be compared to the budget in the mid-year budget status report.
Fiscal-year-to-date 2023 M&O expenditures as of September 30th are $9,000 lower than in fiscal year 2022. Although there are increases and decreases across the various accounts within the category, overall year-to-date expenditures are in line with prior fiscal years.
Capital outlay expenditures are $210,000 less than first quarter 2022 due to miscellaneous facilities upgrades, traffic system improvements, and expenditures on the Paradise Creek Park Remediation project that took place in the first quarter of 2022.
Internal service charges for the first quarter of fiscal year 2023 are $185,861 higher than the same point last fiscal year. This is due to the increase in annual budgeted building services charges and information systems maintenance charges.
Conclusion / Budgetary Outlook
As noted above, the adopted fiscal year 2023 estimated an increase of General Fund unassigned fund balance of $364,000. At such an early point in the fiscal year, the ability to project year-end revenue and expenditure totals and actual use of fund balance is limited. A clearer picture can be drawn mid-year when the City will have received multiple months of sales tax receipts and received our initial secured property tax allocation in December.