2023 GOAL SETTING AND
BUDGETING KICK-OFF
February 21, 2023
Process and Schedule
• January - Facilitated Interviews of City Council regarding Individual Goals and Expectations • Feb 1-3 - New Mayor and Councilmembers Academy by CA League of Cities • Feb 21 Regular Meeting - Goal Setting and Budgeting Kick-Off • Initial Presentation of Council Priorities
• Current Strategic Plan – 7 Focus Areas – Comprehensive Update in 2024 if Needed • Introduction to Budgeting
• March 7 – Recruitment/Retention Update
• March 21 – Initial 5-year Financial Forecast and Presentation of Current Priorities from Staff • March 24 – All Day Facilitated Workshop on Council Priorities and Teamwork • April 18 – Presentation of Recommended Budget and Workshop to Get Direction • May 16 – Follow up Workshop based on Direction Provided • June – Adoption of Balanced Budget
7C’s Pledge
We Pledge to Provide CustomerService through a Culture of… Courtesy
We treat everyone with dignity and respect.
Collaboration
We work to achieve common goals and value our differences.
Communication
We communicate openly, honestly, and with clear, consistent messages.
With a Commitment to Our Community!
City employs
approximately 400
essential workers
National City is a
full-service city (no
public safety
contracts)
Committed work
force that relies on
fiscal sustainability
Boards,
Commissions, and
other official
committees
4 Core Services = People + Partnerships
7 Functional Groups
• Police
• Fire
• Public Works/Engineering
• Community Development
• Library & Community Services
• Housing Authority
• Leadership & Administration
• City Manger and Attorney Offices
• Finance and Human Resources
• Information Technology
• City Clerk
Introduction to Budgeting
Budget 101
Fund Accounting (GASB)
General Fund
Sewer, Section 8, Streets, Etc…
Housing and Parking Authorities
Budget versus Actuals
Budget is a Forecast of Revenues and Expenditures
Annual Process with 5-Year Horizon
Actual Results are Audited and Provide through ACFR
Budgeting – Operating/Accounting - Auditing
8 Ongoing Revenue
Generating General Fund Revenue
Sales Tax – Organic versus Incremental
Cost Recovery for Services and Enforcement
Use One Time Revenues to Improve Land Use and Encourage Redevelopment
Other Potential Strategies
Continue Business Recruitment, Retention, and Expansion Expand Housing and Parking Authorities
Explore Assessment Districts, BIDs, and Infrastructure Pursue Grants, Incentive Programs, and Opportunity Zones Increased ongoing revenues will be needed to fund growing ongoing expenditures
9 Ongoing Expenditures
PERSONNEL COSTS – LABOR CONTRACTS
Meaningful and Sustainable Wages for Our Workers
Recruitment and Retentions Efforts
Consider staffing levels through organizational assessments and negotiations Pension Costs
Pension Obligation Bonds
Section 115 Trust
Potential Strategies
Use one time revenues to create ongoing savings
Partner with other service providers
Create incentives for cost savings
Match one time revenues with one time expenditures
Remain focused on growing General Fund Revenues
10 Current Reserves
Reserves Target Balance* Policy Level
Unassigned Fund Balance $ 6,400,000 $13,956,000 10% General Fund Op Bdgt Economic Contingency
Reserve
$ 12,800,000 $ 12,800,000 20% General Fund Op Bdgt
Liability Reserve $ 13,264,000 $ 16,615,000 80% confidence level Facilities Maintenance $ 2,880,000 $ 2,880,000 4.5% General Fund exp Vehicle Replacement $ 3,141,900 $ 2,770,265 30% book value of vehicles Pension Trust (115) $ 18,400,000 $ 6,393,549 2 years UAL payments OPEB Trust $ 4,821,000 $ 3,133,184 80% OPEB liability
* All balances are as of June 30, 2022 (unaudited) except for unassigned fund balance, which is as of June 30,2021. Unassigned fund balance at June 30, 2022 is expected to be higher.
Introduction to Goal Setting
Being
Focused
Gets to
Success
We can’t do
everything,
But we can do
some things
very well
Successful City Governments
• Respect the ongoing work of City departments as the
day-to-day operations must be well managed – and that
takes time
• Have a collaborative, trusting relationship between the City Council and staff
• Set a few focused priorities, with a staff work plan to achieve them
15 Balanced budget and economic development
Communication and outreach
Health, environment and sustainability
Housing and community development
Parks, recreation and library
Public safety
Transportation choices and infrastructure
16 7 Strategic Focus Areas
Commitments
from Staff
Align programs, projects and
activities to further Council priorities,
consistent with budget, staffing and
workloads
Build Council direction into budget
and work plans
20 Staying on
Track with
Priorities
Regular progress reporting
Delay new Council-initiatives
until next goal setting cycle
or mid-year if capacity exists
21 UNLESS
Best
Practice
Criteria for
Adding
Initiatives
and
Projects
Mid-Cycle
Emergency (natural disaster, pandemic, civil unrest)
New outside funding opportunity that is time-sensitive
New multi-agency opportunity that cannot be delayed
Community safety issue that must be addressed in near
term
Changes in law or mandates
Otherwise – wait until next goal
setting/budgeting process
22 Closing
Comments
23 Public Comment
City Council
Comments and Direction