June 12, 2023
FISCAL YEAR 2024
BUDGET WORKSHOP
Summary of Direction from May 23rd Workshop
Final Touches
Revisit Revenue
Contract & Professional Service Expenditures
Updated Forecast
Options to Balance Operating Revenue & Operating Expenditures Workshop Agenda
2 |
Direction from May 23rd
Workshop
Process and Schedule
• January - City Council interviews on Individual Goals & Expectations • Feb 1-3 - New Mayor & Councilmembers Academy by CA League of Cities • Feb 21 - Regular Meeting - Goal Setting and Budgeting Kick-Off • March 7 – Recruitment/Retention Update
• March 21 – Initial 5-year Financial Forecast & Current Priorities from Staff • March 24 –Facilitated Workshop on Council Priorities and Teamwork • April 18 – Budget Workshop: Presentation of Preliminary Budget • May 5 – Budget Workshop: Operating Enhancement Items
• May 16 – Budget Workshop: Capital Enhancement Items
• May 23 – Budget Workshop: Decide on Enhancement Items • June 12 – Budget Workshop: Final Decision Points
• June 20 – Budget Adoption
4 |
One-Time Enhancement Decision Items
Item FY24 Decision
Street Signs Replacement $25,000 Yes
Communications Plan $100,000 No
Chamber of Commerce $50,000 Yes
Fund Reserves $430,000 No
Las Palmas Wellness Center & Restrooms $2,700,000 Yes
Granger Hall Relocation Plan $100,000 No
City Hall Seismic Upgrade $4,000,000 No
Civic Center/Kimball Rec Master Plan $250,000 Yes
Clean NC – Plaza & Harbison $100,000 Yes
PW Quality of Life Overtime $32,000 Yes
Pavement Rehab $500,000 Yes
Storm Drain Rehab $300,000 Yes
TOTAL TO BE IN FY24 BUDGET $3,957,000
5 |
On-Going Enhancement Decision Items
Item FY24 FY25 FY26 FY27 FY28
4 New Police Staff $498,037 $445,315 $461,353 $477,886 $494,933 3 New Firefighters & 4-0 Staffing $139,313 $513,777 $529,190 $545,066 $561,418 After School Programming $175,000 $196,744 $255,253 $262,911 $270,798 Tree Trimming $92,700 $95,481 $98,345 $101,296 $104,335 Engineering Permit Technician $91,200 $93,936 $96,754 $99,657 $102,646 Amortization $80,000 $50,000 $50,000 $50,000 $50,000
District/Council Budget $330,000 $330,000 $330,000 $330,000 $330,000 Reduce Recreation Fees $1,000 $1,000 $1,000 $1,000 $1,000 TOTAL $1,407,250 $1,726,253 $1,821,895 $1,867,815 $1,915,130 6 |
Revisit Revenue &
Expenditures
CANNABIS REVENUE
• Reviewed assumption in forecast
• Increased by $50,000 per business = additional $300,000 of revenue in FY28
FEE SCHEDULE
• Comprehensive update in FY24 for implementation in FY25 TRANSIENT OCCUPANCY TAX (TOT) AUDIT IN FY24
PARTNERSHIPS WITH OTHER AGENCIES
• Contracts in place for FY24, but exploring potential for future contracts
CAN CONTINUE TO PURSUE REVENUE GROWTH OPPORTUNITIES DURING FY24 FOR FY25 & BEYOND
Revenue
8 |
EACH DEPARTMENT REVIEWED THEIR CONTRACT SERVICES &
PROFESSIONAL SERVICES BUDGETS
• In total, staff identified $275,000 in expenditures in FY24 that can be one-time expenditures with little impact on current service levels • Reduces on-going operating expenditures
• Moves towards balanced budget at end of forecast period (FY28) Contract & Professional Services
9 |
Updated Forecast
10 |
General Fund Forecast FY2024 FY2025 FY2026 FY2027 FY2028 Total GF Revenue $ 69,172,461 $ 69,294,535 $ 71,268,892 $ 74,040,554 $ 76,702,983 Total GF Expenditures $ 73,278,622 $ 71,179,277 $ 73,096,266 $ 74,809,387 $ 76,783,953 Net GF Revenues (Expenditures) $ (4,106,161) $ (1,884,742) $ (1,827,374) $ (768,833) $ (80,971) Unassigned GF Balance $ 19,350,135 $ 17,465,393 $ 15,638,019 $ 14,869,186 $ 14,788,215 On-Going Enhancement Decision Items
Item FY24 FY25 FY26 FY27 FY28
4 New Police Staff $498,037 $445,315 $461,353 $477,886 $494,933 3 New Firefighters & 4-0 Staffing $139,313 $513,777 $529,190 $545,066 $561,418 After School Programming $175,000 $196,744 $255,253 $262,911 $270,798 Tree Trimming $92,700 $95,481 $98,345 $101,296 $104,335 Engineering Permit Technician $91,200 $93,936 $96,754 $99,657 $102,646 Amortization $80,000 $50,000 $50,000 $50,000 $50,000
District/Council Budget $330,000 $330,000 $330,000 $330,000 $330,000 Reduce Recreation Fees $1,000 $1,000 $1,000 $1,000 $1,000 TOTAL $1,407,250 $1,726,253 $1,821,895 $1,867,815 $1,915,130 11 |
• ANY ONE OF THE FOLLOWING OPTIONS WILL BALANCE THE FORECASTED BUDGET IN FY28
• Hire 2 police dispatchers & 1 officer (3 total) instead of 2 dispatchers & 2 officers (4 total)
• Hire 3 new firefighters without 4-0 staffing requirement • Continue status quo tree trimming
• Reduce new council budgets from $100,000 per member to $75,000 per member
Options to Balance
12 |
• FORMALLY ADOPT BUDGET ON JUNE 20TH
• HOLD RECRUITMENTS FOR NEW STAFF POSITIONS
• COUNCIL BUDGET
• Each Councilmember to allocate budget between PT hourly staff, events, training/travel, supplies, etc.
• Suggested budget breakdown will be provided & put in adopted budget as placeholder • Can adjust for your Council seat with direction to Finance/City Manager • Mayor’s M&O budget reduced from previous $31,000 to $15,000 • Develop spending policy
• Explore staffing options, potential need to create new job classification • Revisit annually as part of budget process, like other department do for M&O costs Budget Next Steps
13 |
• STAFF REVISED REVENUE ASSUMPTIONS AND FOUND COST SAVINGS TO
BRING FORECAST ALMOST WITHIN BALANCE
• ADJUSTING AN ENHANCEMENT ITEM TO CLOSE THE REMAINING GAP • FY24-FY27 WILL REQUIRE USE OF UNASSIGNED FUND BALANCE, AND RETURN TO BALANCED BUDGET IN FY28
• FY24 BUDGET WILL INCLUDE APPROXIMATELY $4M IN NEW ONE-TIME PROJECTS AND UP TO 10 NEW FULL-TIME STAFF POSITIONS
In Conclusion
14 |