Any writings or documents provided to a majority of the City Council regarding any item on this agenda after it has been posted will also be made available for public inspection in the City Clerk’s Department.
Public Comment: The public is encouraged to address the City Council on any matter listed on the agenda.
Americans with Disabilities Act: In compliance with the ADA, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s office, (562) 929 -5720. Assisted listening devices are available at this meeting. Ask the City Clerk if you desire to use this device. Upon request, the agenda and documents in the agenda packet, can be made available in appropriate alternative formats to persons with a disability.
Notification of at least 12 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.
NOTICE AND AGENDA
FOR SPECIAL MEETING
CITY COUNCIL
MAY 16, 2022
UNTIL FURTHER NOTICE, MEETINGS WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF ASSEMBLY BILL 361, WHICH ALLOWS COUNCIL MEMBERS TO PARTICIPATE FROM A REMOTE LOCATION WITHOUT LISTING A PHYSICAL LOCATION. TO PROVIDE COMMENTS DURING A MEETING: YOU MAY ATTEND THE MEETING, SEND AN EMAIL TO: [email protected], OR JOIN THE ZOOM MEETING BY CALLING: (669) 900 -6833 OR USING THE ZOOM APP WITH THE FOLLOWING LINK:
https://us02web.zoom.us/j/7095732685; MEETING ID: 709 573 2685 . THE MEETING MAY BE VIEWED THROUGH ZOOM, FIOS CHANNEL 32 OR CHARTER CHANNEL 3, OR ON THE CITY'S WEBPAGE AT:
https://www.norwalk.org/city-hall/meeting-agendas-393.
NOTICE IS HEREBY GIVEN that the Mayor of the City of Norwalk has called a special meeting of the City Council beginning at 6:00 p.m. on May 16, 2022 in the Council Chambers at Norwalk City Hall, 12700 Norwalk Boulevard and via videoconference . Speakers at this meeting are limited to speak only on the item listed on the following agenda:
CALL TO ORDER Mayor Ramirez
ROLL CALL City Clerk
REPORT
FISCAL YEAR 2022/23 PROPOSED BUDGET - The Fiscal Year 2022/23 Proposed Budget is presented for discussion and direction.
I, Theresa Devoy, City Clerk, hereby certify that the foregoing notice of special meeting was posted at City Hall not less than 24 - hours before the start of the meeting and delivered to each member of the Norwalk City Council and to the following newspapers:
Herald American, Cerritos Community News, Norwalk Patriot, and Whittier Daily News, all on the 12th day of May 2022.
Theresa Devoy, CMC, City Clerk
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Jana Stuard, Director of Finance/Treasurer
SUBJECT: FISCAL YEAR 2022/23 PROPOSED BUDGET
Background:
Each year the City is required by the Norwalk Municipal Code to prepare an annual budget and present it to City Council for public consideration. The proposed budget for the upcoming fiscal year, which covers the period July 1, 20 22 to June 30, 20 23, was presented to the Finance Ad Hoc Committee on May 5, 2022 and distributed to the members of City Council on May 9. The document was also made available for public review in the City Clerk’s Department and on the City’s web page.
The Fiscal Year (FY) 2022/23 Proposed Budget contains the following sections:
Summaries:
Changes to Fund Balances/Working Capital
Inter-Fund Transfers
All Funds – Expenditure Summary
All Funds – Full Time and Part Time Hours
General Fund Revenue Summary
General Fund Expenditure Summaries by Type and Function Revenues – all funds
Capital Outlays
Capital Projects – carryover and new projects.
Departmental Detail – contains the following information for each departmental division (Budget Unit):
Activities and Objectives
Personnel Information – summarizes budgeted full-time positions and part- time hours.
Activity Detail – contains the explanation and/or the breakdown of certain expenditure line items, such as: contract services, membership, special studies, special projects, etc.
Departmental Expenditure Budget – details line items per Budget Unit.
City Council Agenda Report
May 16, 2022
City Council May 16, 2022
Fiscal Year 2022/23 Proposed Budget Page No. 2
The financial plan assumes that the City will resume its normal operations at the pre - COVID-19 levels. The FY 2022 /23 Budget is balanced by using the City’s available resources, including the newly voter -approved 0.75% additional local sales tax, to primarily fund public safety enhancements for both the Los Angeles County Sheriff’s Department and the City’s community policing services implemented by City Council in the current fiscal year, as well as other operating expenditures. The available General Fund balance is used to replenish the City’s capital reserves, primarily the Parks Renovation, Building Renovation, and Street Renovation funds.
Subsequent to City Council direction at this and following budget review meetings, a final budget will be prepared and submitted for adoption at a public hearing scheduled for a meeting in June.
Fiscal Impact:
Contingent on City Council’s direction, the proposed budget, when adopted, will serve as the City’s expenditure plan for a one-year period, covering July 1, 2022 to June 30, 2023.
Citizens Advised: N/A
Strategic Plan 2021 Implementation:
The recommended action adheres to the City’s values to be fiscally responsible, e thical and transparent in City’s stewardship; and it will further the City’s strategic plan goal (3) Maintain strong local tax base to support City operations.
Recommended Action:
The Fiscal Year 2022/23 Proposed Budget is presented for discussion and direction.
Attachments:
A. General Fund Unassigned Fund Balance Projection
B. General Fund Revenue Summary
C. Expenditure Summary - All Funds and General Fund
D. Summary of Changes to Fund Balances / Working Capital E. Draft Budget on file in the City Clerk’s Office and publis hed on the City’s web page , link https://www.norwalk.org/city-hall/departments/finance/budget 23,042,828$
TOTAL OPERATING BUDGET:
TOTAL OPERATING REVENUES 68,213,433$
Total Expenditures - Operations (65,821,900)
Capital Outlays (486,700)
TOTAL OPERATING & CAPITAL OUTLAY BUDGET (66,308,600)
Maximum Personnel Cost Increase Allowance (1,900,000)
MAXIMUM OPERATING & CAPITAL OUTLAY BUDGET (68,208,600)
Net Operating Surplus (Deficit) 4,833$
TOTAL USE OF NON OPERATING RESOURCES:
RELEASE OF FUND BALANCE: 979,311$
PRINCIPAL PORTION OF LOAN REPAYMENTS:
Water Fund Loan 142,373
SA NRA Loan 836,938
LESS OTHER CAPITAL EXPENDITURES (8,722,000)$
City General Plan (500,000)
Parks Renovation (4,625,000)
NASC Equipment (50,000)
Computer & Technology Replacement (500,000)
Vehicle Equipment Replacement (847,000)
Building Renovation (1,200,000)
Street Renovation (1,000,000)
SURPLUS/(USE) OF RESERVE FOR CAPITAL (7,742,689)$
FISCAL YEAR 2023 - TOTAL USE OF RESERVES (7,737,856)$
15,304,972$ Estimated Ending Fund Balance at June 30, 2023 July 1, 2022 - Beginning Estimated Fund Balance
ATTACHMENT A
General Fund Unassigned Fund Balance Projection
% AMOUNT
PROP TAX-S.E. REC & PARK AREA 3,720,100 3,720,100 3,791,900 2% 71,800 PROPERTY TAX IN-LIEU/VLF 13,377,135 13,377,135 13,644,700 2% 267,565 NO/LOW PROPERTY TAX - COUNTY 4,901,000 4,901,000 4,989,400 2% 88,400 SA RDAs - AB 1484 ALLOCATIONS 465,000 831,000 600,000 29% 135,000 REAL-PROPERTY VALUE DERIVED REVENUES: 22,463,235 22,829,235 23,026,000 3% 562,765 SALES & USE TAXES 14,002,900 14,533,223 14,541,890 4% 538,990 SALES & USE TAXES - MEASURE P 10,086,000 10,288,000 10,561,000 5% 475,000 UTILITY USER TAX 4,401,000 4,401,000 4,396,100 0% (4,900) TRANSIENT OCCUPANCY TAX 1,252,400 1,252,400 1,540,500 23% 288,100 FRANCHISE FEE 2,564,100 2,564,100 2,648,400 3% 84,300 FRANCHISE - CABLE TV 670,000 670,000 647,600 -3% (22,400) BUSINESS LICENSE 770,000 950,000 960,000 25% 190,000 REAL PROPERTY TRANSFER TAX 300,000 340,000 320,000 7% 20,000 OTHER TAXES & FRANCHISES: 34,046,400 34,998,723 35,615,490 5% 1,569,090 OTHER GENERAL REVENUES 3,624,525 3,570,025 3,144,443 -13% (480,082) PUBLIC SAFETY REVENUES 1,206,000 1,095,500 1,338,500 11% 132, 500 PUBLIC SERVICES REVENUES 225,500 351,120 259,500 15% 34,000 SOCIAL SERVICES REVENUES 11,700 5,100 11,700 0% -
RECREATION & PARKS REVENUES 473,000 484,050 547,500 16% 74,500 COMMUNITY DEVELOPMENT REVENUES 1,642,900 1,753,450 1,381,900 -16% (261,000) REVENUE LOSS REPLACEMENT - ARPA 2,620,200 2,620,200 2,888,400 10% 268,200 TOTAL - GENERAL FUND REVENUES 66,313,460 67,707,403 68,213,433 3% 1,899,973
CITY OF NORWALK
GENERAL FUND - REVENUE SUMMARY
REVENUE DESCRIPTION
FY 22-23
PROPOSED
BUDGET
FY 21-22
ADOPTED
BUDGET
FY 21-22
ESTIMATED
ACTUAL
VARIANCE
FY 22-23 BUDGET vs.
FY 21-22 BUDGET
ATTACHMENT B
EXPENDITURES BY TYPE
FY 21-22
ADOPTED
BUDGET
FY 22-23
PROPOSED
BUDGET
VARIANCE
%
FY 21-22
ADOPTED
BUDGET
FY 22-23
PROPOSED
BUDGET
VARIANCE
%
FY 21-22
ADOPTED
BUDGET
FY 22-23
PROPOSED
BUDGET
VARIANCE
%
Personnel 32,125,181 32,622,515 2% 17,671,598 19,005,454 8% 49,796,779 51,627,969 4% Operations 30,693,165 32,713,865 7% 32,660,792 32,386,035 -1% 63,353,957 65,099,900 3% Operational Transfer to Special Revenue Funds 528,698 550,401 4% - - - 528,698 550,401 4% Operational Transfer to Parking Structure Fund 225,353 381,135 69% - - - 225,353 381,135 69% Operational Transfer to General Fund from ARPA - - 0% 2,888,400 2,888,400 100% 2,888,400 2,888,400 0% Debt Service 1,614,267 1,616,547 0% 2,375,563 2,641,453 11% 3,989,830 4,258,000 7% Capital Outlay 532,210 486,700 -9% 6,497,181 11,886,267 83% 7,029,391 12,372,967 76% TOTAL OPERATIONS AND CAPITAL OUTLAY 65,718,874 68,371,162 4% 62,093,534 68,807,609 11% 127,812,408 137,178,771 7% Operations Offset from Special Revenue Funds (2,700,564) (2,062,564) -24% 2,700,564 2,062,564 -24% - - - NET OPERATIONS AND CAPITAL OUTLAY 63,018,310 66,308,598 5% 64,794,098 70,870,173 9% 127,812, 408 137,178,771 7% Transfers - City General Plan 400,000 500,000 25% - - - 400,000 500,000 25% Transfers - Street Renovation 6,500,000 1,000,000 -85% - - - 6,500,000 1,000,000 -85% Transfers - Building/Facility Renovation 700,000 1,200,000 71% - - - 700,000 1,200,000 71% Transfers - Computer & Technology Replacement 750,000 500,000 -33% - - - 750,000 500,000 -33%
Transfers - Vehicle & Equipment Replacement 1,200,000 847,000 -29% - - - 1,200,000 847,000 -29% Transfers - NASC Equipment Replacement 150,000 50,000 -67% - - - 150,000 50,000 -67% Transfers - Parks Equipment & Renovation 350,000 4,625,000 1221% - - - 350,000 4,625,000 1221% Transfers -Community Improvement Grant 2,000,000 - -100% - - - 2,000,000 - -100% Transfers - Pension 1,000,000 - 0% - - - 1,000,000 - -100% TOTAL TRANSFER TO RESERVES 13,050,000 8,722,000 - 33% - - - 13,050,000 8,722,000 -33% Capital Improvement - - - 47,409,506 75,246,736 59% 47,409,506 75,246,736 59% TOTAL CITY BUDGET 76,068,310 75,030,598 -1% 112,203,604 146,116,909 30% 188,271,914 221,147,507 17%
CITY OF NORWALK
ALL FUNDS - EXPENDITURE SUMMARY
GENERAL FUND OTHER FUNDS TOTAL ALL FUNDS
ATTACHMENT C
REVENUES
TRANSFERS
IN/(OUT) CIP EXPENSE
Fund 7/1/2022 FOR FY 2023 FOR FY 2023 FOR FY 2023 FOR FY 2023 FY 2023 AS OF JUNE 30, 2023 General Fund (unassigned)* 23,042,828 68,213,433 (4,048,085) (64,160,516) 4,833 Release of Fund Balance/Transfer to Reserves 979,311 - (8,722,000) - - (8,722,000) Total General Fund 24,022,139 68,213,433 (12,770,085) (64,160,516) - (8,717,167) 15,304,972 Special Revenue Funds
Child Care (0) 6,828,689 - (6 ,828,689) - - - Gas Tax 704,940 2,005,920 - (1 ,525,000) - 480 ,920 1, 185,860 County Aid To Cities - - - - - - - Community Development Block Grant (0) 3,262,505 - (2 ,165,479) (1 ,097,026) - - Home Grant 161,101 364,237 - (399,480) - (35,243) 125,858 Homeless Prevention Grant 6,843 - - - - - 6,843 Proposition A - Local Return 333,837 2,581,250 (5 00,302) (2 ,070,949) - 9, 999 343 ,836 Air Quality Management 229,082 134,100 - (1 02,564) - 31, 536 260 ,618 Senior Services Grant 0 54,489 45, 990 (1 00,479) - - - ARPA - American Rescue Plan Act 13,312,519 12,688,465 (4 ,280,923) (1 5,000) 8, 392,542 21, 705,061 FEMA Grant - - - - - - - COPS Grant 382,248 230,500 - (3 29,394) - (9 8,894) 283 ,354 CalRecycle Grant (0) 149,600 - (1 49,600) - - - Juvenile Assistance Grant (0) 33,960 - (3 3,960) - - - Recreation Grant 2,879 - - - - - 2, 879 Proposition C - Local Return 7,868,013 2,255,790 (1 5,000) (1 ,550,696) (3 ,417,284) (2 ,727,190) 5, 140,823 Measure R - Local Return 3,033,906 1,602,090 (8 64,650) (5 78,500) (1 ,972,688) (1 ,813,748) 1, 220,158 Measure M - Local Return 4,174,076 1,709,240 (9 71,800) (6 0,000) (9 10,765) (2 33,325) 3, 940,751 Measure W 4,379,326 3,000,000 (2 50,000) - 2, 750,000 7, 129,326 Senior Nutrition Program (0) 1,000,000 337 ,011 (1 ,337,011) - - - Parking Structure Operations (0) 300,000 128,749 (428,749) - - - Asset Forfeitures 678 - - - - - 678 COVID Women’s Recovery Response Grant - 25,000 - (2 5,000) - - - Successor Agency Housing Administration 572,542 300 167 ,400 (1 00,038) - 67, 662 640 ,204 Housing Assistance Program 3,154,299 8,347,959 - (8 ,627,718) - (2 79,759) 2, 874,540 Community Development Grants - 730,000 - (7 30,000) - - Norwalk Community Improvement Grants 2,000,000 - - - - 2, 000,000 Total Special Revenue Funds 38,316,289 46,574,094 (1,672,602) (30,944,229) (7,412,763) 6,544,500 44,860,789 * includes maximum personnel cost increase allowance
15,304,972
Summary of Changes to Fund Balances / Working Capital
Fiscal Year 2022-23
ESTIMATED
FUND BALANCE/
WORKING CAPITAL
OPERATING &
CAPITAL OUTLAY
EXPENSES
ESTIMATED
FUND BALANCE/
WORKING CAPITAL
ESTIMATED CHANGE
IN
FUND BALANCE/
WORKING CAPITAL
ATTACHMENT D
REVENUES
TRANSFERS
IN/(OUT) CIP EXPENSE
Fund 7/1/2022 FOR FY 2023 FOR FY 2023 FOR FY 2023 FOR FY 2023 FY 2023 AS OF JUNE 30, 2023
Summary of Changes to Fund Balances / Working Capital
Fiscal Year 2022-23
ESTIMATED
FUND BALANCE/
WORKING CAPITAL
OPERATING &
CAPITAL OUTLAY
EXPENSES
ESTIMATED
FUND BALANCE/
WORKING CAPITAL
ESTIMATED CHANGE
IN
FUND BALANCE/
WORKING CAPITAL
Capital Projects Funds
Prop 1B - Capital Projects 232,230 - - - - - 2 32,230 RMRA - Road Maintenance Rehab Account 6,848,314 2,410,950 - - ( 3,160,847) ( 749,897) 6 ,098,417 Highway Safety Improvement Program (HSIP) Grant 0 7,088,059 - - (5,471,634) 1,616,425 1,616,425 CA Natural Resources 2,678 250,590 - - ( 253,268) ( 2,678) - State Legislative Award 3,000,000 - ( 3,000,000) ( 3,000,000) - Arts in Public Places 504,407 21,000 - ( 316,000) - ( 295,000) 2 09,407 LA County - MTA Measure R 17,457 3,032,897 - - ( 3,031,975) 9 22 1 8,379 S.B. 821- Bicycle/Pedestrian 22,800 258,246 - - ( 214,000) 4 4,246 6 7,046 Highway User Tax - Section 2103 2,511,880 1,043,550 - ( 540,000) ( 1,026,487) ( 522,937) 1 ,988,943 MTA & LA County Transportation Grants 1,864 - - - - - 1 ,864 I-605 Mitigation (Measure R) 294,221 4,831,750 - - ( 4,792,712) 3 9,038 3 33,259 Surface Transportation Program (STPL) - 1,480,000 - - ( 1,480,000) - - Street Light Project - Loan Proceeds 487,000 1,000 - - ( 488,000) ( 487,000) - Bicycle Master Plan Grant (0) 157,200 - - - 1 57,200 1 57,200 Bond Proceeds - RDA 10,838,060 35,000 - ( 170,000) ( 1,260,616) ( 1,395,616) 9 ,442,444 Housing Bond Proceeds 11,112,914 35,000 - - ( 5,247,392) ( 5,212,392) 5 ,900,522 Prop 68 - Park Renovations - 8,743,000 - - ( 8,743,000) - - Park Bonds Fund - Measure A 3,803 2,200,000 - - ( 2,200,000) - 3 ,803 California High Speed Rail (0) 114,257 - ( 114,257) - - - Measure R Bond Proceeds 4,486,325 2,000 - - ( 3,049,246) ( 3,047,246) 1 ,439,079 Measure M Bond Proceeds 9,888,218 2,200 - - ( 8,867,476) ( 8,865,276) 1 ,022,942 Park Dedication Fund 111,762 - - - - - 111,762 Total Capital Projects Funds 50,363,933 31,706,699 - (1,140,257) (52,286,654) (21,720,211) 28,643,722 Capital Funds
City General Plan 400,000 500 5 00,000 - - 5 00,500 9 00,500 Parks Equipment & Renovation 1,634,206 500 4 ,625,000 - ( 6,226,631) ( 1,601,131) 3 3,075 NASC Equipment Replacement 362,583 500 5 0,000 - - 5 0,500 4 13,083 Computer &Technology Replacement 1,314,631 500 5 00,000 ( 177,600) - 3 22,900 1 ,637,531 Vehicle & Equipment Replacement 2,916,145 500 8 47,000 ( 612,682) - 2 34,818 3 ,150,963 Building/Facility Renovation 2,251,470 500 1 ,200,000 ( 30,000) ( 2,541,029) ( 1,370,529) 8 80,941 Street Renovation 9,542,644 2,000 1 ,000,000 ( 1,030,000) ( 13,000) ( 41,000) 9 ,501,644 Total Capital Funds 18,421,680 5,000 8,722,000 (1,850,282) (8,780,660) (1,903,942) 16,517,737
ATTACHMENT D
REVENUES
TRANSFERS
IN/(OUT) CIP EXPENSE
Fund 7/1/2022 FOR FY 2023 FOR FY 2023 FOR FY 2023 FOR FY 2023 FY 2023 AS OF JUNE 30, 2023
Summary of Changes to Fund Balances / Working Capital
Fiscal Year 2022-23
ESTIMATED
FUND BALANCE/
WORKING CAPITAL
OPERATING &
CAPITAL OUTLAY
EXPENSES
ESTIMATED
FUND BALANCE/
WORKING CAPITAL
ESTIMATED CHANGE
IN
FUND BALANCE/
WORKING CAPITAL
Enterprise Funds- working capital**
Transportation - Operations 9,667,405 18,440,870 515,302 (17,655,532) - 1,300,640 Transportation - Use of reserves (0) - (1,590,768) - (1,590,768) Transportation - Capital (0) 7,469,615 - (7,469,615) - - - Subtotal Transit 9,667,405 25,910,485 515,302 (26,715,915) - (290,128) 9 ,377,277 Water 8,499,051 5,834,500 - (5,627,808) (4,949,999) (4,743,307) 3 ,755,744 Sewer 10,599,694 2,630,000 - (1,753,348) (1,816,660) (940,007) 9 ,659,687 Total Enterprise Funds** 28,766,151 34,374,985 515,302 (34,097,070) (6,766,659) (5,973,442) 22,792,708 Debt Service Fund
2013 A&B Lease Revenue Refund Bonds - - 1,458,919 (1,458,919) - - - Street Light Lease - - 410,016 (410,016) - - - 2019B Measure R Bonds - - 864,650 (864,650) - - - 2019A Measure M Bonds - - 971,800 (971,800) - - - Total Debt Service Fund - - 3,705,385 (3,705,385) - - - Internal Service Funds
Equipment Maintenance - 4,697,734 - (4,697,734) - - - Employee Benefits - 20,308,829 - (20,308,829) - - - Total Internal Service Funds - 25,006,563 - (25,006,563) - - - Trust Funds
Irrevocable Post Employment Benefit Trust Fund 17,098,417 100,000 1,500,000 1,038,196 - 2,638,196 19,736,613 Irrevocable Pension Trust Fund 5,794,234 50,000 - - - 5 0,000 5,844,234 Donations held in trust - City Wide 380,005 - - (4,500) - (4,500) 375,505 Total Irrevocable Trust Funds 23,272,656 150,000 1,500,000 1,033,696 - 2,683,696 25,956,352 Subtotal All Funds 161,890,191 206,610,774 (1,500,000) (161,634,301) (75,246,736) (31,770,262) 130,119,928 Less: Internal Service Funds - (25,006,563) - 25,006,563 - - - Net Total City Funds 185,162,847 181,754,211 - (135,594,042) (75,246,736) (29,086,566) 156,076,280 ** Enterprise funds report working capital balance
9,377,277
ATTACHMENT D