Agenda Item
City Council
Item #: 7.4. 6/14/2022 File #: 22-0350
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director
1. SUBJECT
Proposed Fiscal Year 2022-2023 City of Orange Budget and Five-Year Capital Improvement Program.
2. SUMMARY
Each spring, the City staff presents the City Council with an Annual budget that serves as the City’s financial and operational plan for the upcoming fiscal year. This budget document is prepared following two City Council study sessions during which various aspects of the proposed budget were considered and Council direction was given.
Staff is also proposing adjustments to the Master Schedule of Fees and Charges.
3. RECOMMENDED ACTION
Staff recommends the following actions to approve and adopt the Fiscal Year 2022-2023 Budget and updated Master Fee Schedule, effective July 1, 2022:
1. Adopt Resolution No. 11405. A Resolution of the City Council of the City of Orange adopting said City’sBudget for the Fiscal Year 2022-23 and procedures relating to transfers of funds between and within appropriations, transfers between funds, and additional appropriations.
2. Adopt Resolution No. 11407. A Resolution of the City Council of the City of Orange adopting the appropriations limit for the Fiscal Year 2022-23.
3. A motion making a finding that the portion of the Fiscal year 2022-23 Budget subject to the Gann Appropriations limit is $112,864,871, and therefore within the limit.
4. Adopt Resolution No. 11400. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11336 and amending the Master Schedule of Fees and Charges to adjust the rates for various services and the rental of rooms and equipment.
5. Adopt Resolution No. 11404. A Resolution of the City Council of the City of Orange approving and authorizing staff to submit to the Orange County Transportation Authority the Measure M2 Seven-Year Capital Improvement Program for Fiscal Years 2022-23 through 2028-29 to comply with Measure M2 eligibility criteria.
6. Adopt Resolution No. 11396. A Resolution of the City Council of the City of Orange amending City of Orange Printed on 6/9/2022Page 1 of 5
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Item #: 7.4. 6/14/2022 File #: 22-0350
Resolution No. 11376 between the City of Orange and the Orange Management Association.
7. Adopt Resolution No. 11397. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11377 and amending the citywide pay schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5.
8. Adopt Resolution No. 11401. A Resolution of the City Council of the City of Orange amending Resolution No. 11359 to add a new classification to the classification, compensation, and terms of employment for part-time and seasonal employees of the City of Orange.
4. FISCAL IMPACT
Adoption of the annual budget establishes the City financial plan for the 2022-2023 Fiscal Year.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
b: Analyze future fiscal needs and potential revenue opportunities. c: Provide appropriate reserves.
6. DISCUSSION AND BACKGROUND
The adoption of the FY 2022-2023 (FY 23) Budget and related documents will ensure the City has established a set of legally adopted appropriations, met all the requirements of the Gann Initiative, and complied with the Measure M and Transportation Congestion Relief Fund (TCRF) funding requirements (Maintenance of Effort) of a Seven-Year Transportation Capital Improvement Plan. The FY 23 budget represents the City’sspending plan for the coming fiscal year, which will begin July 1, 2022 and end June 30, 2023.
In preparing the FY 23 budget, the City Council conducted two study sessions to discuss various aspects of the proposed budget. Council deliberated extensively regarding methods to balance the FY 23 budget, while also recognizing the need to continue to restore the City’s General Fund balances and reserves and establish a solid financial position. Through the leadership of the City Council, the resulting budget document has been developed in a collaborative manner involving all City departments. The proposed FY 23 General Fund Budget is balanced with revenues exceeding expenditures by about $9,000. The attached Budget Message provides in detail how we are able to present a balanced budget for FY 23. The budget presented at this Public Hearing is an abbreviated version of the complete budget package, but contains all of the information and attachments required for adoption. As such, the essential elements that are included and required for adoption of the FY 23 Budget are:
· Budget Message
· Budget Resolutions
· Selected Budget Worksheets
o Fund Balances
o Transfers
o Revenues and Expenditures
o Recommended Staffing Changes
o Schedule of Positions
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Item #: 7.4. 6/14/2022 File #: 22-0350
o Carryovers
o Successor Agency (Redevelopment Agency) Debt Issues
o Capital Improvement Projects for FY23
· Department Goals and Objectives for FY 23
· Five-Year Capital Improvement Plan
The adoption of the FY 2022-2023 (FY 23) Budget and related documents will ensure the City has established a set of legally adopted appropriations, met all the requirements of the Gann Initiative, and complied with the Measure M and Transportation Congestion Relief Fund (TCRF) funding requirements (Maintenance of Effort) of a Seven-Year Transportation Capital Improvement Plan. The FY 23 budget represents the City’sspending plan for the coming fiscal year, which will begin July 1, 2022 and end June 30, 2023.
In preparing the FY 23 budget, the City Council conducted two study sessions to discuss various aspects of the proposed budget. Council deliberated extensively regarding methods to balance the FY 23 budget, while also recognizing the need to continue to restore the City’s General Fund balances and reserves and establish a solid financial position. Through the leadership of the City Council, the resulting budget document has been developed in a collaborative manner involving all City departments. The proposed FY 23 General Fund Budget is balanced with revenues exceeding expenditures by about $9,000. The attached Budget Message provides in detail how we are able to present a balanced budget for FY 23. The budget presented at this Public Hearing is an abbreviated version of the complete budget package, but contains all of the information and attachments required for adoption. As such, the essential elements that are included and required for adoption of the FY 23 Budget are:
· Budget Message
· Budget Resolutions
· Selected Budget Worksheets
o Fund Balances
o Transfers
o Revenues and Expenditures
o Recommended Staffing Changes
o Schedule of Positions
o Carryovers
o Successor Agency (Redevelopment Agency) Debt Issues
o Capital Improvement Projects for FY 23
· Department Goals and Objectives for FY 23
· Five-Year Capital Improvement Plan
Fee Study
After a review of specific fees and an update to the fee model with revised time estimates and costs for delivering services, staff is proposing changes to certain fees in the City’sMaster Fee schedule.
With the recommended fees, we expect to recover approximately 63% of costs associated with the services provided. The total revenue impact of the proposed fees represents an increase in General Fund revenue of approximately $224,248. Resolution No. 11400 includes an updated Master City of Orange Printed on 6/9/2022Page 3 of 5
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Item #: 7.4. 6/14/2022 File #: 22-0350
Fund revenue of approximately $224,248. Resolution No. 11400 includes an updated Master Schedule of Fees that reflects all the recommended fee changes. An overview of each fee change is also attached.
Emergency Medical Services and Ground Ambulance Transportation Rates On August 8, 2017, the Orange County Board of Supervisors (BOS) passed Resolution No. 17-094 which adopted methodology for future rate changes and authorized the Orange County Health Care Agency (HCA) to make an annual adjustment effective July 1 of each year. The BOS has determined new maximum rates relative to emergency ground ambulance transportation by private ambulance service providers.
The new rates, effective July 1, 2022, include a 7.1% increase in the Emergency Transportation Base Rate to reflect the economic effects of the minimum wage increase. The change also applies a 3.8% increase to Mileage, Oxygen, and Expendable Medical Supplies based on the Los-Angeles-Long Beach-Anaheim “all-item” Consumer Price Index.
As with other EMS providers within the county, the Orange Fire Department’s operating costs continue to rise, and we repeatedly experience a shortfall in reimbursements for emergency ground transportation. The Fire Department recommends updating our transport fees to remain consistent with those of other ambulance transportation providers throughout Orange County, as well as to help offset rising operational costs.
Fee Former Rate Schedule Effective July 1, 2022
Emergency Transportation $1,106.10 $1,381.75
Mileage, Per Mile $18.19 $19.77
Oxygen $89.17 $96.95
Basic Medical Supplies $35.20 $38.27
Based upon the revenue from emergency transports performed in FY 2021, the proposed ground ambulance transportation rate changes should result in an increase of approximately $213,500 in additional revenue to the Emergency Transport Program (125), when adjusting for our payor mix.
Following adoption of the FY 23 Budget, staff will complete the preparation of the Budget and Capital Improvement Plan documents and present them to the City Council upon publication.
7. ATTACHMENTS
· Budget Message
· Selected Worksheets for the Proposed FY 23 Budget
o Historical Summary of Revenues and Expenditures by Fund Type o Schedule of Changes in Fund Balance
o Schedule of Transfers
o Historical Schedule of Revenue Sources by Fund Type and Fund City of Orange Printed on 6/9/2022Page 4 of 5
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Item #: 7.4. 6/14/2022 File #: 22-0350
o Schedule of Revenue Sources - Detail
o Summary of All Fund Expenditures by Department
o Historical Schedule of Expenditures by Fund Type and Category o Summary of General Fund Expenditures by Department
o Schedule of Positions
o Schedule of Recommended Staffing Changes
o Schedule of Operating Carryover Appropriations
o Schedule of New Capital Improvement Funding by Fund
o Department Goals and Objectives FY 23
o Five-Year Capital Improvement Plan
· Proposed Fee Changes
o Transportation Advisory Committee - OCEMS Fee Increase · Resolution No. 11405
· Resolution No. 11407
· Resolution No. 11400
· Resolution No. 11404
· Resolution No. 11396
· Resolution No. 11397
· Resolution No. 11401
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