2023-24
OPERATING BUDGET
THIRD BUDGET STUDY SESSION
JUNE 6, 2023
PRESENTATION
OVERVIEW
Capital Improvement Program Update
Other Major Funds
Reserve Update
Master Fee Schedule Update
Annual Department Accomplishments, Goals and Objectives General Fund Update
Next Steps
Looking Forward
Questions/Comments
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
CAPITAL IMPROVEMENT PROGRAM UPDATE
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
CAPITAL IMPROVEMENT PROGRAM UPDATE
Per Council direction during the May 9 study session, staff has revisited FY 23 and FY 24 current and proposed CIP projects
In FY 23, staff identified $4.7 million to be released back to the Capital Projects Fund For FY 24, staff has deferred or removed $1.5 million in Capital Project funding FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
CAPITAL IMPROVEMENT PROGRAM UPDATE
CIP Projects - Reduced, Deferred, or Eliminated
500 Capital Improvement Projects
12982 City Corp Yard Renovations
13120 Pavement Management Program
17061 Old Towne Street Lighting
19809 City Facility Improvements
20464 Fire Station 3 Improvements
20505 Fire Station 5 Addition
790 Computer Replacement
20282 Desktop PC Replacements
20284 LaserFiche Upgrade
OTHER MAJOR FUNDS
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
OTHER MAJOR FUNDS
Ending Fund
BalanceNet TransfersCapital
Expenditures
Operating
ExpendituresRevenuesBeginning Fund
BalanceDescriptionFund
168,440-800,0005,380,3296,228,187120,582Sewer220
332,366-2,825,0001,113,8484,186,84484,370Measure M263
638-100,0003,944,5623,980,87764,323Gas Tax270
469,635-3,000,000-3,468,2981,337Road Maintenance and
Rehab (RMRA)274
8,168,612-3,402,730300,000-11,871,342Capital Projects500 5,055,428-5,600,00039,911,24445,224,8045,341,868Water600 FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
RESERVE POLICY
Originally Established in 1996 – Catastrophic/Contingency at 25% Updated in 2021 with a more comprehensive reserve policy Catastrophic/Contingency is now at 16.6% of expenditures, with minimums set for other funds Minimums to be re-established within a 2-year period
Varies from Fund to Fund
150% of annual average/prior 3 years
Annual average of the prior 3/5 years
Percentage of budgeted operating expenditures
Not applicable to all funds
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 FY23 & FY24 DESIGNATED RESERVES AND
INTERNAL SERVICE FUNDS
FY24 Policy
Minimum
FY24 Ending Fund
Balance
FY23 Ending Fund
BalanceDescriptionFund
N/A(3,503,324)2,929,029Unreserved Fund Balance100
23,163,34423,163,34421,761,898Catastrophic Reserve100
2,829,4028,168,61211,871,342Capital Projects500
4,019,4244,193,8974,211,250Workers Comp730
710,563212,696807,570Liability740
3,068,0413,628,7406,568,816Equipment Replacement720
993,0125,220,9396,296,401IT Capital790
N/A55,130452,690IT Maintenance & Operations780
N/A5,395,1606,694,427Accrued Liability760
N/A1,550,2961,201,231Building Records Management110
34,783,78648,085,49062,794,654Total Fund Balance
47,127,09157,323,144Designated Reserve Totals
41,861,46639,097,091Minimum Designated Reserve Policy
5,265,62518,226,053Surplus/(Deficit)
MASTER FEE SCHEDULE UPDATE
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
FEE CHANGE HIGHLIGHTS
In 2017, the Master Fee Schedule was updated for the first time in many years Committed to annual adjustments to avoid large increases in future years Current cost recovery is estimated at 45%, cost recovery at department-proposed fee increases is 51%
Increased fees reflect the increase of costs related to staff time and operating expenditures
In FY 24, staff will be providing additional information on our full Master Fee Schedule and will work with Council for direction
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
FEE CHANGE HIGHLIGHTS
New Fees
Sidewalk Vending Permit
Tow Truck Driver Background – Renewal
EV Charger
Waste Bins and Pods
Increased Fees
Mills Act Program
Code Compliance Fees (Inspections, Violations)
Permit Fees (Construction, Inspection)
Business Licenses and Permits
Engineering (Street Addressing, Abandonment, etc)
Field Services (Tree Removal, Banner Installation, etc)
ANNUAL DEPARTMENT
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 Accomplishments, Goals, & Objectives
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
DEPARTMENT ACCOMPLISHMENTS
Successfully awarded grant funding for public benefits and improvements $189,950 secured as a result of hiring Townsend Public Affairs Filled five executive-level positions
Fulfilled Federal obligations at 517 W. Stuck site
Assisted and coordinated the approval and development of new housing projects Successfully negotiated several employee bargaining agreements Implemented and enhanced public safety programs/measures in Police, Fire and Code Enforcement Completed the new Fire Station Headquarters project
Successfully completed public facility and infrastructure improvements FY 23 GENERAL FUND UPDATE
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 FY 2023-24 Proposed Budget 2nd Study Session 6/6/2023 $ 24,988,147Estimated Unreserved Fund Balance at 6/30/2022 $ 135,508,414FY 23 Estimated Revenues
(135,396,648)FY 23 Estimated Expenditures
111,766Excess Expenditures over Revenues
2,000,000Anticipated Transfers In
(24,170,884)Transfers Out
$ 2,929,029Estimated Unreserved Fund Balance at 6/30/2023 FY 23 GENERAL FUND ESTIMATE
FY 24 GENERAL FUND UPDATE
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 FY 24 GENERAL FUND REVENUES ($134.5 MILLION)
Property Tax
52,881,255
39%
Sales Tax
50,438,051
38%
Licenses & Permits
7,099,229
5% Transient Occupancy Tax
5,350,000
4%
Fees for Services
5,278,682
4%
Inter-fund Revenue
3,637,602 3%
Revenue from Other
Agencies 1,700,000 1%
Franchises
2,849,427 2%
Fines & Forfeitures
1,960,000 1%
Use of Money & Property
1,463,066 1%
Misc. Revenues 950,000 1%
Other Taxes 900,000 1%
Other
13,460,095
10%
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 FY 24 GENERAL FUND EXPENDITURES ($139.5 MILLION)
FY 24 expenditures are expected to be $9.5 million more than budgeted expenditures for FY
23. This increase includes:
Staffing adjustments and additions
Code Enforcement enhancements
Clean Orange Initiative
Labor negotiations
Contract obligations
Operational cost increases
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 $ 2,929,029Estimated Unreserved Fund Balance at 6/30/2023 $ 134,507,312FY 24 Estimated Revenues
(139,538,218)FY 24 Estimated Expenditures
(5,030,906)Excess Expenditures over Revenues
(1,401,446)Transfers Out to Designated Reserves
$ (3,503,323)Estimated Unreserved Fund Balance at 6/30/2024 FY 24 GENERAL FUND ESTIMATE
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023 $ (3,503,324)Projected FY 24 Budget Gap
827,798“Chilling” Vacant Positions
2,800,000Transfer from the Capital Projects Fund (500)
$ 124,475Estimated Unreserved Fund Balance at 6/30/2024 FY 24 BUDGET BALANCING MEASURES
“Chilling” Vacant Positions
Records Manager – newly added FY 24
5 Police Officer positions
Capital Projects Fund (500) Transfer
FY 24 Estimated Ending Fund Balance is $8.1 million
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
NEXT STEPS
Proposed Budget Amendments
Staff will amend the proposed budget per tonight’s City Council Direction Budget Adoption
Scheduled for June 27th City Council Meeting
Present FY 23 Budget Actual Report
End of Calendar Year 2023
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023
LOOKING FORWARD
Summer 2023 - Master Fee Schedule review
Winter 2023 – Begin FY 25 Budget discussions with the City Council Long-term budget balancing strategies
Early 2024 – City Council Strategic Planning Session for Fiscal Year 2024-25
QUESTIONS/COMMENTS
FY 2023-24 Proposed Budget 3rd Study Session 6/6/2023