Recommended Fiscal Year 2024 Operating BudgetMay 8, 2023City Council Meeting Item 15 Department of Finance
RecommendationFind that the proposed action is not a project subject to the California Environmental Quality Act (CEQA) pursuant to Section 21065 of CEQA and Sections 15060(c)(2), 15060(c)(3), and 15378 of the State CEQA GuidelinesOpen the public hearing on City Manager’s FY 2024 Recommended Operating BudgetContinue the public hearing to the regular meeting of the City Council on June 5, 2023 until a formal recommendation to adopt the FY 2024 Recommended Operating Budget is presented to the City Council2 Department of Finance
FY 2024 Budget Appropriations
3 Department of FinanceTotal Budgeted Appropriations(including Affiliated Agencies and CIP)in millionsFY 2022ActualsFY 2023AdoptedFY 2024RecommendedGeneral Fund$294.7 $295.9 $323.2All Funds$959.6 $955.7 $1,243.0Full-Time Equivalent Positions(including Affiliated Agencies)FY 2022AdoptedFY 2023AdoptedFY 2024RecommendedGeneral Fund1,011.30 1,028.10 1,058.65All Funds2,253.67 2,321.36 2,351.23 4 Total Appropriations FY24 APPROPRIATIONS BY CATEGORY – ALL FUNDS ($918.0 Million)
5 General Fund AppropriationsFY24 APPROPRIATIONS BY CATEGORY – GENERAL FUND ($323.2 Million)
6 Total RevenuesFY24 OPERATING REVENUES BY CATEGORY – ALL FUNDS ($925.9 Million)
7 General Fund RevenuesFY24 OPERATING REVENUES BY CATEGORY – GENERAL FUND ($318.2 Million)
Proposed Enhancements•Additional Rescue Ambulance In-Service>Add a 6thRA to the fleet>Staff voluntarily with OT until next academy•Add Emergency Medical Services Program Fire Captain>Dedicated 40-hour Captain focused on EMS program management/improvement>Special event planning8 Proposed Enhancements•Expand Robinson Park Pool to Year-Round>Beginning September 2023, operate pool Monday – Friday from 10:00a.m. – 7:00p.m.>City’s first year-round aquatics program•Planning & Community Development Staffing Increase>Add a Film Coordinator>Add a Code Compliance Officer for short-term rentals and complaint response9 Proposed Enhancements•Tree Infrastructure Maintenance>Additional funding to ensure regular tree maintenance.>City tree inventory exceed 60,000•Police Dept. Records Division Staffing Increase>Add 1 Police Supervisor – Records>Add 2 Police Records Technicians>Create the Digital Media Evidence Team10 Proposed Enhancements•General Fund Support of Public Health>Grant funding no longer sufficient to cover overhead costs>Public Health responsible for duties with an outside funding source – complaint investigations11 Use of Operating Reserves•Utilize $5 in General Fund Operating Reserves to offset reduced GFT in FY 2024.>Due to rapid increase in wholesale electric prices, Power Fund will not have sufficient net income to make the planned $18m transfer.>FY 2024 transfer is expected to be $13m and then will increase as provided in the Charter to $23m in FY 2025. >The increase in FY 2025 will be used to replenish the Operating Reserve.12 General Fund Five-Year
13 FY 2022 FY 2023 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028Final Budget Forecast Budget Forecast Forecast Forecast ForecastBeginning Amount Available for Appropriations 0 2,862,525 1,047,527 500,465 582,948 1,426,696 1,659,353 1,435,939RevenuesTax Revenues 235,450,392 233,807,300 238,636,652 250,636,000 258,650,643 266,786,014 274,424,438 282,328,752Other Revenues 38,773,949 43,419,712 46,285,810 50,921,413 52,149,695 53,409,206 54,700,758 56,025,181Contributions/Svs. From Other Funds 30,734,245 20,715,438 20,715,438 16,690,438 26,690,438 21,690,438 21,690,438 21,690,438Total Revenues 304,958,586 297,942,450 305,637,900 318,247,851 337,490,776 341,885,659 350,815,633 360,044,371ExpensesPersonnel 172,168,785 186,860,271 185,451,679 203,411,665 209,204,051 216,094,198 222,608,655 227,992,373Debt Service 20,646,499 11,597,702 11,597,702 11,702,452 12,322,553 12,323,966 12,317,139 11,290,184Contributions To Other Funds 20,774,735 14,629,784 16,189,784 13,558,017 13,479,177 13,748,761 14,023,736 14,304,211Other Expenses 79,473,305 82,852,050 84,128,156 94,493,234 96,641,247 99,486,076 102,089,517 104,769,576Total Expenses 293,063,323 295,939,806 297,367,321 323,165,368 331,647,028 341,653,001 351,039,047 358,356,343Operating Income/(Loss) 11,895,262 2,002,644 8,270,580(4,917,517)5,843,748 232,658(223,414)1,688,028Ending Amount Available for Appropriations 11,895,262 4,865,169 9,318,107(4,417,052)6,426,696 1,659,354 1,435,940 3,123,967Reserve for Capital & Other Funds(5,616,537) - (5,000,000) - - - - - Reduction/(Contribution) to Policy Reserve(3,416,200) (3,817,642) (3,817,642)5,000,000 (5,000,000) Net Income/(Loss) with Reserve Contribution 2,862,525 1,047,527 500,465 582,948 1,426,696 1,659,354 1,435,940 3,123,967 General Fund Five-Year Forecast
ARPA Funding•Utilize remaining ARPA funds to support and fund the following:>Rental Housing Board start up costs – $500,000>Acquisition of property for future affordable housing, mental health, and public health services at N. Lake & Villa - $12m>Street infrastructure improvements - $6m>Various operational needs including PORT and HOPE teams, bad weather shelter, public health and fire safety equipment - $1.25m14 ARPA Funding•All funds to be committed to the General Fund under the Revenue Loss category in FY 2023 to ensure the City retains all ARPAallocations.•Any projects identified to be funded by ARPA will be set aside as Assigned Fund Balance at year-end.15