City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Saadiah Ryan, Finance Director
MEETING DATE: May 31, 2022
ITEM NO: 5.1
SUBJECT: Receive a presentation from staff and conduct a review and discussion of the proposed Fiscal Year 2022-2023 General Fund and All Other Funds budget for the City of Patterson. Provide direction to staff regarding the proposed budget.
RECOMMENDATION
Receive a presentation from staff and conduct a review and discussion of the proposed Fiscal Year 2022-2023 General Fund and All Other Funds budget for the City of Patterson. Provide direction to staff regarding the proposed budget.
BACKGROUND
The City provides its services through three separate legal entities: the City of Patterson, the Patterson Public Financing Authority, and the West Patterson Financing Authority. The fiscal year for all three entities runs from July 1 through June 30. Staff prepares operating and capital improvement budgets for the City and the Authorities, which are then reviewed, discussed, amended and eventually approved by the City Council and the City Council sitting in its capacity as the Governing Board of the Authorities.
The City has approximately 59 Other Funds in addition to the General Fund and its various departments. Other Funds consist of Enterprise Funds (Water, Sewer, Garbage) and Special Revenue Funds - including Assessments (Landscape Maintenance Districts, Benefit Assessment Districts, Community Facilities Districts, etc.), Special Revenue Funds (Housing, Streets, Local Transportation Funds, Gas Tax, and Impact Fee (Community Facilities, Water, Sewer, Street, Public Safety, etc.).
Due to the City's strong reserve position, Council has elected to use limited reserves over the past budget cycles as a way to minimize the impacts on service levels while maintaining a general fund reserve budget well above state standards. Staff has worked diligently to provide accurate and detailed projections and estimates to Council. Barring major concerns from the City Council with the budget proposed this evening, we are anticipating final adoption of the budgets for the City and the Authorities at a Council meeting on June 21, 2022.
ANALYSIS
Tonight's workshop will focus on the City's General Fund, from which most of our basic services such as law enforcement, fire prevention and suppression, planning, engineering, building and capital projects, parks and recreation, and general administration are paid.
The General Fund net change in the current year is projected to have a surplus of approximately $4.19 million. The main contributing factor for the surplus is sales tax revenue continues to exceed expectations, property tax revenue and building permits revenues as City continue to experience growth in both residential and commercial developments.