City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Jennifer Riedeman, Finance Director
MEETING DATE: May 2, 2023
ITEM NO: 7.1
SUBJECT: Adopt Resolution No. 2023- 22 Approving the City of Patterson Mid-Year Adjustments to the Budget for the Fiscal Year 2022-23.
RECOMMENDATION
Motion to Adopt Resolution No. 2023- 22 Approving the City of Patterson Mid-Year adjustments to the Budget for the Fiscal Year 2022-23.
BACKGROUND
Staff is submitting the Mid-Year Budget Review Report and proposed budget adjustments based on the information reviewed as of approximately mid-year. The adjustments include expenditure appropriations and a revenue adjustment.
ANALYSIS
A presentation will be made to the City Council outlining the mid-year budget review for FY 2022-23.
General Fund
Total revenues are estimated for the fiscal year at $24.1 million, approximately $6 million less than the recommended adjusted budget of $30.2 million. Revenues are estimated higher in the categories of Property Taxes. However, Intergovernmental Revenues, including grants and Sales Tax, which were included in the budget but not received are resulting in an overall lower than budget estimate.
Total expenditures are estimated to end the year at $23.6 million, approximately $5.8 million lower than the recommended adjusted budget of $29.4 million. Expenditures are under-budget in all major categories and is expected due to the vacancies of positions during the fiscal year and the normal under-spending of expenditures. Capital outlay is under budget due to the delay in the purchase of fire vehicles and other projects that are still in progress.
Total requested budget adjustments for mid-year are $1,013,639 and are outlined in the attachments to the Mid-Year Budget Review Report (Exhibit A).
Enterprise Funds
Estimated Revenues are on target with budget and Estimated Expenses are lower than Adjusted Budget. The Enterprise Funds are all Estimated with Ending Balances greater than budgeted.
Total requested budget adjustments for mid-year are $6,300 for the reclassification of staff funded in part by the Sewer and Water funds and are outlined attachments to the Mid-Year Budget Review Report (Exhibit A).
Other Funds
Staff recommended mid-year adjustments are included in the Adjusted Budget, where applicable, and adjustments to all funds are detailed in the attachments to the Mid-Year Budget Review Report (Exhibit A), and are summarized below:
Fund 305 - Beautification Committee received additional revenue in the amount of $620 from donations.
Fund 327 - Street Projects requires an increase in expenditure budget in the amount of $185,000 for the I-5/Sperry Avenue Interchange Design that was originally slated for Phase II due to the early completion of other tasks completed for Phase I.
Funds 205 & 252 - Patterson Public Financing Funds - increase in expenditure budget in the amount of $201,000 for debt service expenditures due to prepayments received from property owners that were used to call bonds.
FISCAL IMPACT
The budget adjustment for FY 2022-23 City-wide fiscal impacts are as follows:
City wide (Amounts in thousands)
Revenues $ 301,620
Expenditures
Labor Agreements (1,297,100)
PO Carryovers (1,291,330)
Departmental Amendments (1,106,559)
Total Expenditure Amendments (3,694,989)
Net Adjustments ($3,393,369)