City of Piedmont
COUNCIL AGENDA REPORT
DATE: January 18, 2022
TO: Mayor and Council
FROM: Sara Lillevand, City Administrator
SUBJECT: Consideration of FY 2021-22 Mid-Year General Fund Appropriations and Receipt of FY 2021-22 Mid-Year Fiscal Report
RECOMMENDATION
By motion, approve the FY 2021-22 mid-year General Fund appropriations as follows:
Overtime – Fire Department $ 490,000
City Engineering Service $ 280,000
Juvenile Officer Expense $ 115,000
Total $ 885,000
BACKGROUND
The City Council-approved City of Piedmont FY 2021-22 Budget is the annual fiscal outline, resource allocation, and expenditure plan that guides and ensures implementation of City programs and Council operating policies. The annual Midyear Fiscal Report analyzes and examines the financial condition of the City budget at the mid-point of the fiscal year. This analysis measures the conformity of all revenues and expenditures from July 1, 2021 through December 31, 2021 to the adopted FY 2021-22 budget.
The adopted Budget incorporates the estimated revenues, planned expenditures, and transfers for all funds. This Midyear Fiscal Report focuses on the General Fund and the Capital Projects Funds (Facility Maintenance, Equipment Replacement and Street Related).
Staff recommends the following budget adjustments as detailed below be approved by City Council. Please note, Staff is only requesting additional appropriations for variances caused by known operational changes. Expense variances based only on estimation of current trends (i.e., recreation program expense and insurance claims) will be re-evaluated at year end.
Midyear FY 2021-22 General Fund Summary
Based on mid-year trends, we estimate year-end positive General Fund operating net income, before capital transfers, of $3.2 million and an ending General Fund Balance of $7.7 million which is 24% of total expenditures. The General Fund remains in a sound position, with revenues exceeding expenses. This is the result of conservative budgeting, a strong real estate market, and prudent management of day to day operations. We are very fortunate to be in this position considering the adverse effect COVID-19 has had on many municipalities. This is due to the continued strength of the real estate market and that the majority of our revenue base is property related. If the favorable revenue trends of the first half of the year continue, the City may have the ability to add to the funding of its backlog in facilities maintenance. There can be no assurance these trends will continue as the COVID-19 pandemic continues to evolve and spawn new variants.
The General Fund finances the basic municipal services provided by the City. General Fund revenues are budgeted at $30.5 million (which includes Operating Transfers-In of $0.9 million, primarily from the Sewer Fund). General Fund expenditures are budgeted at $30.4 million. The adopted budget also includes Capital Transfers-Out of $361,000 to the Equipment Replacement fund and $600,000 to the Facilities Maintenance fund.
Based on current trends and known expense variances, we are projecting General Fund revenues to exceed budget by approximately $4.5 million and expenses to be higher than budget by approximately $1.4 million.
The increase in revenue is primarily from higher than expected real property transfer tax receipts (+$1.7 million), American Rescue Plan Act receipts (+$1.3 million), recreation and facility rental revenue (+$0.6 million), mutual aid revenue for wildfire assistance (+$0.4 million), increased building permits and planning related fee activity (+$0.2 million), and Other Taxes (+$0.2 million).
The increase in expenditures is primarily due to the following:
• Higher overtime costs in the fire department due to mutual aid strike team activity, vacant positions, and workers compensation issues.
• Additional costs incurred to process the backlog of building permit applications which has accumulated due to the robust remodel\construction market. • Partial funding of the Juvenile Officer position due to the loss of the associated grant monies,
• Higher costs in the recreation departments, including contract program and personnel costs, due to higher than expected activity from recreation programs and rental facilities.
These revenue generating activities were budgeted conservatively due to the uncertainty caused by the COVID-19 pandemic.
Agenda Report Page 2
General Fund Revenues
Total General Fund revenue through December 31, 2021 was $17.9 million, which is 58% of the annual revenue budget. Included in this amount is $1.3 million received under the American Rescue Plan Act (ARPA) which was not included in the budget.
We are projecting General Fund Revenues to be $35.1 million for FY 2021-22, an increase of $4.5 million as compared to the budget.
The increase is summarized as follows:
The major revenue categories (property tax, parcel tax, and transfer tax) which account for 69% of the General Fund budgeted revenue are discussed below:
• We have received property tax revenues of $8.2 million through December 31, 2021 which is 51% of the annual budget of $15.9 million. This is 4% higher than the amount received in the same period last year. Based on the total amount of secured and unsecured property taxes to be received as communicated to us by Alameda County, we are projecting total property tax revenue to be approximately $16.0 million, which is $53,000 (1%) higher than the adopted budget. • Parcel tax revenue received through December 31, 2021 was $1.2 million, which is 50% of the annual budget. This revenue increased $6,000 as compared to the same period last year. We expect parcel tax revenue to be in line with budget for the year. • Real property transfer tax revenue received through December 31, 2021 was $2.9 million, which is 106% of the annual budget of $2.8 million, and 13% higher than the amount received in the same period last year. The increase was due to a 1% increase in the number of homes sold (85 homes sold compared to 84 in the same period last year), and a 6% increase in the average home sale price to $3.0 million from $2.8 (in thousands) Projected Budget
2021-22 2021-22 $ %
CATEGORY
Property Taxes 15,980 15,927 53 0%
Real Property Transfer Tax 4,500 2,800 1,700 61%
Parcel Tax 2,424 2,422 2 0%
Other Taxes and Franchises 2,610 2,440 170 7%
License and Permits 595 495 100 20%
Revenue from Use of Money or Property 635 425 210 49%
Revenue from Other Agencies 3,655 1,932 1,723 89%
Charges for Current Services 3,728 3,162 566 18%
Other Revenue 89 84 5 6%
Transfers In 855 855 - 0%
35,071 30,541 4,529 15%
Variance
Agenda Report Page 3
million in the same period last year. For FY 2021-22, we are projecting transfer tax to be $4.5 million, which is $1.7 million over the adopted budget.
Other revenue categories to note are:
American Rescue Plan Act (ARPA). The City was allocated $2.6 million in ARPA funds, $1.3 million of which was received in July 2021 and the remainder expected in July 2022. As noted, the receipt of the ARPA funds was not included in the approved budget. In order to move forward the two priority projects approved by Council in October 2021 (Dispatch relocation/renovation and Police/Fire/City Hall master plan), staff anticipates utilizing ARPA monies during the second half of FY 21-22 to hire project management support for these efforts.
Mutual aid revenue received from the deployment of strike teams to battle wildfires throughout California is projected at $0.4 million. This category is not budgeted due to the uncertainty of this revenue stream. The Piedmont Fire Department assisted in the Dixie fire, logging over 3,800 hours of mutual aid.
Building Permits and Planning related fees (which includes the General Plan Maintenance Fee and Records Management Fee). This category continues to surprise as the construction\remodel market has exceeded all expectations. FY 2020-21 was a record year, increasing $1.6 million or, 28%, over the prior year. The strength has continued into the current fiscal year and we are projecting to exceed the annual budget by $0.2 million (17%).
Revenue from Recreation Programs and Facility. As of December, recreational programs and facility rentals have returned to a “near normal state”. Assuming this trend continues, we expect this category to exceed the approved budget by approximately $0.6 million. It should be noted that the majority of Recreation expenses are variable in nature, and accordingly, we also expect an increase in expenses.
General Fund Expenditures
General Fund expenditures are budgeted at $30.4 million. Total estimated expenditures for FY 2021-22 are $31.8 million, or $1.4 million (4 %) higher than budget. Expenses directly related to COVID, and funded by our ARPA allocation, were $137,000 for the first 6 months of the fiscal year as follows:
• Premium Pay $54,000
• Technology $40,000
• Legal\Consulting $26,000
• Supplies\Misc. $17,000
We expect to incur approximately $146,000 of COVID related expense in the second half of the fiscal year, consisting of $100,000 to support Piedmont Unified School District’s COVID response and $46,000 for continuing COVID related expenses. The remaining $1.0 million in ARPA funds received will be transferred to the Facilities Maintenance Fund and be used for the capital projects approved by the City Council at its October 4, 2021 meeting.
Agenda Report Page 4
The following table compares budget and projected expenditures for the full fiscal year:
Personnel related costs, the largest expenditure component of the General Fund representing 65% of the total expenditure budget, are estimated at $20.5 million, an increase of $0.6 million compared to budget. The variance is primarily due to:
• Increased overtime ($0.5 million) in the Fire Department due to the strike team deployments to assist in battling California wildfires and backfilling positions due to retirements and personnel injuries. The majority of the overtime is offset by mutual aid revenue received of $390,000.
• The adopted budget included $190,000 in grant revenue to fund a Juvenile Officer. After the adoption of the annual budget, the City was informed it would not be receiving the grant revenue. As the Juvenile Officer program is vital to the Police Department’s operations, it was decided to retain this position and not backfill a police officer position through anticipated attrition. This vacancy is anticipated to commence in February and holding it vacant will save approximately $75,000, resulting in a budget overage of $115,000.
• Benefit costs are expected to be lower by approximately $100,000 due to open positions.
Operating expenses are expected to be higher than budget by approximately $0.6 million primarily due to:
• Higher costs in the recreation departments (+$230,000), including contract program and personnel costs, due to higher than expected revenues from recreation programs and rental facilities. These expenses are tied to revenue generating programs which were budgeted conservatively due to the uncertainty caused by the COVID-19 pandemic. • Additional costs incurred to process the backlog of building permit applications (+$280,000). To date, the City has utilized Coastland Engineering’s services to assist the Building Division in addressing the influx of building permit applications and reduce the backlog of permit applications. Staff is planning to recruit a part time Permit Technician to provide the same services processing permits, reducing the backlog of permits, serving customers at the counter, and to phase out the need for Coastland’s permit processing and inspection support later this year.
The backlog was caused by the unexpected surge in applications coupled with the need to begin electronic processing before we were ready due to the pandemic. Processing (in thousands) Projected Budget % of
2021-22 2021-22 Total $ %
CATEGORY
Personnel Costs 20,456 19,868 65% 588 3%
Operating Expenses 8,008 7,427 24% 581 8%
Non-Depatmental 3,307 3,095 10% 212 7%
31,771 30,390 100% 1,381 5%
Variance
Agenda Report Page 5
applications became more cumbersome as the necessary software to do so was not in place. Staff has been making progress with the recent purchase of software to aid with digital submissions and review and will be upgrading TRAKiT later this year. • Increased legal fees due to personnel disciplinary issues and COVID-19 related policy updates. (+$100,000)
Non-Departmental costs will be higher than budget due to:
• Increased workers compensation claims (+160,000)
• Support Piedmont Unified School District in the hiring of temporary COVID response support staff. (+$100,000 funded by our ARPA allocation) • Higher than expected insurance premiums (+$46,000)
These increases are being offset by the following:
• Lower Retiree Medical premiums (-$55,000) and Unemployment Insurance claims (- $40,000).
Please see the following pages for detailed charts showing this information.
Agenda Report Page 6
Projected Budget
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2021-22 $ % General Fund Beginning Balance $ 4,719 $ 4,688 $ 5,533 $ 5,289 $ 5,592 $ 6,509 $ 5,940 $ 569 10% Property Taxes 12,512 13,375 14,079 14,790 15,442 15,980 15,927 53 0% Real Property Transfer Tax 3,522 3,845 3,820 3,603 6,287 4,500 2,800 1,700 61% Parcel Tax 1,746 2,198 2,262 2,353 2,411 2,424 2,422 2 0% Other Taxes and Franchises 2,474 2,412 2,481 2,527 2,664 2,610 2,440 170 7% License and Permits 577 589 512 548 710 595 495 100 20% Revenue from Use of Money or Property 616 738 853 437 209 635 425 210 49% Revenue from Other Agencies 1,699 2,037 2,002 1,830 2,436 3,655 1,932 1,723 89% Charges for Current Services 3,342 3,545 3,252 2,194 2,977 3,728 3,162 566 18% Other Revenue 169 268 303 321 128 89 84 5 6%
26,657 29,007 29,564 28,603 33,266 34,216 29,686 4,529 15% Operating Transfers in 1,109 790 827 1,001 1,008 855 855 - 0% Total Revenue 27,766 29,797 30,391 29,604 34,274 35,071 30,541 4,529 15% Departmental Expenditures
Administration 2,528 2,854 2,919 3,230 3,603 3,884 3,794 90 2% Public Works 4,161 4,216 3,273 3,586 3,795 3,909 3,929 (20) -1% Planning & Building 1,300 1,232 1,455 2,625 2,365 260 11% Recreation 2,772 2,829 2,918 2,666 2,405 2,951 2,687 264 10% Police 5,757 5,937 6,333 6,514 6,715 7,383 7,298 85 1%
Fire 5,441 5,889 6,143 6,323 6,875 7,712 7,222 490 7%
Departmental Expenditures 20,659 21,725 22,886 23,551 24,848 28,464 27,295 1,169 4% Non Departmental Expenditures
Library 350 350 350 350 350 350 350 - 0%
Unemployment Insurance 8 8 - 54 134 35 75 (40) -53%
Workers Compensation 555 615 794 673 722 876 725 151 21% Liability Insurance 435 553 686 784 1,015 1,176 1,120 56 5% Pension rate stabilization 2,000 750 - - 1,000 - - - #DIV/0! OPEB - Retiree payments 446 520 614 654 770 825 (55) -7% OPEB - Contributions 312 86 99 87 - - - - #DIV/0!
Other 1 2 7 2 - 100 - 100 #DIV/0!
Non Departmental Expenditures 3,661 2,810 2,456 2,564 3,875 3,307 3,095 212 7% Operating Transfers-out 1,477 1,518 1,688 1,377 - - - - #DIV/0! Total Expenditures and Transfers-out 25,797 26,053 27,030 27,492 28,723 31,771 30,390 1,381 5% Operating Net Income 1,969 3,744 3,361 2,112 5,550 3,299 151 3,148 2088% Capital Transfers-out
Equipment Replacement Fund 400 400 400 400 610 361 361 - 0% Facility Maintenance\Sidewalk 1,600 3,332 3,205 1,050 3,500 1,650 600 1,050 175% Capital Improvements - 359 523 - - - #DIV/0!
Total Capital Transfers 2,000 3,732 3,605 1,809 4,633 2,011 961 1,050 109% Net Income after Capital Transfers (31) 12 (244) 303 917 1,288 (810) 2,098 -259% Prior Year Adjustment (audit) 833
General Fund Ending Fund Balance $ 4,688 $ 5,533 $ 5,289 $ 5,592 $ 6,509 $ 7,798 $ 5,130 $ 2,668 52% Fund Balance as % of Operating Exp 19% 23% 21% 21% 23% 25% 17% Actual Variance
CITY OF PIEDMONT
GENERAL FUND ANALYSIS
2016-17 to 2021-22
(000's)
Agenda Report Page 7
Account # Description June-18 June-19 June-20 June-21 6 Months Budget % Attained Projected $ Variance See Below for Details PROPERTY TAX - SECURED 12,292 12,961 13,611 14,271 7,486 14,919 50% 14,971 52See Below for Details PROPERTY TAX - UNSECURED 581 612 676 724 620 703 88% 704 1 101-0301-005-000 PROPERTY TAX-SUPPLEMENTAL 494 498 498 438 69 300 23% 300 0 101-0301-006-000 PROPERTY TAX-DELINQ & PENLTY 7 8 6 9 0 5 0% 5 0 SUB-TOTAL Property Tax 13,375 14,079 14,790 15,442 8,175 15,927 51% 15,980 53 101-0302-003-000 REAL PROPERTY TRANSFER TAX 3,845 3,820 3,603 6,287 2,917 2,800 104% 4,500 1,700101-0302-005-000 PARCEL TAX: MUNI TAX 2,198 2,262 2,353 2,411 1,212 2,422 50% 2,424 2 TOTAL Property Related Taxes 19,418 20,160 20,746 24,140 12,304 21,149 58% 22,904 1,755 See Below for Details BUSINESS LICENSE TAX 262 253 269 255 112 225 50% 275 50 See Below for Details REAL ESTATE RENTAL TAX 302 308 334 366 4 355 1% 355 0 101-0302-001-000 SALES & USE TAXES 192 200 200 245 68 200 34% 220 20 TOTAL Business & Sales Taxes 755 761 803 865 183 780 23% 850 70 101-0302-002-002 ELECTRIC FRANCHISE FEE 81 76 95 103 0 100 0% 100 0 101-0302-002-003 GARBAGE FRANCHISE FEE 165 250 257 257 145 250 58% 260 10 See Below for Details CABLE T.V. FRANCHISE FEE 162 218 215 201 51 205 25% 205 0 TOTAL Franchise Fees 408 543 567 561 196 555 35% 565 10 101-0302-008-000 GAS & ELECTRIC USERS TAX 811 759 899 1,003 311 850 37% 950 100 See Below for Details TELEPHONE USERS TAX 392 373 213 190 60 210 28% 200 -10101-0302-010-000 WATER USERS TAX 45 45 45 45 23 45 50% 45 0 TOTAL Utility Users Tax 1,249 1,177 1,157 1,238 393 1,105 36% 1,195 90 See Below for Details BUILDING & OTHER PERMITS 565 489 527 689 341 477 72% 575 98 101-0307-001-000 PLANNING FEES 251 267 228 252 103 200 51% 225 25 See Below for Details PLAN CHECK FEES 271 243 278 366 151 280 54% 300 20 101-0307-001-001 GENERAL PLAN MAINT. FEES 0 0 212 280 155 325 48% 400 75101-0307-004-000 RECORDS MANAGEMENT FEES 0 0 31 41 11 30 37% 30 0 TOTAL Permits & Planning fees 1,086 999 1,276 1,628 761 1,312 58% 1,530 218 101-0305-002-001 COMMUNITY HALL - RENT 415 449 134 47 289 250 116% 490 240 101-0305-002-002 VETERANS HALL - RENT 115 95 59 19 20 40 51% 40 0 See Below for Details RECREATION PROGRAMS 1,974 1,776 630 1,355 1,100 1,367 81% 1,950 584See Below for Details PRE-SCHOOL 579 510 438 338 210 618 34% 410 -208 TOTAL Recreation Revenue 3,083 2,831 1,261 1,760 1,619 2,275 71% 2,890 616 General Fund Revenue (000's)
Actual - Fiscal Year Ended: Fiscal Year 2021-22
Agenda Report Page
8 Account # Description June-18 June-19 June-20 June-21 6 Months Budget % Attained Projected $ Variance 101-0306-003-017 MOTOR VEHICLE LICENSE FEE 1,229 1,300 1,362 1,429 740 1,477 50% 1,480 3101-0306-003-005 HOMEOWNER PROP. TAX RELIEF 85 84 82 79 0 80 0% 78 -2 101-0306-003-011 MISCELLANEOUS RECEIPTS-STATE 19 40 50 212 6 190 3% 190 0 101-0306-003-018 MISCELLANEOUS-COUNTY 0 11 185 19 0 0 #DIV/0! 0 0 101-0306-002-000 FEDERAL GRANTS 0 0 0 0 1,332 0 #DIV/0! 1,332 1,332 TOTAL Other Agency Revenue 1,332 1,435 1,679 1,739 2,078 1,747 119% 3,080 1,333 101-0306-003-015 FORESTRY & FIRE PROTECTN 481 383 59 513 0 0 #DIV/0! 390 390 101-0306-004-002 PARAMEDIC TAX 69 69 70 70 35 70 50% 70 0 101-0307-005-000 AMBULANCE SERVICE CHARGE 346 311 214 226 99 180 55% 250 70 101-0307-011-004 FIRE CPR COURSES 0 1 0 0 0 0 #DIV/0! 0 0 TOTAL Fire Related Revenue 896 764 342 809 134 250 54% 710 460 101-0306-019-000 1/2% SALES TAX FOR PUB SAFE 85 112 104 109 52 105 50% 105 0101-0306-003-009 P.O.S.T. 2 3 24 6 0 10 1% 10 0 101-0307-003-000 EMERYVILLE ANIMAL CONTROL 83 102 107 91 0 106 0% 106 0 101-0307-011-001 CROSSING GUARD 32 34 52 21 0 55 0% 55 0101-0307-011-000 SPECIAL SERVICES 10 6 3 5 2 0 #DIV/0! 2 2 101-0303-001-000 DOG LICENSES 24 23 21 21 11 18 62% 20 2 TOTAL Police Related Revenue 235 280 312 253 65 294 22% 298 4 101-0305-001-001 INTEREST 120 192 109 87 12 70 18% 50 -20 101-0320-008-000 UNREALIZED GAIN/LOSS 0 25 38 -46 -23 -30 76% -45 -15 TOTAL Investment Income\(Loss) 120 217 147 41 -10 40 -26% 5 -35 101-0305-002-005 RENT - TELECOMMUNICATIONS 87 89 96 100 52 95 55% 100 5101-0308-003-005 SALE OF MISC. PROPERTY 8 23 1 28 0 0 #DIV/0! 0 0 101-0308-008-000 MISCELLANEOUS REVENUE 259 280 213 101 89 84 106% 89 5 101-0325-030-103 TRANSFER IN 790 827 1,001 1,008 0 855 0% 855 0See Below for Details OTHER REVENUE 1 4 2 2 1 1 88% 1 0 TOTAL Miscellaneous Revenue 1,145 1,223 1,313 1,239 141 1,035 14% 1,045 10 TOTAL GENERAL FUND REVENUE 29,728 30,391 29,604 34,274 17,865 30,541 58% 35,072 4,530 General Fund Revenue (000's)
Actual - Fiscal Year Ended: Fiscal Year 2021-22
Agenda Report Page
9 Recreation Related Operations
The City’s recreational activities were the most impacted by the COVID-19 pandemic. The department had to be very flexible and adapt to the constant changes in rules as dictated by the County Health Department in response to the evolving circumstances of the pandemic. The Adopted Budget had assumed our recreational activities would be approximately 33% below prepandemic levels and that rental facilities would be operating at 50% capacity. The first half of the year yielded better than expected results as restrictions softened. We are assuming the trends of the first half of the year will continue into the second half. However, the second half of the year still faces some uncertainty with the emergence of the Omicron variant.
Below is a summary of operations and second half projections for each of the Recreation areas:
Actual Next Annual
6 Months 6 Months Total Budget Variance
SCHOOLMATES (415)
Revenue $ 516,828 $ 400,000 $ 916,828 $ 754,740 $ 162,088 Salaries 231,979 220,000 451,979 495,165 (43,186)
Benefits & Taxes 46,639 45,000 91,639 112,781 (21,142)
Operating Exp 32,849 50,000 82,849 95,000 (12,151)
Total Expenses 311,468 315,000 626,468 702,946 (76,478) % of Revenue
Net Income/(Loss) $ 205,361 $ 85,000 $ 290,361 $ 51,794 $ 238,567 Fiscal Year 2021-22
Agenda Report Page 10
Actual Next Annual
6 Months 6 Months Total Budget Variance
TOTAL RECREATION - GF
Revenue $ 1,620,236 $ 1,270,000 $ 2,890,236 $ 2,274,500 $ 615,736 Salaries 728,067 688,000 1,416,067 1,305,105 110,962
Benefits & Taxes 164,662 158,000 322,662 329,361 (6,699) Operating Exp 597,676 615,000 1,212,676 969,200 243,476 Total Expenses 1,490,405 1,461,000 2,951,405 2,603,666 347,739 % of Revenue
Net Income/(Loss) $ 129,831 $ (191,000) $ (61,169) $ (329,166) $ 267,997 RECREATION (404)
Revenue $ 1,100,444 $ 850,000 $ 1,950,444 $ 1,366,500 $ 583,944 Salaries 486,506 450,000 936,506 829,394 107,112
Benefits & Taxes 116,462 105,000 221,462 216,594 4,868
Operating Exp 542,910 550,000 1,092,910 826,950 265,960 Total Expenses 1,145,878 1,105,000 2,250,878 1,872,938 377,940 % of Revenue
Net Income/(Loss) $ (45,433) $ (255,000) $ (300,433) $ (506,438) $ 206,005 PRE-SCHOOL (407)
Revenue $ 209,676 $ 200,000 $ 409,676 $ 618,000 $ (208,324) Salaries 176,450 180,000 356,450 395,673 (39,223)
Benefits & Taxes 30,446 35,000 65,446 82,432 (16,986)
Operating Exp 27,247 30,000 57,247 62,500 (5,253)
Total Expenses 234,143 245,000 479,143 540,605 (61,462) % of Revenue
Net Income/(Loss) $ (24,468) $ (45,000) $ (69,468) $ 77,395 $ (146,863) COMMUNITY HALL (405)
Revenue $ 289,848 $ 200,000 $ 489,848 $ 250,000 $ 239,848 Salaries 57,499 50,000 107,499 61,430 46,069
Benefits & Taxes 14,648 15,000 29,648 24,109 5,539
Operating Exp 18,700 25,000 43,700 56,000 (12,300)
Total Expenses 90,848 90,000 180,848 141,539 39,309
% of Revenue
Net Income/(Loss) $ 199,000 $ 110,000 $ 309,000 $ 108,461 $ 200,539 VETERAN'S HALL (406)
Revenue $ 20,269 $ 20,000 $ 40,269 $ 40,000 $ 269
Salaries 7,612 8,000 15,612 18,608 (2,996)
Benefits & Taxes 3,105 3,000 6,105 6,226 (121)
Operating Exp 8,819 10,000 18,819 23,750 (4,931)
Total Expenses 19,536 21,000 40,536 48,584 (8,048)
% of Revenue
Net Income/(Loss) $ 733 $ (1,000) $ (267) $ (8,584) $ 8,317 Fiscal Year 2021-22
Agenda Report Page 11
Community Pool
The Community Pool is permanently closed which is consistent with the adopted budget, which included $40,000 to cover shutdown and utility costs. We are now projecting shutdown costs to be approximately $25,000 to $30,000.
On Thursday, November 18, 2021, the City of Piedmont successfully priced $19,500,000 in General Obligation Bonds to rebuild the Piedmont Community Pool pursuant to voter-approved Measure UU. The transaction closed on December 8, 2021. The Bonds were issued as a single series bearing a tax-exempt fixed rate of 5.0% to maturity in an aggregate principal amount of $19.5 million resulting in an original issue premium of $5,829,463.85. The bonds will have a final maturity of September 1, 2051 and be subject to redemption at the option of the City on any date on or after September 1, 2031.
After paying bond issuance costs and capitalized interest, the City will have approximately $24.4 million available to complete the Community Pool Project. Given escalating construction costs, inflation, and supply chain challenges, we are fortunate that this should provide significant contingency to support development of a Community Pool that reflects the conceptual design approved in 2016 and serves the aquatic needs of Piedmont.
Capital Funds
FACILITY MAINTENANCE
As of December 31, 2021, the City has spent approximately $650,000 of the $2.6 million of expenditures included in the FY 21-22 Approved Budget. Projects completed during the first six months of FY 2021-22 using the Facilities Maintenance fund included various sidewalk replacement and repairs, City Hall upgrades including restoration of the Council Chamber seating, Corey Reich Tennis Center signage, as well as many miscellaneous ongoing and deferred maintenance projects within the City’s facilities.
As noted in the Overview section of the Approved Budget, based on our current long-term plan, Facilities Maintenance will not be adequately funded in the near future.
The schedule on the following page summarizes fund activity for the next seven years, excluding major projects:
Agenda Report Page 12
The facilities maintenance fund does not include major and necessary capital improvements including the Fire Department/City Hall, the Police Department, the Veterans Hall, the Recreation Department Building, Coaches Field and Linda Beach Park. The total estimated costs of these projects exceeds $60 million.
As noted previously, if the revenue and expense trends of the first half of the year continue, the City may have the ability to add to the funding of its backlog in facilities maintenance. We will revisit the ability and need for further funding at fiscal year-end.
EQUIPMENT REPLACEMENT
On the following page is a summary schedule of activity in the Equipment Replacement fund.
We are projecting current year expenditures to be consistent with the Adopted Budget. As evidenced in the below schedule, we believe Equipment Replacement is fully funded barring any unforeseen circumstances.
ACTUAL
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 BEGINNING BALANCE $ 6,528,756 $ 9,341,209 $ 8,942,987 $ 6,941,615 $ 4,677,931 $ 3,134,831 $ 1,913,636 $ 831,220 REVENUES:
General Fund 4,022,707 600,000 300,000 300,000 300,000
Contributions 22,204 - - - -
Interest 24,324 21,596 42,834 33,803 24,011
ARPA 1,050,682 1,331,865
TOTAL REVENUE 4,069,235 1,672,278 1,674,698 333,803 324,011 11,255 11,593 11,941 EXPENDITURES:
Repairs & Maintenance 156,427 250,000 230,570 237,487 244,612 251,950 259,509 267,294 Scheduled Maintenance 200,220 420,500 645,500 760,000 722,500 380,500 234,500 340,000 Capital Projects 377,428 800,000 2,200,000 1,000,000 300,000 - - - Sidewalks 522,707 600,000 600,000 600,000 600,000 600,000 600,000 600,000 TOTAL EXPENDITURES 1,256,782 2,070,500 3,676,070 2,597,487 1,867,112 1,232,450 1,094,009 1,207,294 ENDING BALANCE $ 9,341,209 $ 8,942,987 $ 6,941,615 $ 4,677,931 $ 3,134,831 $ 1,913,636 $ 831,220 $ (364,134)
PROJECTED
Agenda Report Page 13
Street\Sidewalk Related Funds
Funding sources for streets and sidewalks include Measure B, Measure BB, Measure F, Gas Tax, and SB-1. The majority of available funding is dedicated to street resurfacing and sidewalk repair work, with the balance dedicated to important sub-categories such as the implementation of projects prioritized by the approved Pedestrian & Bicycle Master Plan, and those related to the Complete Streets program.
Funding for streets for the Fiscal Year 2021-22 is just over $2.8 million, $1.3 million of which is being carried forward from Fiscal Year 2020-21 due to the 2021 Paving Project being delayed due to the pandemic. In addition to the 2021 Paving Project, major projects planned for this year are the Oakland Ave. rehabilitation project and the Oakland Ave. and San Carlos Ave. Retaining walls project.
Sidewalk repair work is also a focus as the list of sidewalks in need of repair has been growing.
The City budgeted $900,000 for sidewalk repair and replacement, utilizing the Facility Maintenance Fund ($600,000) and all Gas Tax fund revenue (approximately $300,000).
On the following page is a recap of the current status of the street related funds:
Fiscal Begin Planned End
Year Balance Funding Interest Expenditures Balance
17/18 $ 3,937,414 $ 517,193 $ (651,165) $ 3,803,442
18/19 3,803,442 433,000 81,148 (1,216,799) 3,100,791
19/20 3,100,791 400,000 76,067 (513,171) 3,063,687
20/21 3,063,687 610,500 13,195 (590,280) 3,097,101
21/22 3,097,101 360,841 30,971 (1,698,800) 1,790,114
22/23 1,790,114 516,210 17,901 (984,026) 1,340,198
23/24 1,340,198 440,379 26,804 (978,267) 829,115
24/25 829,115 427,869 19,070 (675,522) 600,532
25/26 600,532 776,132 15,013 (430,792) 960,884
26/27 960,884 829,639 24,022 (484,078) 1,330,467
27/28 1,330,467 927,868 33,262 (660,380) 1,631,218
28/29 1,631,218 716,501 40,780 (793,697) 1,594,801
29/30 1,594,801 608,244 39,870 (1,828,031) 414,884
30/31 414,884 490,593 10,372 (107,382) 808,468
31/32 808,468 514,954 20,212 (664,749) 678,884
32/33 678,884 431,079 16,972 (275,134) 851,801
EQUIPMENT REPLACEMENT FUND ACTIVITY
Agenda Report Page 14
By: Michael Szczech, Finance Director
Street Related Funds
Activity Thru:
12/31/2021
Measure Traffic
F Gas Tax SB 1 Congestion
LSR Bike\Ped Total LSR Bike\Ped Total 143 121 133 132
Fund Balance - 7/1/2021 $ 295,861 $ 11,509 $ 307,370 $ 438,833 $ 33,852 $ 472,685 $ 73,366 $ 7,137 $ 448,362 $ 38,429 Revenue - BUDGET
STATE \ COUNTY FUNDS 329,216 28,482 357,698 507,723 38,110 545,833 40,000 293,000 223,000 - Actual Expenses
STREET RESURFACING 16,257 16,257 371,898 371,898 - - 56,435 - DESIGN STREET RESURFACING 2,611 2,611 -
BIKE & PEDESTRIAN 236 236 68,914 68,914 - - - -
SIDEWALKS & CURBS - - - - - 299,408 - -
Total Expenditures 18,869 236 19,104 371,898 68,914 440,812 - 299,408 56,435 - Open to Spend $ 606,208 $ 39,756 $ 645,964 $ 574,658 $ 3,048 $ 577,706 $ 113,366 $ 729 $ 614,927 $ 38,429 Measure B (131) Measure BB (136)
Agenda Report Page 15