1 City of Piedmont
COUNCIL AGENDA REPORT
DATE: February 6, 2023
TO: Mayor and Council
FROM: Sara Lillevand, City Administrator
SUBJECT: Consideration of FY 2022-23 Mid-Year General Fund Appropriations and FY 2022-23 Midyear Fiscal Report
RECOMMENDATION
By motion, approve the FY 2022-23 mid-year General Fund appropriations of $100,000 for Fire Department overtime and $95,000 for Planning & Building Department part-time salaries.
BACKGROUND
The City Council-approved City of Piedmont FY 2022-23 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, 2022 through December 31, 2022 to the adopted FY 2022-23 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. 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.
Appropriation requests from the General Fund:
Department Account Amount
Fire Personnel - Overtime $100,000
Planning & Building Personnel - Part Time $95,000
Total $195,000
2 Midyear FY 2022-23 General Fund Summary
The General Fund finances the basic municipal services provided by the City. General Fund revenues are budgeted at $34.8 million (which includes Operating Transfers-In of $0.9 million, primarily from the Sewer Fund). General Fund expenditures are budgeted at $33.9 million. The adopted budget also includes Capital Transfers-Out of $1.3 million to the Facilities Maintenance fund and $72,000 to the Equipment Replacement fund.
Based on mid-year trends, we estimate year-end positive General Fund operating net income, before capital transfers, of approximately $2.8 million and an ending General Fund Balance of approximately $7.5 million which is 22% of total expenditures. The General Fund remains in a sound position, with revenues exceeding expenses. This is the result of conservative budgeting and prudent management of day to day operations. In addition, a strong, but softening, real estate market is driving Secured Property Taxes and Real Property Transfer Taxes to exceed budget. 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 economy faces stiff headwinds with rising interest rates and high inflation.
Based on current trends and known expense variances, we are projecting General Fund revenues to exceed budget by approximately $2.4 million and expenses to be higher than budget by approximately $548,000.
The increase in revenue is primarily from higher than expected real property transfer tax receipts (+$1.1 million), property taxes (+0.4 million), recreation program revenue (+$0.3 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 vacant positions and workers compensation claims.
• Additional costs incurred to process the backlog of building permit applications. A continuing high volume of building permit applications and the COVID-forced move to electronic permit application submissions and processing created more steps for staff and this resulted in a backlog of building permit applications to be processed. • Higher costs in the recreation department, including contract program and personnel costs, due to higher than expected activity from recreation programs. These costs are more than offset by corresponding program revenue.
General Fund Revenues
Total General Fund revenue through December 31, 2022 was $17.4 million, which is 50% of the annual revenue budget.
Staff projects General Fund Revenues to be $37.3 million for FY 2022-23, an increase of $2.4 million as compared to the budget.
3 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:
• The City has received property tax revenues of $8.8 million through December 31, 2022 which is 51% of the annual budget of $16.1 million. This is 8% 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 by Alameda County, staff projects total property tax revenue to be approximately $17.2 million, which is $346,000 (2%) higher than the adopted budget.
• Parcel tax revenue received through December 31, 2022 was $1.3 million, which is 50% of the annual budget. This revenue increased $48,000 as compared to the same period last year. Staff expects parcel tax revenue to be in line with budget for the year.
• Real property transfer tax revenue received through December 31, 2022 was $2.6 million, which is 81% of the annual budget of $3.2 million, and 11% lower than the amount received in the same period last year. Year over year, the number of homes sold decreased 25% (64 homes sold compared to 85 in the same period last year), and a 7% increase in the average home sale price to $3.2 million from $3.0 million in the same period last year. For FY 2022-23, staff projects transfer tax to be $4.2 million, which is $1.0 million over the adopted budget.
REVENUE
(in thousands)
Projected Budget $ %
CATEGORY
Property Taxes 17,221 16,875 346 2%
Real Property Transfer Tax 4,250 3,200 1,050 33%
Parcel Tax 2,522 2,522 - 0%
Other Taxes and Franchises 2,845 2,568 277 11%
License and Permits 697 624 73 12%
Revenue from Use of Money or Property 667 732 (65) -9%
Revenue from Other Agencies 3,474 3,387 87 3%
Charges for Current Services 4,440 3,950 490 12%
Other Revenue 180 96 84 88%
Transfers In 984 877 107 12%
37,279 34,830 2,449 7%
FY 2022-23 Variance
4 Other revenue categories to note include the following:
American Rescue Plan Act (ARPA). The City was allocated $2.6 million in ARPA funds, $1.3 million was received in July 2021 and the remaining $1.3 million was received in July 2022. In accordance with accounting rules, these monies cannot be recognized as revenue until it is spent.
Of the $2.6 million received, $284,396 was spent in FY 2021-22. The remaining amount, as approved by the City Council in October 2021, is earmarked for the Dispatch relocation/renovation project, and if any funds remain, the Police/Fire/City Hall master plan. The Dispatch relocation/renovation project is currently in the Design phase.
Building Permits and Planning related fees (including the General Plan Maintenance Fee and Records Management Fee). This category continues to be strong as the construction\remodel market has exceeded expectations. The strength has continued into the current fiscal year, and staff projects exceeding the annual budget by $0.2 million (12%).
Revenue from Recreation Programs and Facility. As of December, recreational programs and facility rentals have been strong, especially contract camps and programs. This is partially offset by lower than planned revenue in Pre-School. Assuming this trend continues, we expect this category to exceed the approved budget by approximately $0.3 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 $33.9 million. Total estimated expenditures for FY 2022-23 are $34.5 million, or $548,000 (2 %) higher than budget.
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 64% of the total expenditure budget, are estimated at $21.95 million, an increase of $0.2 million compared to budget. The variance is primarily due to:
EXPENDITURES
(in thousands) % of
Projected Budget Total $ %
CATEGORY
Personnel Costs 21,951 21,756 64% 195 1%
Operating Expenses 8,981 8,673 26% 308 4%
Non-Depatmental 3,550 3,505 10% 45 1%
34,482 33,934 100% 548 2%
FY 2022-23 Variance
5 • Increased personnel costs in the Fire Department:
o Overtime over budget as positions are backfilled due to retirements and personnel injuries. The majority of the overtime is offset by lower regular salary and benefit costs. Net budget overage is estimated at $100,000.
• Additional costs incurred to process the backlog of building permit applications (+$95,000).
o A continuing high volume of building permit applications and the COVID-forced move to electronic permit application processing created more work for staff which resulted in a backlog of building permit applications to be processed. In addition, Planning & Building staff are devoting a sizable portion of their time working to implement the upgraded TRAKiT system. To address this increased workload, part time employees were hired with the assumption that the excess workload would be temporary with relief coming with the launch of the upgraded TRAKiT system. This launch has been delayed from February to later in the fiscal year. The request for an increased budget for part time staffing will allow the City to meet our staffing needs and continue to work through the permit backlog.
Operating expenses are expected to be higher than budget by approximately $0.3 million primarily due to:
• Higher costs in the recreation departments (+$308,000), including contract program and personnel costs, due to greater than expected increase in recreation program offerings.
Non-Departmental costs will be higher than budget due to:
• Increased workers compensation claims (+130,000)
• Increased unemployment insurance claims (+15,000)
These increases are being offset by:
• Lower general liability premiums due to altering our insurance policy to raise our deductible from $10,000 to $25,000. Claims paid have not increased significantly. (- $100,000).
Please see the following pages for schedules detailing this information. 6 Projected Budget
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2022-23 $ % General Fund Beginning Balance $ 4,688 $ 5,533 $ 5,289 $ 5,592 $ 6,509 $ 7,395 $ 7,423 $ (28) 0% Property Taxes 13,375 14,079 14,790 15,442 16,224 17,221 16,875 346 2% Real Property Transfer Tax 3,845 3,820 3,603 6,287 5,981 4,250 3,200 1,050 33% Parcel Tax 2,198 2,262 2,353 2,411 2,425 2,522 2,522 - 0% Other Taxes and Franchises 2,412 2,481 2,527 2,664 2,721 2,845 2,568 277 11% License and Permits 589 512 548 710 766 697 624 73 12%
Revenue from Use of Money or Property 738 853 437 209 508 667 732 (65) -9% Revenue from Other Agencies 2,037 2,002 1,830 2,436 2,615 3,474 3,387 87 3% Charges for Current Services 3,545 3,252 2,194 2,977 4,179 4,440 3,950 490 12% Other Revenue 268 303 321 128 140 180 96 84 88%
29,007 29,564 28,603 33,266 35,559 36,295 33,953 2,342 7% Operating Transfers in 790 827 1,001 1,008 905 984 877 107 12% Total Revenue 29,797 30,391 29,604 34,274 36,464 37,279 34,830 2,449 7% Departmental Expenditures
Administration 2,854 2,919 3,230 3,603 3,509 4,249 4,249 - 0% Public Works 4,216 3,273 3,586 3,795 4,214 4,535 4,535 - 0% Planning & Building 1,300 1,232 1,455 2,390 2,927 2,832 95 3% Recreation 2,829 2,918 2,666 2,405 3,296 3,561 3,253 308 9% Police 5,937 6,333 6,514 6,715 7,315 7,608 7,608 - 0%
Fire 5,889 6,143 6,323 6,875 7,700 8,052 7,952 100 1%
Departmental Expenditures 21,725 22,886 23,551 24,848 28,424 30,932 30,429 503 2% Non Departmental Expenditures
Library 350 350 350 350 350 350 350 - 0%
Unemployment Insurance 8 - 54 134 17 35 20 15 75%
Workers Compensation 615 794 673 722 872 960 830 130 16% Liability Insurance 553 686 784 1,015 1,104 1,305 1,405 (100) -7% Pension rate stabilization 750 - - 1,000 - - - #DIV/0!
OPEB - Retiree payments 446 520 614 654 750 900 900 - 0% OPEB - Contributions 86 99 87 - - - - #DIV/0!
Other 2 7 2 - 100 - - - #DIV/0!
Non Departmental Expenditures 2,810 2,456 2,564 3,875 3,193 3,550 3,505 45 1% Operating Transfers-out
Aquatics 130 250 250 - - - - - #DIV/0!
2014 Pension Obligation Fund 1,388 1,438 1,127 - - - - - #DIV/0! Operating Transfers-out 1,518 1,688 1,377 - - - - - #DIV/0! Total Expenditures and Transfers-out 26,053 27,030 27,492 28,723 31,617 34,482 33,934 548 2% Operating Net Income 3,744 3,361 2,112 5,550 4,847 2,797 896 1,901 212% Capital Transfers-out
Equipment Replacement Fund 400 400 400 610 1,361 72 72 - 0% Facility Maintenance\Sidewalk 3,332 3,205 1,050 3,500 2,600 1,300 1,300 - 0% Facility Capital 1,332 1,332 - 0%
Capital Improvements - 359 523 - - - #DIV/0!
Total Capital Transfers 3,732 3,605 1,809 4,633 3,961 2,704 2,704 - 0% Net Income after Capital Transfers 12 (244) 303 917 886 93 (1,808) 1,901 -105% Prior Year Adjustment (audit) 833
General Fund Ending Fund Balance $ 5,533 $ 5,289 $ 5,592 $ 6,509 $ 7,395 $ 7,488 $ 5,615 $ 1,873 33% Fund Balance as % of Operating Exp 23% 21% 21% 23% 23% 22% 17% Variance
CITY OF PIEDMONT
GENERAL FUND ANALYSIS
2017-18 to 2022-23
(000's)
Actual
7 Account # Description June-19 June-20 June-21 June-22 6 Months Budget % Attained Projected $ Variance See Below for Details PROPERTY TAX - SECURED 12,961 13,611 14,271 14,974 8,018 15,870 51% 16,059 189 See Below for Details PROPERTY TAX - UNSECURED 612 676 724 726 652 700 93% 757 57 101-0301-005-000 PROPERTY TAX-SUPPLEMENTAL 498 498 438 515 156 300 52% 400 100 101-0301-006-000 PROPERTY TAX-DELINQ & PENLTY 8 6 9 9 0 5 0% 5 0 SUB-TOTAL Property Tax 14,079 14,790 15,442 16,224 8,826 16,875 52% 17,221 346 101-0302-003-000 REAL PROPERTY TRANSFER TAX 3,820 3,603 6,287 5,981 2,583 3,200 81% 4,250 1,050 101-0302-005-000 PARCEL TAX: MUNI TAX 2,262 2,353 2,411 2,425 1,260 2,522 50% 2,522 0 TOTAL Property Related Taxes 20,160 20,746 24,140 24,629 12,669 22,597 56% 23,993 1,396 See Below for Details BUSINESS LICENSE TAX 253 269 255 301 131 250 52% 325 75 See Below for Details REAL ESTATE RENTAL TAX 308 334 366 339 2 365 0% 340 -25 101-0302-001-000 SALES & USE TAXES 200 200 245 243 80 225 35% 250 25 TOTAL Business & Sales Taxes 761 803 865 883 212 840 25% 915 75 101-0302-002-002 ELECTRIC FRANCHISE FEE 76 95 103 109 0 110 0% 110 0 101-0302-002-003 GARBAGE FRANCHISE FEE 250 257 257 267 150 260 58% 270 10 See Below for Details CABLE T.V. FRANCHISE FEE 218 215 201 201 47 208 23% 200 -8 TOTAL Franchise Fees 543 567 561 577 197 578 34% 580 2
101-0302-008-000 GAS & ELECTRIC USERS TAX 759 899 1,003 1,043 386 900 43% 1,100 200 See Below for Details TELEPHONE USERS TAX 373 213 190 173 72 205 35% 205 0 101-0302-010-000 WATER USERS TAX 45 45 45 45 23 45 50% 45 0 TOTAL Utility Users Tax 1,177 1,157 1,238 1,260 481 1,150 42% 1,350 200 See Below for Details BUILDING & OTHER PERMITS 489 527 689 740 337 602 56% 675 73 101-0307-001-000 PLANNING FEES 267 228 252 266 103 225 46% 220 -5 See Below for Details PLAN CHECK FEES 243 278 366 363 173 280 62% 320 40 101-0307-001-001 GENERAL PLAN MAINT. FEES 0 212 280 427 222 325 68% 400 75 101-0307-004-000 RECORDS MANAGEMENT FEES 0 31 41 27 13 30 43% 26 -4 TOTAL Permits & Planning fees 999 1,276 1,628 1,823 847 1,462 58% 1,641 179 101-0305-002-001 COMMUNITY HALL - RENTAL 449 134 47 477 286 475 60% 475 0 101-0305-002-002 VETERANS HALL - RENTAL 95 59 19 41 24 50 48% 50 0 101-0305-002-003 RECREATION BUILDING - RENTAL 1 1 0 0 3 0 #DIV/0! 5 5 101-0305-002-004 801 MAGNOLIA - RENTAL 2 1 0 1 1 45 1% 1 -44 See Below for Details RECREATION PROGRAMS 1,776 630 1,355 2,153 1,291 2,024 64% 2,494 470 See Below for Details PRE-SCHOOL 510 438 338 455 212 590 36% 477 -113 TOTAL Recreation Revenue 2,834 1,262 1,760 3,127 1,816 3,184 57% 3,501 317 General Fund Revenue (000's)
Actual - Fiscal Year Ended: Fiscal Year 2022-23
8 Account # Description June-19 June-20 June-21 June-22 6 Months Budget % Attained Projected $ Variance 101-0306-003-017 MOTOR VEHICLE LICENSE FEE 1,300 1,362 1,429 1,493 792 1,570 50% 1,584 14 101-0306-003-005 HOMEOWNER PROP. TAX RELIEF 84 82 79 79 0 80 0% 80 0 101-0306-003-011 MISCELLANEOUS RECEIPTS-STATE 40 50 212 6 0 225 0% 225 0 101-0306-003-018 MISCELLANEOUS-COUNTY 11 185 19 39 35 0 #DIV/0! 48 48 101-0306-002-000 FEDERAL GRANTS 0 0 0 284 0 1,332 0% 1,332 0 TOTAL Other Agency Revenue 1,435 1,679 1,739 1,902 827 3,207 26% 3,269 62 101-0306-003-015 FORESTRY & FIRE PROTECTN 383 59 513 510 0 0 #DIV/0! 0 0 101-0306-004-002 PARAMEDIC TAX 69 70 70 70 35 70 50% 70 0 101-0307-005-000 AMBULANCE SERVICE CHARGE 311 214 226 302 129 300 43% 325 25 101-0307-011-004 FIRE CPR COURSES 1 0 0 0 0 0 #DIV/0! 0 0 TOTAL Fire Related Revenue 764 342 809 881 164 370 44% 395 25 101-0306-019-000 1/2% SALES TAX FOR PUB SAFE 112 104 109 124 54 105 52% 125 20 101-0306-003-009 P.O.S.T. 3 24 6 9 5 5 90% 10 5
101-0307-003-000 EMERYVILLE ANIMAL CONTROL 102 107 91 121 0 120 0% 120 0 101-0307-011-001 CROSSING GUARD 34 52 21 61 0 55 0% 55 0 101-0307-011-000 SPECIAL SERVICES 6 3 5 4 3 0 #DIV/0! 3 3 101-0303-001-000 DOG LICENSES 23 21 21 26 10 22 46% 22 0 TOTAL Police Related Revenue 280 312 253 345 72 307 24% 335 28 101-0305-001-001 INTEREST 192 109 87 76 41 0 #DIV/0! 85 85 101-0320-008-000 UNREALIZED GAIN/LOSS 25 38 -46 -217 -134 0 #DIV/0! -110 -110 TOTAL Investment Income\(Loss) 217 147 41 -141 -93 0 #DIV/0! -25 -25 101-0305-002-005 TELECOMMUNICATIONS - LEASE 89 96 100 108 60 129 47% 129 0 101-0305-003-002 VETERANS HALL - LEASE 0 0 0 20 12 20 57% 20 0 101-0305-003-004 801 MAGNOLIA - LEASE 0 0 0 2 6 12 49% 12 0 101-0308-003-005 SALE OF MISC. PROPERTY 23 1 28 33 0 0 #DIV/0! 0 0 101-0308-008-000 MISCELLANEOUS REVENUE 280 213 101 108 171 96 179% 180 84 101-0325-030-103 TRANSFER IN 827 1,001 1,008 1,008 0 877 0% 984 107 See Below for Details OTHER REVENUE 1 1 2 1 0 1 21% 0 -1 TOTAL Miscellaneous Revenue 1,220 1,312 1,239 1,280 249 1,135 22% 1,325 190 TOTAL GENERAL FUND REVENUE 30,391 29,604 34,274 36,567 17,443 34,830 50% 37,279 2,449 General Fund Revenue (000's)
Actual - Fiscal Year Ended: Fiscal Year 2022-23
9 Recreation Related Operations
The City’s recreational activities are now operating at a pre-pandemic level, which is consistent with the assumptions used in the approved budget. In total, we are projecting recreation related activities to exceed budget and approach 100% cost recovery. The first half of the year yielded better than expected results in our recreation programs, Community Hall and Veterans Hall are expected to meet budget, while Pre-School and 801 Magnolia are trending lower than budget.
Recreation program revenue was driven by strong registrations for the summer camps and classes, a solid fall season and increased participation in sports related activities.
Pre-School revenue is expected to fall short of budget due to lower than expected enrollment.
The lower enrollment was caused by:
• Potential Pre-School students opted to enroll in Transitional Kindergarten as they lowered their age requirement.
• Location changes which were made due to the upcoming Community Pool construction.
The revenue loss will be almost entirely offset by lower personnel expenses. 801 Magnolia rental revenue got off to a slow start. Staff anticipates rentals will pick up in the spring, but expect to fall short of our annual budget.
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
TOTAL GENERAL FUND -
RECREATION
Revenue $ 1,815,893 $ 1,679,754 $ 3,495,647 $ 3,139,000 $ 356,647 Salaries 749,172 758,000 1,507,172 1,529,685 (22,513)
Benefits & Taxes 177,029 182,000 359,029 379,732 (20,703) Operating Exp 787,245 770,000 1,557,245 1,205,500 351,745 Total Expenses 1,713,446 1,710,000 3,423,446 3,114,917 308,529 % of Revenue
Net Income/(Loss) $ 102,447 $ (30,246) $ 72,201 $ 24,083 $ 48,118 Fiscal Year 2022-23
10 Actual Next Annual
6 Months 6 Months Total Budget Variance
RECREATION (404)
Revenue $ 1,293,567 $ 1,200,000 $ 2,493,567 $ 2,024,000 $ 469,567 Salaries 505,456 500,000 1,005,456 915,208 90,248
Benefits & Taxes 133,841 130,000 263,841 276,123 (12,282) Operating Exp 725,597 700,000 1,425,597 1,066,250 359,347 Total Expenses 1,364,894 1,330,000 2,694,894 2,257,581 437,313 % of Revenue
Net Income/(Loss) $ (71,326) $ (130,000) $ (201,326) $ (233,581) $ 32,255 PRE-SCHOOL (407)
Revenue $ 212,080 $ 265,000 $ 477,080 $ 590,000 $ (112,920) Salaries 167,490 180,000 347,490 442,742 (95,252)
Benefits & Taxes 27,704 35,000 62,704 69,040 (6,336)
Operating Exp 19,960 25,000 44,960 50,500 (5,540)
Total Expenses 215,155 240,000 455,155 562,282 (107,127) % of Revenue
Net Income/(Loss) $ (3,075) $ 25,000 $ 21,925 $ 27,718 $ (5,793) COMMUNITY HALL (405)
Revenue $ 286,199 $ 188,801 $ 475,000 $ 475,000 $ -
Salaries 68,616 70,000 138,616 139,504 (888)
Benefits & Taxes 13,581 15,000 28,581 29,000 (419)
Operating Exp 27,336 30,000 57,336 62,000 (4,664)
Total Expenses 109,534 115,000 224,534 230,504 (5,970)
% of Revenue
Net Income/(Loss) $ 176,665 $ 73,801 $ 250,466 $ 244,496 $ 5,970 VETERAN'S HALL (406)
Revenue $ 24,047 $ 25,953 $ 50,000 $ 50,000 $ (0)
Salaries 7,609 8,000 15,609 32,231 (16,622)
Benefits & Taxes 1,902 2,000 3,902 5,569 (1,667)
Operating Exp 14,352 15,000 29,352 26,750 2,602
Total Expenses 23,864 25,000 48,864 64,550 (15,686)
% of Revenue
Net Income/(Loss) $ 183 $ 953 $ 1,136 $ (14,550) $ 15,686 801 MAGNOLIA (414)
Revenue $ 660 $ 10,000 $ 10,660 $ 45,000 $ (34,340)
Salaries 4,636 8,000 12,636 21,621 (8,985)
Benefits & Taxes 1,335 3,000 4,335 4,757 (422)
Operating Exp 13,801 15,000 28,801 31,000 (2,199)
Total Expenses 19,773 26,000 45,773 57,378 (11,605)
% of Revenue
Net Income/(Loss) $ (19,113) $ (16,000) $ (35,113) $ (12,378) $ (22,735) Fiscal Year 2022-23
11 Schoolmates (non- General Fund) is exceeding budget as maximum enrollments were increased to accommodate community demand for afterschool childcare. In addition, personnel expenses are lower than expected due primarily to staffing challenges in the current low unemployment environment.
Community Pool
The Community Pool is permanently closed which is consistent with the Adopted Budget, which included $15,000 to cover ongoing costs. We are now projecting these costs to be approximately $10,000 for the fiscal year.
Capital Funds
As indicated in the Approved Budget, in order to allow the City to better identify and quantify long term capital needs as opposed to ongoing maintenance costs, beginning in FY 2022-23 staff has split this fund into two separate funds:
• Facilities Maintenance Fund (111) – Repairs and maintenance, and scheduled maintenance, and sidewalk replacement\repair will be funded annually by transfers from the General and Schoolmates Funds based on need.
• Facilities Capital Projects (112) – Capital projects for all city facilities including parks.
Funding will be determined each year based on budget surplus, if any.
FACILITIES CAPITAL
As of December 31, 2022, the City has spent approximately $307,000 of the $4.2 million of expenditures included in the FY 22-23 Approved Budget. Projects completed in the first half of the year include the Police kitchen remodel, Corey Reich Tennis Center lighting project, and various ADA improvements. The replacement of the Recreation Building Roof and renovation of the Guiford Steps are currently under way. In addition, The Dispatch Center relocation, which will be funded by ARPA monies, is currently in the design phase.
Actual Next Annual
6 Months 6 Months Total Budget Variance
SCHOOLMATES (415)
Revenue $ 766,143 $ 800,000 $ 1,566,143 $ 1,086,319 $ 479,824 Salaries 267,568 275,000 542,568 680,832 (138,264)
Benefits & Taxes 64,742 70,000 134,742 162,252 (27,510) Operating Exp 59,356 75,000 134,356 231,450 (97,094)
Total Expenses 391,665 420,000 811,665 1,074,534 (262,869) % of Revenue
Net Income/(Loss) $ 374,478 $ 380,000 $ 754,478 $ 11,785 $ 742,693 Fiscal Year 2022-23
12 FACILITIES MAINTENANCE
As of December 31, 2022, the City has spent approximately $666,000, which includes $293,000 spent on sidewalk repair\replacement, of the $1.5 million of expenditures included in the FY 22- 23 Approved Budget. We expect to be within budget for the fiscal year.
EQUIPMENT REPLACEMENT
Below 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.
Street\Sidewalk Related Funds
Funding sources for streets and sidewalks include 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 2022-23 is just over $2.8 million, $1.2 million of which is being carried forward from Fiscal Year 2021-22 due to the 2021 Paving Project being delayed 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 1,361,391 (28,188) (338,713) 4,091,591
22/23 4,091,591 72,000 23,049 (2,483,294) 1,703,346
23/24 1,703,346 407,089 34,067 (1,141,500) 1,003,002
24/25 1,003,002 639,821 23,069 (1,043,484) 622,408
25/26 622,408 834,112 15,560 (434,156) 1,037,923
26/27 1,037,923 764,576 25,948 (485,806) 1,342,642
27/28 1,342,642 913,731 33,566 (717,880) 1,572,059
28/29 1,572,059 727,883 39,301 (580,267) 1,758,976
29/30 1,758,976 693,925 43,974 (2,152,673) 344,203
30/31 344,203 483,218 8,605 (181,096) 654,929
31/32 654,929 439,725 16,373 (360,968) 750,059
32/33 750,059 476,164 18,751 (337,999) 906,976
EQUIPMENT REPLACEMENT FUND ACTIVITY
13 due to the pandemic. In addition to the 2021 Paving Project, major projects planned for this year are the Oakland Avenue bulb-outs and the 2022 street striping project.
Sidewalk repair work is also a focus as the list of sidewalks in need of repair has been growing.
The City budgeted $800,000 for sidewalk repair and replacement, utilizing the Facility Maintenance Fund ($700,000) and a portion of Gas Tax fund revenue (approximately $100,000).
Below is a recap of the current status of the street related funds:
By: Michael Szczech, Finance Director
Street Related Funds
Activity Thru:
12/31/2022
Measure Traffic
F Gas Tax SB 1 Congestion
LSR Bike\Ped Total LSR Bike\Ped Total 143 121 133 132 TOTAL Fund Balance - 7/1/2022 $ 198,519 $ 14,029 $ 212,548 $ 422,649 $ 256 $ 422,905 $ 116,086 $ 1,112 $ 463,343 $ 0 1,215,996 Revenue - BUDGET
STATE \ COUNTY FUNDS - - - 877,000 65,000 942,000 40,000 331,853 257,488 - 1,571,341 Actual Expenses
STREET RESURFACING 50,169 50,169 705,645 705,645 104,963 - 717,535 - 1,578,312
DESIGN STREET RESURFACING - - - -
BIKE & PEDESTRIAN 12,850 12,850 66,700 66,700 - - - - 79,550
SIDEWALKS & CURBS - - - - - - - - -
Total Expenditures 50,169 12,850 63,019 705,645 66,700 772,345 104,963 - 717,535 - 1,657,862 Open to Spend $ 148,350 $ 1,179 $ 149,529 $ 594,004 $ (1,444) $ 592,560 $ 51,123 $ 332,965 $ 3,297 $ 0 $ 1,129,475 Measure B (131) Measure BB (136)