City of Piedmont
COUNCIL AGENDA REPORT
DATE: February 20, 2024
TO: Mayor and Council
FROM: Rosanna Bayon Moore, City Administrator
SUBJECT: Consideration of FY 2023-24 Midyear General Fund Appropriations and FY 2023-24 Midyear Fiscal Report
RECOMMENDATION
1) By motion, approve the FY 2023-24 midyear General Fund appropriations of $125,000 for Fire Department overtime and re-allocation of $100,000 from the Public Works Department to the Planning & Building Department part-time salaries line item. 2) Consider the addition of one Dispatcher to the Police Department.
BACKGROUND
The adopted City of Piedmont FY 2023-24 Budget outlines the City’s fiscal parameters, and presents the annual expenditure plan. The budget document guides and ensures implementation of programs and policies that reflect Council priorities and service level expectations. The annual Midyear Fiscal Report examines the financial condition of the City budget at the midpoint of the fiscal year, comparing estimated to actual revenues and expenditures. This analysis measures the conformity of all revenues and expenditures from July 1, 2023 through December 31, 2023 to the adopted FY 2023-24 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.
Agenda Report Page 2
Appropriation requests from the General Fund:
As part of the FY 2023-24 Annual Budget adoption in June 2023, City Council approved the hiring of one additional Dispatcher in FY 2023-24 and directed staff to revisit the hire of a second Dispatcher at the midyear financial review. In February 2024, the new Dispatcher position was filled. The expense associated with the first twelve months of the position is funded by the Citizens Option for Public Safety (COPS) Fund, a State of California funding stream allocated to Piedmont for front line capacity enhancement activities.
Based on prior Council discussion and the public’s ongoing interest in bolstering the City’s public safety response, the second Dispatcher position is presented for review and reconsideration. The first year of employment for this position can be supported by the COPS Fund. In subsequent years, the General Fund will need to assume an annual cost burden of approximately $140,000 per Dispatcher.
Expense
Department Account Amount
Fire Personnel - Overtime $ 125,000
Planning & Building Personnel - Part Time $ 100,000
Public Works Personnel - Part Time $ (100,000)
$ 125,000
Agenda Report Page 3
Midyear FY 2023-24 General Fund Summary
The General Fund finances the basic municipal services provided by the City. General Fund revenues are budgeted at $39.0 million (which includes Operating Transfers-In of $1.1 million, primarily from the Sewer Fund). General Fund expenditures are budgeted at $36.8 million. The adopted budget also includes Capital Transfers-Out of $2.2 million to the Facilities Capital Fund, $1.5 million to the Facilities Maintenance Fund, and $690,000 to the Equipment Replacement Fund.
Based on current trends and known expense variances, staff is projecting General Fund revenues to exceed the budget by approximately $1.4 million and expenses to be higher than the budget by approximately $287,000. This results in positive General Fund operating net income, before capital transfers, of approximately $3.3 million and an ending General Fund Balance of approximately $7.0 million, which is 19% of total expenditures, for Fiscal Year 2023-24. 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. There can be no assurance these trends will continue as the economy continues to face stiff headwinds with high interest rates and inflation.
The increase in revenue is primarily due to:
• Higher than expected real property transfer tax receipts (+$0.8 million) • Increased Recreation Department revenue (+$0.4 million), • Property taxes, primarily unsecured property (+$0.2 million), • Interest and unrealized investment income (+$0.2 million).
Revenue increases are partially offset by:
• Lower than anticipated building permits and planning related fee activity (-$0.2 million).
The increase in expenditures is primarily due to the following:
• Higher overtime costs in the Fire Department as a result of once vacant positions and, to a lesser extent, workers compensation claims.
• Additional costs incurred to process the backlog of building permit applications and to maintain current permit processing headway amid the delayed implementation of the new Community Development and eTRACKiT systems.
• Higher costs in the Recreation Department due to higher than expected program interest and third party contract program costs. These expenditures are more than offset by the corresponding program revenue.
General Fund Revenues
Total General Fund revenue through December 31, 2023 was $17.9 million, which is 46% of the annual revenue budget.
Staff projects General Fund Revenues to be $40.4 million for FY 2023-24, an increase of $1.4 million as compared to the budget.
Agenda Report Page 4
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 $9.4 million through December 31, 2023 which is 52% of the annual budget of $18.1 million. This is 6% 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 $18.3 million, which is $153,000 (1%) higher than the adopted budget.
• Parcel tax revenue received through December 31, 2023 was $1.3 million, which is 50% of the annual budget. This revenue increased $51,000 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, 2023 was $1.9 million, which is 56% of the annual budget of $3.4 million, and 27% lower than the amount received in the same period last year. Year over year, the number of homes sold decreased 3% (63 homes sold compared to 65 in the same period last year), and a 7% decline in the average home sale price to $2.9 million from $3.2 million in the same period last year. This is the first decrease since 2011. For FY 2023-24, staff projects transfer tax revenues to be $4.2 million, which is $0.8 million greater than estimated values in the adopted budget.
REVENUE
(in thousands)
Projected Budget $ %
CATEGORY
Property Taxes 18,263 18,110 153 1%
Real Property Transfer Tax 4,200 3,400 800 24%
Parcel Tax 2,622 2,622 - 0%
Other Taxes and Franchises 3,052 2,963 89 3%
License and Permits 762 759 3 0%
Revenue from Use of Money or Property 1,012 868 144 17% Revenue from Other Agencies 4,619 4,573 46 1%
Charges for Current Services 4,698 4,545 154 3%
Other Revenue 187 88 100 113%
Transfers In 1,005 1,056 (51) -5%
40,420 38,984 1,435 4%
FY 2023-24 Variance
Agenda Report Page 5
Other revenue categories to note include the following:
American Rescue Plan Act (ARPA). The federal government allocated $2.6 million in ARPA funds to the City of Piedmont - $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 spent. Of the $2.6 million received, $516,929 was spent through June 30, 2023. The remaining $2.1 million, as approved by the City Council in October 2021, is earmarked for the Dispatch relocation/renovation project. This project is currently out for bid.
Interest Income and Unrealized Investment Gains. This category is projected to exceed the budget by approximately $0.2 million due to the continued high interest rates. General Fund monies are invested primarily in Government Agency Securities, Treasury Bills, Certificates of Deposit, and the Local Agency Investment Fund (LAIF).
Revenue from Recreation Programs and Facility Rentals. As of December, recreational programs have been strong, especially contract camps and programs. This is partially offset by lower than planned revenue from facility rentals. Assuming this trend continues, this category is anticipated to exceed the approved budget by approximately $0.4 million. It should be noted that the majority of Recreation Department expenses are variable in nature, and accordingly, an increase in expenses is expected.
Revenue from Other Agencies. In December 2023, Piedmont was awarded a $197,040 Hazard Mitigation Grant to update the City’s Local Hazard Mitigation Plan which is set to expire in August 2024. The City’s share of approximately $40,000 is anticipated to be contributed through in-kind staff management of the grant and planning process. A consultant will be selected through an RFP process expected to open in March of 2024. Revenue is not expected to be received until next fiscal year.
General Fund Expenditures
General Fund expenditures are budgeted at $36.8 million. Total estimated expenditures for FY 2023-24 are $37.2 million, or $369,000 (1 %) higher than budget.
The following table compares budget and projected expenditures for the full fiscal year:
Agenda Report Page 6
Personnel related costs, the largest expenditure component of the General Fund, represent 63% of the total expenditure budget and are estimated at $23.2 million. The variance is primarily due to:
• Increased personnel costs in the Fire Department:
o Overtime was higher than budget as vacant positions needed to be backfilled. The majority of the overtime is offset by lower regular salary and benefit costs. Net budget overage is estimated at $125,000.
• Additional personnel costs incurred to process the backlog of building permit applications and implementation of the new Community Development and eTRACKit solution (+$100,000).
o When the budget was developed in the spring of 2023, the new eTRAKiT system was estimated to launch in July 2023. The need for part time staffing would then be re-evaluated once work flow normalized post-launch. The launch was delayed, and the system did not go live until December 2023. Implementation challenges with the software solution continue to require additional staff time to address.
Forecasted benefits and efficiencies associated with eTRAKiT, including reduced workloads, have yet to materialize.
o The Public Works Department budget includes a part time Facilities Project Manager position at $100,000 which has not been recruited or hired. This vacancy provides part-time salary savings that are unlikely to be expended in the current fiscal year. Staff recommends the ongoing use of part time staffing in Planning & Building to keep pace with the workload and complete implementation of eTRACKiT. This will be funded by the resources allocated for the part time Facilities Project Manager in Public Works. Staffing and fee studies associated with the Planning & Building functions are budgeted and scheduled for later this year. The findings of the staffing study will be used to shape the structure of these activities in future years.
Operating expenses are expected to be higher than budgeted by approximately $0.4 million primarily due to:
• Higher costs in the Recreation Department (+$354,000), primarily third party contract program costs, due to greater than expected increase in Recreation program offerings.
EXPENDITURES
(in thousands) % of
Projected Budget Total $ %
CATEGORY
Personnel Costs 23,245 23,330 63% (85) 0%
Operating Expenses 9,859 9,395 26% 464 5%
Non-Depatmental 4,005 3,947 11% 58 1%
Aquatics Subsidy - 150 0% (150) -100%
37,110 36,823 100% 287 1%
FY 2023-24 Variance
Agenda Report Page 7
Non-Departmental costs will be higher than budgeted due to:
• Increased Workers Compensation claims (+$120,000)
• Offset by lower retiree medical premiums (-$50,000)
An Aquatics subsidy of $150,000 was budgeted for the hiring of personnel prior to the opening of the new community pool. With the pool opening date estimated for Fall 2024, the hiring timeline is delayed. As a result, the residual balance in the Aquatics fund will be adequate to cover the anticipated personnel costs.
Please see the following pages for schedules detailing this information.
Agenda Report Page 8
Projected Budget
2020-21 2021-22 2022-23 2023-24 2023-24 $ %
General Fund Beginning Balance $ 5,591 $ 6,509 $ 7,403 $ 7,423 $ 9,110 $ (1,687) -19% Property Taxes 15,442 16,224 17,529 18,263 18,110 153 1% Real Property Transfer Tax 6,287 5,981 4,465 4,200 3,400 800 24% Parcel Tax 2,411 2,425 2,520 2,622 2,622 - 0%
Other Taxes and Franchises 2,664 2,721 3,097 3,052 2,963 89 3% License and Permits 710 766 695 762 759 3 0%
Revenue from Use of Money or Property 209 508 827 1,012 868 144 17% Revenue from Other Agencies 2,436 2,615 2,269 4,619 4,573 46 1% Charges for Current Services 2,977 4,179 4,630 4,698 4,545 154 3% Other Revenue 128 140 392 187 88 99 113%
33,266 35,559 36,424 39,415 37,928 1,486 4%
Operating Transfers in 1,008 905 879 1,005 1,056 (51) -5% Total Revenue 34,274 36,464 37,303 40,420 38,984 1,435 4% Departmental Expenditures
Administration 3,603 3,509 3,730 4,325 4,425 (100) -2%
Public Works 3,795 4,206 4,562 4,591 4,691 (100) -2%
Planning & Building 1,455 2,390 2,170 3,664 3,564 100 3% Recreation 2,405 3,296 3,727 3,938 3,584 354 10%
Police 6,715 7,315 7,503 8,189 8,189 - 0%
Fire 6,875 7,700 8,042 8,398 8,273 125 2%
Departmental Expenditures 24,848 28,416 29,734 33,104 32,725 379 1% Non Departmental Expenditures
Library 350 350 350 350 350 - 0%
Unemployment Insurance 134 17 22 20 20 - 0%
Workers Compensation 722 872 1,014 1,070 950 120 13%
Liability Insurance 1,015 1,104 1,472 1,502 1,502 - 0%
Pension rate stabilization 1,000 - - - #DIV/0!
OPEB - Retiree payments 654 750 883 975 1,025 (50) -5%
Other - 100 1 88 100 (12) -0.12
Non Departmental Expenditures 3,875 3,193 3,742 4,005 3,947 58 1% Aquatics - - - - 150 (150) -100%
Operating Transfers-out - - - - 150 (150) -100%
Total Expenditures and Transfers-out 28,723 31,609 33,476 37,110 36,823 287 1% Operating Net Income 5,550 4,855 3,827 3,310 2,161 1,148 53% Capital Transfers-out
Equipment Replacement Fund 610 1,361 690 - 690 (690) -100% Facility Maintenance\Sidewalk 522 900 1,300 1,500 1,500 - 0% Facility Capital 3,500 1,700 1,817 2,184 2,184 - 0%
Capital Improvements - - - #DIV/0!
Total Capital Transfers 4,632 3,961 3,807 3,684 4,374 (690) -16% Net Income after Capital Transfers 918 894 20 (374) (2,213) 1,838 -83% Prior Year Adjustment (audit)
General Fund Ending Fund Balance $ 6,509 $ 7,403 $ 7,423 $ 7,049 $ 6,897 $ 151 2% Fund Balance as % of Operating Exp 23% 23% 23% 19% 19%
Variance
CITY OF PIEDMONT
GENERAL FUND ANALYSIS
2020-21 to 2023-24
(000's)
Actual
Agenda Report Page 9
Account # Description June-21 June-22 June-23 6 Months Budget % Attained Projected $ Variance Actual Annual
See Below for Details PROPERTY TAX - SECURED 14,271 14,974 16,027 8,463 16,948 50% 16,975 27 See Below for Details PROPERTY TAX - UNSECURED 724 726 761 770 757 102% 883 126 101-0301-005-000 PROPERTY TAX-SUPPLEMENTAL 438 515 733 149 400 37% 400 0 101-0301-006-000 PROPERTY TAX-DELINQ & PENLTY 9 9 8 0 5 0% 5 0 SUB-TOTAL Property Tax 15,442 16,224 17,529 9,382 18,110 52% 18,263 153 101-0302-003-000 REAL PROPERTY TRANSFER TAX 6,287 5,981 4,465 1,894 3,400 56% 4,200 800 101-0302-005-000 PARCEL TAX: MUNI TAX 2,411 2,425 2,520 1,311 2,622 50% 2,622 0 TOTAL Property Related Taxes 24,140 24,629 24,514 12,587 24,132 52% 25,085 953 See Below for Details BUSINESS LICENSE TAX 255 301 391 108 341 32% 352 11 See Below for Details REAL ESTATE RENTAL TAX 366 339 354 1 350 0% 355 5 101-0302-001-000 SALES & USE TAXES 245 243 227 68 250 27% 225 -25 TOTAL Business & Sales Taxes 865 883 972 178 941 19% 932 -9 101-0302-002-002 ELECTRIC FRANCHISE FEE 103 109 133 0 115 0% 125 10 101-0302-002-003 GARBAGE FRANCHISE FEE 257 267 275 153 284 54% 290 6 See Below for Details CABLE T.V. FRANCHISE FEE 201 201 183 43 208 21% 180 -28 TOTAL Franchise Fees 561 577 591 195 607 32% 595 -12
101-0302-008-000 GAS & ELECTRIC USERS TAX 1,003 1,043 1,314 384 1,155 33% 1,300 145 See Below for Details TELEPHONE USERS TAX 190 173 175 62 215 29% 180 -35 101-0302-010-000 WATER USERS TAX 45 45 45 23 45 50% 45 0 TOTAL Utility Users Tax 1,238 1,260 1,534 469 1,415 33% 1,525 110 See Below for Details BUILDING & OTHER PERMITS 689 740 673 365 734 50% 740 6 101-0307-001-000 PLANNING FEES 252 266 210 81 230 35% 180 -50 See Below for Details PLAN CHECK FEES 366 363 335 151 357 42% 305 -52 101-0307-001-001 GENERAL PLAN MAINT. FEES 280 427 419 194 500 39% 375 -125 101-0307-004-000 RECORDS MANAGEMENT FEES 41 27 25 15 30 48% 30 0 TOTAL Permits & Planning fees 1,628 1,823 1,662 806 1,851 44% 1,630 -221 101-0305-002-001 COMMUNITY HALL - RENTAL 47 477 468 266 475 56% 466 -9 101-0305-002-002 VETERANS HALL - RENTAL 19 41 49 18 53 35% 33 -20 101-0305-002-003 RECREATION BUILDING - RENTAL 0 0 3 1 6 18% 2 -4 101-0305-002-004 801 MAGNOLIA - RENTAL 0 1 3 2 36 5% 5 -31 See Below for Details RECREATION PROGRAMS 1,355 2,153 2,617 1,490 2,391 62% 2,891 501 See Below for Details PRE-SCHOOL 338 455 496 223 537 41% 537 0 TOTAL Recreation Revenue 1,760 3,127 3,637 1,999 3,498 57% 3,934 437 General Fund Revenue (000's)
Actual - Fiscal Year Ended: Fiscal Year 2023-24
Agenda Report Page 10
Account # Description June-21 June-22 June-23 6 Months Budget % Attained Projected $ Variance 101-0306-003-017 MOTOR VEHICLE LICENSE FEE 1,429 1,493 1,595 841 1,671 50% 1,680 9 101-0306-003-005 HOMEOWNER PROP. TAX RELIEF 79 79 78 0 80 0% 80 0 101-0306-003-011 MISCELLANEOUS RECEIPTS-STATE 212 6 17 160 410 39% 410 0 101-0306-003-014 MISC GRANTS - ABAG 0 0 0 20 0 #DIV/0! 20 20 101-0306-003-018 MISCELLANEOUS-COUNTY 19 39 35 0 0 #DIV/0! 0 0 101-0306-002-000 FEDERAL GRANTS 0 284 233 0 2,079 0% 2,079 0 TOTAL Other Agency Revenue 1,739 1,902 1,958 1,021 4,240 24% 4,269 29 101-0306-003-015 FORESTRY & FIRE PROTECTN 513 510 0 0 0 #DIV/0! 0 0 101-0306-004-002 PARAMEDIC TAX 70 70 70 35 70 50% 70 1
101-0307-005-000 AMBULANCE SERVICE CHARGE 226 302 367 102 325 31% 300 -25 101-0307-011-004 FIRE CPR COURSES 0 0 2 0 0 #DIV/0! 0 0 TOTAL Fire Related Revenue 809 881 438 137 395 35% 370 -25 101-0306-003-012 STATE GRANTS - TOBACCO 0 0 106 0 132 0% 132 1 101-0306-019-000 1/2% SALES TAX FOR PUB SAFE 109 124 127 56 125 45% 125 0 101-0306-003-009 P.O.S.T. 6 9 8 20 7 291% 23 16
101-0307-003-000 EMERYVILLE ANIMAL CONTROL 91 121 100 0 120 0% 20 -100 101-0307-011-001 CROSSING GUARD 21 61 48 0 55 0% 55 0
101-0307-011-000 SPECIAL SERVICES 5 4 10 2 0 #DIV/0! 5 5 101-0303-001-000 DOG LICENSES 21 26 22 6 25 25% 22 -3
TOTAL Police Related Revenue 253 345 421 85 464 18% 382 -82 101-0305-001-001 INTEREST 87 76 279 114 160 72% 300 140 101-0320-008-000 UNREALIZED GAIN/LOSS -46 -217 -124 68 0 #DIV/0! 68 68 TOTAL Investment Income\(Loss) 41 -141 155 182 160 114% 368 208 101-0305-002-005 TELECOMMUNICATIONS - LEASE 100 108 112 52 104 50% 104 0 101-0305-003-002 VETERANS HALL - LEASE 0 20 20 10 21 49% 21 0 101-0305-003-004 801 MAGNOLIA - LEASE 0 2 12 6 13 48% 13 0 101-0308-003-005 SALE OF MISC. PROPERTY 28 33 1 2 0 #DIV/0! 2 2 101-0308-008-000 MISCELLANEOUS REVENUE 96 108 393 179 88 203% 185 97 101-0325-030-103 TRANSFER IN 1,013 905 882 0 1,056 0% 1,005 -51 See Below for Details OTHER REVENUE 2 1 1 0 0 #DIV/0! 0 0 TOTAL Miscellaneous Revenue 1,239 1,177 1,422 250 1,282 19% 1,330 48 TOTAL GENERAL FUND REVENUE 34,274 36,464 37,303 17,909 38,984 46% 40,419 1,435 General Fund Revenue (000's)
Actual - Fiscal Year Ended: Fiscal Year 2023-24
Agenda Report Page 11
Recreation Related Operations
In aggregate, staff is projecting recreation related activities to exceed budgeted figures and approach 100% cost recovery. The first half of the year yielded better than expected results in Piedmont’s recreation programs. Recreation program revenue was driven by strong registrations for summer camps and classes and the addition of the New Camp Kaleidoscope program, which generated almost $200,000 in registrations. Preschool revenue is projected to be on target while expenses are trending lower than estimates. Community Hall and Veterans Hall rentals are expected to be in alignment with estimated revenues, while 801 Magnolia facility rentals are trending lower than 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 $ 2,008,283 $ 1,940,000 $ 3,948,283 $3,482,500 $ 465,783 Salaries 757,280 775,000 1,532,280 1,631,895 (99,615)
Benefits & Taxes 191,415 207,300 398,715 408,670 (9,955) Operating Exp 891,097 985,000 1,876,097 1,411,700 464,397 Total Expenses 1,839,791 1,967,300 3,807,091 3,452,265 354,826 Net Income/(Loss) $ 168,492 $ (27,300) $ 141,192 $ 30,235 $ 110,957 Fiscal Year 2023-24
Agenda Report Page 12
Actual Next Annual
6 Months 6 Months Total Budget Variance
RECREATION (404)
Revenue $ 1,490,831 $ 1,400,000 $ 2,890,831 $2,396,500 $ 494,331 Salaries 513,434 505,000 1,018,434 1,037,346 (18,912)
Benefits & Taxes 146,960 155,000 301,960 304,558 (2,598) Operating Exp 818,891 900,000 1,718,891 1,260,700 458,191 Total Expenses 1,479,285 1,560,000 3,039,285 2,602,604 436,681 Net Income/(Loss) $ 11,546 $ (160,000) $ (148,454) $ (206,104) $ 57,650 PRE-SCHOOL (407)
Revenue $ 222,596 $ 315,000 $ 537,596 $ 537,000 $ 596
Salaries 167,466 190,000 357,466 404,098 (46,632)
Benefits & Taxes 28,558 35,000 63,558 65,505 (1,947)
Operating Exp 22,582 30,000 52,582 53,000 (418)
Total Expenses 218,607 255,000 473,607 522,603 (48,996) Net Income/(Loss) $ 3,989 $ 60,000 $ 63,989 $ 14,397 $ 49,592 COMMUNITY HALL (405)
Revenue $ 266,092 $ 200,000 $ 466,092 $ 475,000 $ (8,908) Salaries 67,686 70,000 137,686 154,442 (16,756)
Benefits & Taxes 13,875 15,000 28,875 32,159 (3,284)
Operating Exp 30,871 35,000 65,871 66,500 (629)
Total Expenses 112,432 120,000 232,432 253,101 (20,669) Net Income/(Loss) $ 153,660 $ 80,000 $ 233,660 $ 221,899 $ 11,761 VETERAN'S HALL (406)
Revenue $ 28,765 $ 25,000 $ 53,765 $ 74,000 $ (20,236)
Salaries 8,694 10,000 18,694 36,009 (17,315)
Benefits & Taxes 2,021 2,300 4,321 6,448 (2,127)
Operating Exp 18,753 20,000 38,753 31,500 7,253
Total Expenses 29,468 32,300 61,768 73,957 (12,189)
Net Income/(Loss) $ (703) $ (7,300) $ (8,003) $ 43 $ (8,046) 801 MAGNOLIA (414)
Revenue $ 8,055 $ 10,000 $ 18,055 $ 49,000 $ (30,946)
Salaries 4,994 6,000 10,994 20,124 (9,130)
Benefits & Taxes 1,623 2,000 3,623 4,178 (555)
Operating Exp 14,629 15,000 29,629 29,000 629
Total Expenses 21,246 23,000 44,246 53,302 (9,056)
Net Income/(Loss) $ (13,192) $ (13,000) $ (26,192) $ (4,302) $ (21,890) Fiscal Year 2023-24
Agenda Report Page 13
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.
Capital Funds
FACILITIES CAPITAL
As of December 31, 2023, the City has spent approximately $230,000 of the $6.6 million of expenditures included in the FY 23-24 Approved Budget. Projects currently in process include Crocker Park pathway renovation, Dracena Park ADA improvements, the Dispatch Center relocation, the Piedmont Park pedestrian bridge, Linda Beach courts, Recreation building windows and lighting, and various improvements to additional City facilities.
FACILITIES MAINTENANCE
As of December 31, 2023, the City has spent approximately $310,000, including $186,000 spent on sidewalk repair/replacement, of the $1.8 million of expenditures included in the FY 23-24 Approved Budget. Expenditures are estimated to be within budget for the fiscal year.
EQUIPMENT REPLACEMENT
Below is a summary schedule of activity in the Equipment Replacement Fund. Current fiscal year expenditures are estimated to be consistent with or below the Approved Budget. Staff had included a $690,000 transfer from the General Fund to the Equipment Replacement Fund in the FY 2023-24 Approved Budget. Action approved by the City Council in October of 2023 resulted in a transfer of the surplus generated in FY 2022-23 to the current year.
As evident in the below schedule, the City’s Equipment Replacement is fully funded, barring any unforeseen circumstances.
Actual Next Annual
6 Months 6 Months Total Budget Variance
SCHOOLMATES (415)
Revenue $ 677,640 $ 800,000 $ 1,477,640 $1,410,000 $ 67,640 Salaries 364,520 275,000 639,520 887,978 (248,458)
Benefits & Taxes 75,586 70,000 145,586 293,399 (147,813) Operating Exp 48,070 75,000 123,070 356,000 (232,930)
Total Expenses 488,176 420,000 908,176 1,537,377 (629,201) Net Income/(Loss) $ 189,464 $ 380,000 $ 569,464 $ (127,377) $ 696,841 Fiscal Year 2023-24
Agenda Report Page 14
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 2023-24 is just under $2.6 million, $0.8 million of which is being carried forward from Fiscal Year 2022-23. Major projects planned for this year are the 2023-24 Paving Project and the Oakland Avenue bulb-outs project.
Below 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 1,361,391 (28,188) (338,713) 4,091,591
22/23 4,091,591 690,000 58,713 (1,260,947) 3,579,357
23/24 3,579,357 0 50,000 (2,404,542) 1,224,814
24/25 1,224,814 928,407 28,171 (1,320,584) 860,808
25/26 860,808 931,790 21,520 (463,858) 1,350,260
26/27 1,350,260 835,657 33,757 (523,112) 1,696,562
27/28 1,696,562 1,006,292 42,414 (818,292) 1,926,977
28/29 1,926,977 800,455 48,174 (752,788) 2,022,818
29/30 2,022,818 744,470 50,570 (2,127,803) 690,055
30/31 690,055 508,506 17,251 (206,840) 1,008,973
31/32 1,008,973 466,896 25,224 (378,896) 1,122,197
32/33 1,122,197 501,641 28,055 (345,974) 1,305,919
EQUIPMENT REPLACEMENT FUND ACTIVITY
Agenda Report Page 15
COMMUNITY POOL
In December 2023, City Council approved the following:
• An allocation of $800,000 from the Facilities Capital Fund to the approved construction budget of $24,291,550 with Wickman Development & Construction to provide for available contingency for the Piedmont Community Pool Project for a revised total authorized construction budget in the amount of $25,091,550. • An allocation of $200,000 from the Facilities Capital Fund to the Total Project Contingency budget for soft costs for a revised total soft cost budget in the amount of $4,876,000.
Such allocations will only be completed if necessary. The total Community Pool project budget is $29,967,550. Through December 31, 2023, approximately $12.5 million has been expended.
Staff expects the project will come in at or below budget.
By: Michael Szczech, Finance Director
Street Related Funds
Activity Thru:
12/31/2023
Measure F Gas Tax SB 1
LSR Bike\Ped Total 143 121 133 TOTAL
Fund Balance - 7/1/2023 $ 353,314 $ (6,398) $ 346,916 $ 51,123 $ 332,965 $ 49,890 780,894 Revenue - BUDGET
STATE \ COUNTY FUNDS 1,100,000 60,000 1,160,000 40,000 322,579 278,325 1,800,904 -
Actual Expenses
STREET RESURFACING 11,873 11,873 - 1,803 44,383 58,058
DESIGN STREET RESURFACING - -
BIKE & PEDESTRIAN 51,561 51,561 - 37,862 - 89,423
SIDEWALKS & CURBS - - - - - -
Total Expenditures 11,873 51,561 63,434 - 39,664 44,383 147,481 Open to Spend $ 1,441,441 $ 2,041 $ 1,443,482 $ 91,123 $ 615,880 $ 283,832 $ 2,434,317 Measure BB (136)