Mid-Cycle Budget Adjustments
Agenda Item 12.A
By Nadia Feeser, Administrative Services Director
Meeting Date: August 16, 2022
Proposed Mid-Cycle Budget Adjustments
Fiscal Impact by Category
•negative amounts reflect additional costs or reduced revenues •positive amounts reflect reduced costs or additional revenues Category
FY 2022 Proposed
Budget Adjustment
Fiscal Impact
FY 2023 Proposed
Budget Adjustment
Fiscal Impact
Revenues (266,574)$ (815,988)$
New initiatives - (555,086)
Capital Projects 30,619 (1,316,268)
Operating savings and costs 812,147 (312,579) Professional Services (9,751) (126,000) Employee Development - (62,300) Carry forward budget 147,600 (147,600)
Align budget to actuals (418,600) (369,630) Total Fiscal Impact 295,441$ (3,705,450)$
General Fund Budget Summary
A B C D = C - B
($ thousands)
FY 2021
Actuals
FY 2022
Revised
Budget
FY 2022
Year-End
Projected
Actuals
Variance
(Actuals-
Budget)
FY 2023
Revised
Budget
(Projection)
Unassigned Fund Balance 6,642$ 14,225$ 14,225$ -$ 6,519$ Committed Fund Balance 7,569 3,976 3,976 - 17,134 a Beginning Fund Balance 14,210 18,200 18,200 - 23,653 b Operating Revenues 28,851 31,152 32,506 1,354 32,402 c Operating Expenditures 19,764 24,497 21,677 (2,820) 26,966 d = b - c Net Operating Surplus/(Deficit) 9,087 6,655 10,829 4,174 5,436 e One-time Revenues 1,247 489 273 (216) 150 f One-time/Capital Expenditures 2,800 20,784 3,649 (17,134) 18,330 g = a+d+e-f Ending Fund Balance 21,745$ 4,561$ 25,653$ 21,092$ 10,909$ Unassigned Fund Balance 15,669$ 2,561$ 6,519$ 3,958$ 8,859$ Committed Fund Balance 3,976 - 17,134 17,134 - Contribution to Reserves 100 - - - 50 Budget Stabilitation Set-Aside 2,000 2,000 2,000 - 2,000
Revenue Projections
Fund Description
FY 2022 Proposed
Budget Adjustment
FY 2023 Proposed
Budget Adjustment
Revenues
General Fund Property Tax Revenues 75,690$
General Fund Sales & Use Tax Revenues 204,012
General Fund TOT 11% revenues (383,557) (900,000) Local Transportation Local Transportation Tax revenues 104,313 LBID Fund LBID 1% for Marketing (31,510) (60,000) LBID Fund LBID 1% for Physical Improvements (31,510) (60,000) Subtotal Revenues (266,574)$ (815,988)$
Net Fiscal Impact (Revenues - Expenditures)(266,574)$ (815,988)$
New Initiatives
Description Fund
One-time/
Ongoing
FY 2023
Proposed
Budget
Adjustment
Revenues
Barricades for City-Events Capital Projects one-time 162,142$ Bello Vets Hall gas line replacement Capital Projects one-time 45,000 Bello Bridge De Anza Trail Extension Capital Projects one-time 90,000 Subtotal Revenues 297,142$
Expenditures
Barricades for City-Events General Fund one-time 162,142$ Barricades for City-Events Capital Projects one-time 162,142 Bello Vets Hall gas line replacement General Fund one-time 45,000 Bello Vets Hall gas line replacement Capital Projects one-time 45,000 Bello Bridge De Anza Trail Extension General Fund one-time 90,000 Bello Bridge De Anza Trail Extension Capital Projects one-time 90,000 Council Chamber automated camera system Public Education Government Fund one-time 100,000 Police Vigilant LPR General Fund one-time 700
Police Vigilant LPR ongoing 25,244
Clam Chronicle upgrades General Fund ongoing 7,000
City branded communication General Fund ongoing 50,000
New Code Enforcement Officer Vehicle Motor Vehicle Fund one-time 75,000 Subtotal Expenditures 852,228$
Net Fiscal Impact (Revenues - Expenditures)(555,086)$
Capital Projects
Description Fund
FY 2022
Proposed
Budget
Adjustment
FY 2023
Proposed
Budget
Adjustment
Revenues
Bello bridge fence Capital Projects 30,000$
Chapman Estate Improvements Chapman Estate Fund 85,000
FY 2022 Paving Project Capital Projects 875,000
Mobile Command Vehicle Motor Vehicle Fund 26,212$
Police Substation, Parking Office Capital Projects 250,000 Storm Drain Project - Project Complete, deappropriate Capital Projects (56,831) Subtotal Revenues (30,619)$ 1,240,000$
Expenditures
Bello bridge fence Capital Projects 30,000$
Bello bridge fence General Fund 30,000
Chapman Estate Improvements General Fund 85,000
Chapman Estate Improvements Chapman Estate Fund 85,000
FY 2022 Paving Project Half Cent Sales Tax Fund 875,000 FY 2022 Paving Project Capital Projects 875,000
Mobile Command Vehicle Grants - Non-Capital 26,212
Mobile Command Vehicle Motor Vehicle Fund 26,212
Parking kiosk replacements Parking Enterprise Fund 51,268 Police Substation, Parking Office Capital Projects 250,000 Police Substation, Parking Office Parking Enterprise Fund 250,000 St. Jude’s tunnel fence General Fund 25,000
Storm Drain Project - Project Complete, deappropriate Half Cent Sales Tax Fund (56,831) Storm Drain Project - Project Complete, deappropriate Capital Projects (56,831) Subtotal Expenditures (61,238)$ 2,556,268$
Net Fiscal Impact (Revenues - Expenditures)30,619$ (1,316,268)$
Operating Savings and Additional Costs
•FY 2022 $812,147 net cost savings
•Deappropriate $270,700 of unused Next Level Service funding •Deappropriate $529,066 of unused General Fund contingency budget •Deappropriate $100,000 CalFire contract savings
•FY 2023 $306,463 additional costs
•Community Services Technician –continue Parks pilot program $40,000 •Fire lease 990 Bello $28,600
•Bello Bridge revegetation $16,500
•City Hall annual maintenance $15,000
•Transaction costs (Parking, Water, and Wastewater Enterprise Funds) $48,000
Professional Services
Fund Description
FY 2022 Proposed
Budget Adjustment
FY 2023 Proposed
Budget Adjustment
Revenues
Technology Service Fund Remaining restart of the IT Strategic Plan 9,751$ Subtotal Revenues 9,751$ -$
Expenditures
General Fund Local Coastal Plan Update - Study Sessions 126,000$ General Fund Remaining restart of the IT Strategic Plan 9,751 Technology Service Fund Remaining restart of the IT Strategic Plan 9,751 Subtotal Expenditures 19,502$ 126,000$ Net Fiscal Impact (Revenues - Expenditures)(9,751)$ (126,000)$
Employee Development
Fund Description
One-time/
Ongoing
FY 2023 Proposed
Budget Adjustment
Revenues
General Fund Reimbursement for Training from Cal OES 911 Emergency Communications Branch
ongoing 10,000$
Subtotal Revenues 10,000$
Expenditures
General Fund 911 Dispatcher Training through State's Annual Training Allotment
ongoing 10,000$
General Fund Training / Professional Development for
Recreation staff
ongoing 2,000$
General Fund Finance City-wide cash handling training (Public Treasury Institute)
ongoing 2,600$
General Fund Finance City-wide fraud training ongoing 3,000$ General Fund Intensive mulit-day REC Staff Training on Active Net software
one-time 3,200$
General Fund PD Cal Chiefs conference, IACP conference - for Commanders
ongoing 5,000$
Water Enterprise Fund Increase to cover Federal ELDT requirement for commercial licenses
ongoing 14,000$
Wastewater Treatment Fund Increase to cover Federal ELDT requirement for commercial licenses
ongoing 17,500$
Technology Service Fund Quarterly Phishing Tests/Training ongoing 15,000 Subtotal Expenditures 72,300$
Net Fiscal Impact (Revenues - Expenditures)(62,300)$
Carryforward Budgets
Description
FY 2022
Proposed
Budget
Adjustment
FY 2023
Proposed
Budget
Adjustment
Expenditures
Carryforward City Hall electric vehicle due to shortage of vehicles (41,800)$ 41,800$ Carryforward Fire Ford F250 due to truck on back order (64,000) 64,000 Carryforward Parking electric vehicle due to shortage of vehicles (41,800) 41,800 Subtotal Expenditures (147,600)$ 147,600$
Net Fiscal Impact (Revenues - Expenditures)147,600$ (147,600)$
Align Budget to Actuals
•FY 2022 $418,600 net additional costs
•FY 2023 $369,630 net additional costs
•Majority of the cost increases reflect additional ongoing transaction costs due to more visitors compared to the budget
•$77,888 of COVID-19 related costs
•$73,152 of Recreation instructor salaries
•$47,000 of parking transaction costs
•$30,521 of parking citation costs.
•$58,127 of the Clean Water State Revolving Fund loan for the Five Cities Lift Station debt service
Fiscal Impact
Fund Type
FY 2022 Proposed
Budget Adjustment
FY 2023 Proposed
Budget Adjustment
General Fund Rev (353,867.00)$ (687,388.00)$ General Fund Exp (685,272.41) 1,043,196.43 Subtotal General Fund Net 331,405.41 (1,730,584.43) Half Cent Sales Tax Fund Exp (56,830.71) 875,000.00 Subtotal Half Cent Sales Tax Fund Net 56,830.71 (875,000.00) Local Transportation Rev 104,313.00
Subtotal Local Transportation Net 104,313.00 - Public Education Government Fund Exp 100,000.00
Subtotal Public Education Governmen Net - (100,000.00) Grants - Non-Capital Exp 26,211.80
Subtotal Grants - Non-Capital Net (26,211.80) - LBID Fund Rev (63,020.00) (120,000.00)
LBID Fund Exp -
Subtotal LBID Fund Net (63,020.00) (120,000.00) Chapman Estate Fund Rev 85,000.00
Chapman Estate Fund Exp 90,000.00
Subtotal Chapman Estate Fund Net - (5,000.00) Capital Projects Rev (56,830.71) 1,452,142.00 Capital Projects Exp (56,830.71) 1,452,142.00 Subtotal Capital Projects Net - - Water Enterprise Fund Exp 25,501.00 32,012.00 Subtotal Water Enterprise Fund Net (25,501.00) (32,012.00) Wastewater Treatment Fund Exp 95,654.00 148,765.00 Subtotal Wastewater Treatment Fund Net (95,654.00) (148,765.00) Pier Enterprise Fund Exp 8,500.00 9,000.00 Subtotal Pier Enterprise Fund Net (8,500.00) (9,000.00) Parking Enterprise Fund Exp 78,521.00 412,489.00 Subtotal Parking Enterprise Fund Net (78,521.00) (412,489.00) Technology Service Fund Rev 12,751.00 25,500.00 Technology Service Fund Exp 12,751.00 25,500.00 Subtotal Technology Service Fund Net - - Motor Vehicle Fund Rev 26,211.80
Motor Vehicle Fund Exp (74,088.20) 272,600.00 Subtotal Motor Vehicle Fund Net 100,300.00 (272,600.00) Total All Funds 295,441.32$ (3,705,450.43)$