PLACENTIA
Rich Heritage, Bright Future
General Fund
Proposed General Fund Budget
Fiscal Year 2022-23
May 17, 2022
PLACENTIA
Rieh Heritage, Bright Future
Presentation Overview
• FY 2021/22 Third Quarter Budget Update & Year-end
Projections
• FY 2022/23 Proposed General Fund Budget Overview
• Position Allocation (staffing)
• Measure U
• Fund Balance
RP"
4 PLACENTIA
Rich Heritage, Bright Future
FY 2021/22 Third Quarter
Adjustments
• Updates recommended include minor adjustments
needed to finish current fiscal year, as well as
modifications to capital projects as a result of
increased funding.
General Fund
Special Revenue
Capital Projects
Total
Revenues
(Including Transfers -In)
$50,000
$295,934
$2,200,000
$2,545,934
$62,575
$416,360
$2,968,998
$3,447,933
viiIrc4 FY 2021/22 Third Quarter
PLACENTIA
Rich Heritage, Bright Future
Adjustments
• $2.2 Million federal earmark received for the
Golden Avenue bridge
• $50,000 requested for contract plan review
services, offset by corresponding increase in
revenue
• $81,160 appropriations and revenue for a
CalRecyle grant received
• Increased SB2 funding received and expense
appropriations relating to the Navigation Center
PLACENTIA
Rich Heritage, Bright Future
FY 2021/22 General Fund
Year -End Projections
FY21/22 Amended FY21/22
Budget Projection
Revenue $51,423,583
$51,485,078
Expenses
$51,126,018 $47,965,543
Projected Change to Fund Balance
$3,519,535
Projected Ending Fund Balance at 6/30/22
Restricted
Section 115 Trust
Contingency Reserve
Fund Balance Designations
FY 2021/22 General Fund Reserve
Yearend Estimate (25%)
Estimated Be: innin: Fund Balance 7 1 2021
Non -Spendable
Projected Change in Fund Balance
PLACENTIA
Rich Heritage, Bright Future
Unassigned
$16.929 535
$3,519,535
$20,449,070
$2,209,112
$552,982
$152,100
$8,246,471
$9,318,405
Estimated Endin: Fund Balance 6 30 22
Projected Operating Expenditures
25% FB Target
General Fund Operating Reserve %
$32,985,886
$8,246,471
Contingency Reserve/Unassigned
Fund Balance
Projected- 52%
Goal- 25%
52%
PLACENTIA
Rich Heritage, Bright Future
FY 2022/23 Proposed
General Fund Budget
• Proposed budget is balanced, provides resources necessary to maintain or enhance service levels and prioritize funding of reserves
General Fund Revenue
General Fund Expenses
Variance
$45,482,968
$45,277,130
$205,838
PLACENTIA
Rich Heritage, Bright Future
Proposed FY22/23 Budget
General Fund Revenues- $45,482,968
Intergovernmental,
1%
Charges for Services_.
3%
Misc. Revenue
6%
Fines & Forfeitures_
1%
PLACENTIA
Rich Heritage. Bright Future
General Fund Operating
Revenues
Revenue T • e
Property Taxes
Sates & Use Taxes
Other Taxes
Permits
Fines & Forfeitures
Intergovernmental
Charges for Services
Miscellaneous
Total Operating Revenues
Transfers In
Measure U Transfers In
Employee Retention
OPER
Total Transfers In
Total Resources
FY 2021/22
Amended Bud : et
$17,545,700
8,138,460
5,850,985
1,929,900
444,200
274,000
1,348,200
2,422,146
$37,953,591
9,996,792
2,604,900
868,300
$13,469,992
$51,423,583
FY 2021/22 Year
End Estimates
$17,103,127
9,414,009
6,367,429
2,153,468
370,758
40,964
990,394
1,633,726
38,073,875
9,938,002
2,604,900
868,300
$13,411,202
$51,485,077
FY 2022/23
Proposed
Budget
$18,392,934
8,663,690
6,715,400
2,455,000
355,000
540,000
1,305,400
2,520,200
$40,947,624
Variance to FY21/22
Amended Bud:et
4.8%
6.5%
14.8%
27.2%
(20.1%)
97.1%
(3.2%)
3.6%
7.9%
1,115,744 (88.8%)
2,564,700
854,900
$4,535,344
$45,482,968
PLACENTIA
Rich Heritage, Bright Future
19,000,000
18, 000, 000
17, 000, 000
16, 000, 000
15,000,000
General Fund Revenue -
Top Sources
Property Tax
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23
Projected Proposed
Property Tax
Sales Tax (Including Transfer
from Measure U)
$15,000,000
$13,000,000
$11,000,000
$9,000,000
$7,000,000
$5,000,000
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23
Projected Proposed
.J., -Sales Tax
Proposed FY 2022/23 Budget
.PIHA=.a=aGeneral Fund Expenditures- $45,277,130
BY DEPARTMENT
BY EXPENDITURE TYPE
Transfers
Out
$37,500
0%
Debt Service
$5,179,250
11%
Operating
$39,196,634
87%
Capital
Projects
$863,746
2%
•
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PLACENTIA
Rich Herilvge, Bright Future
Position Allocation
• Proposed budget includes funding for 184.0 FTE
employees, 33.0 FTE elected or appointed
officials and authorization for 5.0 FTE overhires
in Police and Public Safety Communication
Departments
PLACENTIA
Rich Heritage, Bright Future
Position Allocation- Proposed
Changes
• Proposed addition of one Facilities Maintenance
Technician in Public Works
Increased demand for facility maintenance citywide, particularly for Community Services facilities
• Proposed reclassification of Management Analyst to
Senior Management Analyst in Public Works
II Better reflect duties being done and needs of the department • Adjustments to salaries in accordance with negotiated MOUs have been incorporated
IWr-
•
r
PLACENTIA
Rich Heritage, Bright Future
General Fund Reserve Policy
General Fund Reserve Policy 460 was designed as a
result of approval of Measure U by voters and
establishes:
• Guidelines for reserves
• Minimum contingency reserve of 25% of operating
expenditures
• Allocation formulas for new, unrestricted on-going and one-time revenues for specific purposes
• Purposes and uses of reserves
rir' Measure U Historical Performance
PLACENTIA
Rich Heritage, Bright Future
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Measure U Revenue
FY18/19
FY19/20
FY20/21
FY21/22 Proj. FY22/23 Prop.
*Measure was approved by voters in 2018 and became effective April 2019
PLACENTIA
Rich Heritage, Bright Future
FY 2022/23 -Measure U
Contributions to Reserves
2022-23 Proposed Measure U Budget - $8,549,000
Current Allocations
Infrastructure, Vehicles, and Equipment
Post -Employment Benefits Sustainability
Employee Recruitment and Retention (including
additional staff)
General Fund Unassigned Fund Balanc
*Reserve target of 25% has been met
After GF Reserve
Target Met*
60%
10%
30%
0%
Amount
$5,129,400
$854,900
$2,564,700
nrril
PLACENTIA
Rich Heritage, Bright Future
FY 2022/23 Proposed General Fund -
Fund Balance
Estimated Be: innin Fund Balance 7 1 2022
Projected Change in Fund Balance
Pro.ected Endinc Fund Balance at 6/30/23
Fund Balance Designations
Non -Spendable
Restricted
Section 115 Trust
Contingency Reserve
Unassigned
$205,838
$20,654,908
$3,262,084
$556,084
$152,100
$9,799,158
$6,885,482
Estimated Endin: Fund Balance 6 30 23
Projected Operating Expenditures
25% FB Target
General Fund Operating Reserve %
$39,196,634
$9,799,159
43%
Contingency Reserve/Unassigned
Fund Balance
Projected- 43%
Goal- 25%
PLACENTIA
Rich Heritage, Bright Future
Recommendations
It is recommended that the City Council take the following actions:
1. Adopt Resolution No. R -2021 -XX, amending the City's FY 2021-22 Budget to reflect Third Quarter Budget
Adjustments.
2. Review and discuss the Proposed FY 2022-23 General
Fund Operating Budget and provide input and direction
for final budget adoption; and
3. Set the date of the public hearing for budget adoption as June 21, 2022, at 7:00 p.m.
Questions?
w
,A•mir
PLACENTIA
Rich Heritage, Bright Future
19