TO:
VIA:
FROM:
DATE:
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF FINANCE
SEPTEMBER 20, 2022
Placentia Cit
SUBJECT: FY 2022-23 FIRST QUARTER BUDGET REPORT
FISCAL
IMPACT:
Fund
General Fund
Special Revenue
Capital Projects
Enterprise Funds
Internal Service Fund
Total
SUMMARY:
Council
AGENDA REPORT
Revenues
(Including Transfers -In)
$ 8,886,245
$ 2,333,430
$ 3,843,000
$ 0
$ 75,500
$15,138,175
Appropriations
(Including Capital &
Transfers -Out)
$ 8,761,8091
$10,235,130
$ 3,843,9191
$ 0�
$ 75,500
$22,916,358
The City's Operating Budget is reviewed and presented to the City Council quarterly for recommended amendments and to provide current information on the financial activities of the City. Additionally, these types of quarterly reports assist City departments in communicating their financial operations throughout the fiscal year including any program changes and significant impacts to their annual budgets, as well as ensuring spending and revenues received throughout the year closely align with the adopted budget. This report includes requested departmental budget adjustments through the first quarter of fiscal year 2022-23, covering the period through September 2022.
RECOMMENDATION:
It is recommended that the City Council take the following action:
1. Approve the First Quarter Budget Report and adopt Resolution No. R-2022-60, amending the City's FY 2022-23 Budget; and
2. Approve the First Quarter Position Allocation Plan
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to Ensure Long -Term Fiscal Sustainability, under Objective #1.6 Update the existing 10 -Year Financial Plan.
1.d.
Sept 20, 2022
City Council Agenda
September 20, 2022
DISCUSSION:
General Fund: The General Fund FY 2022-23 Amended Budget includes revenues of $54.4 million and expenditures of $54.2 million. The proposed budget adjustments in the FY 2022-23 First Quarter Budget Report include an increase to revenues of $8.9 million and an increase in expenditures of $8.7 million. The significant change is due to the accounting for the use of funds received from the American Recovery Plan Act ("ARPA"). Per accounting rules, ARPA revenue is not to be recognized until actually spent on approved projects. This increase in revenue is mirrored by the increase in expenditures from the carryforward of FY 2021-22 ARPA funded Capital Improvement Projects that were not completed in the previous fiscal year.
Revenue
Property Taxes
Sales & Use Taxes
Other Taxes
Permits/ Licenses
Fines & Forfeitures
Intergovernmental
Charges for Service
Misc. Revenue
Subtotal Revenues
Operating Transfers -In
Measure U Transfer In:
Employee Retention
OPEB
Subtotal Transfers -In
2022-23 Adopted
2022-23
Amended
2022-23 Q1
Requests
2022-23 Q1
Amended
I
18, 392, 934
8,663,690
6,715,400
2,455,000
355,000
1,140, 000
1,305,400
1,920,200
40,947,624
1,115, 744
2,564,700
854,900
4,535,344
18,392,934
8,663,690
6,715,400
2,455,000
355,000
1,140, 000
1,305,400
1,920,200
40,947,624
1,115, 744
2,564,700
854,900
4,535,344
Total Operating
Resources 45,482,968 45,482,968
Revenue budget adjustment requests include the following:
8,304,015
150,000
8,454,015
432,229
432,229
8,886,245
18, 392, 934
8,663,690
6,715,400
2,455,000
355,000
9,444,015
1,455,400
1,920,200
49,401,639
1,547,973
2,564,700
854,900
4,967,573
54,369,212
• Intergovernmental — Recognize revenue for STRONG Grant of $537,160 and $7,766,855 of remaining American Recovery Plan Act ("ARPA") that is unspent. • Charges of Services - $150,000 increase in Fire Inspection fees for anticipated increase in services.
• Operating Transfers -in — Record $432,229 transfer from County Annexation fund for the City IT infrastructure project approved by Council on July 19, 2022.
City Council Agenda
September 20, 2022
Expenditures
Legislative
City Administrator
Administrative Services
Finance
Development Services
Public Safety -Police
Fire & Life Safety
Public Works
Community Services
General Government
Subtotal Revenues
Capital Improvement
Program
Interfund Transfers Out
GF Debt Service
Total Expenditures
2022-23 Adopted
2022-23
Amended
2022-23 Q1 2022-23 Q1
Requests Amended
I
1,106, 000
633,100
5,548,021
1,242,700
1,835,200
12,752,393
4,131, 200
4,449,440
2,646,380
5,004,200
39,348,634
863,746
37,500
5,179,250
45,429,130
1,106, 000
633,100
5,548,021
1,242, 700
1,835,200
12,752,393
4,131,200
4,427,290
2,646,380
5,004,200
39,326,484
885,896
37,500
5,179,250
45,429,130
5,700
29,846
185,800
125,375
75,500
422,221
1,106, 000
633,100
5,548,021
1,248,400
1,835,200
12,782,239
4,317,000
4,552,665
2,646,380
5,079,700
39,748,705
8,339,588 9,225,484
37,500
5,179, 250
8,761,809 54,190,939
Notable expenditure budget adjustment requests include the following:
• Finance — an increase of $5,700 for the reclassification of two positions to better align with the work being performed and the needs of the department. • Public Safety — Police — an increase of $29,846 due to increased costs in the allocation from the County for the 800mhz radio costs.
• Fire & Life Safety — an increase of $185,800 consists of $4,500 for approved department management retreat, $15,000 for fire's portion of 800mhz radio costs, $150,000 for fire inspection services, and $16,300 for a mobile sleeper unit that was rented in FY 20-21 during station refurbishment.
• Public works — an increase of $90,375 consists of $61,100 for needed expenditures during the first quarter, including $30,100 for refurbishing conference rooms and $31,000 for K -Rail rentals for the reopening of Santa Fe Ave.
• General Government — Increase of $75,500 to City Admin Services due to the increase in workers comp premiums in the Risk Management fund.
• Capital Improvement Program — an increase of $8,339,588 due to FY 2021-22 General Fund Capital projects that were not completed during FY 2021-22 and need to be carried forward to the current fiscal year. APRA comprises of $7,766,855 of the total increase.
Special Revenue Funds: The Special Revenue Fund FY 2022-23 Amended Budget includes revenues of $16.3 million and expenditures of $20.0 million. The proposed budget adjustments in the FY 2022-23 First Quarter Budget Report include an increase in revenues of $6.8 million and an increase in expenditures of $6.9 million. Approval of this item will result in a net decrease of
City Council Agenda
September 20, 2022
Page4of6
$7.9 million in the Special Revenue Fund budgetary fund balance. Notable new adjustments include:
• Measure U — An increase of $40,000 for the Civic Center security cameras project due to price increases.
• Navigation Center - an increase of $255,000 for revenue and expenditures for new items approved by NSPA for 50% of a Homeless Liaison Officer (HLO), replacement of wooden partition walls, and maintenance of the facility.
• General Plan update Fee — an increase of $100,000 for on-call professional services for zoning updates.
• Miscellaneous Grant Fund — to record the award of $537,160 for the STRONG grant and program expenditures related to the performance of the grant. An increase to revenue of $290,000 for SB2 reimbursements that have not been received, an increase of $150,000 for LEAP grant awarded and programing of the award.
• Calrecycle Grant — an increase of $86,117 of program expenditures for recycling initiatives.
Capital Projects: The proposed budget adjustment in the FY 2022-23 First Quarter Budget Report includes projects from the previous fiscal year that have not been completed that will be continued into the current fiscal year. Below is a summary of the capital projects to be carried forward.
FY 2021-22 Capital Projects to be Carried Forward into FY 2022-23 101 General Fund
117 Measure U Fund
209 State Gas Tax- RMRA
210 Measure M
215 Air Quality Management
225 Asset Seizure
233 Gen Plan Update Fees
234 Technology Impact Fees
236 Parks & Rec Impact Fees
238 City Traffic Impact Fee
242 City Public Safety Impact Fee
243 City Quimby -in -Lieu Fee
246 TOD Traffic Impact Fees
247 TOD Sewer Impact Fees
248 TOD Streetscape Impact Fee
250 Thoroughfare Construction
270 CDBG Fund
280 Misc. Grants Fund
401 City Capital Projects
Total
Revenue
7,766,855 1
Expense
7,907,359
2,201,755
453.749
646,351
170,638
50,000
20,000
71,384
- 1,677,243
8,000
24,128
885.570
39,260
1,420,921
206,379
4,172 f
28,936 19,303
1,202,334 1,166,898 J
3,843,000 3,843,919
12,841,125 20,817,029
City Council Agenda
September 20, 2022
See attachment for a detailed list of projects.
Position Allocation Plan: Changes to the Position Allocation Plan include the following proposed changes in the Finance Department:
1. Reclassification of one (1) Accounting Technician to one (1) Senior Accounting Technician
2. Reclassification of one (1) Accounting Clerk to one (1) Accounting Technician Both reclassifications reflect the higher-level duties currently being done and better align with the needs of the department.
In addition, the salary range for the vacant Fire Marshal position is being increased 16% to reflect the current market's rate for this position and to increase success in recruiting top candidates.
Fire and Finance Department staff will return to City Council with recommendations for amending the fee schedule to fully capture this increase in personnel costs.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is summarized below with the detailed budget adjustments as listed in Exhibit A.
Fund
General Fund
Special Revenue
Capital Projects
Enterprise Funds
Internal Service Fund
Total
Revenues
(Including Transfers -In)
$ 8,886,245
$ 2,333,430
$ 3,843,000
$ 0
$ 75,500
$15,138,175
Appropriations
(Including Capital &
Transfers -Out)
$ 8,761,809
$10,235,130
$ 3,843,919
$ 0
$ 75,5001
$22,916,358
Based upon preliminary FY 2022-23 projections, which reflect an increase in revenues of $8,886,245 and increase in expenditures of $8,761,809, it is anticipated that the General Fund unassigned fund balance will increase by an additional $178,273.
Prepared by:
Je nifer Lampman
Director of Finance
Reviewed and appro
Da6terrFUula
City Administrator
City Council Agenda
September 20, 2022
Attachments:
1. Resolution R-2020-60 — Authorizing a Budget Amendment in Fiscal Year 2022-23 a. Exhibit A — Detailed Budget Adjustments
b. Exhibit B- Salary Schedule effective September 20, 2022 c. Exhibit C -Q1 Position Allocation Plan
2. 10 Year Financial Plan