TO:
VIA:
FROM:
DATE:
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF FINANCE
FEBRUARY 7, 2023
Placentia City Council
SUBJECT: FY 2022-23 MID -YEAR (Q2) BUDGET REPORT
FISCAL
IMPACT:
Fund
General Fund
Special Revenue
Capital Projects
Enterprise Funds
Internal Service Fund
Total
SUMMARY:
AGENDA REPORT
Revenues
(Including Transfers -In)
$ 1,037,492
$ 848,600
$ 0
$ 0
$ 105,000
$1,991,092
Appropriations
(Including Capital &
Transfers -Out)
$ 792,300
$1,187,301
$ 0
$ 0
$ 105,000
$2,084,601
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 proposed departmental budget adjustments through the second quarter of fiscal year 2022-23, covering the period through December 2022.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve the Second Quarter Budget Report and adopt Resolution No. R-2023-09, amending the City's FY 2022-23 Budget; and
2. Approve the Second -Quarter Position Allocation Plan; and
3. Approve the Updated Salary Schedule.
3.a.
Feb 07, 2023
City Council Agenda
February 7, 2023
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.
DISCUSSION:
General Fund: The current General Fund FY 2022-23 Amended Budget includes revenues of $54.4 million and expenditures of $57.6 million. The budget adjustments proposed in the FY 2022- 23 Second Quarter Budget Report include an increase to revenues of $1,037,492 and an increase in expenditures of $792,300. Changes to revenues are based on analysis of current trends and receipts identified year-to-date. Several areas such as sales tax, including revenue from Measure U, utility users' tax and transient occupancy tax (Other Taxes) are trending higher than originally anticipated with projections higher than the adopted budget.
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
Adopted
Amended
F •
Requests
I e
Amended
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
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
45,149
311,310
388,740
79,268
22,000
12,406
17,082
41,137
917,092
90,300
30,100
120,400
18,438,083
8,975,000
7,104,140
2,534,268
377,000
9,456,422
1,472,482
1,961,337
50,318,732
1,547,973
2,655,000
885,000
5,087,973
54,369,213 1,037,492 55,406,705
City Council Agenda
February 7, 2023
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 02
Requests
2022-23 02
Amended
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
5,579,171
1,217,250
1,835,200
12,782,239
4,317,000
4,552,665
2,646,380
5,079,700
39,748,705
12,615,484
37,500
5,179,250
57,580,939
241,700
5,000
55,500
20,000
206,000
82,600
145,000
755,800
36,500
792,300
1,106,000
633,100
5,820,871
1,222,250
1,835,200
12,837,739
4,337,000
4,758,665
2,728,980
5,224,700
40,504,505
12,615,484
37,500
5,215,750
58,373,239
Notable expenditure budget adjustment requests include the following:
• Administrative Services - an increase of $210,200 consisting of $100,000 for Public Safety Communications to support overtime expenses attributable to vacant positions, $19,700 for employee retention payments and a Dispatcher referral program to help with recruitment, $2,500 for new dispatcher uniforms, $38,000 for executive recruitment services and $50,000 for a compensation and classification study. • Finance - an increase of $5,000 for the department retreat. • Police - an increase of $39,000 consisting of $19,000 for its department retreat, and $20,000 for additional background checks.
• Fire & Life Safety - an increase of $20,000 for the Pulsepoint app system to increase communication of incidents to the public.
• Public Works - an increase of $206,000 consisting of $36,200 to hire one additional anagement assistant, $17,500 for increased overtime needed for building repair and maintenance, $60,000 for emergency HVAC repairs for City Hall, $2,000 of overtime for mechanics, $10,300 for additional holiday decorations for Old Town Placentia, and $80,000 for fuel.
• Community Services - an increase of $76,000 consists of $5,000 for Easter event, $37,500 for overtime to staff various City events, $2,000 for event rentals, $2,500 for updated uniforms, $27,000 for expenses related to running the Tamale Festival (offset by revenue), $2,000 for additional costs related to Heritage Festival.
City Council Agenda
February 7, 2023
• General Government — an increase of $145,000 consists of $105,000 to City Admin Services due to the increase in insurance premiums in the Risk Management fund and $40,000 to develop a new Community Facilities District (CFD) district for maintenance of the Enhanced Infrastructure Facilities District (EIFD). • GF Debt Service fund — an increase of $36,500 for the Capital lease of five (5) Chevy Bolts to replace the Chevy Sparks that are at end of service life.
Special Revenue Funds: The Special Revenue Fund FY 2022-23 Amended Budget includes revenues of $24.4 million and expenditures of $32.0 million. The proposed budget adjustments in the FY 2022-23 Second Quarter Budget Report include an increase in revenues of $848,600 and an increase in expenditures of $1.2 million. Approval of this item will result in a net decrease of $7.6 million in the Special Revenue Fund budgetary fund balance. Notable new adjustments include:
• Measure U — An increase to revenue of $301,000 based on year-end estimates and $558,201 for the General fund transfer and appropriation of additional funds for projects. • Measure M — an increase of revenue and expenditures of $28,200 to restart the senior mobility program.
• AQMD — an increase of revenue and expenditures of $6,900 to restart the senior mobility program.
• Asset Seizure — an increase of $192,500 of revenue for estimated funds to be received and an increase of $274,000 for public safety expenses. • NOC Public Safety Grant — an increase of revenue and expenditures of $20,000 for the PARKS grant.
• Miscellaneous Grant Fund — an increase to revenue and expenditures of $300,000 for the Gun buyback program.
Internal Service Funds: The Internal Service Fund for FY2022-23 Amended budget includes revenues of $3.5 million and expenditures of $3.5 million. The amended budget adjusting in FY2022-23 second quarter budget report includes an increase of revenue and expenditures of $105,000.
• Risk management — an increase of $105,000 is due to an increase in the City's general liability insurance.
Staffing Changes: Changes to the Position Allocation Plan and salary schedule include the following proposed changes:
1. Addition of one (1) Management Assistant in the Public Works department to support the City's Capital Improvement Program (CIP). The position will be funded 50% by the General Fund and 50% by various CIP projects. The impact to the General Fund in FY2022-23 is $36,200.
City Council Agenda
February 7, 2023
2. Modification of the City's Salary Schedule for the Public Safety Communications (Dispatch) Supervisor and Manager positions. The City has struggled to recruit Dispatch Supervisors in recent years causing significant increases in overtime expenses and potential burnout of existing staff and there is compaction between the Supervisor classification and Dispatcher classification. Modifying the salary for Dispatch Supervisors is recommended to address this issue. Increase to the Dispatch Manager position is necessary to ensure there are not subsequent compaction issues. The impact to FY2022-23 is $31,500.
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.
Based upon preliminary FY 2022-23 projections, which reflect an increase in revenues of $1,991,092 and increase in expenses of $2,084,601, it is anticipated that the General Fund unassigned fund balance will decrease by $2,966,534, with the majority of this figure due to the $3 million in reserve funding approved by the City Council for the Public Safety Facility Center.
Prepared by:
c r er Lampman
Director of Finance
Reviewed and approved:
Dam -n rrula
City Administrator
Attachments:
1. Resolution R-2020-09 — Authorizing a Budget Amendment in Fiscal Year 2022-23 a. Exhibit A — Detailed Budget Adjustments
2. Q2 Position Allocation Plan
3. 10 Year Financial Plan Update
4. Salary Schedule
5. PowerPoint Presentation