PLACENTIA
Rich Heritage, Bright Future
Proposed Annual Operating
Budget & CIP
Fiscal Year 2023-24
May 16, 2023
PLACENTIA
Rich Heritage, Bright Future
Presentation Overview
• FY 2023/24 Proposed Budget Overview (All Funds)
• FY 2023/24 Proposed General Fund Budget
• Significant Changes
• Position Allocation (staffing)
• Measure U
• Fund Balance
• Capital Improvement Program (CIP)
• Next Steps
Proposed FY 2023/24 Budget
All Funds -in millions
Total Proposed Revenues- $84,855,133
Total Proposed Expenditures- $85,583,391
Total Budget
Operating Budget
Debt
CIP
14%
Operating
86%
Internal
Service
4%
Special
Revenue
21%
Fiduciary
6%
nterprise
Funds
7r
Service
General
Fund
61%
PLACENTIA
General Fund
Special Revenue
Debt Service
Enterprise
Mil IF 4
046
PLACENTIA
Rich Heritage, Bright Future
FY 2023/24 Proposed Budget
All Funds
Revenues &
Transfers In
Expenditures &
Transfers Out
Net Incr./ to
(Decr) to Fund
Balance
Internal Service
Fiduciary
$49,801,418
$52,112,823*
($2,311,405)
19, 249, 880 18, 041, 353
1,208,527
403,750
403,750
6,209,550 5,830,930
378,620
3,743,500 3,743,500
5,447,035 5,451,035
$84,855,133 $85,583,391
*Includes $4.1 Million in one-time capital expenses
($4,000)
(728,258)
Yi
PLACENTIA
Rich Heritage, Bright Future
FY 2023/24 Proposed
General Fund Budget
• Proposed budget is balanced, provides resources necessary to maintain or enhance service levels and prioritizes funding of reserves General Fund Revenue
General Fund Expenses
Variance
Proposed FY23/24 Budget
$49,801,418
$52,112,823
($2,311,405)
PLACENTIA
isl
PLACENTIA
Rich Heritage, Bright Future
FY 2023/24 Proposed
General Fund Budget
• Proposed budget is balanced, provides resources necessary to maintain or enhance service levels and prioritizes funding of reserves Total General Fund Revenue
Removing $920,000 Reserve Funding
General Fund Jperating Revenues
Total General Fund Expenses
Removing One -Time Capital Funding
General Fund Operating Expenses
General Fund Operating Variance
Proposed FY23/24 Budget
$49,801,418
(920, 000)
$48,881,418
$52,112,823
4,134, 280
$47,978,543
$902, 875
rig,"
PLACENTIA
Rich Heritage, Bright future
Proposed FY 2023/24 Budget
General Fund Revenues- $49,801,418
Intergovernmental
1%
Charges for Services
3%
Misc. Revenue
5%
Fines & Forfeitures
1%
FY 2022/23
Amended Bud:et
poi rf
PLACEN T IA
Rich Heritage, Bright Future
General Fund
Operating Revenues
Property Taxes
ESIEMZIMMIlm
Other Taxes
Permits
Fines & Forfeitures
Intergovernmental
Charges for Services
Miscellaneous
Transfers In
Measure U Transfers In
Employee Retention
OPEB
Measure U Reserve
Total Transfers In
Total Resources
$18,438,083
8,975,000
7,104,140
2,499,768
377,000
9,456,422
1,504,659
1,963,660
50,318,732
2,655,000
885,000
5,087,973
FY 2022/23 Year
End Estimates
FY 2023/24
Pro . osed Bud • et
Variance to
FY22/23 Amended
Bud:et
$18,438,083
8,975,000
7,104,140
2,540,605
383,298
9,176,239
1,418,877
2,146,809
50,183,051
2,655,000
885,000
4,408,618
$19,578,023
9,175,000
7,095,500
2,802,000
452,500
312,000
1,514,000
2,454,000
43,383,023
2,760,000
1,690,595
920,000
5,370,595
6.2%
2.2%
(0.1%)
12.1%
20.0%
(96.7%)
0.6%
25.0%
(13.8%)
4.0%
91.0%
5.6%
PLACENTIA
Rich Heritage, Bright future
21,000,000
19,000,000
17,000,000
15,000,000
General Fund Revenue -
Top Sources
Property Tax
�Jy�\Lo J�o\,L, Jti�\�� e`�ea t°��5ea
�J0' �J0'
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
O ti ti ea ob.
C.
—0—Sales Tax
,y"' Proposed FY 2023/24 Budget
•
RPLMAm,Ta General Fund Expenditures- $52,112,823
BY DEPARTMENT
BY EXPENDITURE TYPE
Fire & Life
Safety
650,
co
Non-
publc
Safety
Public
Works
co/2
Transfers
Out
$36,214
0%
Debt Service
$6,021,200
12%
Capital
Projects
$4,134,280
8%
Variance to
FY22/23 Amended
Bud:et
rig; FY 2023/24 General Fund
Rich H
phi.,A
Expenditures by Department
eritage, mBright TIFuture
FY 2022/23
De•artment Amended Bud:et
FY 2022/23 Year
End Estimates
FY 2023/24
Pro • osed Bud et
Legislative
City Administrator
Administrative Services
Community Services
Development Services
Fire & Life Safety
Police
Public Works
General Government
Total Expenditures
$1,124,000
$731,159
633,100 637,225
5,870,871
2,728,980
1,835,200
1,222,250
4,337,000
$1,004,000
985,377
4,868,462 6,002,513
2,417,586 2,938,052
1,531,314 1,565,800
1,081,655 1,305,000
3,826,286 4,503,794
12,872,739 11,533,493 13,612,323
4,758,665
5,224,700
4,084,973 4,795,070
5,425,835 5,209,200
$40,607,505 $36,137,989 $41,921,129
(10.7%)
55.6%
2.2%
7.7%
(14.7%)
6.8%
3.8%
5.7%
0.8%
(0.3%)
3.2%
PLACENTIA
Rich Heritage, Bright Future
Position Allocation
• Proposed budget includes funding for 200.0 FTE
employees, and authorization for 4.0 FTE
overhires in Police and Public Safety
Communication Departments
rrir:1 Position Allocation
PLACENTIA
Rich Heritage, Bright Future
Proposed Changes
• Adjustments to salaries in accordance with anticipated merit increases and assumptions for in -progress labor
negotiations
Police Department
• Proposed addition of one Sergeant
Need for additional personnel to maintain adequate staffing and will decrease overtime in the Sergeant ranks
• Proposed addition of one Police Records Specialist
Position needed to relieve IT Sergeant from duties associated with providing body worn camera footage, due to the State mandated change requiring court packets to be responded to within 48 hours and to provide more counter hours to the public ;;+++
rrir:1 Position Allocation
PLACENTIA
Rich Heritage, Bright Future
Proposed Changes
Finance
• Proposed reclassification of an Account Clerk to
Accounting Technician
Better reflects the duties being done and needs of the department Information Technology
• Proposed addition of an IT Technician and IT Specialist to handle duties previously provided by an outside
contractor.
Estimated cost savings of up to $300,000 per year
Staff is researching appropriate staffing levels with possible recommendation for one additional position at mid -year
rrir:1 Position Allocation
PLACENTIA
Rich Heritage, Bright Future
Proposed Changes
Development Services
• Proposed reclassification of a Senior Planner to a
Planning Manager
• Proposed reclassification of a Senior Code Enforcement Officer to a Code Enforcement Supervisor
• Proposed addition of 1.0 FTE Code Enforcement Officer • Proposed addition of 1.0 Building Permit Technician
• Proposed addition of 1.0 Plans Examiner
*Costs of proposed changes in Development Services
are offset by reduction in contract expenses
rrir:1 Position Allocation
PLACENTIA
Rich Heritage, Bright Future
Proposed Changes
Public Works
• Proposed addition of a Public Works Manager (Administrative Services) to implement a new asset management program,
complete a facilities condition assessment, implement
recommended changes and manage City maintenance operations and programs in a more proactive manner
Fire & Life Safety
• Proposed reclassification of Patrol Engineer to Firefighter and proposed addition of 2.0 FTE Firefighters
Pilot program assigning a Firefighter to the patrol unit on all three shifts. The City has submitted an application for grant funds to cover expenses with results announced in September
PLACENTIA
Rich Heritage, Bright Future
Position Allocation
Proposed Changes
Administrative Services
• Proposed transfer in and reclassification of an Assistant to the City Administrator to Deputy Director of Administrative Services to focus on citywide projects and policies
City Administrator's Office
• Proposed transfer in and reclassification of a Management Analyst to Communications & Marketing Manager to create and implement a comprehensive citywide communications and marketing strategic plan, government relations and conduct public information duties • Proposed addition of 1.0 FTE Senior Management Analyst to focus on economic development
PLACENTIA
Rich Heritage, Bright Future
Position Allocation
Proposed Changes
Community Services
• Proposed addition of 1.0 FTE Facilities Maintenance
Technician to address significant backlog in facility
maintenance and day-to-day needs of the department to
ensure consistent or increased rental of city facilities
PLACENTIA
Rich Heritage, Bright Future
180
140
100
60 20
Citywide FTE by Department
188.0 FTE
200.0 FTE
1 FY22/23 Amended FY23/24 Proposed
■ Admin. Svcs ■ Comm Svcs ■ Finance ■ Fire ■ Dev Svcs ■ Police ■ PW ■ City Administrator Excludes Over -hires
01111,•
}
1 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
PLACENTIA
Rich Heritage, Bright Future
FY 2023/24 - Measure U
Contributions to Reserves
Reserve target of 25% has been met
2023-24 Proposed Measure U Budget - $9,200,000
Current Allocations
Infrastructure, Vehicles, and Equipment
Post -Employment Benefits Sustainability*
Employee Recruitment and Retention (including
additional staff)
General Fund Unassigned Fund Balance
After GF Reserve
Target Met*
Amount
50% $4,600,000
10% $1,690,595
30% $2,760,000
10%
$920,000
*Includes one-time additional $770,595 from Measure U Fund Balance for payment to Section 115 Trust
pur
Measure U Historical Performance
PLACENTIA
Rich Heritage, Bright Future
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
Measure U Revenue
1,000,000
FY18/19
FY19/20 FY20/21
FY21/22 FY22/23 Proj. FY23/24 Prop.
*Measure was approved by voters in 2018 and became effective April 2019
Estimated Endin: Fund Balance 6 30 24
Projected Operating Expenditures
25% FB Target
Mir
PLACENTIA
Rich Heritage, Bright Future
FY 2023/24 Proposed General Fund -
Fund Balance
Estimated Be: innin: Fund Balance 7 1 2023
Projected Change in Fund Balance
Projected Ending Fund Balance at 6/30/24
Fund Balance Designations
Non -Spendable
Restricted
General Fund Reserve
Contingency Reserve
Unassigned Fund Balance
General Fund Operating Reserve %
(2,311,405)
19,114,589
2,128,711
6,478,600
4,001,682
6,505,596
Contingency Reserve/Unassigned
Fund Balance
4— Projected- 41%
4— Goal- 25%
41,921,129
10,480,282
41%
PLACENTIA
Rich Heritage, Bright Future
Capital Improvement
Program (CIP)
rurra
ord.‘
PLACEN TIA
Rich Heritage, Bright Future
Capital Improvement
Program (CIP)
• The City's Capital Improvement Program (CIP)
identifies major public improvements to the City's
infrastructure for the next year and includes new
projects and carryover projects from previous years
encompassing upgrades to existing facilities as well as rehabilitation of streets and roadways.
PLACENTIA
Rich Heritage, Bright Future
Capital Improvement
Program (CIP)- Project Types
Project Type
Streets & Streetscapes
Traffic and Transportation
Sewer
Storm Drain
City Buildings & Facilities
Technology
Parks
Vehicles
Major Studies
New Projec
Count
Total
Of Total Projects
CIP with
Fun' Carryover
$6,626,310 60% 16
3 435,000 4% 10
0 0% 1
0 0% 1
0 1,782,000 16% 25
125,000 1% 5
4 889,280 8% 24
2 415,000 6% 3
4 400,000 4% 11
22 $10,672,590 100% 96
PLACENTIA
Rich Heritage, Bright Future
CIP Projects by Funding Source
Measure M
$600,000
Dev. Impact Fees
$835,000
Total Parks
600,000
50,000
$889,280
PLACENTIA
Rich Heritage, Bright Future
CIP Projects- Parks
1 Tuffree Park Sidewalk Replacement Project
Gomez Park and Playground Renovation Project
Tuffree Park Sports Fields Lights
Koch Park Sidewalk Replacement Project
$54,280
185,000
Amount
PLACENTIA
Rich Heritage, Bright Future
CIP Projects- Streets
Crowther Avenue Street Resurfacing Project
Bastanchury Road Landscaped Median Renovation Project
Phase 1 - City Limit to Placentia Avenue
Yorba Linda Boulevard Landscaped Median Renovation
Project
FY 2022-23 Roadway Rehab Construction
Citywide Sidewalk Repair Program
City General Wayfinding Signage (No Monument or Gantry
Signs)
City Intersection Street Name Sign Replacement (Wayfinding) Total Streets
250,000
63,155
63,155
5,400,000
150,000
200,000
500,000
$6,626,310
Admin Office Improvement Project
PLACENTIA
Rich Heritage, Bright Future
CIP Projects- City Buildings
Civic Center EV Charging Stations
Senior/Community Center A&E Design Completion
EOC Office Renovation
Fire Stations Roof Replacement Project
227,000
1,100,000
180,000
25,000
250,000
Total City Buildings $1,782,000
Amount
Rich Heritage, Bright Future
CIP Projects -Other
Type of Project
Traffic
•
TOD Traffic Mitigation Improvement Project
300,000
Traffic
Opticom Traffic Signal Preemption Devices - 9 intersections 110,000
Traffic
Traffic Signal Back -Up Batteries
25,000
Technology
Desktop Computer Replacement Program
75,000
Technology
City Facilities Server/Network Upgrades
50,000
Vehicles
PD Patrol Units Replacement (7)
325,000
Vehicles
PW Light Duty Truck Replacement (2)
90,000
Major Studies
ADA Transition Plan
150,000
Major Studies
IT Strategic Plan & Smart City Master Plan
100,000
Major Studies
Major Studies
PW Maintenance Master Plan & Condition Assessment
Communications/Marketing Strategic Plan
Total Other
100,000
50,000
$1,375,000
PLACENTIA
Rich Heritage, Bright Future
Recommendations
It is recommended that the City Council take the following actions:
1. Review and discuss the Proposed FY 2023-24 Annual
Operating Budget and CIP and provide input and
direction for final budget adoption; and
2. Set the date of the public hearing for budget adoption as June 6, 2023, at 7:00 p.m.
Questions?
PLACENTIA
Rich Heritage, Bright Future
PLACENTIA