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SUMMARY:
Placentia City Council
AGENDA REPORT
CITY COUNCIL
PLACENTIA PUBLIC FINANCING AUTHORITY
CITY ADMINISTRATOR
DIRECTOR OF FINANCE
JUNE 6, 2023
CITY OF PLACENTIA FISCAL YEAR 2023-24 ANNUAL OPERATING BUDGET,
POSITION ALLOCATION PLAN, ANNUAL GANN APPROPRIATIONS, CAPITAL
IMPROVEMENT PROGRAM, AND PLACENTIA PUBLIC FINANCING
AUTHORITY ANNUAL BUDGET
General Fund
Special Revenue
Debt Service
Enterprise
Internal Service
Fiduciary
Totals
Revenues &
s -s
$49,801,418
19,249,880
403,750
6,209,550
3,743,500
5,447,035
84,855,133
Expenditures & Transfers
$52,282,523
17,809,653
403,750
6,430,930
3,743,500
5,431,035
86,403,091
The City's budget is an important policy document, serving as the annual financial plan that identifies the spending priorities for the organization. The budget is used to balance available resources with community needs, as determined by the City Council. The City's fiscal priorities include keeping the City safe, clean, and well maintained, in addition to protecting the quality of life and property values.
The budget also serves as a tool for communicating the City's financial strategies and for ensuring accountability.
The City is required to adopt a budget by July 1 of each year which establishes appropriations and estimated revenues for the fiscal year. In compliance with the City Charter Section 1203, the Proposed Budget and Capital Improvement Program (CIP) for Fiscal Year 2023-24 was presented for City Council review on May 16, 2023. Since the May 16th meeting, there have been a few minor revisions made to the Proposed FY 2023-24 budget including the proposed reclassification of a Community Services Supervisor, the addition of funding for design of a dog park and chargers for electric vehicles at Old City Hall to the CIP and funding to support economic development efforts by the Chamber of Commerce.
2.a.
June 6, 2023
City Council Agenda
June 6, 2023
In addition to budget adoption, Article XIII B of the State Constitution requires that each California local government adopt an Annual Appropriations Limit (GANN) each year. This action will approve the use of the County's population growth and California per capita income growth in calculating the FY 2023-24 Annual Appropriations Limit and the resolution adopting the City's FY 2023-24 Annual Appropriations Limit, as required by law.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Open the Public Hearing concerning the City of Placentia Budget for Fiscal Year 2023-24 and Capital Improvement Program (CIP) for Fiscal Year 2023-24, consider all public testimony, ask questions of Staff, and close the public hearing; and
2. Adopt Resolution No. R-2023-42, a Resolution of the City Council of the City of Placentia, California, taking actions necessary to adopt the Fiscal Year 2023-24 Annual Budget; and taking actions necessary to adopt the Fiscal Year 2023-24 Capital Improvement Program (CIP) Budget with an appropriation of $12,302,590; and authorizing the Position Allocation Plan and Compensation Plan for Fiscal Year 2023-24; and
3. Authorize the City Administrator to release appropriation controls for the General Government Department and Risk Management fund outside of the normal quarterly process, as necessary; and
4. Approve the use of the County's population growth and California per capita income growth as determined by the State Department of Finance for the calculation of the Fiscal Year 2023-24 Annual Appropriation Limit; and
5. Adopt Resolution R-2023-43, a Resolution of the City Council of the City of Placentia, California, approving and adopting the Annual Appropriations Limit for the Fiscal Year 2023-24 in the amount of $112,870,414.
It is recommended that the Placentia Public Financing Authority take the following actions:
1. Conduct the Public Hearing concerning the Placentia Public Financing Authority Budget for Fiscal Year 2023-24; and
2. Adopt Resolution No. PPFA-2023-01, a Resolution of the Placentia Public Financing Authority (PPFA) Board of Directors of the City of Placentia, California, taking actions necessary to adopt the PPFA's Fiscal Year 2023-24 Annual Budget.
City Council Agenda
June 6, 2023
DISCUSSION:
The proposed FY 2023-24 citywide operating budget is $86A million, an increase of 8% over the Adopted FY 2022-23 budget. These expenses are supported by $84.9 million in revenue, an increase of 3.6% from the current fiscal year's Adopted budget. These total figures reflect revenues and expenses for all funds citywide including the General Fund, Enterprise Funds, Debt Service Funds and Special Revenue Funds and are broken down in the table below.
Fund T se
Revenues &
Transfers In
Expenditures &
Transfers Out
Net Incr/ Decr
General Fund
Special Revenue
Debt Service
Enterprise
Capital Projects Fund
Internal Service
Fiduciary
Agency Fund
Totals
GENERAL FUND
$49,801,418
19,249,880
403,750
6,209,550
3,743,500
3,819,000
1,628,035
$85,855,133
$52,282,523
17,809,653
403,750
6,430,930
281,700
3,743,500
3,819,000
1,632,035
$86,403,091
($2,481,105)
1,440,227
(221, 380)
(281,700)
(4,000)
(1,547,958)
The General Fund is the primary operating fund of the City and supports fundamental services including Police, Fire & Life Safety, Development Services, Community Services and general administration. Revenue for this fund comes from general taxes such as property tax, sales tax, transfers from Measure U, transient occupancy taxes as well as a variety of user and permit fees and other smaller sources. The Proposed Budget for FY 2023-24 for the General Fund is $52.3 million in operating expenses supported by $49.8 million in operating revenue, with the planned use of unassigned fund balance to support the difference. Unassigned fund balance is the term used for funds accumulated through managed savings and/ or higher than anticipated revenues in prior years that are in addition to the City's twenty-five percent (25%) contingency reserve.
The proposed use of unassigned fund balance does not indicate a structural deficit but is recommended to be used for one-time capital needs to address aging facilities and technology and is not intended to support the day-to-day operations of the City.
General Fund Revenue
The Proposed FY 2023-24 General Fund Operating Budget includes revenues of $49.8 million, which reflects a decrease of $5.6 million or 10% from the Amended FY 2022-23 budget. This decrease is primarily due to funds from the American Rescue Plan Act (ARPA) included in the Amended FY 2022-23 budget that are not included in the Proposed FY 2023-24 budget.
City Council Agenda
June 6, 2023
Property Tax revenue in FY 2023-24 is projected to be $19,578,023, an increase of $1,185,089 over the FY 2022-23 Adopted budget. Increases in property tax are due to a combination of property turnover and resulting reassessments and the two percent per year inflation factor for property assessments allowable under Proposition 13.
Sales Tax, excluding Measure U, is projected to increase by approximately 2.2% in FY 2023-24 from the Amended FY 2022-23 budget and totals approximately $9.2 million. This increase is attributable to a combination of sales derived from new businesses within the community, inflationary impacts on the cost of goods and the impact of the South Dakota vs. Wayfair case.
The Wayfair case was decided by the Supreme Court in 2018 and was implemented in California in April 2019. The case, and subsequent state legislation requires online retail sellers to collect and remit sales tax on taxable sales shipped into the state. Revenue from the tax is then allocated to a countywide pool based upon the point of delivery of the product purchased. As online shopping has surged in popularity both before and during the pandemic, the City's portion of the countywide pool has increased dramatically and accounted for 16% of the City's total sales tax as of the quarter ending December 2022, down from a high of 21% for the quarter ending December 2020.
Transient occupancy tax (TOT), otherwise known as "the bed tax" is tax paid by visitors staying overnight in one of our local hotels and/or short-term rentals operating within the City. The Proposed Budget assumes $1,475,000 in revenue, 8% higher than the FY 2022-23 Adopted Budget. This large increase is due to a combination of increased travel as the public becomes comfortable travelling post pandemic shutdowns, higher nightly hotel rates and a slightly higher number of short-term rentals operating within the City.
Fines & Forfeitures are projected to increase 20% from the prior fiscal year due to the projected increase in staffing levels for the Police Department and allowing for motor officers, as well as anticipated increases in administrative citations due to the addition of one full time Code Enforcement Officer.
City Council Agenda
June 6, 2023
Revenue
FY 2022/23
Amended Budget
FY 2022/23
Year End FY 2023/24
Estimates Proposed Budget
Variance to
Amended
Budget
Property Taxes
Sales & Use Taxes
Other Taxes
Permits/Licenses
Fines & Forfeitures
Intergovernmental
Charges for Services
Miscellaneous
Total Operating Revenues
Transfers In
Measure U Transfers -In
Employee Retention
Measure U Reserve
OPEB
Total Transfers In
$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
1,547,973
2,655,000
885,000
5,087,973
$18,438,083
8,975,000
7,104,140
2,530,907
383,298
9,176,239
1,418,548
2,146,809
50,173,024
868,618
2,655,000
885,000
4,408,618
Total Resources $55,406,705 $54,581,642
General Fund Expenditure Highlights
$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
1,047,800
2,760,000
920,000
1,690,595
6,418,395
$49,801,418
6.2%
2.2%
(0.1%)
12.1%
20.0%
(96.7%)
0.6%
25.0%
(13.8%)
(32.3%)
4.0%
General Fund expenditures are broken into three distinct types- operating, debt service and capital. Operating expenses are those required to support the day-to-day operations of the City including personnel expenses, professional services, maintenance expenses and training and are supported by revenue generated in the same fiscal year the expenses occur. Debt service supports the principal and interest payments on loans and bonds the City has used to finance capital projects and/or pension obligations. Capital expenses are one-time expenditures for Targe purchases such as vehicles, technology upgrades and other equipment that has a useful life exceeding one year and are typically funded with one-time funding sources such as reimbursements, development agreements, or the use of unassigned fund balance.
The Proposed FY 2023-24 General Fund Budget includes $42.0 Million in department expenses, $6.1 million for debt service and transfers and $4,264,280 in capital expenditures. This represents a decrease of 4% for the General Fund from the current fiscal year's amended budget. As presented, the Proposed Budget is balanced, maintains, or enhances city service levels while fully funding the General Fund contingency reserve at 40%.
Variance ,
City Council Agenda
June 6, 2023
Proposed General Fund budgets for the respective departments are listed below:
De•artments
FY 2022/23
Amended Budget
FY 2023/24
Proposed Budget
Legislative
City Administrator
Administrative Services
Finance
Development Services
Police
Fire & Life Safety
Public Works
Community Services
General Government
Total Department Expenses
Capital Improvement Program
Transfers Out
Debt Service
Total Expenditures
Significant Changes
$1,124,000
633,100
5,870,871
1,222,250
1,835,200
12,872,739
4,337,000
4,758,665
2,728,980
5,224,700
40,607,505
12,615,484
37,500
5,215,750
58,476,239
$1,004,000
1,010,377
6,002,513
1,305,000
1,571,100
13,612,323
4,503,794
4,795,070
2,947,452
5,209,200
41,960,829
4,264,280
36,214
6,021,200
52,282,523
(10.7%)
59.6%
2.2%
6.8%
(14.4%)
5.7%
3.8%
0.8%
8.0%
(0.3%)
3.3%
(66.2%)
(3.4%)
15.4%
(10.6%)
Administrative Services increases are caused by the transfer and reclassification of one position from the Development Services department as well as funding for a citywide classification and compensation study per the City Council approved Strategic Plan. In addition, the City is proposing bringing Information Technology (IT) services in-house with the addition of two (2) IT staff positions. This change will give the City greater control, security and improved customer service over its information technology system and is expected to save approximately $300,000 annually based upon the results of the recent RFP conducted for IT Managed Services.
Development Services is decreasing due to the transfer of one position to Administrative Services, two positions to the City Administrator's office as well as a restructuring of the department's organization chart bringing certain positions in-house with a corresponding decrease in contract services.
City Administrator's Office expenses are increasing due to the transfer of two positions from Development Services including the reclassification of an existing position to establish a Communications and Marketing division which will focus on a unified communications and marketing plan. In addition, this will be the first time the City is investing in a stand-alone economic development position to provide more emphasis on citywide economic development projects and affordable housing.
City Council Agenda
June 6, 2023
Debt Service- Debt service expenses are increasing due to the planned issuance of debt to fund the construction of the public safety building.
Other Post -Employment Benefits (OPEB)- The City established a Section 115 trust to mitigate potential investment losses from CaIPERS and pre -fund OPEB expenses. The City's most recent actuarial study showed an unfunded OPEB liability of approximately $33 million, with 0% funded.
In Fall 2022 City Council directed staff to transfer $2.4 million from bond proceeds to the Section 115 trust and approved a Section 115 Trust funding policy aimed at reducing the OPEB liability.
The Proposed FY 2023-24 budget includes a transfer of $770,000 which had been committed for OPEB costs within the Measure U fund balance for several years while the Section 115 trust was implemented, and a policy approved.
Once transferred from the Measure U fund, this $770,000 will be sent to the Section 115 trust, reducing our other post -employment benefits liability on the City's balance sheet and may be used to make payments to retirees for health insurance and/or make payments to CaIPERS. Staff will be presenting OPEB funding strategies to the City Council at a separate meeting in July 2023.
Policy 460 - In October 2022 the City Council modified Policy No. 460 which guides the allocation of funds received from Measure U. Previously, once the City had achieved a reserve level of 25% the allocation of Measure U monies was the following: 60% to infrastructure, 30% for employee recruitment and retention, and 10% for Other Post -Employment Benefits (OPEB). The update modified the allocation to be: 50% allocated to infrastructure, 30% transferred to the General Fund for employee recruitment and retention, 10% to OPEB and the remaining 10% transferred to the Measure U Contingency Reserve. Transfers in from the Measure U fund total $2,760,000 for employee retention, $1,690,595 (inclusive of the $770,000 discussed above) for OPEB, and $920,000 for reserve funding for FY 2023-24.
While Measure U has enabled the City to make significant investments in infrastructure over the past few years, there are still substantial facilities, roads and other infrastructure needs that are outstanding including street paving, sidewalks, and pothole repair. The 10% reduction in infrastructure allocation from the Measure U Fund has resulted in the need for the General Fund to contribute to capital expenses to support much needed projects. The Citizen's Oversight Committee, which oversees spending of Measure U monies met with Staff and recommended maintaining the current allocation percentages and using unassigned fund balance generated from historically managed budget savings to support capital needs that exceed funds available in the Measure U fund. Those projects include citywide wayfinding signage, completion of the Senior/ Community Center design, which is partially funded by revenue from a development agreement and a grant, an ADA transition plan, IT Strategic Plan, Unified Communications and Marketing plan, citywide facilities needs and condition assessment and maintenance master plan as well as smaller projects.
The total amount of capital projects funded by unassigned fund balance in the General Fund is $2,264,280 with an additional $2,000,000 supporting the public safety center building and the EIFD.
City Council Agenda
June 6, 2023
Fund Balance
The estimated beginning fund balance for FY 2023-24 is $21.4 million, of which $19.3 million is designated as General Fund contingency reserve/unassigned. As a result of operations in FY 2023-24, it is anticipated that the fund balance will decrease by $2.5 million for an ending fund balance of $18.9 million of which $16.8 million is designated as General Fund contingency reserve/unassigned. Based upon a 25% funding target for the General Fund reserve, it is forecasted that the reserve will be funded at 40% of General Fund operating expenses by the end of FY 2023-24.
Estimated Be • inning Fund Balance 7/1/23 $21,425,994
Projected Revenue
Projected Expenses
Change in Fund Balance
Fund Balance Designations
$48,881,418
($52,282,523)
($2,481,105)
Non -Spendable $2,128,711
Measure U Reserve $4,001,682
Contingency Reserve $6,488,525
Unassigned $6,325,971
2022-23 Fund Balance Target
Proposed Budgeted Operating Expenditures
25% FB Target Amount
Projected Ending Balance
General Fund Operating Reserve %
Other Funds
$41,960,829
$10,490,207
$18,944,889
40%
The proposed FY 2023-24 citywide operating budget is $86.4 million, an increase of 8.0% over the Adopted FY 2022-23 budget. These expenses are supported by $84.9 million in revenue, an increase of 3.6% from the current fiscal year's adopted budget. These total figures reflect revenues and expenses for all funds citywide including the General Fund, Enterprise Funds, Debt Service Funds and Special Revenue Funds.
Enterprise Funds are proprietary funds supported by user fees and charges. The rates charged to customers for these services cover the costs of operation, maintenance and capital and infrastructure improvements. The City maintains two Enterprise Funds including Sewer and Solid Waste (Refuse). Expenditures for FY 2023-24 for these funds are proposed to be $6.4 Million for both operating and capital expenses.
Internal Service Funds, including employee health and welfare, risk management, and equipment replacement account for activities provided to one City department by another City department.
City Council Agenda
June 6, 2023
The Proposed FY 2023-24 budget includes $3.7 million in funding for these funds.
Special Revenue Funds are funds legally restricted to a specific purpose. Examples of Special Revenue Funds include the Gas Tax Fund and the Community Development Block Grant (CDBG). In total, expenses in Special Revenue Funds are proposed at $17.8 million for FY 2023- 24 inclusive of Measure U.
Position Allocation (Staffing)
The FY 2023-24 Proposed Budget includes 200 authorized full-time equivalent (FTE) positions,
7.0 elected officials as well as authorization for 4.0 FTE unfunded overhires in the Police and Public Safety Communication Departments. The Proposed Budget includes any changes to staffing levels that were approved in FY 2022-23.
In addition, the following changes to personnel are recommended in the 2023-24 budget:
1. One (1.0) new Facilities Maintenance Technician ($87,090 annual cost) in the Community Services Department. This position is necessary to address a significant backlog in facility maintenance and manage day-to-day needs of the department to ensure consistent or increased rental of city facilities.
2. One (1.0) new Police Sergeant ($164,000 annual cost) in the Police Department. This position was eliminated several years ago and is needed for appropriate supervision, training staff, and ensuring proper upkeep of department records and policies as well as ensuring full coverage during an operating shift in the Department.
3. One (1.0) new Police Records Specialist in the Police Department ($77,600 annual cost).
This position is needed to assume duties related to body worn camera data currently being handled by an IT sergeant as well as comply with court requirements for reports to be submitted within a 48-hour timeframe. In addition, this position will assist the Department in opening the front counter for additional time periods to serve the public.
4. One (1.0) new Code Enforcement Officer ($92,630 annual cost) in the Development Services department. Currently there are two part-time Code Enforcement Officers serving the City however after reviewing surveys of other like -sized agencies and the increasing needs within the City, Staff is proposing the addition of one full-time Code Enforcement Officer with a corresponding $29,000 decrease in part-time salaries. With two full-time code enforcement officers it is anticipated there will be increased revenue from administrative citations to offset this expense.
5. One (1.0) new Building Permit Technician ($80,400 annual cost) within the Development Services department. This position was previously staffed by an outside contractor and is recommended to be brought in-house to better support the needs of the development community and reduce costs. Bringing this service in-house would save approximately $34,500 annually compared to contracting for similar services and will ensure redundancy and the proper allocation of staffing at the front counter while also improving customer service.
City Council Agenda
June 6, 2023
6. One (1.0) new Plans Examiner ($157,660 annual cost) in the Development Services department. This position was previously staffed by an outside contractor and is recommended to be brought in-house to better support the needs of the development community, reduce costs and better streamline the plan check reviewing process. Bringing this service in-house would save approximately $52,000 annually compared to contracting for similar services.
7. One (1.0) new Senior Management Analyst ($133,345 annual cost) in the City Administrator's Office to focus on citywide economic development and affordable housing projects within the City.
8. Two (2.0) new Firefighters ($213,280 annual cost) in the Fire & Life Safety department.
These positions are part of a pilot program to staff the patrol vehicle and supplement staffing on each shift. The cost of these positions will be partially offset by filling overtime vacancies, potential strike team revenues, if applicable, as well as the potential receipt of FEMA grant funds.
9. Reclassification of one (1.0) Patrol Engineer ($11,370 annual savings) to Firefighter in the Fire & Life Safety department. This position is currently vacant and has historically been difficult to fill given the unique nature of the schedule. After analysis by Staff, it is recommended to reclassify this position to allow greater staffing flexibility, more coverage for all shifts and overtime savings in accordance with the aforementioned pilot program.
10.One (1.0) new Information Technology Specialist ($133,345 annual cost) in the Administrative Services Department. These duties were previously provided by an outside contractor; however, Staff is recommending bringing these services in-house for greater control, improved customer service and cost savings. Estimated costs of contracting out similar services are $650,000. Bringing the service in-house could potentially save $300,000 or more annually.
11 One (1.0) new Information Technology Technician ($90,105 annual cost) in the Administrative Services Department. These duties were previously provided by an outside contractor; however, Staff is recommending bringing these services in-house for greater control, improved customer service and cost savings. Estimated costs of contracting out similar services are $650,000. Bringing the service in-house could potentially save $300,000 or more annually.
12.One (1.0) new Public Works Manager ($146,950 annual cost) in the Public Works Department. This position is needed to manage the corporate yard, coordinate a citywide maintenance and operations plan and facilities condition/needs assessment, develop new maintenance software and train all staff to ensure more proactive maintenance of city facilities, as well as manage citywide maintenance contracts.
13. Reclassification of a Senior Planner to a Planning Manager ($11,500 annual cost) in the Development Services department to better reflect the duties currently being done and the needs of the department and for succession planning.
City Council Agenda
June 6, 2023
14. Reclassification of one Senior Code Enforcement Officer ($6,423 annual cost) in the Development Services department to Code Enforcement Supervisor to better reflect duties currently being done and the need for formal supervision within the division.
15. Reclassification of a Management Analyst to a Communications & Marketing Manager ($13,533 annual cost) to create and implement a comprehensive and unified communications and marketing strategic plan, conduct all public information officer related duties, handle government relations, coordinate grant funding with the City's lobbyist and facilitate special projects.
16. Reclassification of an Account Clerk to an Accounting Technician in the Finance Department ($6,492 annual cost) to better reflect the duties currently being done and the needs of the department.
17. Reclassification of an Assistant to the City Administrator to a Deputy Director of Administrative Services ($11,162 annual cost) to focus on conducting a Class and Comp Study, establishing a medical provider network plan to reduce workers compensation claims, updating the City's Personnel Rules and Administrative Policy Manual and evaluating the City's insurance pool. This position will also provide support and complex assistance in updating multiple policies within Human Resources while also establishing a health and wellness division in Human Resources. This position is being recommended to better reflect the needs of the department while ensuring succession planning.
18. Reclassification of a Community Services Supervisor to a Deputy Director of Community Services ($9,400 annual cost) in the Community Services department to better reflect the duties currently being done and the needs of the department and for succession planning.
City Council Agenda
June 6, 2023
200
180
160
140
120
100
80 60
40 20
187.0 FTE
FTE Count by Department
(Excludes Overhires)
28 11.35
28 9
28 200.0 FTE
30 30
10 31
FY22/23 Amended FY23/24 Proposed
■ Admin Svcs • Comm Svcs Finance ■ Fire Dev Svcs Police • PW City Admin.
Capital Improvement Program
The City's Capital Improvement Program (CIP) identifies major public improvements to the City's infrastructure over the next several years and includes new projects, upgrades to existing facilities as well as rehabilitation of streets and roadways. Funding for projects scheduled for FY 2023-24 are included in the proposed budget, with the majority of the scheduled projects funded by Measure U, Gas Tax, Development Impact Fees (DIFs), the General Fund, grants and other reimbursements. The proposed CIP for FY 2023-24 includes 32 new projects for a combined total of approximately $12.3 million.
Major projects scheduled include citywide wayfinding signage, roadway rehabilitation, information technology (IT) infrastructure replacement to address aging servers and technology, completion of the Senior Center/ Community Center design, design of a potential dog park, and Gomez Park playground renovation.
In addition to the projects referenced above, the proposed budget also includes a continued investment within the City's parks and open spaces in accordance with the recently adopted Parks Initiative approved by the City Council on March 18, 2021.
As previously mentioned, Policy 460 was amended in October 2022 reducing the allocation of Measure U funds for infrastructure from 60% to 50% effective FY 2023-24. While funding reserves is a prudent use of Measure U funds, the City is facing significant infrastructure needs including street repairs, both arterial and residential, significant citywide facility repairs and upgrades, fleet
City Council Agenda
June 6, 2023
needs as well as park upgrades. To address the immediate needs, Staff is proposing the use of $2.3 million in unassigned fund balance within the General Fund for projects outlined below:
• Wayfinding signage
• Senior/Community Center Design
• Improvements to Administration office
in City Hall
• Communications & Marketing
Strategic Plan
• Outfitting of new Police patrol units
• ADA Transition plan
• IT Strategic Plan & Smart City Master
Plan
• Public Works Maintenance Master Plan
& Facility Condition Assessment
• Potential dog park design
In addition, Staff is proposing the use of $2 million in General Fund monies to provide additional funding for the public safety building ($1.0 million) and as a loan to initiate the Enhanced Infrastructure Financing District (EIFD) project ($1.0 million). This collective $2 million is needed as a direct result of significantly increased costs for both projects and is representative of cost increases the City has seen on almost all projects put out to bid within the past year, in some instances double the engineer's estimate. The EIFD is a partnership between the City and the County of Orange created to fund streetscape and other infrastructure improvements within the identified district and is designed to encourage private development in the area with a corresponding increase in property values, jobs, and economic activity. Information regarding the EIFD is available on the City's website.
While cost increases have been discouraging, some positive highlights included within the proposed CIP is the award of $500,000 in grant funds from County Supervisor Chaffee's office as well $600,000 from a new development agreement to fund the completion of the Senior/ Community Center design. The City consistently seeks grant funds to support capital projects whenever possible to address the substantial capital improvement needs that are currently unfunded.
Due to the scale and complexity of capital improvement projects, they often span two or more fiscal years. In addition to the 32 new projects proposed for FY 2023-24, previously approved projects that are in progress and not yet complete will be carried over into FY 2023-24 after the close of the 2022-23 fiscal year by a separate City Council action. Including both new and carryover projects, the City is actively working on 101 CIP projects.
City Council Agenda
June 6, 2023
FY 2023/24 Proposed CIP by Funding Source
Sewer
4%
Misc.
Other
Sources
5%
Dev. Impact--
Fees
mpact-Fees
6%
The total amount of funding by project type is
outlined in the table below:
Project Type
Project
Count
• % Of Total
Amo71 CIP Funding
Streets & Streetscapes
Traffic and Transportation
Sewer
City Buildings & Facilities
Technology
Parks
Vehicles
Major Studies
Total
Prepared by:
Jenrfifer Lampman
Director of Finance
Reviewe-d 9nc"approved:
Luis Estevez
Director of Public Works
7 $6,626,310
4 485,000
1 600,000
7 2,832,000
2 125,000
5 969,280
2 265,000 2%
4 400,000
32 $12,302,590 100%
54%
4%
5%
23%
1%
8%
3%
Reviewed and approved:
Damien R. Arrula
City Administrator
City Council Agenda
June 6, 2023
Attachments:
1. Proposed FY 2023-24 Operating and CIP Budgets
2. Resolution R-2023-42 - 2023-24 Budget Resolution
a. Exhibit A — FY23-24 Position Allocation Plan
b. Exhibit B — Salary Schedule
3. Resolution R-2023-43 - Annual Gann Appropriations Limit Resolution
4. Resolution PPFA-2023-01 - Budget Resolution
5. PowerPoint Presentation for Operating and CIP Budgets