TO:
VIA:
FROM:
DATE:
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF FINANCE
SEPTEMBER 5, 2023
Placentia City Council
SUBJECT: FY 2023-24 FIRST QUARTER BUDGET REPORT
FISCAL
IMPACT:
Fund
General Fund
Special Revenue
Capital Projects
Enterprise Funds
Financing Authority
Total
SUMMARY:
AGENDA REPORT
Revenues
(Including Transfers -In)
$ 2,818,065
$ 1,898,611
$ 4,197, 362
$ 929,800
$ 264,700
$10,108,538
Appropriations
(Including Capital &
Transfers -Out)
$ 4,657,930
$ 9,986,180
$ 3,704,252
$ (770,039) 1
$ 264,700
$17,843,023
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 2023-24, covering the period through August 31, 2023.
RECOMMENDATION:
It is recommended that the City Council take the following action:
1. Approve the First Quarter Budget Report and adopt Resolution No. R-2023-76, amending the City's FY 2023-24 Budget; and
2. Approve the corrected Salary Master Schedule.
1.h.
Sept. 05, 2023
City Council Agenda
September 5, 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 General Fund FY 2023-24 Amended Budget includes revenues of $50.8 million and expenditures of $50.1 million. The proposed budget adjustments in the FY 2023-24 First Quarter Budget Report include an increase to revenues of $1.7 million and a decrease in expenditures of $213,563. 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 2022-23 ARPA funded Capital Improvement Projects that were not completed in the previous fiscal year.
Adopted Amended
II p iv 41
Requests Amended
Revenue
Property Taxes 19,578,023 19,578,023
Sales & Use Taxes 9,175,000 9,175,000
Other Taxes 7,905,500 7,905,500
Permits/ Licenses 2,802,000 2,802,000
Fines & Forfeitures 452,500 452,500 -
Intergovernmental 312,000 312,000 1,642,875
Charges for Service 1,514,000 1,514,000 -
Misc. Revenue 2,454,000 2,454,000 -
Subtotal Revenues 44,193,023 44,193,023 1,642,875
19,578,023
9,175,000
7,905,500
2,802,000
452,500
1,954,875
1,514,000
2,454,000
45,835,898
Operating Transfers -In 1,047,800 1,047,800 4,950 1,052,750 Measure U Transfer In: -
Employee Retention 2,760,000 2,760,000 - 2,760,000
OPEB 1,112,649 1,112,649 - 1,112,649
Subtotal Transfers -In 4,420,449 4,920,449 4,950 4,925,399 Total Operating
Resources 49,113,472 49,113,472 1,647,825 50,761,297
Revenue budget adjustment requests include the following:
• Intergovernmental — Recognize revenue of $1,642,875 for remaining American Recovery Plan Act ("ARPA") that is unspent.
• Operating Transfers -in — Record $4,950 transfer from Technology Fee Fund for the additional modules for the permit tracking software.
City Council Agenda
September 5, 2023
Operating
Expenditures
Legislative
City Administrator
Administrative Services
Finance
Development Services
Public Safety -Police
Fire & Life Safety
Public Works
Community Services
General Government
Subtotal Operating
Expenditures
Non -Operating
Expenditures
Interfund Transfers Out
GF Debt Service
Subtotal Non -
Operating
Expenditures
Total Operating
Expenditures
r I, 1 I 1 .i
Adopted Amended Requests Amended
1,004,000 1,004,000
1,085,823 1,085,823
6,133,073 6,133,073
1,305,000 1,305,000
1,571,100 1,571,100
14, 535, 811 14, 535, 811
4,746,706 4,746,706
4,795,070 4,473,270
2,947,452 3,269,252
5,557,200 6,262,549
43,681,235 44,386,584
36,214 36,214
6,021,200 6,021,200
6,057,414 6,057,414
49,738,649 50,443,998
1,004,000
19,757 1,105, 580
103,425 6,186,498
31,468 1,336,468
43,456 1,589,606
222,253 14,758,064
93,014 4,839,720
78,448 4,551,718
55,265 3,324,517
(630,349) 5,632,200
16,737 44,328,370
(260, 300)
36,214
5,760,900
(260,300) 5,797,114
(243,563) 50,125,485
Notable expenditure budget adjustment requests include the following:
• Operating Departments - Adjustment of adopted MOU one-time payments from estimates adopted by City Council on 7/11/23 (all departments).
• General Government — Addition of $75,000 for administrative costs from the County of Orange for property tax management.
• Public Works — Addition of $10,000 for Maintenance uniforms for that was not included in adopted budget.
• GF Debt Service — Adjustment based on payment schedule per the recently completed bond issuance for Public Service Building.
City Council Agenda
September 5, 2023
1, _ _ . 1 - • , •
Adopted Amended Requests Amended
Other Changes to Fund
Balance
Measure U Reserve
Contribution 920,000 920,000 - 920,000
Capital Projects Revenue 9,989,804 1,170,240 11,160,044 Capital Projects (2,264,280) (14,734,084) (4,900,993) (16,137,560) EIFD Loan (1,000,000) (1,000,000) (1,000,000)
Public Safety Building (1,000,000) (1,000,000) (4,497,517) Net Change to Fund
Balance (3,344,280) (5,824,280) (3,730,753) (9,555,033) Other changes to fund balance includes Capital projects from FY 2022-23 that are being carried forward totaling $4,900,993 and related revenues related to those projects. Please refer to attachments for the detailed list of capital projects being carried forward.
Special Revenue Funds: The Special Revenue Fund FY 2023-24 Amended Budget includes revenues of $12.2 million and expenditures of $15.6 million. The proposed budget adjustments in the FY 2023-24 First Quarter Budget Report include an increase in revenues of $1.9 million and an increase in expenditures of $6.5 million. Approval of this item will result in a net decrease of $4.6 million in the Special Revenue Fund budgetary fund balance. Notable non -capital project adjustments include:
• State Gas Tax — Reduction of revenue by $67,037 based on new estimates received. • Measure M — Increase of expenditures by $47,160 for senior mobility program. • Air Quality Management - Increase of expenditures by $11,740 for senior mobility program. • Placentia Navigation Center — Increase of expenditures by $150,000 from projects not completed in prior fiscal year.
City Council Agenda
September 5, 2023
Capital Projects: The proposed budget adjustment in the FY 2023-24 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 2022-23 Ca • ital Pro'ects to be Carried Forw-
101 General Fund (0010)
117 Measure U Fund (0079)
209 State Gas Tax - RMRA (0060)
210 Measure M (0018)
215 Air Quality Management (0019)
225 Asset Seizure (0021)
233 Gen Plan Update Fees (0074)
234 Technology Impact Fees (0075)
236 Parks & Rec Impact Fees (0063)
237 Citywide Sewer Impact Fee (0064)
238 City Traffic Impact Fees (0065)
240 Sewer Construction (0024)
242 City Pub Safety Impact Fee (0067)
243 City Quimby In Lieu Fee (0069)
246 TOD Traffic Impact Fees (0070)
247 TOD Sewer Impact Fees (0071)
248 TOD Streetscape Impact Fee (0072)
250 Thoroughfare Construction (0026)
270 CDBG Fund (0030)
280 Misc Grants Fund (0050)
283 County Annexation (0084)
401 City Capital Projects (0033)
Total
See attachment for a detailed list of projects.
Revenue Expense
1,170, 240 4,900,993
3,416,207
359,959
-
36,064
- 170,638
- 50,000
73,258
71,385
1,745,589
- 35,269
93,000
(1,800,000)
75,000
1,242,941
20,954
- 307,188
-
7,364
4,172
28,936
1,905,224
1,903,604
119,594
4,197,362 3,704,252
7,301,762 16,537,431
City Council Agenda
September 5, 2023
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
Financing Authority
Total
Prepared by:
Gavin Houn
Sr. Financial Analyst
Reviewed and Approved by:
Damien R—Arrula�
City Administrator
Revenues Appropriations
(Including Transfers- (Including Capital & Transfers -
In)
$ 2,818,065
$ 1,898,611
$ 4,197, 362
$ 929,800
$ 264,700
$10,108,538
Reviewed by:
Jen fifer Lampman
Director of Finance
Out)
$ 4,657,930
$ 9,986,180
$ 3,704,252
_ $ (770,039)1
$ 264,700
$17,843,023
Attachments:
1. Resolution R-2023-76 – Authorizing a Budget Amendment in Fiscal Year 2023-24 a. Exhibit A – Detailed Budget Adjustments
b. Exhibit B- Salary Schedule effective July 1, 2023