EXHIBIT 1
Adjustments to Fiscal Year 2023/2024 General Fund Revenue and Expenditures Revenue Proposed Adjustment Explanation
Property Tax $34,000 Property tax is projected to increase due to higher assessed valuations on residential
properties that have changed ownership.
The projection is based on current
information provided by the City’s property
tax consultant, Hdl.
Sales Tax ($171,560) Sales tax revenue is projected to decrease due the closure of Bed Bath & Beyond stores
with their recently announced bankruptcy.
This also assumes a decrease in County Pool
allocations and fuel prices with decreasing
sales and oil prices coming off historic
highs. This projection is based on current
information provided by the City’s sales tax
consultant, Hdl.
Franchise Fees $139,000 The revised amount is due to slightly higher revenues received from Republic Services
than originally budgeted.
Use of Money and
Property
$199,251 Interest rates have risen significantly over
the last year as the Federal Reserve has tried
to curb inflation. Local Agency Investment
Funds (LAIF) rates have risen from an
average of 0.34% in calendar 2021 to 1.12%
in calendar 2022, which is nearly a 229%
increase. The revised amount is based on
current interest rates.
Transfers In $135,000 The Coordinated Outreach, Referral, and Engagement (CORE) is an entry point into
the coordinated system of services for
homeless persons and strives to locate,
engage, stabilize, and house homeless
individuals and families. The use of
American Rescue Plan Act Funds in the
current fiscal year. The Budget Committee
is recommending the use of ARPA Revenue
Loss funds for a second year, which
qualifies as an eligible use under the general
government services.
Expenditures Proposed Adjustment Explanation
Salaries and Benefits $476,477 The increase reflects updated salaries for all current staff and several unfrozen positions
due to workload. Two of the unfrozen
positions were administrative assistants in
the city manager’s office and planning
offices. These positions were essential, as
temporary staff were deemed insufficient to
perform the required workload and hours
necessary to prepare for public meetings and
daily tasks for each of the departments. The
increase in interest income was assumed to
offset these costs since these positions
combined amount to approximately $200K.
Benefits increased due increasing CalPERS
employer rate for $189 thousand and
workers compensation premiums for $40
thousand.
Non Departmental -
CalPERS Unfunded
Actuarial Liability
$395,645 The lower CalPERS Unfunded Actuarial
Liability (UAL) payment of $396 thousand,
which is also due to their risk mitigation
policy. CalPERS risk mitigation policy
reduces the discount rate when they have
very good years of investment return by
increasing employer contribution rates and
decreasing the UAL.
Risk Management -
Insurance
$279,609 Municipal Pooling Authority (MPA)
provides coverage from general liability,
employment liability, cyber risk, vehicle, and
property loss. The total insurance premiums
are increasing from $1.6 million in FY 22/23
to $2.0 million for FY 23/24.
Professional and
Contractual Services
$78,270 Increase due to additional assistance needed
to fill vacancies throughout the City, increase
in County Services for forensic services for
the police department, and additional
temporary assistance with the new permitting
and licensing software.
Other $22,341 Increase due to rising costs for utilities, supplies and material, and general expenses
with filling vacancies.