CITY OF POMONA
Attachment No. 2
Fiscal Year 2022-23 General Fund Preview
• Tonight's Presentation will also be done on April 6thst at 3:00pm • This concept was to give a snapshot of the forthcoming budget in the early planning stages and to encourage feedback from citizens via two different sessions
• Staff requests feedback from the Mayor and City Council • The Finance Department will work in cooperation with all City Departments and consultants to formulate further in depth revenue and expenditures projections for the upcoming fiscal year • The City Manager and the Finance Department are in the process of reviewing each Department and all Funds in the City Budgets Fiscal Year 2022-23 General Fund Preview
• The goal is to present a financial picture that will help determine prioritization of ongoing and future services to constituents and the City Council.
• Allow the City Council to give any direction on goals and priorities they would like included in the forthcoming budget
• Allow citizens and business to give any feedback on the forthcoming budget
• Insure the continuation of operational and capital expenditures is included, and attempt to find what resources can be appropriately allocated to accomplish these initiatives.
Fiscal Year 2022-23 General Fund Preview
2021-22 2022-23
AMENDED PRELIMINARY
By Category BUDGET BUDGET Difference
All Property Taxes $40,695,925 $44,619,146 $3,923,221
All Sales & Use Tax 36,785,846 38,860,129 2,074,283
All Utility Tax 15,575,594 16,018,403 442,809
All Other Taxes 12,001,951 15,748,175 3,746,224
All Other Sources 23,283,905 16,144,369 (7,139,536)
Total Revenue $128,343,221 $131,390,222 $3,047,001
2021-22 2022-23
AMENDED PRELIMINARY
By Category BUDGET BUDGET Difference
Personnel $57,344,290 $61,911,080 $4,566,790
Controllable Expenses 13,087,626 12,612,717 (474,909)
Required Expenses 36,713,763 37,023,123 309,360
Allocation and Utilities 15,265,609 22,851,112 7,585,503 Recovered Costs (1,569,099) (1,672,659) (103,560)
Capital 706,869 440,781 (266,088)
Transfers to Other Funds 5,198,417 4,755,576 (442,841)
Total Expense $126,747,475 $137,921,730 $11,174,255
Projected Deficit (FY 2022-23 Preliminary) ($6,531,508) • Compared to FY 2021-22 Budget – Revenues are to increase $3M
• Compared to FY 2021-22 Budget – Expenditures are to
increase $11M
• Nets a Projected deficit of $6.5M
• Property Tax and Sales Tax (60% of GF revenue) are projected to increase $6M
• Utility Tax (12% of GF revenue) to increase $442k
Fiscal Year 2022-23 General Fund Preview
The Other Taxes Category (9% of GF revenues) are
projected to increase $3.7M
• $1.7M Cannabis Business Tax (Measure PC)
• $1M Transient Occupancy Tax
• $660k Business License
• $250k Property TransferTax
• $100k Franchise Fees
Fiscal Year 2022-23 General Fund Preview
Fiscal Year 2022-23 General Fund Preview
• The projected expenditure increase of $11M is related to 2 categories
• First item is a $4.6M increase to the personnel (staffing related) and the key items that make up this increase are:
• $3.2M Salary and Benefit MOU Related Increases (All
Authorized Positions Budgeted)
• $727k Fairplex Police Support at LA County
(Corresponding Reimbursable Revenue)
• $627k Hourly Increase
Fiscal Year 2022-23 General Fund Preview
• Second item is the $7.6M increase to the
Utilities/Allocations expenditure category
• $6.7M increase GF portion of the Pension Obligation Bonds (POBs) allocation
• POBs were issued in July 2020 to assist the City in addressing its Unfunded Accrued Liability (UAL)
• Strategy set to pay only the interest portion of the annual debt payment in FY 2020-21 and FY 2021-22 to create General Fund savings • Beginning in FY 2022-23 the principal portion of the payment will begin to occur
• The remaining $800k increase is for internal service funds allocations that increase nominally each fiscal year to support all Departments citywide
Items be that have been suggested thus far to be addressed/incorporated into the budget:
• Additonal and/or Continued Funding for:
• Youth Services and Programing
• Homeless Services
• Rent stabilization/Inspections
• Addressing City Infrastructure
• Economic Development
• Code Compliance
• Evaluate funding for items listed in the City Council Goals and Priorities
• Discussion to Unfund any vacant General Fund positions for cost savings
Fiscal Year 2022-23 General Fund Preview
Citizens Oversight Committee (COC)
Recommendation
• In November 2018, Measure PG was passed by the voters of Pomona, which approved the collection of a Transaction and Use Tax (TUT) of .75%.
• A Citizens Oversight Committee (“COC” or “Committee”), was established to be an advisory capacity to the City Council with respect to the City’s Transactions and Use Tax
• The Committee shall:
A. Annually review the City’s revenue and expenditures of the Transaction and Use Tax;
B. Hold public meetings throughout the year, as often as City Council directs; C. Review annual audit reports related to the tax; and
D. Prepare written reports to the City Council that summarize the Committee’s findings and recommendations
Citizens Oversight Committee (COC)
Recommendation
• In December 2021, the COC received a presentation of
the City Council’s Priorities and Goals as preparation to make budget recommendations for FY 2022-23
• In January 2022 the COC developed a list for the City Council to consider incorporating in the FY 2022-23
General Fund Budget.
• The list of requested item to consider totals $505k
Citizens Oversight Committee (COC)
Recommendation
• City staff is working towards updating and creating new Citywide Financial policies
• Urban Futures Inc. (UFI), the City’s Financial Advisorwill assist with this project
• Staff plans to bring these policies forward in the coming months as a complimentary item to the Budget
Fiscal Year 2022-23 General Fund Preview
• Information provided is preliminary & the goal was to provide the City Council and the citizens with a preview before the May 9, 2022 Budget Study Session • A ($6.5M) deficit is not an ideal starting point, however many scenarios to balance the budget will be analyzed
• At this time all Non-General Fund budgets are on track to meet their allocated funding for FY 2021-22 and will be presented with the GF on May 9th • Staff will provide City Council with updates if significant changes have occurred during the remainder of the fiscal year
• Key Dates:
• May 9, 2022 Budget Study Session
• June 6, 2022 Public Hearing for Budget Adoption
Fiscal Year 2022-23 General Fund Preview