Attachment No.10
CITY OF POMONA
City Manager’s FY 2022-23
Proposed Budget
For Adoption
TONIGHT’S
PRESENTATION
Operating Budget
• General Fund
• Other Funds
H
ousing Authority Budget
CIP Budget
BUDGET AT-A-GLANCE ALL FUNDS
FUND TYPE FY 2022-23
General Fund $141,487,751
Special Revenue Funds 77,108,770
Debt Service Funds 20,713,809
Capital Project Funds 24,851,758
Enterprise Funds 105,778,265
Internal Service Funds 9,837,182
Housing Authority Funds 20,764,216
Total $400,541,751
GENERAL FUND
TOTAL FY 2022-23 GENERAL FUND
No changes since May 9th Budget Study Session
Revenues $ 141,545,287
Appropriations $ 141,487,751
Surplus $ 57,536
FY 2022-23 PROPOSED GENERAL FUND REVENUES
Compared to FY 2021-22 Revenue Estimates
• Property Tax projected increase of 10% or $4M, of the $4M, $1.2M is for increase in RPTTF
• Sales Tax is to experience overall growth of 9% or $3.3M • UUT estimated to increase by 3%
• Other Revenues overall increase of $4.7M (TOT, Business License) Cannabis Tax revenues increase by $1.8M
$6.8M in ARP public sector lost revenue
FY 2022-23 PROPOSED GENERAL FUND REVENUES
FY 2022-23 PROPOSED GENERAL FUND
EXPENDITURES BY DEPARTMENT
FY 2022-23 PROPOSED GENERAL FUND
EXPENDITURES BY SPENDING CATEGORY
Compared to FY 2021-22
FY 2022-23 PROPOSED GENERAL FUND
FY 2022-23 Preliminary Budget Deficit (Mar 30 & Apr 6) ($6.5M) Revised Revenue Estimates $10.2M
New Appropriations ($3.6M)
FY 2022-23 Proposed Budget Surplus $ 58k
FY 2022-23 GENERAL FUND
BALANCE / RESERVES
FY 2022-23
PROPOSED STAFFING CHANGES
STAFFING STATISTICS
• 610.80 full time equivalent
(FTE) positions proposed in
FY 2022-23
• High Point of 666 FTE in FY
2009-10
• July 2020, the City implemented POBs to address the City’s Unfunded Accrued Liability (UAL) for miscellaneous and safety employee pensions provided through the California Public Employees’ Retirement System (“CalPERS”)
• The amount authorized at that time was the City’s current liability of $220M. • A strategy was developed to exclude principal payments to FY 2020-21 and FY 2021-22 to preserve General Fund reserves during the pandemic.
• If the City had not issued POBs, it would have resulted in fiscal challenges to the General Fund.
• Issuance of POBs have significantly restructured the City’s ongoing long-term pension obligations. The total savings realized is estimated at $95M over the next 27 fiscal years.
UAL vs. POB
UAL vs. POB
YOUTH FUNDING
OTHER FUNDS
FY 2022-23 PROPOSED OTHER FUNDS
Other Funds Estimated
Revenues
Estimated
Expenses
Special Revenue Funds 72,292,818 77,108,770
Debt Service Funds 20,712,009 20,713,809
Capital Project Funds 25,024,316 24,851,758
Enterprise Funds 109,024,401 105,778,265
Internal Service Funds 9,948,665 9,837,182
Housing Authority 20,110,887 20,764,216
Total - Other Funds 257,113,096 259,054,000
FY 2022-23 PROPOSED OTHER FUNDS CHANGES
CHANGES SINCE MAY 9th BUDGET STUDY SESSION
Special Revenue Funds
• American Rescue Plan (Fund 191) – $500k appropriation increase • State Gas Tax (Fund 208) - $231k revenue decrease/$529k appropriation decrease
• State Gas Tax RRMA (Fund 206) - $98k revenue decrease/$425k appropriation decrease
• Homeland Security Grant (Fund 263) - $473K revenue increase/appropriation increase
• Special Revenue Funds
$21.3M of ARP appropriations (was $20.6M on May 9th)
Cannabis Community Benefit Fund $250k
Phillips Ranch Maintenance Assessment District forecasted to be insolvent by end of FY 2022-23, with fund balance of ($343k) o Increase assessments
o Reduce services
FY 2022-23 PROPOSED OTHER FUNDS
FY 2022-23 PROPOSED OTHER FUNDS
• Enterprise Funds – decrease of $45.7M
$20.7M FY 2021-22 transfer from Water Fund to Water Capital Improvement Fund
$20.7M FY 2021-22 appropriation for Water Resources Building $6.9M FY 2021-22 Pomona Choice Energy loan from Water Fund Refuse Fund projected to operate at a deficit of $1.4M due to rising costs related to implementation of SB1383 and aging fleet o Estimated fund balance at 06/30/22 $4.6M
• Internal Service Fund
Projected increase in insurance premium and claims expense, which will result in an additional $927k in cost recovery from all funds within the City which have employees
FY 2022-23 PROPOSED OTHER FUNDS
HOUSING AUTHORITY BUDGET
• The Housing Authority budget as recommended for FY 2022-23 totals $20.7M offset by $20.1M in estimated revenues
• The difference will be covered by available fund balance • This budget is adopted under separate resolution
FY 2022-23 PROPOSED CIP BUDGET
CAPITAL IMPROVEMENT
PROGRAM
FY 2022-23 PROPOSED CIP CHANGES
CHANGES SINCE MAY 9th BUDGET STUDY SESSION
Capital Improvement Project (CIP) Funds
• $300k appropriation for the Civic Center Plaza Rehab project (ARP) • $20k for the Country Crossing Park Projects (ARP)
• ($529k) for the Pomona Multi-Neighborhood Pedestrian and Bicycle Improvements Project
• ($425k) for the Street Preservation – Local (FY 22-23) Project
TOTAL CIP
Expenses To Date $ 74,589,151
Carry Forward 114,619,040
Proposed FY 2022-23 25,579,448
Following Four Years 245,697,735
Total $460,485,374
147 Projects in CIP $214.8M Funded/$245.7M Unfunded
FY 2022-23 PROPOSED CIP
BY CATEGORIES
EQUITY IN BUDGETING
• City staff is exploring the implementation of a Budget Equity Statement and taking the first steps in applying an equity lens in our annual budgeting process. • We believe incorporating the principles of this statement into budgeting and funding considerations will aid in achieving Pomona’s equity goals long-term. • The initial definition states that Pomona defines Equity as: fair treatment, access, opportunity, and advancement for all people while striving to identify and eliminate barriers that have prevented the full participation of communities historically oppressed. Improving equity involves increasing justice and fairness with the procedures and processes of institutions or systems and a fair, intentional distribution of resources.
EQUITY IN BUDGETING
• Staff will be taking this first step in imbedding this statement into the organization when evaluating budgets and plan to include this practice in the FY 2023-24 process. Guiding questions to consider:
• 1. Have you considered the impacts on equity, diversity, and inclusion (EDI) in the programs and initiatives included in your baseline budget?
• 2. In thinking about this, consider external stakeholders and communities that may be positively or negatively affected by your programs as well as internal equity considerations.
• More details will be covered in the annual report brought forward to the City Council for the (Annual) FY 2023-24 Budget Kickoff, traditionally presented in January (2023).
FY 2022-23 PROPOSED GENERAL FUND
• The FY 2022-23 General Fund Budget reflects a budget surplus of $58k o Includes $1.3M towards the Commitment to New Youth Programming o Utilizes $6.8M of ARP Revenue
• The FY 2021-22 General Fund will now end with an estimated surplus of $6.6M (revised since March Mid-Year review)
o Should net an estimated fund balance of $42.9M by the end of FY 2021-22 o This is 17.2% above the 17% minimum fund balance requirement o Encouraging to see these increases to the fund balance FY 2022-23 PROPOSED GENERAL FUND
• It is fiscally prudent to plan for the years when revenues may not be promising; Future Concerns include
o The use of ARP funds
o The sunset of the Transactions Use Tax (TUT) - April 2029 (FY 2028-29) o Economic Uncertainties– Including threat of a recession • City staff along with the City’s Financial Advisor Urban Futures, Inc. (UFI) met with the Labor Sub-Committee to bring forward an updated 10-year forecast; Accompanying that forecast was a briefing on what eventually will come before the entire City Council, which includes Polices that will propose an updated Fund Balance Policy • Also exploring a Policy which may include a Pension 115 Trust to fund future CalPERS UAL payments and OPEB liabilities
FY 2022-23 PROPOSED GENERAL FUND
• Staff will Continue to:
• Monitor all Revenue Sources
• Explore new ongoing revenues sources
• Evaluate fiscal impacts in a responsive and fiscally sound manner
• Keep the Mayor and City Council apprised
• Per charter,Budget adoption is required before July 1, 2022 • Ongoing economic issues will require additional attention as we progress through this fiscal year and staff will remain vigilant in monitoring the budget and will evaluate fiscal impacts in a responsive and fiscally sound manner
• If the budget is not adopted prior to July 1st, the amounts appropriated for current operations for FY 2021-22 will be deemed adopted for FY 2022-23 on a month-to-month basis until a new budget is adopted •
FY 2022-23 PROPOSED BUDGET FOR ADOPTION
FY 2022-23 PROPOSED BUDGET FOR ADOPTION
CITY MANAGER RECOMMENDATION
Adopt Proposed Operating Budget,
CIP Budget,
Housing Authority Budget
and Staffing Changes