CITY OF POMONA
Fiscal Year 2021‐22
GENERAL FUND OVERVIEW
2021‐22
2021‐22
ADOPTED
BUDGET
2021‐22
AMENDED
BUDGET
2021‐22
ACTUALS TO
DATE
% ACTUALS/
BUDGET
2021‐22
YEAR END
ESTIMATE
Total Revenue
121,081,897 129,127,391 13 9,479,387 108% 131,893,225
Total Expense 121,075,368 128,168,775 12 6,131,205 98% 125,325,497 Net 6,529 958,616 13,348,182 6,567,728 Fiscal Year 2022‐23
1st Quarter Summary
25% Complete
2022‐23 Adopted
Amendments
To Date
Amended
Budget To
Date
1st Quarter
Proposed
Amendments
Proposed
Amended
Budget
As of Sep 30'
22 % Rec'd/
Exp'd *
Total Revenue 141,545,287 156,500 141,701,787 89,157 141,790,944 15,5 40,614 11% Total Expense 141,487,751 172,750 141,660,501 89,157 141,749,658 29,8 30,010 21% Net 57,536 (16,250) 41,286 ‐ 41,286 (14,289,396) * Reflects percentage of Amended Budget To Date
Fiscal Year 2022‐23
1st Quarter Revenue Summary
2021‐22 2021‐22 % 2022‐23 2022‐23 %
ACTUALS 1st ACTUALS/ AMENDED 1st ACTUALS/
TO DATE Quarter BUDGET BUDGET Quarter BUDGET
All Property Taxes $43,071,198 $5 12,684 1% $44,819,146 $503,545 1% All Sales & Use Tax 42,229,675 3, 238,580 8% 40,113,922 3,472,288 9% All Utility Tax 18,407,292 3,0 40,878 17% 16,018,403 2,918,620 18% All Other Taxes 18,384,230 2,1 41,177 12% 16,223,175 2,550,770 16% All Other Sources 17,386,992 5, 293,887 30% 24,527,141 6,095,391 25% Total Revenue $139,479,388 $14,2 27,205 10% $141,701, 787 $15,540,614 1 1% General Fund Revenues
• Property Tax –
• Includes Property Tax, Property Tax In‐Lieu of VLF , and Prior Year Supplemental. Large portion of revenue received
December to June.
• Sales Tax –
• Three sources; a 1.0% share of local sales, the recently approved Transactions and Use Tax at .75% (Measure PG) and allocations of Public Safety Augmentation Fund (PSAF) sales tax from the County.
• Utility Users Tax (UUT) –
• Collected on water, gas, electricity & telephone services General Fund Revenues (cont.)
• Other Taxes
• Other taxes include Business Licenses, Transient
Occupancy Tax, Property Transfer Tax, Franchise Fees,
and the new Cannabis Business Tax (CBT) ‐ Measure PC.
• Other Sources
• All Other Sources include Fees, Licenses, Permits, Other Miscellaneous categories, and Transfers In from the
American Rescue Plan.
Fiscal Year 2022‐23
1st Quarter Expenditure
By Category Summary
2022‐23 % 2022‐23 %
AMENDED OF 1st Expended
By Category BUDGET TOTAL Quarter
Personnel $61,020,935 43% $12,079,157 20%
Controllable Expenses 14,591,832 10% 2,020,980 14%
Required Expenses 36,996,505 26% 9,025,238 24%
Allocation and Utilities 23,465,750 17% 5, 808,263 25%
Recovered Costs (1,672,659) ‐1% (418,165) 25%
Capital 1,956,314 1% 128,875 7%
Debt Service 197,989 0% 0 0%
Transfers to Other Funds 5,103,835 4% 1,185,662 23%
Total Expense $141,660,501 $29,830,010 21%
Fiscal Year 2022‐23
1st Quarter Expenditure
By Department
2022‐23 % 2022‐23 %
AMENDED OF 1st Expended
By Department BUDGET TOTAL Quarter
All General Services $4,935,262 3% $604,736 12%
All Recovered Costs (1,672,659) ‐1% (418,165) 25%
All Mayor & Council 533,123 0% 104,204 20%
All City Clerk 1,109,876 1% 139,979 13%
All Human Resources 1,902,488 1% 361,094 19%
All Finance 2,760,793 2% 550,722 20%
All City Administration 1,098,713 1% 200,297 18%
All Development Services 6,125,575 4% 1,129,074 18%
All Police 72,965,440 52% 15,667,042 21%
All Fire 33,490,372 24% 8,372,593 25%
All Public Works 10,849,177 8% 1,975,414 18%
All Neighborhood Service
s 5,750,736 4% 806,474 14%
All Library 1,811,605 1% 336,547 19%
Total Expense $141,660,501 $29,830,010 21%
General Fund Appropriation and
Revenue Estimate Requests
+$8k Increase for Library Donation and State Grant
+$20k for Police Department Inmate Welfare Fund
+$60k ARP carryover for Administrative Services
• All three items have corresponding revenues that offset the appropriations
Non General Fund Appropriation
and Revenue Estimates Requests
+$198k revenue estimates/+$84k appropriations SLESA – Police Equipment Purchases
+90k for Asset Forfeiture Fund - Police Equipment Replacements +$19.2k increase in Proposition A Fund & $19.2k decrease in VPD Fund - Adjustment for assessed property taxes
+$107k increase 2017 Series BG Capital Project Funds - Consultant servicest o prepare City’s comprehensive update of the Pomona zoning ordinance +$7.9M increase in revenue estimates and appropriations in the ARP Fund - For previous approved programs and projects that are consistent with the ARP expenditure spending plan
Severe budget deficit for the Phillips Ranch Landscape Maintenance District for several years - Currently $410k deficit with limited reserves available
District provides landscape maintenance and lighting services managed by the City, and paid for by an assessment that the Phillips Ranch property owners pay annually per the original Development Agreement This annual assessment has remained at a fixed level since 1993, and has notseen any substantial increase to match the increasing costs to provide the landscape and lighting maintenance services In 2008 and 2019 assessment increases were voted down City is preparing for another Proposition 218 ballot measure to increase the assessment and will be placed on a ballot in the Spring of 2023
City is forced to consider a drastic reduction and/or a total elimination of many landscape maintenance services, including tree maintenance, landscape maintenance, and watering totaling $410k These budget cuts will mitigate the immediate severe deficit the Districtis facing, while the Proposition 218 ballot measure will provide a long-term solution; If approved Staff will continue monitoring the budget through the remainder of the FY 2022-23 with the hope of identifying other potential opportunities for savings
Phillips Ranch Maintenance
Assessment District Mitigation Plan
FY 2022‐23 CIP Budget Amendment
CDBG
Fund Balance Policy
FUND BALANCE POLICY – On June 20, 2011, the City Council adopted resolution 2011‐63A approving the City’s Fund Balance Policy.
The objectives of the policy are to comply with the
Governmental Accounting Standards Board (GASB) Statement Number 54 – Fund Balance Reporting and Governmental Fund Type Definitions:
• Establish Formal Reserve Policies
• Build adequate reserves
• Guide the City toward meeting its short and long‐term obligations
• 17% is the minimum Fund Balance Requirement
General Fund
Fund Balance
FY 2020‐21 Est FY 2021‐22 Est FY 2022‐23 *
Fund Balance $36,259,131 $49,607,313 $49,648,599
Change in Fund Balance N/A $13,348,182 $41,286
Expenditures $108,664,150 $119,193,260 $136,645,823
Transfers $5,679,708 $6,937,945 $5,103,835
Total $114,343,858 $126,131,205 $141,749,658
Percentage 31.7% 39.3% 35.0%
Policy Goal 17.0% 17.0% 17.0%
Difference 14.7% 22.3% 18.0%
ARP Expenditure Spending Plan
• General Fund recommendations included herein will result in impact to the General Fund Budget with a Surplus of
$41k.
• Estimated ending General Fund Balance will exceed the 17% minimum amount of policy
• All City Departments will continue to operate within budget & will monitor expenditures
• Finance Department will continue to apprise the Mayor and City Council of any significant financial impacts.
Conclusion
Many factors such as high inflation are contributing to forecasting obstacles as well as a threat to economic changes that are predicted to occur
Idea of a recession is constantly looming with the magnitude and timeline unknown - The need for sufficient reserves is more critical than ever A comprehensive plan will be brought froward to the City Council in December 2022 (A review of the plan by the Labor Subcommittee will occur prior to) to update the City’s Fiscal Sustainability Policy and will include:
• Minimum reserve policy percentage proposed change
• A policy to address the long-term pension liability costs to the City • An Update of the 10 Year forecast will be presented and will display that structurally our budget has items to address long term to remain sustainable
• The FY 2022-23 General Fund Mid-Year Budget review will be brought forwardin the spring of 2023 with more supporting detail as it relates to year end expenditures and revenue projections. As mentioned, staff is optimistic that many revenuesources will be increased once six months of revenue has been collected.
Conclusion (continued)