CITY OF POMONA
Attachment No. 1
Fiscal Year 2023-24 General Fund Preview
• Tonight's Presentation will also be done on April 5th at 3:00pm • This concept was to give a snapshot of the forthcoming budget in the early planning stages and to encourage feedback from residents 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 2023-24 General Fund Preview
• The goal is to present a financial picture that will help determine prioritization of ongoing and future services as well as to insure the City’s financial stability
• Allow the City Council to provide direction on goals and priorities they would like included in the forthcoming budget
• Allow residents and business to provide feedback on the forthcoming budget
• Insure the continuation of operational and capital expenditures are included, and attempt to find what resources can be appropriately allocated to accomplish these initiatives.
Fiscal Year 2023-24 General Fund Preview
2022-23 2023-24
AMENDED PRELIMINARY
By Category BUDGET BUDGET Difference
All Property Taxes $47,045,391 $50,497,000 $3,451,609
All Sales & Use Tax $40,113,922 $41,467,000 $1,353,078
All Utility Tax $16,018,403 $17,237,000 $1,218,597
All Other Taxes $16,223,175 $18,893,800 $2,670,625
All Other Sources $25,929,298 $21,857,664 ($4,071,634)
Total Revenue $145,330,189 $149,952,464 $4,622,275
2022-23 2023-24
AMENDED PRELIMINARY
By Category BUDGET BUDGET Difference
Personnel $59,563,312 $64,274,100 $4,710,788
Controllable Expenses $16,212,922 $13,223,701 ($2,989,221) Required Expenses $37,190,705 $40,518,881 $3,328,176
Allocation and Utilities $23,466,668 $25,283,289 $1,816,621 Recovered Costs ($1,672,659) ($1,754,618) ($81,959)
Capital $2,692,577 $0 ($2,692,577)
Transfers to Other Funds $6,503,835 $7,717,237 $1,213,402 Total Expense $143,957,360 $149,262,590 $5,305,230
Projected Surplus (FY 2023-24 Preliminary) $689,874
• Compared to FY 2022-23 Budget – Revenues are to increase $4.6M
• Compared to FY 2022-23 Budget – Expenditures are to
increase $5.3M
• Nets a Projected surplus of $690k
• Property Tax and Sales Tax (61% of GF revenue) are projected to increase $4.8M
• Utility Tax (11% of GF revenue) to increase $1.2M
Fiscal Year 2023-24 General Fund Preview
The Other Taxes Category (13% of GF revenues)
are projected to increase $2.7M
• $1.1M Franchise Fees – Refuse Hauler
• $800k Cannabis Business Tax (Measure PC)
• $425k Business License
• $200k Property TransferTax
Fiscal Year 2023-24 General Fund Preview
Significant offset to the $8.7M increase in the 4 Tax Revenue Categories is a reduction of $4M in the Other Sources category; • Reduce $6.8M of American Rescue Plan (ARP) funds budgeted in FY 2022-23
• Staff has discussed with the ARP subcommittee and recommends to return the $6.8M to the ARP fund to use in ways that are in accordance with the US Treasury Guidelines
• The nonuse of the $6.8M of ARP funds addresses the concern that onetime revenues should not support ongoing programs and services and should not be a common practice.
Fiscal Year 2023-24 General Fund Preview
Fiscal Year 2023-24 General Fund Preview
The $4.6M increase to the Personnel category has
key items that make up this increase:
• $5.3M Earnings and Benefits
• All Authorized Positions Budgeted
• Salary Savings transfers to Capital Projects factored in • $325k Hourly
• ($500k) Police Sworn Overtime
• ($1M) Retirement Termination Payouts
Fiscal Year 2023-24 General Fund Preview
Appropriation Categories
• $3.3M Required Expenses - Fire Contract
• $1.8M Allocations and Utilities
• $500k Claims expenses
• $400k Pension Obligation Bond (POB) allocation
• $200k Gas and Electricity
• $300k Information Technology Allocation
Fiscal Year 2023-24 General Fund Preview
Appropriation Categories
• ($3M) Controllable Expenses - Building and Safety Contract Ending ($2.2M )
• ($2.7M) Capital Expenses - No Supplemental Items Approved to Date
• $1.2M Transfersto Other Funds - Portion of Allotted
amounts per the Consolidated Financial Polices
Youth Services and Programming
• $1.5M Community Services Division – Neighborhood Services • $300k Library
• General Fund appropriations lapse at year end per City Charter • Post Fiscal Year 2022-23 bring forward fund to re-appropriate Consolidated Financial Policies Contributions Proposed
• $1.5M Pension 115 Trust
• $1.2M CIP Projects (¾% of preliminary General Fund revenues) • 300k Catastrophic Events Reserve
• $200k Equipment Replacement Reserve
Vacancy Factor
• City has had several vacancies = $2M in General Fund savings many FYs • February 2023 the City has 88 full time and 55 part time vacancies • In FY 2022-23 vacancy factor was $350k
• Staff will explore a FY 2023-24 Vacancy Factor to achieve savings Fiscal Year 2023-24 General Fund Preview
• Information provided is preliminary & the goal was to provide the City Council and the residents with a preview before the May 8, 2023 Budget Study Session
• A $690k surplus gives limited space to increase any appropriations, however many scenarios to balance the budget will be analyzed and Revenues will continue to be reviewed
• At this time all Non-General Fund budgets are on track to meet their allocated funding for FY 2022-23 and will be presented with the GF on May 8th • * Phillips Ranch Maintenance Assessment District
• Staff will provide City Council with updates if significant changes have occurred during the remainder of the fiscal year
Fiscal Year 2023-24 General Fund Preview
Key Dates:
• April 5, 2023 Repeat of Tonight's Presentation
• May 8, 2023 Proposed Budget Study Session
• June 5, 2023 Public Hearing for Budget Adoption
Fiscal Year 2023-24 General Fund Preview