Attachment No. 3
CITY OF POMONA
City Manager’s FY 2023-24
Proposed Budget
TONIGHT’S
PRESENTATION
Operating Budget
• General Fund
• Other Funds
Housing Authority Budget
CIP Budget
FY 2023-24 THEMES
• Youth Commitment
• Rent Stabilization Program – In House Start up
• Refuse Services Contract Transition
• Building and Safety In House Transition
BUDGET AT-A-GLANCE ALL FUNDS
GENERAL FUND
TOTAL FY 2023-24 GENERAL FUND
Revenues $ 154,553,464
Appropriations $ 153,252,807
Surplus $ 1,300,657
FY 2023-24 PROPOSED GENERAL FUND REVENUES
Compared to FY 2022-23 Budget
• Property Tax projected increase of 6% or $3M. This is attributed to increased residential taxable assessed values.
• Sales Tax is to experience overall growth of 6% or $2.4M due to increased spending in the Building and Construction sector and continued online and marketplace purchases
• UUT estimated to increase by 20% due to recent utility rate increases FY 2023-24 PROPOSED GENERAL FUND REVENUES
Compared to FY 2022-23 Budget
• Other Taxes
• Licenses, Permits and Fees
• Charges for Services and Fines
• Other Revenues decrease of $9.2M
$6.8M of ARP not included in FY 2023-24 Proposed Budget One-time receipt of Prop A Exchange
FY 2023-24 PROPOSED GENERAL FUND REVENUES
FY 2023-24 PROPOSED GENERAL FUND
EXPENDITURES BY DEPARTMENT
FY 2023-24 PROPOSED GENERAL FUND
EXPENDITURES BY SPENDING CATEGORY
Compared to FY 2022-23
Expenditures Amount Brief Summary
Personnel $5,161,047
The $5M increase relates to several factors including $5.8M full time salary and benefit increases that in actuality is only $3.4M as $2.4M of salary savings was transferred to fund capital projects and equipment during FY 2022-23. $543k is related to hourly increases mainly due to restoration and the addition of hourly staff at the Community Centers for various youth programming. In addition a request totaling $1M in the General Fund for the addition of 8.35 FTE that are 100% General Funded and 4.00 FTE that are partially funded by the General Fund and Six hourly positions are also included at a value of $132k. A $1.3M Vacancy Factor ($950k reduction from last fiscal year) is also factored in as the filling of vacancies and new positions will realize some savings. The Retirement/Termination payout budget decreased $820k due to many long time tenured employees departing from the City in FY 2022-23 and overtime for police decreased $475k.
FY 2023-24 PROPOSED GENERAL FUND
EXPENDITURES BY SPENDING CATEGORY
Compared to FY 2022-23
Controllable
Exp (688,610)
The controllable expenses reduction is related to the $2.2M reduction to the Building and Safety contract as the services are now provided in house.The supplemental request for a Classification and Compensation Study in last years budget will be carried over and have a $150k increase for a Study now totaling $300k. The Administration division is requesting $150k for a Communication and Social Media Services contract to assist the City. Additional appropriations per the Consolidated Financial Polices of amounts of $1.5M for a 115 Pension Trust, $300k for Catastrophic Event Reserve, and $200k for a contribution to the equipment/replacement reserve fund are included. FY 2022-23 had several items added mid-year to address deferred information technology/cyber security needs in the Police Department, with the reduction of these onetime purchases the computer related acquisitions and small tools and equipment budget will be less $700k.
FY 2023-24 PROPOSED GENERAL FUND
EXPENDITURES BY SPENDING CATEGORY
Compared to FY 2022-23
Required Exp 3,986,350
There was an increase of $3.5M for fire services provided by the LA County Fire District. With increases to the City's dumping fee of $200k for refuse services provided by the contractor and $185k increase in registrar services for the primary election in March 2024.
Utilities 266,156 The increase represents increases in water, electricity and gas.
Allocated Costs 2,497,510
$2.5M increase will be for the internal service funds allocations that increase nominally each fiscal year to support all Departments citywide. This years overall increase includes $463k for fleet operations mainly due to the reallocation to the General Fund with the removal of the refuse fund operations and the $1M increase to Liability claims and administration of which continue to rise due to the increased number of claims which results in higher premiums. The Information Technology allocation increase is due to 3.00 new positions added to the IT budget to align the Department with the many IT support needs of the City.
FY 2023-24 PROPOSED GENERAL FUND
EXPENDITURES BY SPENDING CATEGORY
Compared to FY 2022-23
Recovered Costs (81,959) The $82k change is a result of the CPI adjustment for the Cost Overhead Allocation.
Capital (850,049)
This decrease is related to $2M (Find detail on page 18 of the Financial Summaries section) in requested supplemental purchases of automobiles, trucks, and equipment. The decrease is in comparison to items approved in FY 2022-23 totaling $2.7M.
Transfers Out (4,151,998)
Transfers to CIP will be lower in FY 2023-24 in an amount of $4M. The net decrease of $4M to the CIP budget is attributed mainly to a decrease of $3.2M of a one-time receipt of revenues in FY 2022-23 for a Prop A Exchange sale that is not anticipated to occur again in FY 2023-24.
TOTAL CHANGE $6,138,447
FY 2023-24 GENERAL FUND
PRELIMINARY vs. PROPOSED
FY 2023-24 GENERAL FUND
BALANCE / RESERVES
FY 2023-24 GENERAL FUND
SUPPLEMENTAL CAPITAL REQUESTS
FY 2023-24 PROPOSED
STAFFING CHANGES
Amended Staffing Levels at 4-17-23
City Clerk - Move Legal Administrative Assistant from Human Resources to City Clerk City Clerk 1.00 Add 1 Admin Assistant I/II/III
Development Services 1.00 Add 1 Senior Planning Coordinator Finance (3.00) Solid Waste Transition - Less Three Customer Service Specialists Finance (1.00) Solid Waste Transition Less One Senior Customer Service Specialist Finance 1.00 Add 1 Senior Accounting Technician
Human Resources 1.00 Add 1 Administrative Assistant I/II/III Human Resources 1.00 Add 1 Human Resources Analyst I/II (ARP) Information Technology 1.00 Add 1 Senior Systems Analyst Information Technology 1.00 Add 1 Digital Experience Manager Information Technology 1.00 Add 1 Management Analyst Library 0.15 Increase Senior Library Assistant from .60 to .75 Library 0.60 Add .60 Library Supervisor (Reduced Hourly Budget) Library 0.60 Add .60 Library Supervisor (Reduced Hourly Budget) Library 1.00 Add 1 Library Assistant
23-24 Proposed Staffing
22-23 Authorized Staffing 630.20
FY 2023-24 PROPOSED
STAFFING CHANGES
Neighborhood Services 1.00 Add 1 Housing Programs Supervisor Neighborhood Services 1.00 Add 1 Admin Assistant I/II/III Neighborhood Services 1.00 Add 1 Housing Stabilization Manager Neighborhood Services - Reclass Homeless Program Supervisor to Housing Stabilization Supervisor Neighborhood Services 1.00 Add 1 Rent Stabilization Coordinator Neighborhood Services 1.00 Add 1 Rent Stabilization Coordinator Neighborhood Services 1.00 Add 1 Housing Inspector I/II (Rent Stabilization) Neighborhood Services 1.00 Add 1 Housing Inspector I/II (Rent Stabilization) Public Works (18.00) Solid Waste Transition Less 18 Solid Waste Driver Public Works (1.00) Solid Waste Transition Less One Solid Waste Supervisor Public Works (2.00) Solid Waste Transition Less Two Heavy Equipment Mechanics Public Works (1.00) Solid Waste Transition Less One Publice Services Maintenance Worker Public Works 1.00 Add 1 Public Services Maintenance Worker I Public Works 1.00 Add 1 Lead Facilities Maintenance Technician Public Works 1.00 Add 1 Facilities Maintenance Technician Water Resources 1.00 Add 1 Water Utility Worker 1 Water Resources 1.00 Add 1 Stormwater Maintenance Worker I Water Resources 1.00 Add 1 Stormwater Maintenance Worker I 23-24 Proposed Staffing 627.55
STAFFING STATISTICS
• 627.55 full time
equivalent (FTE)
positions proposed
in FY 2023-24
• 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 $95M over the next 27 fiscal years.
UAL vs. POB
UAL vs. POB
YOUTH FUNDING
CITY YOUTH RELATED BUDGET FUNDS FY 21-22 FY 22-23 FY 23-24
BUDGET BUDGET BUDGET
LIBRARY SERVICES
Library Operation 1,217,018$ 1,811,605$ 2,159,757$ Library Facility Improvements 127,317$ 73,200$ 3,200,000$ Library Youth Commitment - ARP -$ 12,200$ 487,800$ 1,344,335$ 1,897,005$ 5,847,557$
NEIGHBORHOOD SERVICES
ARP Funds for Youth Related Programming -$ -$ 416,151$ Afterschool Recreation (Youth) 993,845$ 1,066,359$ 1,177,529$ Athletic Fields 538,562$ 574,120$ 441,118$ Community Services Admin 1,183,704$ 1,121,291$ 1,317,267$ Neighborhood Services Admin 130,182$ 325,232$ 868,566$ Ganesha and Washington Pools 499,890$ 462,899$ 540,448$ Prop A - Youth Trip Transportation 25,000$ 40,000$ 75,000$ Recreation Facility Custodial 771,720$ 820,959$ 1,163,461$ Special Youth Programs 196,975$ 119,357$ 194,982$ CDBG - Community Organization Youth Services 39,718$ 39,718$ -$ CDBG - City Youth Services 251,975$ 251,975$ -$ PHA - Households w/Children Rental Assistance 6,643,077$ 7,558,142$ 6,662,028$ Lead and Healthy Homes Program 1,446,438$ 2,662,125$ 2,412,666$ Keeping Pomona Homes Healthy Program -$ -$ 1,412,153$ Outdoor & Active (PUSD) 115,331$ 375,000$ 375,000$ Community Services - Youth Commitment -$ 1,000,000$ 1,500,000$ 12,836,417$ 16,417,177$ 18,556,369$
YOUTH FUNDING
POLICE SERVICES
Every 15 Minutes 2,000$ 2,000$ 2,000$ Great Campout -$ 15,000$ 15,000$ National Night Out -$ 5,000$ 5,000$ Santa Cop 10,000$ 10,000$ 10,000$ Red Ribbon week -$ 400$ 400$ Halloween Safety 600$ 600$ 600$ Cops 4 Kids 5,000$ 18,000$ 18,000$ Explorer Program 13,880$ 13,880$ 13,880$ School Crossing Guard Contract 270,008$ 469,726$ 488,044$ School Resource Officers 259,251$ 442,703$ 466,043$ OTS Occupant Safety Grant - Carseat -$ -$ -$ Public Safety Fair 15,000$ 15,000$
Cadet Program 10,000$ 15,000$ 15,000$ 570,739$ 1,007,309$ 1,048,967$
PUBLIC WORKS
Park Facility Maintenance 596,064$ 863,150$ 1,431,695$ Park Landscape Maintenance 2,333,341$ 3,408,352$ 3,930,260$ Hamilton Park Renovation 1,202,294$ -$ 1,428,272$ Park Light Pole Replacements -$ -$ 11,094$ Memorial Park Bldg Reno/Retro -$ -$ 300,000$ Holt Ave. Corridor Improvements (Garfield Park) -$ 350,000$ 350,000$ Civic Center Plaza Rehabilitation (Kid's World) 810,720$ 1,100,000$ 1,807,891$ ADA Rubberized Playground Surfacing Replacement 358,000$ -$ 64,351$ Ralph Welch Park Playground 250,000$
Small Playground at Washington Park and Baseball Fields 60,000$ Pedestrian and Bicycle Lane Improvements -$ 4,577,286$ 3,844,332$ 5,300,419$ 10,298,788$ 13,477,895$
DEVELOPMENT SERVICES
Youth Public Art Projects 342,500$ 300,000$ 413,203$ Art Coordinator 7,500$ 25,249$ 25,249$ Prop 64 Grant 144,618$ 138,800$ 134,003$ 494,618$ 464,049$ 572,455$
TOTAL YOUTH RELATED BUDGET 19,985,789$ 29,092,019$ 38,469,276$
OTHER FUNDS
FY 2023-24 PROPOSED OTHER FUNDS
Special Revenue Funds – Decrease of $7M
Refuse Administration
o Revenues include annual payments from hauler (Contract Administration Fee $365k, Vehicle Impact Fee, Grants $750k) o Also includes one-time payment (Street Sweeping signage $800k, Procurement Reimbursement $300k)
ARP Fund appropriations is $38M, $31M from prior year carryovers
o Includes $5M for Universal Household Grant, $1M for
Leadership/Technology Upgrade/Operational Efficiencies, $1M for Participatory Budget
FY 2023-24 PROPOSED OTHER FUNDS
Special Revenue Funds – Decrease of $7M
Phillips Ranch Maintenance Assessment District
o April 3rd ballot to increase assessments did not pass o FY 2023-24 shows reduction in watering and
landscape/tree maintenance
Two New Special Revenue Funds/Programs
o COPS Technology Grant - $4.3M
o California Violence Intervention and Prevention (CalVIP) Grant Program Funds - $5.4M
FY 2023-24 PROPOSED OTHER FUNDS
FY 2023-24 PROPOSED OTHER FUNDS
Enterprise Funds – increase of $7M
Refuse Fund is expected to have an operating deficit of $3M o FY 2023-24 Refuse budget include revenues of $1.25M for sale of trucks and containers; minimal appropriations relating to transition o Refuse Fund will be winding down, any residual fund balance will pay for long term pension and OPEB liabilities
Pomona Choice Energy Authority fund increased appropriations for power procurement from $31M to $43M
Internal Service Fund
Projected increase in insurance premium and claims expense, which will result in an additional $840k in cost recovery from all funds within the City which have employees
Equipment Maintenance Fund decreased slightly due to outsourcing of Refuse Fleet
FY 2023-24 PROPOSED OTHER FUNDS
HOUSING AUTHORITY BUDGET
• The Housing Authority budget reflects increased appropriations of $1.2M due to increased housing assistance payments and proposed staffing changes.
• This budget is adopted under separate resolution
FY 2023-24 NON-GENERAL FUND
SUPPLEMENTAL CAPITAL REQUESTS
FY 2023-24 PROPOSED CIP BUDGET
CAPITAL IMPROVEMENT
PROGRAM
TOTAL CIP
Expenses To Date $ 78,200,477
Carry Forward 135,271,063
Proposed FY 2023-24 22,607,594
Pending FY 2023-24 5,850,000
Following Four Years 189,823,607
Total $431,752,741
147 Projects in CIP $236.1M Funded / $195.7M Unfunded
FY 2023-24 PROPOSED CIP
BY CATEGORY
FY 2023-24 PROPOSED GENERAL FUND
• The FY 2023-24 General Fund Budget reflects a budget surplus of $1.3M o Includes $2M towards the Commitment to New Youth Programming o Implements the updated Fiscal Policy:
$1.5M for Section 115 Pension Trust
$300k for Catastrophic Events Reserve
$200k for Equipment Replacement
$1.34M for CIP Project Funding
• The FY 2022-23 General Fund will now end with an estimated surplus of $7.2M (revised since March Mid-Year review)
o Should net an estimated fund balance of $56.9M by the end of FY 2022-23 o This is 17.2% above the 22% minimum fund balance requirement FY 2023-24 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 by December 2026 that meet the Treasury Guidelines
o The sunset of the Transactions Use Tax (TUT) - April 2029 (FY 2028- 29)
o Economic Uncertainties – Inflation, Changes to Fed Interest Rate, Unemployment, Slowdown of Housing Market
FY 2023-24 PROPOSED GENERAL FUND
• Forthcoming Items that could impact the FY 2023-24 Budget • Negotiations with the Respective Bargaining Units in the coming months as Current contracts expire in Fall 2023
• Monitoring all current Revenue Sources and explore new ongoing revenues sources
• Evaluate fiscal impacts in a responsive and fiscally sound manner
•Per charter, Budget adoption is required before July 1, 2023 •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 2022-23 will be deemed adopted for FY 2023-24 on a month-to-month basis until a new budget is adopted
FY 2023-24 PROPOSED BUDGET
FOR ADOPTION
FY 2023-24 PROPOSED BUDGET
FOR ADOPTION
What’s Next?
Adopt Proposed Operating Budget,
CIP Budget,
Housing Authority Budget
and Staffing Changes
on June 5, 2023
MASTER FEE SCHEDULE
MASTER FEE
SCHEDULE
ANNUAL UPDATE
MASTER FEE SCHEDULE
•A Citywide Master Fee Schedule was established in 2021 •An annual review of the fees by each department is now conducted each year as part of the annual budget process •The proposed fee increases are being calculated using the 2022 calendar year change in CPI
•The change in CPI for the Los Angeles-Long Beach – Anaheim, CA area for 2022 was 4.9%.
• Based on the annual review and proposed CPI increases, the estimated increase in citywide revenues for Fiscal Year 2023-24 is $300,000.
• Public Noticing took place on April 21, 2023 and April 28, 2023 in the Daily Bulletin.
• If the proposed increase to the fees is approved tonight, following the Public Hearing, the proposed fees will go into affect in 60 days.
• The Master Fee Schedule is scheduled to be reviewed annually, with the next review scheduled for May 2024.
MASTER FEE SCHEDULE