City Council / Housing Authority
June 5, 2023

CITY OF POMONA City Manager’s FY 2023-24 Proposed BudgetFor Adoption

TONIGHT’SPRESENTATIONOperating Budget•General Fund•Other Funds Housing Authority BudgetCIP Budget

BUDGET AT-A-GLANCE ALL FUNDS

GENERAL FUND

TOTAL FY 2023-24 GENERAL FUNDRevenues$ 155,811,464 Appropriations $ 154,595,498Surplus $ 1,215,966 FY 2023-24 PROPOSED GENERAL FUND REVENUES

Compared to May 8thBudget Study Session – revenues increased by $1.258MCompared to FY 2022-23 Budget Revenue Estimates•Property Tax projected increase of 7% or $3.2M•Sales Tax projected to increase by 6% or $2.4M •UUT estimated to increase by 22% or $3.5M•Other Revenues overall decrease of $1.6M FY 2023-24 PROPOSED GENERAL FUND REVENUES
FY 2023-24 PROPOSED GENERAL FUND EXPENDITURES BY DEPARTMENT

Compared to May 8thBudget Study Session•Proposed 2.5% salary increase•$70k increased appropriations for Grant Writer•$15k reclassification of Public Works salaries from University Corp Assessment District FY 2023-24 PROPOSED GENERAL FUND
FY 2023-24 PROPOSED GENERAL FUND FY 2023-24 Proposed Budget Surplus (May 8) $1.3MRevised Revenue Estimates 1.2MNew Appropriations (1.3M)FY 2023-24 Proposed Budget Surplus $ 1.2M FY 2023-24 GENERAL FUND BALANCE / RESERVES

FY 2023-24PROPOSED STAFFING CHANGES

FY 2023-24PROPOSED STAFFING CHANGES (Cont.)

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 CaliforniaPublic 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 topreserve General Fund reserves during the pandemic.•If the City had not issued POBs, it would have resulted in fiscal challenges to the GeneralFund.•Issuance of POBs have significantly restructured the City’s ongoing long-term pensionobligations. The total savings realized is estimated at $95M over the next 27 fiscal years.

UAL vs. POB
UAL vs. POB

YOUTH FUNDING

YOUTH FUNDING (Continued)

OTHER FUNDS

FY 2023-24 PROPOSED OTHER FUNDS

FY 2023-24 PROPOSED OTHER FUNDS CHANGESCHANGES SINCE MAY 8thBUDGET STUDY SESSIONSpecial Revenue Funds•American Rescue Plan (Fund 191) – $629k appropriation decrease•Community Development Block Grant (Fund 213) - $711k revenue decrease/$802k appropriation decrease•University Corp Assessment District (Fund 254) - $39k appropriation decrease•Gas Tax Fund (Fund 208) - $13k appropriation increase related to Fund 254 FY 2023-24 PROPOSED OTHER FUNDS•Enterprise Funds Refuse Fund expected to end FY 2022-23 with $3M deficit oFY 2023-24 Refuse budget include revenues of $1.25M for sale of trucks and containers; minimal appropriations for transitionoRefuse Fund will be winding down, residual fund balance will pay for long term pension and OPEB liabilitiesFY 2023-24 Pomona Choice Energy Authority Fund increased appropriations for power procurement of $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 FY 2023-24 PROPOSED OTHER FUNDSHOUSINGAUTHORITYBUDGET•The Housing Authority budget as recommended for FY 2023-24totals $22.3M appropriations offset by $21.2M in estimatedrevenues•The difference will be covered by available fund balance•This budget is adopted under separate resolution FY 2023-24 PROPOSED CIP BUDGET

CAPITAL IMPROVEMENT PROGRAM

TOTAL CIPNO CHANGES SINCE MAY 8THBUDGET STUDY SESSIONExpenses To Date $ 78,200,477Carry Forward 135,271,063Proposed FY 2023-24 22,607,594Following Four Years 195,673,607Total $431,752,741147 Projects in CIP $236.1M Funded

FY 2023-24 PROPOSED CIP BY CATEGORIES

FY 2023-24 PROPOSED GENERAL FUND The FY 2023-24 General Fund Budget reflects a budget surplus of $1.2MoIncludes $2M towards the Commitment to New Youth ProgrammingoIncludes implementation of updated Fiscal Policies$1.5M for Section 115 Pension Trust$300k for Catastrophic Events Reserve$200k for Equipment Replacement Reserve$1.3M 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)oShould net an estimated fund balance of $56.9M by the end of FY 2022-23oThis 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 bepromising; Future Concerns includeoThe use of ARP fundsoThe sunset of the Transactions Use Tax (TUT) - April 2029 (FY 2028-29)oEconomic Uncertainties – Including inflation and unemployment FY 2023-24 PROPOSED GENERAL FUND •Staff will Continue to:•Monitor all Revenue Sources•Explore new ongoing revenues sources•Evaluate fiscal impacts in a responsive and fiscally soundmanner•Keep the Mayor and City Council apprised •Per charter, Budget adoption is required before July 1, 2023•Ongoing economic issues will require additional attention as we progressthrough this fiscal year and staff will remain vigilant in monitoring thebudget and will evaluate fiscal impacts in a responsive and fiscally soundmanner•If the budget is not adopted prior to July 1st, the amounts appropriated forcurrent operations for FY 2022-23 will be deemed adopted for FY 2023-24on a month-to-month basis until a new budget is adopted• FY 2023-24 PROPOSED BUDGET FOR ADOPTION
FY 2023-24 PROPOSED BUDGET FOR ADOPTIONCITY MANAGER RECOMMENDATIONAdopt Proposed Operating Budget, CIP Budget, Housing Authority Budget and Staffing Changes