Attachment No. 2
CITY OF POMONA
Fiscal Year 2022‐23
GENERAL FUND OVERVIEW
Fiscal Year 2023‐24
1st Quarter Summary
25% Complete
Fiscal Year 2023‐24
1st Quarter Revenue Summary
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
Fiscal Year 2023‐24
1st Quarter Expenditure
By Category Summary
Fiscal Year 2023‐24
1st Quarter Expenditure
By Department
General Fund Appropriation and
Revenue Estimate Requests
GENERAL FUND APPROPRIATION REQUESTS –F Y 2023‐24
+$121.5k increase due to Public Financing Authority (F364) salary allocation clean‐up moving appropriations to the General Fund.
+$696k carryover of unspent Youth Commitment appropriations in the Community Services Department. $1M was budgeted in FY 2022 ‐23, actual expenditures came in much lower and will be utilized in FY 2023 ‐24. +$167k carryover of unspent Youth Commitment appropriations in Library D e p a r t m e n t .$ 3 0 0 kw a sb u d g e t e di nF Y2 0 2 2‐23, actual expenditures came in much lower and will be utilized in FY 2023 ‐24.
+$50k increase due to the Athens Donation for school grants moving from the Refuse Administration Fund (F145) to the General Fund.
Non‐General Fund Appropriation
and Revenue Estimates Requests
NON‐GENERAL FUND APPROPRIATION REQUESTS –F Y 2023‐24
($121.5k) decrease due to Public Financing Authority (F364) salary allocation clean ‐up moving appropriations to the General Fund.
Created Opioid Settlement Fund (F120) and moved funds from Grants – Miscellaneous (F215) to better track revenue and expenditures. Net zero fiscal impact. ($159.8) Reduce CalVIP revenue estimates and appropriations to align with Grant carryover . +$332k increase in ARP revenue estimates and appropriations related to carryover amounts from previous fiscal year .
+$30k increase in Refuse Enterprise Fund (F582) for Temporary Services to help with the transition to support the Refuse contract provided by Athens for the remainder of fiscal year . ($50k) decrease due to the Athens Donation for school grants moving from the Refuse Administration Fund (F145) to the General Fund.
Net zero transfer of $100k from Refuse Administration Fund to the Housing Authority Budget to be used towards housing efforts in the city.
Summary Appropriation and Revenue
Estimate Requests
Authorized Staffing –C a l V I PG r a n t
• The City was awarded the California Board of State and Community Corrections (BSCC) 2022 California Violence
Intervention and Prevention (CalVIP) Grant on June 9, 2022. • The grant’s duration is from July 1, 2022 to December 31, 2025.
• As part of the CalVIP program application, it included adding
3.00 Full Time Equivalent (FTE) positions made up of 1.00 Police Sergeant and 2.00 Police Officer positions.
Fund Balance Policy
On February 6, the City Council adopted Resolution No. 2023 ‐06 ADOPTING THE CITY’S UPDATED CONSOLIDATED FISCAL POLICIES AND
ADMINISTRATIVE PROCEDURES
Purpose: Financial needs due to a downturn or recession in the local, state, or national economy; action by another government that eliminates or shifts revenues from the City; an unanticipated inability to fully pay the General Fund’s debt service obligations in any given year; other unexpected reductions or interruptions of revenue streams; or cash flow requirements of the General Fund.
The amount was set to 22% with the goal of incrementally increasing to a maximum of 25% of the General Fund’s current fiscal year operating expenses. Determination of this reserve amount should be based in part on the General Fund’s revenue loss/recovery during prior economic downturns and rece ssions, an assessment of the volatility of General Fund’s various major revenue streams, and a quantification of the General Fund’s cash flow demands over the fiscal year as compared to the timing of revenue receipts.
General Fund
Estimated Fund Balance
• General Fund recommendations included herein will result in impact to the General Fund Budget with a Deficit of $2M. • $2M has been carry over from the FY 2022 ‐23 Budget
related to vehicle purchases not received and Youth
Commitment Funds unspent
• Estimated ending General Fund Balance will exceed the 22% minimum amount of policy
• All City Departments will continue to operate within budget & will monitor expenditures
Conclusion
Idea of a recession is constantly looming with the magnitude and timeline unknown
With the approval of the Consolidated Fiscal Policies in February 2023, staff will bring forward items for consideration to address long term liabilities that need onetime contributions when surpluses are available as well as annual budget line items incorporated within to remain sustainable.
The FY 2023‐24 General Fund Mid‐Year Budget review will be brought forward in the spring of 2024 with more supporting detail as it relates to year‐ end expenditures and revenue projections.
Employee contracts with some of the respective bargaining units will be on this concurrent agenda, and other units will be forthcoming on future City Council agendas during the fiscal year and will impact the operating budget as well.
Conclusion (continued)