Administrative
Report
L.1., File # 23-6230 Meeting Date: 6/13/2023
To: MAYOR AND CITY COUNCIL
From: WENDY COLLAZO, FINANCE DIRECTOR
TITLE
CONTINUED PUBLIC HEARING TO CONSIDER THE FISCAL YEAR 2023-2024 PROPOSED
BUDGET, FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM, AND ASSOCIATED BUDGET
RESPONSE REPORTS
PROCEDURES:
a. Reconvene the Public Hearing, take testimony;
b. Continue the Public Hearing to June 20, 2023; and,
c. Receive and file the Budget Response Reports.
EXECUTIVE SUMMARY
On May 16, 2023, in accordance with the City Charter, the Mayor and City Council received the Proposed Budget for FY 2023-24 and the Proposed Five-Year Capital Improvement Program (CIP).
On May 30, 2023, the first Public Hearing on these documents was conducted and continued to June 6, 2023. The May 30th Public Hearing included an introduction and summary of the Proposed Budget, presentations from operating departments, and provided an opportunity for the City Council to review, add to the list of Budget Response Reports (BRRs), and ask questions of staff. The June 6 th Budget Hearing focused on department operations. The June 13th Budget Hearing will be focused on proposed capital projects and changes to the City’s master fee schedule. The June 20th Hearing will be focused on the Council’s consideration of Budget Adoption.
BACKGROUND
The June 6th Hearing continued the City Council’s review and consideration of the FY 2023-24 Budget and CIP. Going into the May 30th Budget Hearing staff compiled a list of questions for 37 Budget Response Reports. The direction provided by City Council at the Hearing expanded the list to 58 BRRs. Following the June 6th Hearing the list of BRRs has been updated to 69.
To date, 40 Budget Response Reports (attached) have been prepared, 14 of which were provided at the May 30th Budget Hearing, 10 of which were provided for the June 6th Budget Hearing, and 16 provided with this report (see attached). The BRRs include detailed information above and beyond what can be described in the budget document and provide an opportunity for the City Council to explore and better understand the cost of supplemental budget initiatives. As additional BRRs are completed, they are uploaded on the City’s budget website. Staff expect to complete and provide additional reports to the City Council on June 13.
The City Manager's budget message describes the budget development process, the City's projected
L.1., File # 23-6230 Meeting Date: 6/13/2023
The City Manager's budget message describes the budget development process, the City's projected financial outlook for the upcoming fiscal year, proposed General Fund revenues and expenditures, and recommended decision packages. The departmental sections of the budget document discuss core service activities, key projects and assignments, and customer service and referral work measures. Financial Summary (mini-financial) reports in the document spotlight important business units.
The proposed Fiscal Year 2023-2024 Budget (which can be found using the following weblink www.redondo.org/budget <http://www.redondo.org/budget>) is balanced in accordance with the City Councils’ adopted Financial Principles. If all Decision Packages are adopted as proposed, the General Fund’s remaining unallocated balance (annual revenues over expenditures) would be $1,702,643.
The Capital Improvement Program (CIP) identifies the capital investment required to meet the City's General Plan and other policy goals and to ensure good stewardship of public existing infrastructure.
The CIP identifies the projects, their estimated costs, and the financing methods needed to implement the City’s capital investment goals and the maintenance of new and existing infrastructure.
Given the number of demands on City finances, it is essential that available grant and restricted funds be coordinated and leveraged to maximize the City’s capital resources and complete as many projects as possible. The proposed capital improvement budget for FY 2023-24 accomplishes this goal and focuses on completing existing projects while addressing health and safety issues, legislated mandates and priorities arising out of the Mayor and City Council’s strategic planning efforts.
The proposed FY 2023-24 CIP contains $67.4M of carryover funding for 125 previously approved projects, and $21.7M of additional appropriations for 36 previously approved projects and 5 new projects, for a total FY 2023-24 CIP of 130 projects and an overall budget of approximately $89.1M.
The project breakout for FY 2023-24 is as follows:
Carryover Funding New Appropriations Total
FY 23-24
Sewer Projects $ 9,464,189 $ 700,000 $10,164,189
Drainage Projects $ 2,580,932 $ 2,804,500 $ 5,385,432
Street Projects $24,538,976 $13,615,039 $38,154,014
Waterfront Projects $20,647,416 $ 650,000 $21,297,416
Park Projects $ 3,943,773 $ 843,000 $ 4,786,773
Public Facility Projects $ 5,717,136 $ 3,136,000 $ 8,853,136 General Improv. Projects $ 484,604 $ - $ 484,604
$67,377,026 $21,748,539 $89,125,564
In summary:
· The total annual budget including all funds is $174.8 million (before Decision Packages). · The total General Fund budget is $104.5 million (before Decision Packages). · $21.7 million of new capital appropriations are recommended in FY 23-24 for a total CIP of
L.1., File # 23-6230 Meeting Date: 6/13/2023
· $21.7 million of new capital appropriations are recommended in FY 23-24 for a total CIP of $89.1M and 130 projects.
· Funding is included for the payroll of 440 full-time employees (before Decision Packages). · The amount set aside for the General Fund’s contingency reserve is $8.6 million. · The amount available in the CalPERS reserve is roughly $8 million. · 77 Decision Packages are proposed for consideration.
· The General Fund’s unallocated balance, if all of the Decision Packages are approved is $1,702,643.
· The Budget is structurally balanced.
· The City is expected to see other General Fund revenues come on-line in future years that could support increased staffing costs and/or new capital debt service expenses
COORDINATION
All City Departments participated in the preparation of the Fiscal Year 2023-24 City Manager’s Proposed Budget and Five-Year Capital Improvement Program.
FISCAL IMPACT
The City Manager’s Fiscal Year 2023-2024 Proposed Budget (before Decision Packages) totals $174.8 million. The Budget, when adopted, will create the financial framework for all City operations, projects, and services for the July 1, 2023 - June 30, 2024 Fiscal Year.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS:
FY 2023-24 Budget Response Reports, Updated List - June 9, 2023