Administrative
Report
L.2., File # 23-6293 Meeting Date: 6/20/2023
To: MAYOR AND CITY COUNCIL
From: WENDY COLLAZO, FINANCE DIRECTOR
TITLE
CONTINUED PUBLIC HEARING TO CONSIDER THE FISCAL YEAR 2023-24 PROPOSED
BUDGET, FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM, AND ASSOCIATED BUDGET
RESPONSE REPORTS
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2306-064, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADOPTING AN ANNUAL BUDGET FOR FISCAL YEAR 2023-24
a. Reconvene the Public Hearing, take testimony;
b. Close the Public Hearing;
c. Receive and file the Budget Response Reports; and
d. Adopt by title only Resolution No. CC-2306-064, including approval of Budget Response Report No. 1.
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 6th Budget Hearing focused on department operations. The June 13th Budget Hearing was focused on proposed capital projects. The June 20th Hearing will be focused on the Council’s consideration of Budget Adoption.
The City Charter requires the annual budget be adopted by June 30, 2023. A resolution for City Council adoption of the FY 2023-24 Budget (which includes annual appropriations for operations and capital projects as proposed by the City Manager) is attached for City Council consideration of approval. It is also recommended that the City Council approve Budget Response Report #1 as part of the final budget motion, to incorporate identified corrections to the proposed budget document.
BACKGROUND
The Proposed Fiscal Year 2022-23 Budget is balanced in accordance with the City Council’s adopted Financial Principles. If all recommended Decision Packages are adopted as modifications to the core budget, the General Fund’s unallocated balance (total revenues over expenditures) would be $1.7M.
L.2., File # 23-6293 Meeting Date: 6/20/2023
budget, the General Fund’s unallocated balance (total revenues over expenditures) would be $1.7M.
After incorporating BRR #1 the unallocated balance is reduced by $43,562, to $1,659,081. This year, 70 Budget Response Reports have been prepared and submitted to the City Council. These reports provide detailed information on prospective projects or policy changes the City Council may wish to consider during the budget adoption process. Additionally, Budget Response Report No. 1 provides the City Council with corrections and adjustments to the Proposed Budget for inclusion in the Adopted Budget.
The budget document includes the City Manager’s message, which 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 document also includes departmental sections which discuss core service activities, key projects and assignments, and customer service and referral work measures. Financial Summary (mini-financial) reports, which spotlight important business units, are also included in the document. 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 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.
In summary, the Proposed FY 2023-24 Budget contains the following:
· A total annual budget including all funds of $174.8 million (before Decision Packages · A total core General Fund Budget of $104.5 million (before Decision Packages) · $21.7 million of new capital appropriations for a total CIP of $89.1M and 130 projects · Funding for the payroll of 440 full-time employees (before Decision Packages) · 77 Recommended Decision Packages
· 70 Budget Response Reports
· A General Fund Contingency Reserve of $8.6 million
· A CalPERS Reserve Fund of $8 million
· An unallocated General Fund balance of $1,659,081, if all Decision Packages and the corrections in BRR #1 are approved
Adjustments to the Proposed Budget will be made via the final Budget Adoption Resolution, and tabulated in real time, after the City Council concludes the Public Hearing and completes its deliberation.
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. The Budget and Finance Commission and the Harbor Commission reviewed the Proposed Budget at their meetings on May 30, 2023 and June 8, 2023 respectively. The Planning Commission reviewed the Proposed Budget on June 15, 2022. The input provided by the commissions has been included in Budget Response Reports No. 37 and 69.
L.2., File # 23-6293 Meeting Date: 6/20/2023
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
· Reso - Budget Adoption Resolution
· Resolution Exhibit A - FY 2023-24 Summary of Estimated Fund Balance Summary · FY 2023-24 Budget Response Reports