Document Highlights
Continued Refinement to Improve Accessibility &
Understandability
Transparency is Better Governance
Five Year Capital Improvement Plan
Using charts & graphs to tell the story
Government Finance Officer Association National Distinguished Budget Award (8th Year Running)
California Society of Municipal Finance Officers Excellence Budget Award (6th Year Running)
Acknowledgements
Overall Themes
Prudent use of one-time resources to focus on facility repairs, equipment replacement and capital projects
Leverage outside resources where available
Performance Measures
Full deployment of available funding for road rehabilitation CalPERS Pension Contributions
Retention of Qualified Staff
Continue Building the Reserve
City Fund Overview
Section 19, page 333
50+ Active Operating & Capital Funds
Specific or restricted use, tracking, transparency
o Number of Funds principle
o Close out of Fund 080 City Bond Fund to Fund 082
Blighted Properties Remediation
o Close out of Fund 048 Water Rate Stabilization Fund to Fund 050 Water
Overview of City Departments and their associated
funding sources
Types of Funds:
Unrestricted (General Fund) Fiduciary Trust
Enterprise Special Revenue
RDA Successor Agency Capital
Internal Service Funds
Proposed Budget Highlights
Budget Balanced in accordance with Reedley’s
Balanced Budget Policy
All obligations fully funded, debt, labor agreements etc. 1 new position requested, 2 conversions and 1 reclassification Adds $225K to the General Fund Reserve
$10.7M in planned Capital Projects
Measure B General Sales Tax Add On = Focus on one-time uses Inflationary Increases Addressed
No Reduction in Services or Programs
Proposed Budget Highlights
Total Proposed Budget for All Active Funds = $50,840,950 $18,966,984 Personnel & Benefit Costs
$21,125,117 Maintenance & Operations
$10,748,849 Capital Expenditures
2023-24 General Fund = $18,772,531
$11,481,818 Personnel & Benefit Costs
$ 5,842,086 Maintenance & Operations
$ 4,323,954 Capital Expenditures
Current Year Amended Budget = $21,742,988
2023-24 Public Safety Sales Tax Proposed Budget = $2,216,833 $1,274,643 Personnel & Benefit Costs
$ 358,890 Maintenance & Operations
$ 583,300 Capital Expenditures
General Fund Health
$ 4,069,340 Actual Carryover From 2021-22
$ 18,611,300 Add: Total Projected 2022-23 Revenue
($ 19,738,579) Less: Total Projected 2022-23 Expenditures $ 2,942,061 Est. Fund Balance June 30, 2023
$18,772,531 Total Projected 2023-24 Revenue
($21,647,858) Less: Total Proposed 2023-24 Expenses
$ 66,734 Est. Fund Balance June 30, 2024
One-time Capital Projects = $4,323,954
General Fund Reserve Status
Reserve Policy = 90 Days Operating Expenditures
$4,274,726 estimated minimum target June 30, 2024
$2,617,985 Ending Fund 002 Balance 6/30/2022
+ 250,000 FY 2022-23 Budgeted contribution
+ 300,000 Mid Year contribution (January 2023)
+ 1,500 Est. Interest Earnings
$3,169,485 Est. Fund 002 Balance 6/30/2023
+ 225,000 General Fund contribution
+ 7,500 Est. Interest Earnings
$3,401,985 Est. Reserve Balance 6/30/2024
+ $904,500 Est. Capital Set Aside Fund Balance 6/30/2024 $4,306,485 Eligible Reserves for 90-Day Policy
Property Tax
Secured Property Tax
o FYE Estimate 10% above budget
o Next year assumes 2% growth, plus new homes
o 2023-24 Estimated Revenue $1,419,269
Property Tax in Lieu of Vehicle License Fee
o FYE Estimate 8.2% above budget
o Next year assumes 2% growth which increases annually in proportion with overall assessed valuation
o 2023-24 Estimated Revenue is $2,594,642
Sales Tax
Bradley Burns Sales Tax – General Fund
FYE Estimate 2% below budget
Next year assumes 2% growth
2023-24 Estimated Revenue $2,343,992
Measure B Add On – General Fund
FYE Estimate 9% above budget
Next year assumes 3% growth
2023-24 Estimated Revenue $2,811,280
Measure G Add On Public Safety (Restricted Use) – Fund 003 FYE Estimate 6% above budget
Next year assumes 1% growth
2023-24 Estimated Revenue $1,817,376
Franchise Fees
Franchise Agreements
Pacific Gas & Electric
Gas Company
Comcast Cable
Mid Valley Disposal
o FYE Estimate 5% above budget, $53,784
o Next year assumes 6% growth
o 2023-24 Estimated Revenue $1,268,674
Community Facilities District
Established November 2005 applying to all new development Property Tax Roll Assessments – Restricted Use
Partial offset for Police, Fire and Parks Maintenance costs within CFD boundary
4rd largest revenue in General Fund after Property and Sales Taxes, and Franchise Fees
CPI Increase of 5.6% for 2023-24 Tax Year
o No CPI Increases to rates 2018-2023 (5 years)
Next year assumes 17% growth, mix of CPI adjustment and new development
2023-24 Estimated Revenue $1,265,218
Debt Discussion
No new debt is proposed
All capital purchases planned with available fund balances All existing Debt Service Obligations are Fully Funded o Section 22 / page 368
Capital Improvement Program
Valuable tool for Council, Staff and Community
Next year 60 projects, $10,748,849, Transmittal page 11 Criteria Used & Process to Identify Projects, page 166 CIP by Category, page 186
CIP by Funding Source, page 196
o General Fund Capital, $4,323,954 uses Measure B Sales Tax Unfunded projects, page 246
o Important planning exercise, develops over time
o Grant opportunities and one-time resources
o Currently $63M over 5 year planning horizon
Measure B Sales Tax Continues to Deliver…
$380,000 Animal Shelter
$184,200 Community Center Improvements
$ 57,510 HVAC Replacements
$195,000 Vehicles
$225,000 Reserve Set Aside
$330,931 CalPERS ADP
$ 15,000 Parkway Improvements
Inflationary Costs for Maintenance & Operational Budget of $5.8M Public Safety, Neighborhood Streets, Parks, Recreation, Quality of Life Programs Retained
Competitive Personnel Salaries & Benefits for Critical Staff Retention for Personnel Budget of $11.4M
ARPA Funds Life to Date through 6/30/23
$6,137,939 Total Allocation
$2,182,185 Water treatment facility for municipal water well no. 12 144,750 Granular Activated Carbon Replacements
32,206 SCADA Master Plan & Upgrades
380,389 Premium Pay - Employees and Volunteer Firefighters 73,879 Business Assistance Staffing & City Hall Modifications 546,704 Downtown Water Towers Repainting
500,000 North Ave water main replacement, G St. to Frankwood (Partial Funding) 287,167 Public Safety Communications Tower & Camera System Upgrades 92,307 Façade Improvement Program (Estimated)
58,160 Airport Water Well Abandonment, Tree & Pipeline Removal 80,000 City Hall & Police Department Expansion Planning & Design (Estimated) 683 Legal Services
ARPA Funds FY 2023-24
$920,000 City Hall & Police Department Expansion Planning & Design (Continued work)
$50,000 Opera House Repairs
$57,693 Façade Improvement Program (Est. Remaining Funds) $581,000 Airport Fuel Tank and New Hangar Design
Central San Joaquin Valley Risk Management
Authority
$2,089,089 for the City’s pooled Worker’s Compensation, Liability, Property, Auto, & Employment liability programs, representing an overall 16% increase (↑$293,211) over current year premiums:
Workers’ Compensation rates are only increasing by 1% (↑$5,564) Liability coverage is increasing by 14% (↑$72,890)
Auto Physical Damage coverage is increasing by 40% (↑$26,966) Premium of $94,672 insures 115 vehicles with a combined replacement value of $11.5M
Property coverage program premium is increasing 48% (↑$175,410) Continued ‘hardening’ of the insurance market because of the ongoing number and severity of natural disasters
Premium of $541,387 insures property valuations of $121.4M Staff Positions
New Position
o Fire Lieutenant (PSST funded)
Conversion of 40hr Part-Time to Full-Time
o Facilities Coordinator
o Parks Maintenance Worker I
Reclassification based on job duties
o HR Technician to HR Analyst
Personnel & Benefits
MOU with the RPOA ends June 30, 2024
5.0% COLA July 1, 2023
2.0% Stipend January 2024
MOU with the GSU ends June 30, 2024
4.0% COLA July 1, 2023
Unrepresented Employees
4.0% COLA July 1, 2023 (Proposed)
Personnel & Benefits
Retiree Medical Benefit (Other Post Employment Benefits) Established by Council Resolution
Fully Funds estimated OPEB medical premiums, $336,100 Continued Pre-Funding to the CalPERS California
Employers’ Retiree Benefit Trust (CERBT)
Pre-funding now at 25% of budgeted premiums
FY 2023-24 = $84,025 Contribution
Represents 9th Year of Pre-Funding
Plan is 6.8% Funded per Actuarial Valuation of November 2022 $572,730 in CERBT as of March 2023
Personnel & Benefits
Part-Time Hourly Increases
Inflation and labor force availability
Impacts Community Services Programs
Adjustments to part-time pay ranges
8% Medical Premium Increase Assumed
Plans will be put out to the marketplace late Summer 2023 and taken before the Council in the Fall
Last year, City faced with 12.5% and worked solutions to a
8.56% increase
Pension Contributions
Pension cost burden continues to shift from investment earnings to local City coffers
Next year Unfunded Accrued Liability (UAL) payment is $1,323,722 o 21.3% investment return
o 5% decrease in UAL over prior year attributable positive CalPERS returns as of June 30, 2021
o Reedley CLASSIC Plans have an 84.2% average for funding, a 12.5% gain as of June 30, 2021 over prior year Lowered CalPERS Discount Rate, 7.00% → 6.8%
o Reedley PEPRA Plans are fully funded
-6.1% as of June 30, 2022, impacting the FY 2024-25 budget Pension Contributions
UAL Pre-Payment option saves $42,834 (3.40% savings)
Additional Discretionary Payment
o Pension & Other Post-Employment Benefits Policy
o 25% of UAL = $330,931
o Similar pre-funding strategy as Retiree medical
o Generates over $400K in long term savings, $17K-$20K annually
Concerns
Local Control, Jurisdictional Land Use Authority
Staff recruitment and retention
o Law enforcement
o Specialized knowledge (i.e. water, wastewater, land use) Supply chain delays for critical parts
Persistent Inflation
o City dollars don’t go as far
CalPERS investment losses affecting FY 2024-25
Measure “C” Renewal
o Current Pavement Condition Index = 48, 49 last year
o Does not include positive effect of upcoming projects City Budget Delivers…
Maintains essential services to the community
Meets all financial policies
Continues to position the City to weather a downturn
Addresses critical deferred maintenance items, emphasis on public health and safety
Deploys all available funding to streets maintenance projects Bolsters staffing in critical areas
Council & Staff committed to accountability and transparency Next Steps…
May 9, 2023
Budget Rollout
Administration
Administrative
Services
May 9th Continuation
Community
Development
Community Services
May 23, 2023 6:00PM
Public Works
Engineering
Fire
Police
June 13, 2023 7:00PM
Tentative: Budget
Adoption
Supper @ 5:30pm May 23rd
Administrative Services
Department
2023-24 BUDGET PRESENTATION
ASD Responsibilities
Recognition
“Unmodified” Audit Report for the Fiscal Year Ended June 30, 2022 National Distinguished Budget Presentation Award GFOA
California Budget Excellence Award CSMFO
Finance, Accounting & Budgeting
• Maintained focus on financial policies
• Pre-funded a portion of accrued pension and retiree medical benefit liability • Completed the annual review and update of fees in the Citywide Master Fee Schedule • Submitted $61,830 in additional reimbursable claims as provided for under State law SB 90 • Modified the City’s Investment Policy to take advantage of short-term interest rates • Pre-paid CalPERS unfunded actuarial liability (UAL), resulting in savings to the City of $47,386 across all City funds
• Created 100+ video-based department procedures
Risk Management
• Citywide Safety Committee & Injury & Illness Prevention Program (IIPP) • Reviewed all incidents of workplace injuries and unsafe work practices • Reviewed City construction contracts for compliance with insurance & bond requirements • Administered liability and property claims against the City • Recovered damages from private parties
Human Resources, Payroll & Benefits
• Conducted 47 recruitments
• Implemented deferred compensation matching plan for all eligible full-time employees • Completed annual comprehensive review of personnel policies for legal compliance • Modified collective bargaining agreements to reflect mid-contract benefit revisions • Closely managed outstanding workers’ compensation claims to a successful resolution, balancing the needs of injured employees with the fiscal considerations of the City • Workers’ Compensation premiums increasing 1% next year • Hosted six Reedley ‘U’ sessions on a variety of topics Community Facilities District & DIF
• Completed Annexation # 20 for new development
• Set annual CFD rates for the 2023-24 tax year
• Completed the DIF update study in order to comply with the mandates of the Mitigation Fee Act (next study due in 2027)
• Published the annual Developer Impact Fee report as required by AB 1600 Information Technology
• Renewed services contract for network maintenance & desktop support • Issued Copier RFP, resulting in $44,565 in savings over next five years • Completed construction of communications tower behind C.F Mueller Park • Working with PD to complete the upgrade and replacement of camera system network ASD Performance Measures
2022-23 Budget Specifics
• No major operational changes or other budget requests • Policy: Financial policies are in compliance
• Debt: All current City Debt Obligations are Fully Funded. No new debt is planned for 2023-24
• Staffing: Conversion of Human Resources Technician to Human Resource Analyst
• Future Planning: Continued work on design & engineering work for new City Hall and expanded Police Headquarters
• IT: Replacement of one server and three biometric timeclocks 2023-24 ASD Appropriations
Citywide
Benefit To All
City
Departments
ASD Specific
Costs
2023-24 Goals
• Maintain National and State level budget excellence awards • Continue to work on written and video-based procedures for all department functions • Continue cross-training staff in departmental functions • Complete the required biennial actuarial valuation for the City’s OPEB plan • Continue departmental assistance with admin & reporting for operating and capital grants
• Manage American Rescue Plan Act of 2021 (ARPA) funds in compliance with Federal regulations
• Complete the annual review and update of the Citywide Policies & Procedures Manual • Complete design for New City Hall
Unmet Needs & Challenges
Document institutional knowledge, policies and procedures Ever increasing reporting requirements
Complexity of the public-sector finance and human resources environment
Limited staff work space to meet the needs of residents and other departments
Thank You.
CITY OF REEDLEY
Proposed
Fiscal Year 2023-24
Budget Presentation
Community Development Department
Prepared for the Reedley City Council
May 9, 2023
DEPARTMENT MISSION
The Community Development Department is charged with
implementing the 2030 General Plan adopted in 2014 by the City Council. Our Department is responsible for planning, housing, building safety services, economic development and retention, and making Reedley a destination, not a stop. Additionally, our Department is geared toward the development of strong
neighborhoods complimented and supported by a full range of retail and commercial amenities. Lastly, our goal is to work with residents, business owners, and the development community to achieve the vision of the 2030 General Plan, compliance of the municipal code, and compatibility of the built environment.
THE DEPARTMENT
WHAT DO WE DO?
Planning
• Planning Commission
• Long-Range Planning
• Project Entitlement Processing
• Environmental Review
• Economic Development Support
• 3 full-time staff
Building
• Plan Check
• Permitting
• Building Inspection
• Sub-Standard Housing
• 2 full-time staff
1 – Staff Assistant; supporting both divisions
DEPARTMENT ACCOMPLISHMENTS:
PLANNING DIVISION
• Implemented the General Plan for years 2022 through 2023 • Processed 83 entitlement applications in 2022
• Completed substantial progress of the update to the zoning code and subdivision ordinance
• Substantially completed significant progress on the 6th cycle of the Multi-Jurisdictional Housing Element Update
• Completed the environmental analysis and entitlement applications concerning a large, much-anticipated annexation that will produce retail and commercial opportunity DEPARTMENT ACCOMPLISHMENTS:
ECONOMIC DEVELOPMENT
• Introduced monthly Reedley Street Eats events at
Pioneer Park
• Implemented an entitlement application fee reduction
program for the downtown area
• Implemented an expedited planning entitlement
application program citywide
• Implemented the Business Storefront Improvement
Program
Photo Credit: Mid-Valley Times
DEPARTMENT ACCOMPLISHMENTS:
BUILDING DIVISION
• Investigated building and housing complaints
• Worked with Code Enforcement to address unpermitted improvements • Implemented the roll out of the 2022 California Building Code • Continued coordination with other departments on building code-related matters
PERFORMANCE MEASURES
PROPOSED DEPARTMENT BUDGET
Department Expenditures
Include:
• Personnel
• Chamber of Commerce
• Art in Public Places
• Multi-Jurisdictional Housing
Element
• Development of a GIS Toolbox
Department Revenues
Include:
• Building Permits
• Electrical Permits
• Mechanical Permits
• Entitlement Fees
• DIF Fees
Expenses
$1,419,782
Revenue
$1,306,900
BUDGET LINE-ITEM HIGHLIGHTS
• 8.6% decrease in
expenditures
• $21,000 for the creation of
an interactive GIS Toolbox
• Continue grant funding for
the comprehensive zoning
code update
BUDGET LINE-ITEM HIGHLIGHTS (CONT.)
• Increases support for the Chamber of Commerce
• Maintains funding levels for staff training and professional development • Conservative estimation for revenues due to economic uncertainty Photo Credit: Mid-Valley Times
FY 2023-24 DEPARTMENT GOALS –
PLANNING DIVISION
• Continue implementation of the General Plan 2030
• Complete the zoning code update
• Complete the 6th cycle update to the Housing Element
• Begin the framework for the General Plan update
• Continue to work with other departments to provide an adequate response to existing and new businesses with a desire to expand or move to the City of Reedley
FY 2023-24 DEPARTMENT GOALS –
PLANNING DIVISION (CONTINUED)
• Continue to develop a strategy to incorporate public art within other realms of the public right-of-way
• Continue to develop policy and design guidelines for long-term parklet use within the downtown parking district
• Continue to process entitlement applications within a timely manner
FY 2023-24 DEPARTMENT GOALS –
BUILDING DIVISION
• Reduce the time necessary for the completion of plan checking projects and permit processes
• Track the time it takes to complete an inspection upon receiving an initial request so as to look at ways in which the division can enhance the consumer experience • Reduce the use of professional consulting services without negatively impacting service levels
• Produce and implement best practices through various professional development opportunities offered by the California Building Officials Association FY 2023-24 DEPARTMENT GOALS –
BUILDING DIVISION
• Continue to implement the 2022 California Building Code, and provide information to developers, contractors, and the public on relevant changes
• Completing inspections within 48 hours of the initial request • Continue to implement unused components of the permitting software to improve functionality and inter-department
coordination
Thank you!
Community Services
Department
Proposed 2023 -24 Budget
Department Divisions
Community
Services
Airport
Commission
Airport
Facilities
Building
Maintenance
Park Planning
Special Events
Facility and Park
Rentals
Administration Recreation
Community Services
Commission
Adult Sports
Expanded
Learning
Programs
Aquatics
Enrichments
Preschool
Seniors
Youth Sports
Two new murals on
the Parkway
01. Full implemenation of iWORq
for maintenance work orders
and tracking of assets
02. Senior lunch program
resumed
03. Completed Per Capita
park projects
04. Accomplishments
05. Restructured ELP to meet
State audit requirements
06. CDBG Funding for Senior
Food $92,172 spent
Department Performance Measures
Performance
Measures
Actual
2021
Actual
2022
Target
2023
Increase the number of Social Media
Followers by 5%
5,244 6,042 6,344
Increase the number of Recreation
Program Participation by 5%
6,104 7,707 8,093
Increase the Park and Facility Rentals
by 5%
253 534 561
Senior Programs
Special Trips: Fresno Chaffee Zoo, Table Mountain Casino, New Wrinkles Performance, Lavender Farm, and Christmas Tree Lane.
Monthly Activities and Special Events: Bingo and Pizza, Cooking Classes, Lunch Around the World, Movies and Ice Cream, Quarterly Free Luncheons, Senior Prom and Night at the Opera House.
Get Moving Program Senior Lunch Program
Recreation Programs
Youth Sports
Adult Sports
Special Events
Aquatics
Preschool
Instructor Classes
Seasonal Camps
Goals 2023-24
Offer Tiny Tots Cheer Program
Offer Adult Dance Class
Rehang murals from Royal Valley Building
Instructors
Yoga
Sewing
Dancing
Diving
Field Trips
Universal Studios
Santa Cruz
San Jose Tech
Museum
Vendors
African Drumming
Cano Boxing
Artisit in Me
Expanded Learning
Program (ELP) $1,838,714
Accomplishment:
High School Internship Program
Capital Project Requests for 2023 -24
Remodel space for maintenance operations
Roof repair Fire Department
Replace 4 HVAC units
LED lighting in Police Department
Replace tile floor in California Room and
Senior Room
Building
Maintenance
Convert Part Time Laborer to
Full Time Facilities Coordinator
Replaced AV equipment in California Room
Apron Reconstruction Project
Reconstruction of the north end of the
apron area is complete.
Design work for Above Ground Fuel Tanks
The City has already started the process to prepare for requesting a grant from the FAA for this project
Airport Layout Plan (ALP) Update
Construction -Above Ground Fuel Tanks
ALP is outdated and must stay current
to request grants from the FAA.
Airport
FY22
FY24
FY23
$110,000
$875,000
Refurbish Theater Chairs
Replace HVAC Unit
The current chairs are very
uncomfortable and starting
to come apart. This project
will rebuild, stain and
reupholster the top and
bottom cushions. Replace t he last of five (5)
HVAC units in the building.
This unit is 39 years old.
Opera House
Goal 2023-24: Focus to provide more public events in the building
General Fund
Expenditures
Enrichments $128,603
After School Programs
$1,838,714
Opera House $36,706
Preschool $36,854
Aquatics $130,498 Seasonal Parks $18,764
Senior Citizens $120,613
Youth Sports $86,236
Adult Sports $13,585
Maintenance $753,895
CSD Administration $335,029
General Fund
Revenues
After School Contracts
$1,779,730
Opera House
$12,600
Program Fees
$190,925
Rentals
$25,000
Thank you