Fiscal Year 2021-22
Mid-Year Budget Review
Richmond City Council
March 1, 2022
Finance Department
Accomplishments
2FY2021-22 Mid-Year Budget Review
Human Resources:
Staffing and Hiring
• Improved Job Opportunities Website
• Recruitments
Employment and Training Deputy Director, Hired
Budget Administrator Starts March 1st
Senior Business Assistance Officer Starts Feb. 23rd
10 Positions Added to Office of Neighborhood Safety (ONS) New Interim Library Deputy Director & Recruitment for Permanent Position Underway
Accomplishments
3FY2021-22 Mid-Year Budget Review
City-Wide Cleanup / I ♥ Richmond
Submitted Grants –Interdepartmental Teamwork
$5,748,400 million
Grant Name Amount Department(s) Proposed Uses
Clean California
Local Grant Program
(CalTrans)
$5 Million - Community Development -
Community Services,
- Public Works,
- CMO Economic
Development
Boorman Park Clean-up, 7th Street improvements, and I
Heart Richmond (Neighborhood dumpster days and Clean-
ups)
CalRecycle SB 1383
Local Assistance Grant
$145,000 - CMO Economic
Development
Provide the City of Richmond with financial support to
implement and comply with SB 1383
CalRecycle Solid Waste
Disposal and Site
Cleanup Grants
$400,000 - CMO Economic
Development
- Public Works
Fund illegal dumping clean-up, deterrent installation, and neighborhood dumpster days
Saris Foundation Bike
Parks Program
$25,000 - Dirt World,
- Public Works
Renovate the BMX track and two pump tracks along
Greenway
Transportation
Development Act (TDA3)
$178,400 - Public Works Richmond Ferry to Bridge Bicycle & Pedestrian Network Improvements Project
FY 2021-22 Mid-Year Overview
4 •Snapshot in time of the current fiscal year
•Determine if budget adjustments are needed
▫ Actuals
▫ Revised projections
•Incorporate prior council decisions (July-
December)
•Update baseline for FY2021-22 budget
FY2021-22 Mid-Year Budget Review
General Fund Revenue
FY2021-22 Mid-Year Budget Review 5
ACCOUNT DESCRIPTION ADOPTED
FY2021-22
PREVIOUS
ADJUSTMENTS
REVISED
FY2021-22
MID-YEAR
ADJUSTMENTS
PROPOSED
FY2021-22
PROPERTY TAXES 47,460,890 - 47,460,890 (2,227,329) 45,233,561 SALES & USE TAX 50,060,211 - 50,060,211 1,933,525 51,993,736 UTILITY USERS TAX 45,452,324 - 45,452,324 1,070,339 46,522,663 OTHER TAXES 18,269,102 - 18,269,102 1,101,817 19,370,919 LICENSES,PERMITS & FEES 11,806,326 - 11,806,326 (1,626,991) 10,179,335 FINES & FORFEITURES 550,000 - 550,000 (81,103) 468,897
USE OF MONEY & PROPERTY 236,079 - 236,079 - 236,079
CHARGES FOR SERVICES 3,383,931 - 3,383,931 40,528 3,424,459 OTHER REVENUE 158,977 - 158,977 1,314,950 1,473,927
RENTAL INCOME 733,206 - 733,206 14,062 747,268
INTERGOV STATE TAXES 90,000 - 90,000 - 90,000
INTERGOV STATE GRANT 160,000 - 160,000 27,878 187,878
INTERGOV OTHER GRANT 153,569 - 153,569 - 153,569
PROC FR SLE PROP 100,000 - 100,000 - 100,000
LOAN & BOND PROCEEDS - - - 36,400 36,400
OPERATING TRANSFERS - IN 9,856,182 - 9,856,182 348,042 10,204,224 GF REVENUE TOTAL 188,470,796 - 188,470,796 1,952,118 190,422,915 General Fund Revenue
Total Increase: ~$2.0M
• Property Tax – decrease of $2.2M lower than forecast
• Sales Tax – increase of $1.9M due to higher trends
• Utility Users Tax (UUT) – increase of $1.1M primarily from Chevron
• Transfer Tax – increase of $1.1M from large property sales • Business Tax – decrease of $1.6M from credit of Rent
Board fees
• Other Revenues – increase of $1.7M
FY2021-22 Mid-Year Budget Review 6
General Fund Expenditures
FY2021-22 Mid-Year Budget Review 7
ACCOUNT DESCRIPTION ADOPTED
FY2021-22
PREVIOUS
ADJUSTMENTS
REVISED
FY2021-22
MID-YEAR
ADJUSTMENTS
PROPOSED
FY2021-22
SALARIES AND WAGES 75,424,602 5,382 75,429,983 913,483 76,343,466 PAYROLL/FRINGE BENEFITS 62,145,202 - 62,145,202 62,145,202 PROF & ADMIN 11,201,880 1,602,379 12,804,259 1,666,000 14,470,259 OTHER OPERATING 10,680,893 (3,560,686) 7,120,207 7,120,207 UTILITIES 4,565,743 (6) 4,565,737 473,948 5,039,685
EQUIPMENT & CONTRACT SVCS 2,628,158 63,986 2,692,144 2,692,144 PROVISION FOR INSURANCE LOSS 25,725 87 25,812 25,812
COST POOL 14,130,436 - 14,130,436 325,000 14,455,436
ASSET/CAPITAL OUTLAY 1,602,890 1,333 1,604,223 1,604,223 DEBT SERVICE EXPENDITURES 1,065,359 - 1,065,359 1,065,359 A87 COST PLAN REIMBS (3,516,104) - (3,516,104) (3,516,104) GRANT EXPENDITURES 2,500 80,000 82,500 82,500
OPERATING TRANSFERS - OUT 7,884,939 - 7,884,939 4,916,480 12,801,419 GF EXPENDITURE TOTAL 187,842,223 (1,807,525) 186,034,698 8,294,911 194,329,609 General Fund Expenditures
Total Increase: ~$8.3M
• Salaries and Benefits: Increase of $913k
▫ Fire Overtime ($700k)
• Professional Services – Increase of $1.7M
• Utilities – Increase of $474k primarily EBMUD
• Cost Pool – Increase of $325k purchase of street sweeper • Operating Transfer Out –Increase of $4.9M in
Administrative transfer related to Reimagining Public
Safety
FY2021-22 Mid-Year Budget Review 8
FY 21-22 Adopted Vs. Mid-Year Budget
Adopted June
29, 2021
Mid-Year
Proposed
Revenues 188,470,796 190,422,915
Expenditures 187,842,223 194,329,609
Net Rev/Exp* 628,573 -3,906,695
Percentage 0.3% -2.11%
9FY2021-22 Mid-Year Budget Review
*Proposed net covered by set-aside from FY 2020-21
Position Count
10 The number of active employees can change day to day as employees leave or retire and new hires are brought on board. Position count above is as of December 31, 2021. Not included in this listing are part-time employees without benefits, many of these are seasonal. As of 12/31/2021, the City had 127 part-time employees without benefits.
FY2021-22 Mid-Year Budget Review
Active Proposed
Status 12/31/2021 Budgeted
Full Time 579 706.1
Part-time Employees w/ Benefits 10 0
Retired Annuitant 8 0
Total Count 597 706.1
Changes in Full Time Position Count
11FY2021-22 Mid-Year Budget Review
Department Adopted
FY21-22
Revisions
FY21-22
Proposed
Mid-Year
FY21-22
6/29/21 1/11/22* 3/1/22
ALL DEPARTMENTS 693.2 706.2 706.1
*Includes changes from adoption through January 11, 2022 Mid Year Position Changes
12FY2021-22 Mid-Year Budget Review
Department Mid-Year Position Changes
From To
City Attorney Reclass promotional from Executive
Secretary II Administrative Services Analyst
Finance Reclass from Accounting Manager Deputy Finance Director Finance Reclass from Budget Analyst II Accountant II
Library New Librarian II
Community Services -
Recreation Reclass from Admin Aide Assistant Admin Analyst Employment & Training Reclass from Finance Manager Sr. Accountant Economic Development Promotion from Associate Admin Analyst Sr. Admin Analyst Economic Development Remove Management Analyst II (0.5) Partially fund Sr. Management Analyst
Economic Development/RHAPromotion from Management Analyst II Sr. Management Analyst City Manager and Public
Works
Reclass from Community Engagement
Manager Deputy Public Works Director
Children & Youth Promotion Associate Admin Analyst Sr. Management Analyst City Council Sr. Admin Analyst Promotion to Project Coordinator RHA Remove RHA Sr. Property Manager (0.5) Partially fund Sr. Management Analyst
Economic Development Remove Management Analyst I No position Recruitment Status
13FY2021-22 Mid-Year Budget Review
Item Number
Positions added on/or after 6/29/21 43
Recruitments opened between 7/1/21 – 1/31/22 57
Current active recruitments as of 1/31/22 79
Current unfilled positions, as of 1/31/22 125
Non-General Fund
14FY2021-22 Mid-Year Budget Review
• Staff is recommending increases:
▫ Revenue totaling $24.8 million
▫ Expenditures totaling $6 million
• Adjustments:
▫ Pass-through funding
▫ Fund Balance reserves for operating
▫ Capital improvement needs
▫ Impact fees
Capital Improvement Plan Budget
15FY2021-22 Mid-Year Budget Review
CIP Funding Sources total $49.6 million.
• State Gas Taxes
• Measure C/J
• Loan Proceeds
• Grants
The American Rescue Plan Act of 2021
16 FY2021-22 through December 2021 BUDGET ACTUAL * ENCUMBRANCES REMAINING ARPA REVENUE -TOTAL $27,740,723 $13,870,362 $ - $13,870,362
ARPA EXPENDITURES
MAIN LIBRARY - HVAC $ 500,000 $ - $ 48,000 $ 452,000 NEVIN COMMUNITY CENTER - HVAC $ 500,000 $ 10,250 $ 39,750 $ 450,000 RECREATION CENTER ADMINISTRATION - HAVC $ 500,000 $ 9,750 $ 39,250 $ 451,000 RICHMOND MUSEUM - HVAC $ 500,000 $ - $ 32,600 $ 467,400 COMMUNITY BEAUTIFACTION $ 1,000,000 $ - $ - $ 1,000,000 COMMUNITY NEEDS ASSESSMENT $ 250,000 $ - $ - $ 250,000 ENVIRONMENTAL PLANNING CONSULTANT $ 300,000 $ - $ - $ 300,000
HOUSING & DEVELOPMENT
INITIATIVES/RICHMOND RAPID RESPONSE FUND $ 1,000,000 $ - $ - $ 1,000,000 RECOVERY OF LOST REVENUE (FY2020-21)
APPLIED TO BALANCE FY2021-22 GF BUDGET $ 4,000,000 $ - $ - $ 4,000,000 NORTH RICHMOND PUMP STATION $ 1,800,000 $ - $ - $ 1,800,000 MLK PARK TURF FIELD $ 150,000 $ - $ - $ 150,000 Total - ARPA FY2021-22 $ 10,500,000 $ 20,000 $ 159,600 $ 10,320,400 REMAINING ARPA ALLOCATION $17,240,723
FY2021-22 Mid-Year Budget Review
*Additional $7,487.59 received in interest through December 2021 The American Rescue Plan Act of 2021
17FY2021-22 Mid-Year Budget Review
North Richmond Pump Station
MLK Park Turf Field
Reimagining Public Safety
REIMAGINING PUBLIC SAFETY COMMUNITY TASK FORCE FY 21-22 BUDGET FY2021-22 through December 2021 BUDGET ACTUAL ENCUMBRANCES REMAINING YouthWORKS $ 1,980,000 $ 352,026 $ - $ 1,627,974 OFFICE OF NEIGHBORHOOD SAFETY (ONS) $ 1,600,000 $ - $ - $ 1,600,000 UNHOUSED INTERVENTION $ 1,800,000 $ - $ 983,975 $ 816,025 COMMUNITY CRISIS RESPONSE $ 1,000,000 $ - $ - $ 1,000,000 Total - Reimagining Public Safety
FY2021-22 Expenditures $ 6,380,000 $ 352,026 $ 983,975 $ 5,043,999 18FY2021-22 Mid-Year Budget Review
Contingency Reserves
FY2021-22 Mid-Year Budget Review 19
Contingency Reserve Policy Amounts in Annual Comprehensive Financial Report (ACFR)
Fiscal Year Date GF Budgeted
Expenditures
Contingency
Reserves per
ACFR
Percent of
Expenditures
FY2018-19 6/30/2019 176,208,966 19,534,660 11.1%
FY2019-20 6/30/2020 160,198,985 20,326,889 12.7%
FY2020-21 6/30/2021 179,948,582 22,477,829 12.5%
Percentages are rounded.
Opportunities for Input
•Monthly Council budget updates
•Council and Stakeholder Budget Input
Sessions for FY2022-2023
▫ Community Budget Meetings –March 16th,
March 24th, and March 31st
▫ RNCC –TBD
▫ https://www.ci.richmond.ca.us/4096/Com
munity-Budget-Meetings
FY2021-22 Mid-Year Budget Review 20
Opportunities for Input
FY2021-22 Mid-Year Budget Review 21
Future Priorities
• Address Pension Obligation Bond
• Fund and Implement Class & Compensation Study
• Complete Capital Needs Assessment
• Monitor Measure U Revenue
• Consider Additional Revenue Enhancements
▫ Proposed Vacant Property Tax (June 2022)
▫ Proposed Utility Users Tax Increase (Nov 2022)
• Fund facilities, fleet, Information Technology, and
infrastructure improvements
• Increase City reserves to 15%
FY2021-22 Mid-Year Budget Review 22
Recommended Action
REVIEW the Fiscal Year 2021-2022 operating
and capital improvement budgets at mid-
year and ADOPT a resolution approving the
proposed Fiscal Year 2021-2022 budget
adjustments.
FY2021-22 Mid-Year Budget Review 23
Thank you
Questions?
FY2021-22 Mid-Year Budget Review 24