Fiscal Year 2021‐22
Mid‐Year Budget Review
Richmond City Council
March 22, 2022
FY 2021-22 Mid-Year Overview
2 •Background and Accomplishments
•Total Revenues/Expenditures FY 21-22
•Terms and Definitions
•General Fund Revenues
•General Fund Expenditures
•Position Controls, Listing, Recruitments
•Non-General Fund
•Capital Improvement Project (CIP)
•American Rescue Plan Act (ARPA)
•Reimagining Public Safety
•Opportunities for Input and Future Priorities
FY2021-22 Mid-Year Budget Review
Background
3 •Snapshot in time of the current fiscal year
•Determine if budget adjustments are needed
▫ Actuals
▫ Revised projections
•Incorporate prior council decisions
(July-December 2021)
•Update baseline for FY2022-23 budget
FY2021-22 Mid-Year Budget Review
4 Background
Allocated anticipated excess
revenue $15.5 M
Allocated additional excess
revenue of $5.3M
Total excesss revenue
$20.8
Authorize repayment
agreement
Annual Comprehensive Financial
Report
FY 20-21 Final Adjustments
Presented FY 21-22 Mid-Year
Adjustments
Noted Council Questions
29 Jun
26 Oct
25 Jan
15 Feb
1 Mar
2021
Background
Previous Council Meetings Date
FY 2021-22 Budget Adopted June 29, 2021
Adjustments to FY2020-21 and 2021-22 Budget October 26, 2021 RHA Mid-Year Budget Adjustments January 25, 2022
Final Adjustments to FY2020-21 Budget February 15, 2022 Mid-Year Report on FY2021-22 Budget March 1, 2022
5 Accomplishments
6 City‐Wide Cleanup / I ♥ Richmond
Submitted Grants – Interdepartmental Teamwork
$15,548,400
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
♥ Richmond (Neighborhood dumpster days and Clean-ups)
Clean California
Local Grant Program
(CalTrans)
$5 Million - Community Development -
Community Services
- Public Works,
- CMO Economic Development
Construct pedestrian-friendly street --Yellow Brick Road Project (YBR) -- infrastructure, add plants and trees, human-scale street lighting, litter abatement facilities, wayfinding and placemaking signage. Connect two Pogo Park site and provide access to all 15,000 Iron Triangle residents
Governor’s Grant to Tackle
Local Encampments
$4.8 Million - Community Development
- Richmond Police Department
Encampment Resolution Funding (ERF) will focus on the Castro Street vehicle encampment. The effort will be a stepped approach to address the myriad needs of the 100+ people living at the Castro encampment with evidence-based clinical case management and intensive social service and housing
navigation support.
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 & Pedestr ian Network Improvements Project
Accomplishments
7 Human Resources:
Staffing and Hiring
• Improved Job Opportunities Website
• Recruitments
Deputy Director of Employment and Training started January Deputy Director of Community Services – E & T started January 10 Positions Added to Office of Neighborhood Safety (ONS) approved January New Interim Deputy Director of Library &
Recruitment for Permanent Position Underway, January
Budget Administrator started February
Senior Business Assistance Officer started February
Accounting Manager started March
FY 21-22 Adopted Vs. Mid-Year Budget
FY 2021‐22
Adopted
June 29, 2021
FY 2021‐22
Proposed Mid‐Year
Revenues 188,470,796 192,005,339
Expenditures 187,842,223 195,129,609
FY20‐21 Budget Set‐Asides* *5,529,000
Net 628,573 2,404,729
8 *FY 2020‐21 set aside amounts allocated but not incorporated into FY 2021‐22 budget FY 2021-22 Allocation
9 [2] The total allocation for Reimagining Public Safety is $6.3 million from various funding sources, including $1.3 million coming from the General Fund.
[3] Actual used for one‐time compensation may be different than $2.3 million [4] Actual RHA liability written‐off during the fiscal close was $10,442,853, which was $4,313,885 more than the set‐aside of $6,128,968. [5] Set aside to attain 14.3 percent reserve level were used to write‐off RHA liability. [6] The additional $5,357,986 approved as set asides on October 26, 2021, included an additional $3,128,968 for RHA, bringing the total set aside for RHA to $6,128,968. Measure U Shortfall ($2,000,000), and GF expenditures (229,000), revised projected surplus from $15,519,567 to $20,877,535.
Excess vs. Reserve
• In the context of Richmond’s FY21‐22 budget, “Excess” is the difference between revenues exceeding expenditures
for FY20‐21 and allocated for other uses per City Council direction for FY21‐22.
• The “reserve” is a component of the Unassigned Fund
Balance (not appropriated for any use or purpose). For FY 2020‐21, the $22,477,829 unassigned fund balance
calculated to 12.5 percent of FY 2021‐22 budgeted
General Fund expenditures so, the entire unassigned
fund balance is considered the reserve.
10 Fund Balance Defined
Government Accounting Standards Board (GASB) Statement 54 11 Nonspendable: Amounts that cannot be spent because they are either (a) not in spendable form i.e., Inventories or (b) legally or contractually required to be maintained intact receivables.
Restricted: Funds whose use is constrained by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or by law through constitutional provisions or enabling legislation.
Committed (Set Aside): Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority.
Assigned: Amounts that are constrained by the government’s intent to use them for specific purposes but are neither restricted nor committed. Unassigned (Reserve): A fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund.
General Fund Revenue
Total Increase: ~$3.5M
12 Revenue I/D* Amount
Property Tax D ‐ $2.2 millions
Business Tax D ‐ $1.6 millions
Sales Tax I + $1.9 millions
Utility Users Tax (UUT) I + $1.1 millions
Transfer Tax I + $2.6 millions
Other Revenues I + $1.7 millions
*I=Increase, D=Decrease
General Fund Expenditures
Total Increase: ~$9.1M
13 Expenditures *I/D Amount
Salaries & Benefits I +$913,000
Professional Services I +$2.5 million
Utilities I +$474,000
Cost Pool (Equipment) I +$325,000
Operating Transfer Out I +$4.9 million
* I=Increase, D=Decrease
General Fund Expenditures
Fire Overtime Contributing Factors (Jul-Dec 2021)
14 Vacation Injury Leave Sick Leave Ext Leave COVID Other AssignmentLight Duty Bereavement Other Leave
# of Hrs 12,403 9,716 6,107 5,184 984 716 519 192 35
General Fund Expenditures
Fire Overtime Resolutions
15 • Timely Fire Fighter Return to Work Alternative Dispute Resolution (ADR) Program
• Fill Vacancies
• Shift Balancing and Overtime in Rank
• Establish Acting Captain and Engineer List
• Track Overtime Budget Variance
Position Count
16 The number of active employees can change day to day as employees leave or retire and new hires are brought on board. The 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 December 31, 2021, the City had 127 part-time employees without benefits.
Status Active
Employees as
12/31/2021
Authorized &
Proposed
Budgeted FTE
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
17 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
18 Department Mid‐Year Position Changes
From To
City Attorney Reclass promotional from Executive Secretary II Administrative S ervices Analyst Finance Reclass from Accounting Manager Deputy Finance Director Finance Reclass from Budget Analyst II Accountant II
Community Services ‐ Library New Librarian II
Community Services ‐ Recreation Reclass from Admin Aide Assistant Admin Analyst Community Services ‐ Employment &
Training
Reclass from Finance Manager Sr . Accountant
Economic Development Promotion from Associate Admin Analyst Sr . Admin Analyst Economic Development Remove Management Analyst I Partially fund Sr . Admin Analyst promotion
Economic Development/RHA Promotion from Management Analyst II Partially fund Sr . Manageme nt Analyst (0.5)
RHA Remove RHA Sr . Property Manager Partially fund Sr . Management An alyst (0.5)
City Manager and Public Works Reallocate Community Engagement Manager Deputy Public Works Dire ctor Children & Youth Promotion Associate Admin Analyst Sr . Management Analyst City Council Promotion from Sr . Admin Analyst Project Coordinator Total adjustments for salaries and benefits are ~$913,000. Overtime for RFD is ~$705,000 and Non‐public safety adjustments are ~$208,000.
Recruitment Status
19 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
20* Attachment 2
NON‐GENERAL FUND Revenue Adjustment Expenditure
Adjustment
Net Impact
Employment & Training 1,992,371 12,371 1,980,000
Equipment Services 355,000 175,000 180,000
Fire Impact Fee 27,634 27,634
General Capital 1,520,000 (2,384,726) 3,904,726
Grants 161,707 62,888 98,819
Hilltop Landscape Maintenance District 47,000 (47,000) Housing Admin Prof Services 480,000 (480,000)
Insurance Reserves 16,886,431 8,330,539 8,555,892
KCRT 35,999 (35,999)
Library Impact Fee 36,302 36,302
Marina Bay Landscape & Lighting 47,000 (47,000)
Non‐Departmental 1,291,760 (521,142) 1,812,902
Park Impact Fee 2,160 2,160
Parks Open Space Impact Fee 43,899 43,899
Planning & Building Cost Recovery 1,800,000 1,800,000
Police Impact Fee 152,496 152,496
Port 38 44,000 (43,962)
Recreation Impact Fee 10,527 10,527
Stormwater Impact Fee 109,195 109,195
Traffic Impact Fee 227,990 227,990
Wastewater 325,313 325,313
Wastewater Impact Fee 173,118 173,118
Richmond Housing Authority (349,975) (349,975) 0
Total Non‐General Fund Requests 24,765,966 5,978,954 18,787,012 Capital Improvement Plan(CIP) Budget
21 CAPITAL PROJECTS
REVISED
BUDGET
FY2021‐22
MID‐YEAR
ADJUSTMENTS
FY2021‐22
PROPOSED
BUDGET
FY2021‐22
ARPA/MAIN LIBRARY 1,000,000 ‐500,000 500,000
ARPA/NEVIN CENTER 1,000,000 ‐500,000 500,000
ARPA/RECREATION CENTER 1,000,000 ‐500,000 500,000
ARPA/RICHMOND MUSEUM 1,000,000 ‐500,000 500,000
FIRE STATION 67 ROOF REPLACEMENT 14,726 ‐14,726 ‐
NEVIN COMMUNITY CENTER HVAC UPGRADE 370,000 ‐370,000 ‐
PORT REHAB/TERMINAL 2 IMPROVEMENTS ‐ 4,088 4,088
PPMT ELECTRICAL SYSTEM 90,000 ‐40,000 50,000
PPMT Fence Installation Project
‐ 44,000 44,000
PPMT GRAVING WATER LINE 145,000 ‐45,088 99,912
PPMT PAVEMENT REHAB 160,000 ‐100,000 60,000
PPMT TERMINAL 7 & 8 VENTRIFICATION 150,000 ‐67,000 83,000 TERMINAL 2 DREDGING ‐ 275,000 275,000
TERMINAL 2 MACHINE SHOP 30,000 ‐27,000 3,000
TOTAL 4,959,726 ‐2,340,726 2,619,000
The American Rescue Plan Act of 2021
22 North Richmond Pump Station
MLK Park Turf Field
The American Rescue Plan Act of 2021
23*Additional $7,487.59 received in interest through December 2021 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 IMPROVEMENTS $ 500,000 $ ‐ $ 48,000 $ 452,000 NEVIN COMMUNITY CENTER ‐ HVAC IMPROVEMENTS $ 500,000 $ 10,250 $ 39,750 $ 450,000 RECREATION COMPLEX ‐ HVAC IMPROVEMENTS $ 500,000 $ 9,750 $ 39,250 $ 451,000 RICHMOND MUSEUM ‐ HVAC IMPROVEMENTS $ 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
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 24 Opportunities for Input
• Monthly Council budget updates
• Council and Stakeholder Budget
Input Sessions for FY2022-2023
Community Budget Meetings
March 16 at 12:00 PM (completed)
March 24 at 5:30 PM
March 31 at 5:30 PM
RNCC – April at 7:00 PM
https://www.ci.richmond.ca.us/4096/Community-Budget-
Meetings
25 Future Priorities
• Address Pension Obligation Bond
• Fund and Implement Class & Compensation Study
• Complete Capital Needs Assessment
• Monitor Measure U Revenue
• Consider Additional Revenue Enhancements
• Fund facilities, fleet, Information Technology, and
infrastructure improvements
• Increase City reserves to 15 percent
26 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.
27 Thank you
Questions?
28