June 7, 2022
Finance Department
DATE: June 7, 2022
TO: Mayor Butt and Members of the City Council
FROM: Shasa Curl, City Manager
Anil Comelo, Interim Deputy City Manager
Delmy Cuellar, Director of Finance
LaShonda White, Interim Director of Library and
Community Services
Mubeen Qader, Budget Administrator
Antonio Banuelos, Accounting Manager
Subject:
Acknowledge receipt of Fiscal Year 2022-2023 Proposed
Second Draft Budget
FINANCIAL IMPACT: There is no financial impact to receiving this report.
PREVIOUS COUNCIL
ACTION:
April 19, 2022, April 26, 2022. May 3, 2022, May 17,
2022, and May 24, 2022.
STATEMENT OF THE
ISSUE:
On May 3, 2022, City Council received a draft of the
balanced FY 2022-2023 operating budget and FY 2022-
2027 Capital Improvement Plan budget. At this time, the draft General Fund budget reflects an operating budget
surplus of approximately $4.5 million. The purpose of this item is to provide the City Council an overview of the
budget documents, discuss potential future revenue and
expenditure adjustments, and receive direction from City Council prior to final budget adoption.
AGENDA
REPORT
June 7, 2022
RECOMMENDED ACTION:
RECEIVE an update on the draft Fiscal Year (FY) 2022-
2023 Annual Operating Budget and Fiscal Year 2022-
2027 Five-Year Capital Improvement Plan Budget and
provide guidance regarding budget development – City
Manager’s Office/Finance Department (Shasa
Curl/Delmy Cuellar 510-620-6740).
DISCUSSION:
In accordance with Richmond Municipal Code Section 2.61.010, on May 3, 2022, the City Manager submitted the first draft of the Fiscal Year (FY) 2022-2023 operating budget, and FYs 2022-2023 – 2026-2027 Five-Year Capital Improvement Plan budget.
Initially, the operating budget gap was approximately $1.9 million; however, the City staff provided several pending adjustments that would increase the revenues, reduce the expenditures, and result in a budget surplus of $27,854.
Table 1: May 3, 2022, First Draft Budget FY 2022-2023 Revenue and Expenditures
GENERAL FUND
FY 2022-2023
DRAFTBUDGET PENDINGADJUSTMENTS
FY 2022-2023
DRAFTBUDGET AFTER
ADJ.
TOTAL REVENUE 204,878,270 1,482,100 206,360,370 TOTAL EXPENSE 206,767,616 (435,100) 206,332,516 Net (-Gap)/+Surplus (1,889,346) 1,047,000 27,854
Since May 3, 2022, City Council received informative budget presentations from most City departments, as well as a presentation on the cost allocation plan from NBS Consulting. After further review and analysis of revenues and expenditures, the draft General Fund budget reflects a surplus of approximately $4.5 million.
On June 7, 2022, City staff will provide a FY 2022-2023 budget update, discuss proposed adjustments that are not currently included in the budget, and provide an opportunity for City Council to provide direction on changes to the draft budget prior to final approval on or before June 30, 2022.
SUMMARY
The FY 2022-2023 citywide expenditure budget amounts to $428,731,367 million, of which $201,969,824 is from the General Fund, and $226,761,543 million is from non- General Fund accounts.
June 7, 2022
General Fund: The draft FY 2022-2023 proposed General Fund budget has a projected surplus balance of $4,513,570, with revenues estimated at $206,483,394 and expenditures estimated at $201,969,824. These projections are an increase from the current FY 2021-2022 revenue and expenditure budget by 7.4 percent and
3.3 percent respectively. The FY 2022-2023 proposed draft budget is also presented in Attachment 1 – Comprehensive Budget by Fund.
o Revenue: City staff projects an additional $14.3 million in General Fund revenue in comparison to the current FY 2021-2022 revised General Fund budget. Property taxes, sales and use tax, and utility users tax saw the highest increases. The General Fund Revenue Summary is available in Attachment 2.
o Expenditures: Major expenditure categories are listed below, and additional information can be found in Attachment 3 – General Fund by Department:
Salary/Wages and Fringe Benefits ($146.9 million)
Cost Pool ($15.3 million)
Professional Admin ($14.6 million)
Operating Transfers Out ($12.7 million)
Cost Allocation Plan ($3.5 million)
Multi-Year Position Listing: The proposed budget includes salaries and wages of 710.1 Full-Time Equivalent (FTE) positions, which are net four (4) additional FTEs than the Mid-Year FY 2021-2022 approved FTE total. The Multi-Year Position Listing is available in Attachment 4.
Non-General Fund: The total non-General Fund budget is estimated at $226,761,543 and primarily includes funds dedicated to housing, debt service, enterprise funds, and other city operations. The Non-General Fund by Category summary is included in Attachment 5.
Capital Improvement Plan (CIP): The CIP includes essential capital projects and has a total budget of $76,767,879 spread across several funds (Attachment 6 – List of CIP Projects). The CIP lists many projects that are unfunded; however, the funded projects are budgeted on annual basis.
American Rescue Plan Act (ARPA): To support Covid-19 relief, the City received $27.7 million in ARPA funds, and as part of the FY 2021-2022 budget, City Council approved allocations of $10.5 million to support various projects (Attachment 7 – ARPA Funding Table). A community needs assessment process, initiated in May 2022, and a strategic investment plan will provide recommendations to City Council to help inform spending for the remaining $17.2 million.
June 7, 2022
Reimagining Public Safety Intervention Programs: Programs implemented as part of Youthworks, Office of Neighborhood Safety, Unhoused Intervention, and Community Crisis Response Program are budgeted at an estimated total of $7,114,474 for FY 2022-2023 (Attachment 8 – Reimagining Public Safety Table).
City staff is proposing to implement several revenue and expenditure adjustments, as noted and proposed in Table 10, prior to bringing the final budget back before June 30, 2022, for approval.
GENERAL FUND
The updated FY 2022-2023 budget provides a projected surplus balance of $4,513,570, with proposed total general fund revenues at $206,483,394 and proposed expenditures at $201,969,824.
Table 2: Updated General Fund Draft Budget FY 2022-2023 Revenue and Expenditures GENERAL FUND FY 2022-2023
DRAFT BUDGET
TOTAL REVENUE $206,483,394
TOTAL EXPENSE $201,969,824
Net (-Gap)/+Surplus $4,513,570
Revenues
The total proposed General Fund revenue for the FY 2022-2023 budget is approximately $206.5 million. City staff is projecting an additional $14.3 million in General Fund revenue from the current FY 2021-2022 Revised General Fund Budget.
Detailed information regarding revenue changes can be found in Attachment 2 – General Fund Revenue Summary.
Property Tax – Increase of $823,000: In preparing the FY 2022-2023 budget, City staff forecasted Assessed Valuation (AV) growth of three percent. This was based on the change in value of properties sold during the last year, the Chevron Refinery AV remaining flat, and all other properties increasing by two percent. Actual change in AV will not be known until the Equalized Roll is published by Contra Costa County the first week of July 2022. This roll will list every property in Richmond, including their updated valuation.
Sales Tax – Increase of $3.3 million: This increase is based on updated estimates provided by the City’s sales tax consultants, Avenue Consulting. This increase is in part due to the local economy doing well, bolstered by the big-box stores including Costco, Target, The Home Depot, and Wal-Mart. Additionally, the increase corresponds to an
June 7, 2022
overall increase of 6.3 percent for the sales tax category. In particular, the Bradley Burns 1 percent sales tax is projected to increase by five percent, while the voter- approved half cent measure are expected to increase by 10 percent in the coming year compared to the current FY 2021-2022 revised budgeted amounts.
Utility Users Tax (UUT) – Increase of $3.4 million: UUT is an “excise” or usage tax imposed on a person or entity using utility services (i.e., electricity, gas, or communications). For the most part, the various UUT streams such as cable television, gas and electricity, and telecommunications are expected to stay flat with zero percent grow this coming year. An increase of $3.4 million is budgeted stemming from a forecasted increase to the Utility User Tax Cap Provision. The cap amount, paid by Chevron, is tied the Consumer Price Index (CPI) for energy services in the San Francisco metropolitan area. This particular CPI through the April postings by the United States Bureau of Labor Statistics corresponds to an increase of over 13 percent. Actual amount will not be known until the end of June.
Other Taxes – Increase of $685,000: This revenue category includes the Documentary Transfer Tax, whose budgeted amount corresponds to the average Transfer Tax collected since the voter-approved tiered structure went into effect in 2019, as per instructions within the Guiding Fiscal Policies. This yields an estimate of $13.6 million which is the same as the budgeted amount in revised FY 2021-2022 budget.
Licenses, Permits & Fees – Net Increase of $775,000: $425,000 of this increase stems from increased Code Enforcement collections. $158,000 stems from a two percent increase of Business Tax. Finally, City staff is projecting an increase of $332,000 in Recreation fees, as Recreation programs approach pre-pandemic levels.
All other revenue streams that feed into this category will see a net decrease of $140,000. This decrease is primarily tied to one-time revenues (and corresponding expenses) tied to both Point Molate and Campus Bay projects.
Measure U -- City staff is budgeting $7.9 million, plus an escalator of two percent, which corresponds to an additional $158,000, for a total of $8,058,000.
The budgeted amounts include the reduction to the tax due by small residential property owners. A Resolution was adopted in December 2021, allowing landlords with four or less residential units to credit their paid Rent Board fees against their gross receipts tax obligation, and is carried forward in the proposed budget. City staff will continue analyzing this new revenue stream and update projections as more data is gathered.
Other Revenues (Includes Fines & Forfeitures, Charges for Services, Other Revenues, Rental Income, Intergovernmental State Taxes & Grants, and Loan & Bond Proceeds, and Operating Transfers In) – Net decrease of $920,000. Most of these adjustments generate from revenue received year-to-date that were either not expected or are exceeding projections. In some cases, these are one-time revenue increases and
June 7, 2022
decreases that cannot be anticipated, or the amount received is deviating significantly from previous years.
Increase to Fines & Forfeitures of $6,378 or 1.4 percent stemming from projected increase in Municipal Court Fines.
Increase to Charges for Services of $146,833 primarily from increased Police Special Services.
Decrease to Other Revenue of $1,286,427 stemming from one time revenue that occurred in FY 2021-2022, that will not occur again in FY 2022-2023. This includes pass-through payments related to Point Molate and Campus Bay projects.
Increase of $127,239 in Rental Income primarily tied to rental of Recreation facilities as Recreation programs approach pre-pandemic levels. Increase of $35,000 in Intergovernmental State Taxes stemming from State Mandated Claims reimbursements trending higher in FY 2021-2022 and that trend is expected to continue in FY 2022-2023.
Decrease of $12,878 in Intergovernmental State Grants. This is directly tied to an Office of Neighborhood Services State Grant that was budgeted in FY 2021-2022 and is not expected in FY 2022-2023.
Increase of $100,000 in Intergovernmental Other Grants. Staff is expecting additional revenue in Supplemental Law Enforcement Revenue from the County. Decrease of $36,400 in Loan and Bond Proceeds. No loan and bond proceeds are expected in FY 2022-2023. If that changes, the corresponding budget will be adjusted at mid-year.
Operating Transfers In – Increase of $6,210,346 in Operating Transfers-In from the Pension Tax Override Fund. The revenue that flows into the Pension Tax Override fund is expected to increase at the same rate as Property Taxes. What is unique in FY 2022- 2023 is that the Bond Intercept amount, which was $12.7 million in FY 2021-2022 will go down to $6.6 million in FY 2022-2023. However, the Bond Intercept will go back up to $13.0 million in FY 2023-2024.
Proposed General Fund revenue adjustments in the FY 2022-2023 budget for July 1, 2022, are as follows and in Attachment 2.
June 7, 2022
Table 3: General Fund Revenue Draft Budget
GENERAL FUND REVENUES
FY 2021-2022
REVISED
BUDGET
FY 2022-2023
PROPOSED
BUDGET
PCT
CHANGE
PROPERTY TAXES $45,233,561 $46,056,962 1.8%
SALES & USE TAX $51,993,736 $55,282,200 6.3%
UTILITY USERS TAX $46,522,663 $49,963,589 7.4%
OTHER TAXES $20,953,343 $21,638,449 3.3%
LICENSES, PERMITS & FEES $10,354,335 $11,129,402 7.5%
FINES & FORFEITURES $468,897 $475,275 1.4%
USE OF MONEY & PROPRTY $236,079 $236,079 0.0%
CHARGES FOR SERVICES $3,424,459 $3,571,292 4.3%
OTHER REVENUE $1,473,927 $187,500 (87.3%)
RENTAL INCOME $747,268 $874,506 17.0%
INTERGOV STATE TAXES $90,000 $125,000 38.9%
INTERGOV STATE GRANT $187,878 $175,000 (6.9%)
INTERGOV OTHER GRANT $153,569 $253,569 65.1%
PROCEEDS FROM SALE OF
PROPERTY $100,000 $100,000 0.0%
LOAN/BOND PROCEEDS $36,400 - (100.0%)
OPERATING TRANSFERS-IN $10,204,224 $16,414,570 60.9%
GENERAL FUND REVENUES $192,180,338 $206,483,394 7.4%
Expenditures
FY 2022-2023 total proposed expenditures are $201,969,824. Overall, total expenditures are increasing by 3.4 percent from the FY 2021-2022 revised budget.
Major increases are included in Table 4 below:
Table 4: General Fund Expenditures
GENERAL FUND
EXPENDITURES
FY 2021-22
REVISED
BUDGET
FY 2022-23
PROPOSED
BUDGET
PCT
CHANG
E
PAYROLL AND FRINGE
BENEFITS $137,965,780 $146,930,765 6.5%
PROF & ADMIN $16,480,924 $14,593,327 (11.0%)
OTHER OPERATING $7,222,113 $5,896,395 (18.0%)
UTILITIES $5,002,018 $5,143,076 3.0%
June 7, 2022
EQPT & CONTRACT SVCS $2,555,148 $2,601,511 1.8%
PROVISN FOR INS LOSS $27,673 $25,725 (.90%)
COST POOL $14,455,436 $15,277,766 5.7%
ASSET/CAPITAL OUTLAY $1,430,004 $1,422,136 (0.6%)
DEBT SVC EXPENDITURE $1,065,359 $1,037,009 (2.7%)
A87 COST PLAN REIMBS ($3,516,104) ($3,534,233) 0.5%
GRANT EXPENDITURES $82,500 $2,500 (97.0%)
OPER XFERS OUT $12,801,419 $12,733,774 (1.8%)
TOTAL EXPENDITURES $195,575,271 $201,969,824 3.3%
Table 5 below lists the assumptions used in the General Fund FY 2022-2023 budget development.
Table 5: General Fund Expenditures Assumptions
Expenditures Category Assumptions
SALARIES AND WAGES Fire and Police Cost of Living Adjustment (COLA) pending, Executive, Local 21, and Local 1021, five
percent (5%) COLA as of 1/1/2023, other pays based
on existing MOUs and current enrollments.
PAYROLL/FRINGE BENEFIT Healthcare costs at current rates as of FY 2021-2022, Other Post-Employment Benefits per current Actuarial
report, Retirement rates per current CalPERS rates.
Worker's Comp rate one percent (1%) increase in
each category
PROFESSIONAL & ADMIN Baseline budget, with one-time appropriations removed, Campus Bay Litigation Costs of $900,000,
City Attorney Legal Services Contract
OTHER OPERATING Baseline budget with one-time appropriations removed.
UTILITIES Baseline budget
EQPT & CONTRACT SVCS Baseline budget based on historical actuals PROVISN FOR INS LOSS Insurance Premiums
COST POOL (Vehicle
Replacement)
Fleet Services provided list with Priority 1 items
COST POOL (General
Liability)
Five percent (5%) increase from current year budget
COST POOL (Cost Allocation
Plan - Admin Charges)
Five percent (5%) increase from current year budget
COST POOL (Civic Center
Debt Allocation)
Charge derived from the debt service, cash balance,
and square footage used by divisions
ASSET/CAPITAL OUTLAY As needed
June 7, 2022
DEBT SVC EXPENDITURE Debt Service Schedule, maintained by Treasury A87 COST PLAN REIMBS Based on COST POOL (Cost Allocation Plan - Admin Charges)
GRANT EXPENDITURES Based on the awarded grants
OPER XFERS OUT Recurring and one-time subsidies to non-GF programs.
Salaries and Fringe Benefits: The proposed budget includes salaries and wages of 710.1 Full-Time Equivalent (FTE) positions, which represents a net increase of four (4) additional FTEs when compared to than the Mid-Year FY 2021-2022 approved total.
The additional and eliminated positions are listed in the Table 6 below, and the complete list of proposed positions by department for FY 2022-2023 are included in Attachment 4 – Multi-year Position Listing. Other assumptions include cost of living adjustments (COLA) per the approved MOUs with Executives, Local 21, and SEIU Local 1021 bargaining units. Respective fringe benefits are projected based on several factors such as health care provider rates, CalPERS rates, Other Post-Employment Benefits rates, and Workers Compensation rates.
Table 6: List of Additional Proposed Positions FY 2022-2023 Department Classification FTE
Additional FTE:
City Manager Office Management Analyst I/II 1
Economic Development Management Analyst I/II 1
Public Works Maintenance Worker I/II 3
Total Additional FTE 5
Eliminated FTE:
Finance Accounting Assistant I/II (1)
Net Change in FTE 4
Workers Compensation and General Liability: Rates are generally derived from the Actuarial report that factors in several drivers around the number of existing claims and expected claims depending on the existing risk and targeted confidence level of the Risk Reserve. The initial rates, in the proposed draft budget presented on May 3, 2022, were to achieve 65 percent confidence Risk Reserve level, resulting in significant increases in charges from the current year budget level. To avoid drastic budget increases to the City departments, the City staff proposes that the increase in the confidence level should be implemented gradually over several years. Until the City
June 7, 2022
develops a formal plan for the Confidence Level increment, the proposed draft budget for FY 2022-2023 is set to increase the General Liability Charges by five percent city- wide from the FY 2021-2022 budget level. Workers Compensation charges are only increasing by one percent in each category listed in Table 7 below.
Table 7: Workers Compensation Proposed Rates for FY 2022-2023 FY 2021-22 Rates FY 2022-23 Rates
Worker’s Compensation Clerical 7.83% 8.83% Worker’s Comp Fire 18.65% 19.65% Worker’s Comp Professional 5.8% 6.8%
Worker’s Comp Police 22.08% 23.08% Worker’s Comp Maintenance 12.71% 13.71%
Cost Pool: This expenditure category includes line items where internal costs are allocated to other areas within the City. Major line items within the category are: General Liability (discussed above), Vehicle Replacement, Civic Center Debt Allocation, and Cost Allocation Plan (Administrative Charges).
o Vehicle Replacement allocates direct charges for new vehicles. Fleet division within Public Works facilitates the purchase of new vehicles for all departments of the City. The line item tracks the cost of the new vehicles specific to each department based on the requested vehicle/s. o Civic Center Debt Allocation allocates the debt to the departments that are reside on the Civic Center Plaza, General Fund divisions’ allocation is tracked in the non-departmental and other divisions get the allocation based on the debt to be allocated.
o Cost Allocation Plan (CAP) Indirect Administrative Charges allocates the cost of the City’s Central Divisions to the Services divisions of the City. The CAP has always been prepared by a third-party consulting firm, however, in prior years it was never fully operationalized. The May 3, 2022, draft budget included charges based on the CAP prepared for the FY 2021-2022 by NBS Consulting compliant with title 2 CFR, part 200 federal guidelines. The current proposed budget for FY 2022-2023 deviates from the NBS CAP and adopts five percent incremental charges from the FY 2021-2022 budget. The change in the strategy means the General fund is providing a total subsidy of approximately $2.5 million to the subject programs (see Table 8).
June 7, 2022
Table 8: Cost Allocation Plan (Indirect Administrative Costs) Fund Description FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23 BUDGET CAP* Draft Budget Subsidy
1003 TRANSPORTATION OPERATION 209,716 744,016 220,202 523,814 1012 HILLTOP LANDSCAPE
MAINTENANCE DISTRICT
58,375 228,193 61,294 166,899
1015 MARINA BAY LANDSCAPING 34,312 193,954 36,028 157,926 1018 RENT CONTROL 52,481 377,170 52,481** 324,689 1050 CR-PLANNING & BUILDING 840,806 1,095,984 882,846 213,138 1051 CR-ENGINEERING - 54,291 - 54,291
1055 ENCROACHMENT SVCS 3,192 148,971 3,352 145,619 1200 HOUSING ADMINISTRATION 190,087 91,189 105,019 - 1201 CDBG 25,641 10,841 26,923 -
1205 EMPLOYMENT & TRAINING - 829,110 411,201 417,909 4001 PORT OF RICHMOND 428,033 235,792 449,435
4003 WASTEWATER 330,310 728,090 346,826 381,264 4006 STORMWATER 86,219 106,905 90,530 16,375
4008 KCRT - CABLE TELEVISON 167,612 201,235 175,993 25,242 4404 RHA-NEVIN PLAZA - 78,878 78,878 - 4405 RHA-NYSTROM VILLAGE - 41,183 41,183 - 4501 RHA-CENTRAL OFFICE - 20,374 20,374 - 5001 INSURANCE RESERVES 490,618 627,322 515,149 112,173 6102 SA-ADMINISTRATION 50,000 1,829 13,896 - Total 2,967,402 5,815,327 3,531,610 2,539,339
*CAP = Cost Allocation Plan (Indirect Admin Charges) prepared by NBS Consulting **Rent Control CAP is recommended to stay unchanged, the attachments will be updated for June 21 Council Meeting
Rent Program: To date, there is not an agreement on the analysis or a permanent solution regarding the Rent Program. Since the City Council is required to adopt a budget in June, we will continue to have dialogue. Carrying forward changes from FY 2021-2022 is a one-time recommendation to provide the parties an opportunity to negotiate and develop an acceptable, long-term solution that is agreeable to both sides.
Operating Transfers Out: These General Fund Subsidies and contributions to Non- General Fund programs and contributions, below is the list of major transfers out.
Allocation to the Department of Children and Youth is increasing to two percent of the General Fund Revenue and Reimagining Public Safety Programs of Unhoused Intervention and Youthworks are budgeted to receive the baseline amounts of the current year budget. See Attachment 3 – General Fund by Department for detailed budget.
June 7, 2022
Table 9: General Fund Operating Transfers Out Draft Budget FY 2022-2023 Operating Transfers Out Draft Budget FY
2022-23
Debt Service 1,744,390
Hilltop Lighting and Landscaping District 229,115 Marina Bay Lighting and Landscaping District 462,436 Employment and Training 1,161,201
Information Technology Equipment Replacement 100,000 Department of Children and Youth 3,936,896
Richmond Housing Authority 1,539,324
Pension Fund 100,485
Reimagining Public Safety -Unhoused Intervention 1,320,000 Reimagining Public Safety -Youthworks 1,980,000
Total 12,573,847
NON-GENERAL FUND/OTHER FUNDS
The total Non-General Fund budget is estimated at $226,761,543 million and primarily includes funds dedicated to housing, debt service, enterprise funds, and other city operations The other than General Fund the city has a several funds, each fund’s draft budget is listed in detail in the Attachment 5 – Non-General Fund by Category.
MAJOR CAPITAL PROJECTS
FY 2022-2023 – 2026-2027 Five-year Capital Improvement Plan includes a total budget of $76,767,879 in several funds. The plan has many projects on unfunded status; however, the funded projects for FY 2022-2023 are budgeted on annual basis and are listed in Attachment 6 - List of Capital Projects. Below, please find a partial list of the major capital projects for FY 2022-2023.
Boorman Park Revitalization – Public Works – Parks Grant Draft Budget: $3,490,204
The project includes final design, engineering, and construction of the park improvements including: a soccer field, basketball court, children’s play areas with integrated artwork, a fitness zone, community gathering areas including a shade pavilion and outdoor classroom, a multi-use trail with fitness stations, skate features, a public restroom with amenities, two parking lots, and perimeter fencing.
June 7, 2022
CCTV Truck – Public Works, Water Resource Recovery – Wastewater Draft Budget: $515,000
Veolia Water Technology (Veolia) manages the City’s Wastewater Collection system since 2004, through a contract. The terms of the contract require the City to provide “rolling stock” for Veolia to perform inspection and monitoring the sanitary and storm sewer collection system. The current CCTV truck has outlived its useful life and the City is currently paying Veolia $12,500 per month to lease the equipment, the acquisition of the CCTV Truck will fulfil the terms of the contract between the City and Veolia.
Harbour 8 Park Extension – Public Works, Parks – Grant
Draft Budget: $6,194,260
The park project will provide land to construct an urgently needed Community Center.
Currently, there is no community center (or official park office), anywhere along the 3- mile Richmond Greenway. Harbour-8 Park’s Community Center will create a public building that can transform into a veritable community hub: a public place for thousands of underserved residents to participate in recreational activities, take classes, hold school and community meetings, connect with the City staff to discuss issues, access job and training opportunities, and attend fairs and events. The Harbour-8 Park Community Center will become, in the words of one local resident, “the heartbeat of the community”.
Marina Bay Force Main Extension – Public Works, Water Resource Recovery – Wastewater,
Draft Budget: $350,000
The project is to install a gravity sewer line from North to South along 27th Street across Regatta to the farthest (deepest) existing sewer manhole. The scope of the project is to eliminate potential for future Sanitary Sewer Overflows in the area.
AMERICAN RESCUE PLAN ACT 2021 (ARPA)
The City received a $27.7 million ARPA allocation and received its first installment of $13.9 million in August 2021. Per City Council approval, $10.5 million of the $27.7 million was allocated to the various projects listed in Attachment 7. Although a small percentage of the allocated funds have been spent and/or encumbered as of April 15, 2022, City staff are currently working to support the development, design, and/or implementation of all the projects.
On February 15, 2022, the Community Services Department brought forth a contract with HR&A consulting firm to conduct a Community Needs Assessment and develop a Strategic Investment Plan to assist and guiding the distribution of remaining ARPA funds. City staff will provide an update on outreach efforts and input received in late
June 7, 2022
June/early July 2022. Staff will re-budget any unexpended funds from FY 2021-2022 into the FY 2022-2023 budget, and based on essential needs and community feedback, the remaining ARPA funds can be allocated in FY 2022-2023 or through December 2024.
REIMAGINING PUBLIC SAFETY
In June 2021, the City Council approved the recommendations of the Reimagining Public Safety Community Task Force, which included an allocation of $6.38 million for the four (4) interventions listed below. As with ARPA, the year-to-date expenditures have been lower than expected, but City staff are working diligently to implement all programs. Budget information through April 15, 2022, regarding each intervention area can be found in Attachment 8 – Reimagining Public Safety. The proposed draft budget for each intervention area for FY 2022-2023 is noted below as a placeholder:
YouthWORKS: $1,980,000
Office of Neighborhood Safety: $2,334,474
Community Crisis Response Program: $1,000,000
Unhoused Interventions: $1,800,000
The numbers above are estimates and based on prior approval from City Council. City staff will continue to evaluate the intervention areas, and budget requests will be based on actual needs to ensure the necessary services are provided to the Richmond community. For example, the City Council may consider directing City staff to add additional personnel to expand intervention areas and improve service delivery.
PENDING ADJUSTMENTS TO BALANCE THE BUDGET FOR
FINAL APPROVAL
Below is the list of the items that are still pending decision before incorporating the FY 2022-2023 budget projection.
Table 10: Pending General Fund Adjustments to Balance the Budget for Final Approval Potential Funding Sources Potential Appropriations
Current Estimated
Surplus 4,513,570 COLA/Class & Comp
7,300,000
Vacancy Saving
Factor @ 6% 8,339,184 Inflation Factor (5%)
1,410,215
Transfer In From
PTOR* 149,000
City Attorney Legal
Services
1,500,000
Other Savings
738,461 Point Molate Expenses
1,000,000
June 7, 2022
Additional Paving Index
Investment
1,000,000
Housing First
425,000
Public Bank
750,000
Reparations, Equity, and
Inclusion Implementation
- Year One**
250,000
Literacy Fair
5,000
Short-term Emergency
Housing Interventions
100,000
New City-wide
Appropriation Requests
Not
included
City-wide Position
Requests
Not
included
Total Available 13,740,215
Total Potential
Appropriations 13,740,215
*Secured Pension Tax Override Fund (PTORS)
**California Reparations Task Force Releases Interim Report Detailing Harms of Slavery and Systemic Discrimination on African Americans
NEXT STEPS
The next step in this process is for the City staff to proceed with the adjustments based on direction from the Council and update the FY 2022-2023 budget for final approval.
The City staff will bring back a balanced FY 2022-2023 budget for adoption on June 21, 2022. Please visit the City’s website at
https://www.ci.richmond.ca.us/1427/Presentations for the most up-to-date budget information and presentations.
DOCUMENTS ATTACHED:
Attachment 1 – Comprehensive Budget by Fund
Attachment 2 – General Fund Revenue Summary
Attachment 3 – General Fund by Department
Attachment 4 – Multi Year Position Listing
Attachment 5 – Non-General Fund by Category
Attachment 6 – List of Capital Projects
Attachment 7 – ARPA Funding Table
Attachment 8 – Reimagining Public Safety Table
Attachment 9 – June 7, 2022 Budget Update Slide Deck