February 27, 2024
Finance Department
DATE: February 27, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
LaShonda White, Deputy City Manager, Community Services Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
Antonio Banuelos, Accounting Manager
SUBJECT:
Mid-Year Report on Fiscal Year (FY) 2023-24 Operating and Capital Improvement Budgets
FINANCIAL IMPACT: The fiscal impact is an increase in the General Fund budget appropriation of $9,773,748 and in the Non-General Funds Budget appropriation of $4,735,346.
PREVIOUS COUNCIL
ACTION:
June 20, 2023, November 28, 2023
STATEMENT OF THE
ISSUE:
Fiscal Year (FY) 2023-24 Mid-Year budget report
RECOMMENDED
ACTION:
RECEIVE the FY 2023-24 Mid-Year budget presentation and report for the period of July 1, 2023, through December 31, 2023; and PROVIDE direction to staff – Finance Department (Andrea Miller 510-620-6790/Mubeen Qader 510-412-2077).
DISCUSSION:
City staff prepares the mid-year budget report to assist in monitoring revenue and expenditures as compared to the approved budget. The report also provides staff, the City Council, and the community with the ability to monitor trends that impact the budget cycle.
This report presents an overview of the City’s mid-year operating revenue and expenditures for FY 2023-24 which covers financial activity from July 1, 2023, through AGENDA
REPORT
February 27, 2024
December 31, 2023. The threshold for the first six months of the fiscal year is 50 percent, meaning an average of 50 percent of the adopted budget is expected to have been expended and 50 percent of revenue should have been received. However, revenues can vary due to the seasonality of some of the major revenue sources, such as property taxes, which are received in December, April, and June of each year.
The economy is slowly beginning to stabilize as inflation continues decrease. There have been mixed economic impacts resulting from inflation, the unemployment rate, a strong job market, and high interest rates. Although the unemployment rate was higher in December 2023 than it was in December of 2022 at 4.9 percent and 3.4 percent respectively, the job market is strong with US employers adding over 200,000 jobs in December 2023. The labor market is a key indicator in the Federal Reserve’s interest rate decisions that remain above the Fed’s 2% target rate contributing to a strong stock market. While many residents are being deeply impacted by ongoing inflation.
General Fund
General Fund Revenues
Overall, revenue received totaled $99.9 million (44.3 percent of budget) through December of FY 2023-24. This is slightly below the threshold of 50 percent; however, the variance is primarily due to the seasonality of the revenue sources. For example, the City receives its first secured property tax installment (55 percent) in December.
Table 1 below summarizes year-to-date revenue budget-to-actuals and proposed budget adjustments. General Fund revenue details are included in Attachment 1 – General Fund Revenue and Expenditure Summary.
Table 1: General Fund Revenue, FY2023-24, Mid-Year
From July to December 2023, most revenues are trending as expected or better.
GENERAL FUND
FY 2023-24
ORIGINAL
BUDGET
FY 2023-24
REVISED
BUDGET
YTD ACTUALS AVAILABLE
BUDGET
% USED
W/O
ENCUMB.
% USED
W.
ENCUMB.
PROPOSED
BUDGET
ADJUSTMENTS
PROPERTY TAXES (50,567,173) (50,567,173) (23,877,788) (26,689,385) 47.2% 47.2% (1,614,181) SALES & USE TAX (56,752,495) (56,752,495) (15,864,789) (40,887,706) 28.0% 28.0% (1,144,846) UTILITY USERS TAX (55,775,083) (55,775,083) (31,341,319) (24,433,765) 56.2% 56.2% (2,162,928) OTHER TAXES (23,237,723) (23,237,723) (3,542,186) (19,695,537) 15.2% 15.2% (906,654) LICENSES, PERMITS & FEES (13,286,195) (13,286,195) (2,006,437) (11,279,759) 15.1% 15.1% (2,492,980) FINES & FORFEITURES (331,144) (331,144) (70,194) (260,950) 21.2% 21.2% 179,706 USE OF MONEY&PROPRTY (1,011,535) (1,011,535) (877,697) (133,838) 86.8% 86.8% (784,886) CHARGES FOR SERVICES (2,561,992) (2,561,992) (949,409) (1,612,583) 37.1% 37.1% 25,000 OTHER REVENUE (238,480) (238,480) (137,190) (101,290) 57.5% 57.5% - RENTAL INCOME (777,028) (777,028) (549,296) (227,732) 70.7% 70.7% - INTERGOV STATE TAXES (125,000) (125,000) - (125,000) 0.0% 0.0% - INTERGOV STATE GRANT (110,000) (110,000) (148,524) 38,524 135.0% 135.0% (73,911) INTERGOV OTHER GRANT (250,000) (250,000) (200,818) (49,182) 80.3% 80.3% (30,000) PROC FR SLE PROP - - (62,711) 62,711 - - - LOAN/BOND PROCEEDS (40,400) (40,400) - (40,400) 0.0% 0.0% - OPER XFERS IN (20,310,358) (20,310,358) (20,266,966) (43,392) 99.8% 99.8% - TOTAL REVENUES (225,374,607) (225,374,607) (99,895,323) (125,479,284) 44.3% 44.3% (9,005,680)
February 27, 2024
Property Tax -- FY 2023-24 property tax revenue adopted budget includes estimated Assessed Valuation (AV) growth of 3.3 percent for Secured Property Taxes. Contra Costa County released the 2023-2024 Assessment Roll in July 2023 which indicated growth of the AV at 6.15 percent for Secured Property Taxes. This is the main component in changes to secure property taxes year-to- year. Other significant impacts include sale of properties and tax increment allocation. Additionally, Successor Agency Surplus and Pass-through revenues that flow into the General Fund were higher than expected in FY 2022-23 which means those revenues should be higher in FY 2023-24 as well. Therefore, City staff is proposing an increase to Property Tax revenues totaling $1.6 million.
Sales and Use Tax -- Sales and Use Tax revenue has seen a steady growth over the last few years and the trend has continued through the current fiscal year.
Sales and Use Tax revenue is received two months after reporting. Year-to-date revenue reflects four months actuals at 28 percent. The updated forecast from the City’s financial consultants and internal forecasts projects higher than anticipated Sales Tax revenue primarily bolstered by the big box stores located in Richmond and internet sales credited to Richmond. City staff is proposing an increase to Sales Tax revenues of $1.1 million.
Utility Users Tax (UUT) –The year-to-date revenue received for UUT is trending much higher than anticipated. UUT is comprised of gas, electricity, cable, and telecommunications. Although a couple of revenue streams are slightly lower than anticipated and will be adjusted, that is more than offset by UUT for gas and electricity stemming from higher rates charged by the main utility company. Staff is proposing an increase to UUT revenues of $2.2 million.
Other Taxes -- Other taxes includes documentary transfer tax which is collected by Contra Costa County on the sale of properties. The City has received the July through November payments totaling $1.7 million or 12.8 percent of budget. Of the major revenue streams, the documentary transfer tax is the most volatile and hardest to predict as the month-to-month actual varies significantly. One or two sales can have a huge impact on the tax amount. In accordance with the City’s fiscal policies, the documentary transfer tax proposed budget has been recalculated using the mean monthly amount collected since the increase to the rate that was approved by voters in 2018. Within this revenue category, other revenue streams are also being adjusted to reflect anticipated actuals. Overall, staff is proposing a slight net increase to Other Taxes of $906,000.
Licenses, Permits, & Fees – This revenue stream includes the business tax revenue. Actual revenue collected through December 2023 is at 15.2 percent of the budget. Business tax revenue received year-to-date includes new Richmond businesses that started this fiscal year and delinquent payments from the prior year. With the 2024 due date as March 1st for rental properties, and April 1st for non-rental businesses, the bulk of the business tax will be received in February
February 27, 2024
and March. Based on revenues received for 2023, staff estimates a base business tax of close to $13 million, an increase of $2.5 million from the original budget amount. Currently, staff are proposing an increase in Licenses, Permits, & Fees of $2.5 million.
In the remaining General Fund revenue streams, small adjustments are proposed to various categories including Use of Money and Property, Charges for Services, and Grants. The largest change proposed is an increase to Use of Money and Property due to higher than anticipated interest rates, which resulted in increased interest earned on City investments. Overall, staff is proposing an increase of $684,000 for these revenue streams.
General Fund Expenditures
Overall, expenditures totaled $109.7 million or 46.6 percent of budget through December 2023. Actuals at mid-year are within the 50 percent threshold including and excluding encumbrances which are respectively, 46.6 percent and 50.0 percent.
Encumbrances are funds earmarked with a purchase order for specific expenditures, such as copier leases. Table 2 below summarizes year-to-date expenditure budget to actuals. General Fund expenditure details are included in Attachment 2 – General Fund Revenue and Expenditure Summary by Department.
Table 2: General Fund Expenditure, FY2023-24, Mid-Year
Salaries & Wages – includes base salaries for full-time and part-time staff, overtime, and other compensation types. Actual expenditures total $39.4 million, or 47.4 percent of budget. This category is lower than the threshold primarily due to vacant positions.
A major part of the proposed $2.7 million budget adjustment is based on the overtime budget in several departments. Of this amount, $1.9 million is in the Police
GENERAL FUND
FY 2023-24
ORIGINAL
BUDGET
FY 2023-24
REVISED
BUDGET
YTD ACTUALS AVAILABLE
BUDGET
% USED
W/O
ENCUMB.
% USED
W.
ENCUMB.
PROPOSED
BUDGET
ADJUSTMENTS
SALARIES AND WAGES 83,345,132 83,181,052 39,413,373 43,767,679 47.4% 47.4% 2,746,272 PYRLL/FRINGE BENEFIT 62,867,833 62,866,974 29,285,450 33,581,524 46.6% 46.6% 2,671,322 PROF & ADMIN 20,302,711 20,874,642 5,274,821 10,960,086 25.3% 47.5% 612,471 OTHER OPERATING 8,611,971 8,644,492 2,718,776 3,806,835 31.5% 56.0% 473,239 UTILITIES 5,288,272 5,153,706 2,597,648 2,200,592 50.4% 57.3% 525,000 EQPT & CONTRACT SVCS 5,918,655 5,251,708 1,397,456 3,279,818 26.6% 37.5% 640,000 PROVISN FOR INS LOSS 34,200 34,200 29,572 4,628 86.5% 86.5% - COST POOL 21,593,734 21,593,734 10,806,533 10,787,201 50.0% 50.0% - ASSET/CAPITAL OUTLAY 1,893,500 2,694,363 1,121,993 1,257,302 41.6% 53.3% - DEBT SVC EXPENDITURE 841,353 841,353 418,000 423,353 49.7% 49.7% - A87 COST PLAN REIMBS (3,531,611) (3,531,611) (1,827,819) (1,703,792) 51.8% 51.8% 17,238 GRANT EXPENDITURES 19,155 19,155 (1,625) 14,503 -8.5% 24.3% - OPER XFERS OUT 18,189,702 27,709,920 18,468,514 9,241,406 66.6% 66.6% 2,088,206 TOTAL EXPENSES 225,374,607 235,333,687 109,702,690 117,621,136 46.6% 50.0% 9,773,748
February 27, 2024
department due to staffing shortage. Other adjustments include part-time temporary staff in City Attorney’s Office and Public Works.
Fringe Benefits – includes medical, dental, workers compensation, CalPERS pension costs, other post-employment benefits (OPEB), and other fringe benefits.
Actual expenditures total $29.3 million, or 46.6 percent of budget which is below the threshold due to vacant positions.
The proposed budget adjustment of $ 2.7 million is to allocate one-time contributions from prior year’s unspent funds to the OPEB and Pension 115 trust accounts in accordance with the OPEB and Pension funding policies. This allocation was approved by City Council on October 24, 2023. According to the most recent CalPERS actuarial valuation report as of June 30, 2022, the City has a total unfunded pension liability of $381 million. As of June 30, 2023, the OPEB unfunded liability is reported at $75 million.
Professional & Administrative Services – includes professional and consulting services, and contractual obligations, such as animal control and consulting services. Actual expenditures total $5.3 million, or 25.3 percent of budget and is below the threshold. Factoring in purchase order encumbrances of $4.6 million, the total is $9.9 million, or 47.5 percent of budget.
The proposed budget adjustments total $612,000. Some of the major adjustments include $225,000 for fire fighter annual physical exams, and $382,000 for additional services for network infrastructure and cyber security.
Other Operating – includes copier leases, office supplies, and other items. Actual expenditures total $2.7 million, or 31.5 percent of budget. Factoring in purchase order encumbrances of $2.1 million, the total is $4.8 million, or 56.0 percent of budget.
Total proposed budget adjustments are $473 thousand, major items requested are new VHF radios that are compliant with new CalOES requirements for all fire agencies, and various neighborhood and community build activities.
Utilities – includes gas, electricity, water, refuse, telephone, and internet services for City facilities. Actual expenditures total $2.6 million, or 50.4 percent of budget.
Factoring in purchase order encumbrances of $350 thousand, the total is $2.9 million, or 57.32 percent of budget. The variance is due to increased cost in water and Gas and Fuel.
The proposed budget adjustments total $525,000. The baseline budget in gas and fuel is not sufficient to cover the annual expense in the line item and the existing budget has been fully exhausted as of December.
Equipment & Contract Services – includes equipment and maintenance/repair
February 27, 2024
services. Actual expenditures total $1.4 million, or 26.6 percent of budget. Factoring in purchase order encumbrances of $574,000, the total is $2.0 million, or 37.5 percent of budget.
Total proposed budget adjustments equal $640,000 for additional training on the financial system by Tyler MUNIS, facilities roof repairs and maintenance, and street light repairs and maintenance.
Cost Pool – this category includes the City’s insurance premium cost, civic center rent, and vehicle replacement charges. The proposed budget adjustment is the net impact of implementing the CFR 200 Cost Plan for the Richmond Housing Authority.
Capital Asset Outlay – this category includes major capital purchases and maintenance projects. Total actuals without encumbrances are 41.6 percent and with encumbrances are 53.3 percent of the budget.
Transfers Out – includes transfers out from the General Fund to non-General Funds primarily for operating subsidies and for debt service payments. Actuals total $18.5 million, or 66.6 percent of budget. The variance is due to transfers that are processed in full instead of in monthly installments.
Total proposed budget adjustments of $2.1 million include $400,000 for Via Verdi mitigation, $200,000 for Civic Center Plaza landscaping and lighting, $500,000 for the city-wide facility needs assessment study, and other allocations for smaller projects.
Non-General Funds
Non-General Fund Revenues
Overall, 32.7 percent of non-general fund revenue has been collected and is trending as expected. The timing of receipts varies among the funds based on the source of funding. For instance, grant funds are typically received after expenditures are incurred and reimbursement requests are submitted to grantors. Table 3 below summarizes the revenue budget-to-actuals for non-general funds. Non-General Fund revenue details are included in Attachment 3 – Non-General Fund Revenue and Expenditures by Fund.
February 27, 2024
Table 3: Non-General Fund Revenues, FY 2023-24, Mid-Year
Capital Improvement Funds -- the total actual revenue is below the budget threshold of 50 percent and the major source of the variance is due to the grant revenue reimbursements. Although the entire grant awards are appropriated as budget; the actual revenue is based on the expenditures submitted for reimbursement to the grantor.
The total proposed revenue budget adjustments include the transfer in from the General Fund for operating subsidies and debt service payments that is mentioned above. Other budget adjustments are in several Developer Impact Fee Funds to recognize actual revenues received.
Debt Service -- revenues are above the budget threshold mainly due to the transfer in from Secured Pension Override fund for the Pension Obligation Bond debt service payment.
Enterprise Funds -- actual revenue is above the threshold mainly in the Wastewater fund. The sewer drain fee, which is the largest of the three installments from Contra Costa County was posted in December.
The proposed revenue budget adjustment includes additional lease revenue from the Basin 1 facility at Point Potrero.
Housing Funds -- actual revenue is above the budget threshold due to the Housing In-Lieu Developer fee and Community Development Block Grant coming in higher than the budget.
Richmond Housing Authority (RHA) Funds -- the revenue is below budget mainly due to the federal grant revenues pending to be received for Nevin Plaza, and Richmond Village I, II, and III from the Federal Government.
RHA funds include several smaller adjustments with a net decrease in revenue of approximately $13,000.
Other Operation Funds -- actual revenue is below the budget threshold. The
FUND ORIGINAL
BUDGET
REVISED
BUDGET YTD ACTUALS
% USED
W/O
ENCUMB
% USED W.
ENCUMB.
PROPOSED
BUDGET
ADJUSTMENTS
Total Capital Improvement Fund (45,085,732) (71,470,814) (17,472,931) 24.4% 24.4% (2,580,220) Total Debt Service Funds (19,551,216) (19,551,216) (11,144,364) 57.0% 57.0% - Total Enterprise Funds (41,443,141) (41,443,141) (22,371,972) 54.0% 54.0% (50,000) Total Housing Funds (1,911,772) (1,911,772) (1,549,885) 81.1% 81.1% - Total Housing Authority Funds (5,563,388) (5,563,388) (1,871,990) 33.6% 33.6% 13,466 Total Internal Service Funds (30,919,340) (30,919,340) (15,852,074) 51.3% 51.3% - Total Other Operations Funds (32,931,748) (43,108,672) (9,902,080) 23.0% 23.0% (634,206) Total Special Revenue Funds (52,120,364) (87,299,299) (19,217,299) 22.0% 22.0% (239,753) Total All Funds (229,526,702) (301,267,643) (99,382,594) 33.0% 33.0% (3,490,713)
February 27, 2024
major source of the variance is in the Planning and Building fund due to grant revenues not received yet.
Proposed budget adjustments include transfer in revenue increase from the General Fund into the Transportation and Employment Training Funds for several line items detailed in Attachment 4 – Mid-Year Budget Adjustments. Special Revenue Funds -- total actuals are 22 percent of the budget as of December mainly due to the actual grant revenues being lower than the threshold due to pending reimbursements.
Non-General Fund Expenditures
Overall, 23 percent of non-general fund budget appropriations have been expended.
Spending patterns in non-general funds vary due to the nature of capital, debt, and grant funds. Other funds are trending as expected. Most of the actual expenditures are either at or below the threshold of 50 percent. Amounts over the threshold are primarily due to purchase order encumbrances and debt service. Table 4 below summarizes the expenditure budget-to-actuals for non-general funds. Non-General Fund expenditure details are included in Attachment 3 – Non-General Fund Revenue and Expenditures by Fund.
Table 4: Non-General Fund Expenditures, FY2023-24, Mid-Year
Capital Improvement Funds -- total expenditures are below budget due to the projects’ phases spanning over multiple years and their budgets being appropriated in a single year.
Proposed budget adjustments include appropriations for the Via Verdi Mitigation, Civic Center Landscaping, Traffic Calming, and Paving. The detailed list of adjustments can be found in Attachment 4 – Mid-Year Budget Adjustments. Debt Service Funds -- debt service expenditures are incurred in accordance with the debt service payment schedules. As a result, expenditures exceed the threshold of 50 percent.
FUND TYPE ORIGINAL
BUDGET
REVISED
BUDGET YTD ACTUALS ENCUMB.
% USED
W/O
ENCUMB.
% USED
W.
ENCUMB.
PROPOSED
BUDGET
ADJUSTMENTS
Total Capital Improvement Funds 71,270,921 111,411,564 10,404,344 21,894,128 9% 29% 2,322,366 Total Debt Service Funds 19,174,878 19,174,878 13,060,596 - 68% 68% - Total Enterprise Funds 86,084,855 99,763,707 21,473,602 11,910,478 22% 33% 1,113,629 Total Housing Funds 6,249,305 6,275,149 399,622 77,599 6% 8% - Total Housing Authority Funds 5,570,438 5,570,438 1,941,276 194,616 35% 38% 193,072 Total Internal Service Funds 36,799,838 42,901,280 15,455,762 6,968,479 36% 52% - Total Other Operations Funds 33,182,604 47,788,104 12,021,464 7,002,314 25% 40% 674,918 Total Special Revenue Funds 68,197,088 119,828,961 29,390,808 6,718,955 25% 30% 431,361 Total All Funds 326,529,928 452,714,081 104,147,475 54,766,569 23% 35% 4,735,346
February 27, 2024
Enterprise Funds -- total actuals are 22 percent of budget without encumbrances and 33 percent with encumbrances. Most of the variance is in the Wastewater fund which includes several capital projects that span over multiple years.
Proposed budget adjustments are in the Wastewater fund for additional Veolia plant maintenance.
Housing Funds -- total actuals are 6 percent of budget without encumbrances and 8 percent with encumbrances. Variances are primarily due to lower-than- expected expenditures in the Housing In-Lieu Developer Fee fund. Housing Authority Funds – year-to-date actuals without encumbrance are 35 percent of the budget and 38 percent without encumbrances. The variance is primarily due to lower-than-expected expenditures in the RHA-Capital fund.
RHA proposed several administrative budget adjustments to reflect actuals and their respective trends. The detailed list of adjustments can be found in Attachment 4 – Mid-Year Budget Adjustments.
Internal Service Funds – year-to-date expenditures without encumbrances are 36 percent of budget and 52 percent with encumbrances. Equipment Replacement fund has the largest amount of encumbrances due to several open purchase orders to replace city vehicles.
Other Operations Funds – year-to-date expenditures is above the threshold for the period including and excluding encumbrances. The variance is due to higher than anticipated expenditures in the Marina Bay Landscape and Lighting District.
Part-time temporary staff and utility costs are trending higher in the first six months of the fiscal year.
Special Revenue Funds -- the variance is due to the transfer out of the Secured Pension Tax Override fund into the General Fund and the Debt Service Fund already being processed.
Proposed budget adjustments include several line items in Transportation, Marina Landscaping Maintenance District, Planning & Building, and Employment & Training Funds.
Mid-Year Budget Adjustments
Staff proposes a General Fund revenue budget increase of approximately $9.0 million and expenditure budget increase of approximately $9.8 million, which includes $2.7 million from the fund balance for OPEB and Pension 115 Trust accounts that was approved by City Council on October 24, 2023. Detailed budget adjustments are listed in Attachment 4 – Mid-Year Budget Adjustments. Table 5 below shows a summary of the adjustments.
February 27, 2024
Table 5: FY 2023-24 Mid-Year Proposed Budget General Fund
Total FY2023-24 Mid-Year Revenue estimated adjustments exceed the proposed expenditure adjustments of approximately $7.1 million by $1.9 million as shown in Table 6 below. This amount of $1.9 million is available for City Council to allocate towards projects such as improving the City’s built environment. Total General Fund expenditure adjustments also include $2.7 million allocated from the fund balance using the prior year unspent funds towards OPEB and Pension 115 Trust accounts in accordance with the City’s financial policies.
Table 6: FY 2023-24 Mid-Year Adjustments Recap
The proposed total of Non-General Fund revenue budget adjustments is approximately $3.5 million across multiple funds detailed in Attachment 4 – Mid-Year Budget Adjustments. Table 7 below summarizes the adjustments by fund type.
Table 7: FY 2023-24 Mid-Year Budget Adjustments Non-General Fund Revenue
GENERAL FUND
FY 2023-24
ORIGINAL
BUDGET
FY 2023-24
REVISED
BUDGET
PROPOSED
BUDGET
ADJUSTMENTS
MID-YEAR
PROPOSED
BUDGET
TOTAL REVENUES (225,374,607) (225,374,607) (9,005,680) (234,380,287) TOTAL EXPENSES 225,374,607 235,333,687 9,773,748 245,107,435
GENERAL FUND NET
+SURPLUS/(-DEFICIT) - 9,959,080 768,068 10,727,149 Line Item Amount
FY 2023-24 Mid-Year Revenue Increase (9,005,680)
FY 2023-24 Mid-Year Expenditures Increase 7,102,426
Available (1,903,254)
Pension and OPEB Appropriation from Fund Balance 2,671,322 Net Mid-Year Adjustments 768,068
FUND ORIGINAL
BUDGET
REVISED
BUDGET
PROPOSED
BUDGET
ADJUSTMENTS
MID-YEAR
PROPOSED
BUDGET
Total Capital Improvement Fund (45,085,732) (71,470,814) (2,580,220) (74,051,034) Total Debt Service Funds (19,551,216) (19,551,216) - (19,551,216) Total Enterprise Funds (41,443,141) (41,443,141) (50,000) (41,493,141) Total Housing Funds (1,911,772) (1,911,772) - (1,911,772) Total Housing Authority Funds (5,563,388) (5,563,388) 13,466 (5,549,922) Total Internal Service Funds (30,919,340) (30,919,340) - (30,919,340) Total Other Operations Funds (32,931,748) (43,108,672) (634,206) (43,742,878) Total Special Revenue Funds (52,120,364) (87,299,299) (239,753) (87,539,052) Total All Funds (229,526,702) (301,267,643) (3,490,713) (304,758,356)
February 27, 2024
The proposed total of Non-General Fund expenditure budget adjustments is $4.7 million across multiple funds detailed in Attachment 4 – Mid-Year Budget Adjustments. Table 8 below summarizes the adjustments by fund type.
Table 8: FY 2023-24 Mid-Year Budget Adjustments Non-General Fund Expenditure
Proposed Position Control Mid-Year Adjustments
The proposed Mid-Year Budget adjustments include several changes to the City’s position control resulting in a net increase of 17 Full-Time Equivalent (FTE) positions.
This brings the total approved FTE to 767 across all City departments. Attachment 5 – Fiscal Year 2023-24 Mid-Year Proposed Position Listing lists all positions by department. These changes are also included in Attachment 4 – Mid-Year Budget Adjustments. Table 9 below shows the summary of the proposed position control changes.
Attachment 6 – List of Boards and Commissions, provides a listing of various Boards and Commissions City staff are required to support and attend.
Table 9: Proposed Position Control Changes, Mid-Year 2023-24
FUND TYPE ORIGINAL
BUDGET
REVISED
BUDGET
PROPOSED
BUDGET
ADJUSTMENTS
MID-YEAR
PROPOSED
BUDGET
Total Capital Improvement Funds 71,270,921 111,411,564 2,322,366 113,733,930 Total Debt Service Funds 19,174,878 19,174,878 - 19,174,878 Total Enterprise Funds 86,084,855 99,763,707 1,113,629 100,877,336 Total Housing Funds 6,249,305 6,275,149 - 6,275,149 Total Housing Authority Funds 5,570,438 5,570,438 193,072 5,763,510 Total Internal Service Funds 36,799,838 42,901,280 - 42,901,280 Total Other Operations Funds 33,182,604 47,788,104 674,918 48,463,022 Total Special Revenue Funds 68,197,088 119,828,961 431,361 120,260,322 Total All Funds 326,529,928 452,714,081 4,735,346 457,449,427
February 27, 2024
Next Steps
As described in this staff report, the projected FY 23-24 mid-year revenue increase is approximately $9 million. In addition, there is approximately $6.9 million in additional unspent funds identified via the ACFR. Combined, there is a total of approximately $15.9 million available for City Council to allocate to projects and/or programs aligned with the City Council approved goals and objectives.
Department Mid-Year
Adjustment Notes
COMMUNITY DEVELOPMENT (Building Services, Code Enforcement, Housing, & Planning) Building Inspector 1 Additional Position Requested
Plan Checking Engineer 1 Additional Position Requested
COMMUNITY SERVICES (Employment & Training)
Admin Trainee(+3 Grant Funded) 3 Two Positions Requested, One Reclass from Office Assistant Office Assistant -1 Reclass to Administrative Trainee
COMMUNITY SERVICES (Recreation)
Administrative Assistant(+1 Grant Funded) 1 Additional Position Requested COMMUNITY SERVICES (Community Crisis Response)
Administrative Analyst/Associate 1 Additional Position Requested Community Intervention Specialists 8 Additional Positions Requested Mental Health Clinician 1 Additional Position Requested COMMUNITY SERVICES (Transportation)
Associate Administrative Analyst -1 Moved to Public Works Project Manager I/II -1 Moved to Public Works
DEPARTMENT OF CHILDREN AND YOUTH
Community Services Technician I/II 1 Additional Position Requested
PUBLIC WORKS
Assistant Engineer 1 Additional Position Requested
Office Aide -0.8 Reclass to Permit Technician I/II
Permit Technician I/II 0.8 Reclass from Office Aide
PUBLIC WORKS (Water Resource Recovery)
Project Manager I/II -1 Reclass to Project Manager III
Project Manager III 1 Reclass from Project Manager I/II PUBLIC WORKS (Transportation)
Associate Administrative Analyst 1 Moved from Community Services ( Transportation) Project Manager I/II 1 Moved from Community Services (Transportation) Total Full Time Equivalents 17
February 27, 2024
City staff’s preliminary recommendation is to use the $15.9 million to fund approximately $7.1 million in mid-year proposed expenditure adjustments and approximately $8.8 million to fund capital improvement projects.
The City Council approved 18 Traffic Calming Projects in November 2022. Staff will provide an update on the status with the presentation.
After City Council discussion and direction, City staff will return on March 5, 2024, to adopt the Mid-Year FY 2023-24 Budget.
DOCUMENTS ATTACHED:
Attachment 1 – General Fund Revenue and Expenditure Summary Attachment 2 – General Fund Revenue and Expenditure by Department Attachment 3 – Non-General Fund Revenue and Expenditure by Fund Attachment 4 – Mid-Year Budget Adjustments
Attachment 5 – Fiscal Year 2023-24 Mid-Year Proposed Position Listing Attachment 6 – List of Boards and Commissions
Attachment 7 – Capital Improvement Projects Budget Report by Department Attachment 8 – Capital Improvement Projects with projected shortfalls