City of Richmond
Draft Budget
Fiscal Year 2024-2025
May 28, 2024
1 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
DRAFT
Overview
Accomplishments
FY2024-25 Budget Calendar (Process)
General Fund Revenue Assumptions
Draft General Fund Revenue Budget
General Fund Expenditure Assumptions
Draft General Fund Expenditure Budget
American Rescue Plan Act
Hilltop and Marina Bay Districts
Capital Improvement Projects
Next Steps 2
Citywide Accomplishments
Partnered with the City Council to complete the allocation of $27.7M in American Rescue Plan Act (ARPA)funds
Successfully negotiated and implemented the Classification and Compensation Study
Adopted Balanced Budget for the second year in a row and increased the reserve levels to 21 percent
The City Manager ensured the completion and commencement of affordable housing developments at Hacienda Heights, Nevin Plaza, and Metro Walk Phase II.
3 Citywide Accomplishments (Continued)
Obtained a ~$43 million Affordable Housing
Sustainable Communities (AHSC) grant for a 150-
units affordable housing development at the east side of BART Station
Established 29 employment lists for new recruitments, onboarded 73 new full-time employees and processed 42
promotions since July 1, 2023, including filling critical leadership positions of Finance Director, Deputy Director of Community Services -Library, Port Director, Emergency
Services Manager, and Community Crisis Response Program Manager
Commenced the 24-1 Richmond Fire Academy with eight (8) Probationary Firefighter Graduates all of whom joined the Richmond Fire Department 4
Citywide Accomplishments (Continued)
Achieved reductions in crime, marking the lowest homicide rate in over 50 years
Implemented 10 of 11 State Audit Recommendations
Capital Improvement Program (CIP) Project Reporting System:
Created for enhanced transparency in the City’s 60 CIP and 12 Water Resource Recovery (WRR) Projects
Terminal 4 (T4) Demolition (Shoreline Restoration) Project:
Completed design, bidding, and commenced construction
5 FY2024-25 Budget Development Schedule
ACTION / ACTIVITY DATE
Budget kick off meeting January 30
Budget Input Window January 30 thru February 16
Budget Hearings: City Manager, Finance Director, and Budget division meet with departments March 11 thru March 15
Union Budget Meeting March 21
Community Budget Meetings RNCC: April 08
Community: April 11 & 24
First Draft Budget May 7
FY2023-24 Q3 Budget Review and Budget Study Session on
Proposed FY2024-25 Operating Budget and FY2024-29 Five
Year Capital Improvement Plan, Department Presentations and Develop Budget Checklist.
May 28
6 Recommended Action
7 RECEIVE the draft Fiscal Year 2024-25 Annual Operating Budget and Fiscal Year 2024-29 Five-Year Capital Improvement Plan Budget presentation; and PROVIDE DIRECTION to staff prior to final budget adoption
FY2024-25 Budget Development Schedule
8 ACTION / ACTIVITY DATE
Hilltop and Marina Bay Special Districts Update June 4
Review and Direction on Budget Checklist and changes to Proposed Budget June 4
City Council to Adopt FY2024-25 Operating Budget, FY2024-29 Five Year Capital Improvement Plan, and Gann Limit June 18 Adopted FY2024-25 Budget available in MUNIS July 1
General Fund Revenue Assumptions
9 Revenue Category Assumptions
PROPERTY
TAXES
Assessed Value (AV) Growth stems from a combination of factors such as 2 percent Consumer Price Index (CPI) growth for most properties and new valuation for properties that were sold during 2023.
SALES & USE
TAX
A 5.1 percent growth is included per Avenu Insights and Analytics; Vehicle Licenses Fee is tied to AV growth as well as Secured Property Taxes.
UTILITY USERS
TAX (UUT)
The analysis was in part provided by Avenu Insights and Analytics. Historically, growth rates applied to individual revenue streams with in the UUT category, such as Cable, and Telecom, continue to decrease due to industry changes. In addition, the Settlement Amount is due to expire in FY 2024-25, the cap amount paid by chevron is based on Energy Services CPI for the Bay Area.
General Fund Revenue Assumptions (Continued)
10 Revenue Category Assumptions
OTHER TAXES
Each revenue stream within Other Taxes changes year-to-year based on independent influences. Garbage fees are up by 4 percent based on historical changes, and Hotel Taxes are up 3 percent based on rebounding sector. The Transfer Tax budgeted amount is based on the formula provided in the City’s Guiding Fiscal Policy that mandates the use of the mean since implementation of the voter approved tiered structure. Gas and electricity franchise changes stem from a combination of recently updated franchise fee agreements with PG&E coupled with the growth factor used for UUT.
LICENSES, PERMITS &
FEES
The primary revenue stream is Business Tax and a growth factor of 2 percent is used as a CPI going forward
FINES &
FORFEITURES
Parking citations and Muni Court Fines are flat. Proposed amounts are lower than currently budgeted and tie to current year actuals and trends.
General Fund Revenue Assumptions (Continued)
11 Revenue Category Assumptions
USE OF MONEY &
PROPERTY Flat - zero growth
CHARGES FOR
SERVICES
Most items entered by corresponding departments based on their estimated level of service. Proposed amounts are lower than currently budgeted and tie to current year actuals and trends.
OTHER REVENUE Very unpredictable. Usually very little budgeted here and items are added as received.
RENTAL INCOME Proposed amounts are lower than currently budgeted and tie to current year actuals and leases.
GRANTS Only known grants are budgeted
PROCEED FROM SALE
OF PROPERTY Based on historic trend
OPERATING
TRANSFERS IN
Based on Analysis of the Pension Tax Override (PTORS) fund, estimated AV growth, minus scheduled uses. Left over funds are transferred to the General Fund.
General Fund Revenues
GENERAL FUND FY 2023-24 REVISED BUDGET FY 2024-25 PROPOSED BUDGET PCT CHANGE PROPERTY TAXES (52,181,354) (55,866,944) 7.1%
SALES & USE TAX (57,897,341) (61,366,250) 6.0%
UTILITY USERS TAX (57,938,011) (62,092,359) 7.2%
OTHER TAXES (24,144,377) (27,799,882) 15.1%
LICENSES, PERMITS & FEES (15,779,175) (16,252,810) 3.0% FINES & FORFEITURES (151,438) (176,438) 16.5%
USE OF MONEY& PROPRTY (1,796,421) (1,796,421) 0.0%
CHARGES FOR SERVICES (2,536,992) (3,255,703) 28.3%
OTHER REVENUE (238,480) (142,830) -40.1%
RENTAL INCOME (777,028) (777,478) 0.1%
INTERGOVERMENTAL STATE TAXES (125,000) (125,000) 0.0%
INTERGOVERMENTAL STATE GRANT (183,911) (130,000) -29.3% INTERGOVERMENTAL OTHER GRANT (280,000) (250,000) -10.7% PROCEEDS FROM SALE OF PROPERTY - (15,000) 100.0%
LOAN/BOND PROCEEDS (40,400) (40,400) 0.0%
OPERATING TRANSFERS IN (20,310,358) (22,421,539) 10.4%
TOTAL REVENUES (234,380,287) (252,509,054) 7.7%
12 FY2023-24 Vs. FY2024-25 General Fund Revenues
13 -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000Amount
Revenue Category
FY 2023-24 REVISED BUDGET FY 2024-25 PROPOSED BUDGET
FY2024-25 Proposed General Fund Revenues
PROPERTY TAXES
22%
SALES & USE TAX
24%
UTILITY USERS TAX
25%
OTHER TAXES
11%
LICENSES, PERMITS & FEES
6%
OTHER
1%
USE OF MONEY& PROPRTY
1%
CHARGES FOR SERVICES
1%
OPERATING TRANSFERS IN
9%
14 General Fund Expenditure Assumptions
Expenditures Category Assumptions
SALARIES AND WAGES
The proposed Budget includes approved salary increases per each bargaining units’ approved Memorandum of Understandings and annual step increases for staff where applicable.
The proposed Budget includes a 6 percent position control vacancy rate City- wide, which is approximately $10.5 million. This assumption was also approved by the City Council in the adopted FY2023-24 Budget to achieve a balanced budget, while City staff members continue to focus on retention, recruiting, and hiring.
PYROLL/FRINGE BENEFIT
Retirement and Healthcare costs are based on the most recent CalPERS valuation reports and current Kaiser rates, respectively, and will adjust as new information becomes available.
PROF & ADMIN Baseline budget
OTHER OPERATING Baseline budget
15 General Fund Expenditure Assumptions (Continued)
Expenditures Category Assumptions
UTILITIES Baseline budget
EQUIPMENT & CONTRACT
SERVICES Baseline Budget
PROVISION FOR INSURANCE
LOSS Insurance Premiums
COST POOL
Vehicles, per Equipment Services provided list
General Liability, rates provided by Risk Mgmt. to achieve 80 percent confidence over 5 years
Civic Center Allocation, amount driven from the debt service, cash balance, and square footage used by programs
ASSET/CAPITAL OUTLAY Based on draft Capital Improvement Plan 16 General Fund Expenditure Assumptions (Continued)
Expenditures Category Assumptions
DEBT SERVICE
EXPENDITURE Debt Service Schedule, maintained by Treasury A87 COST PLAN
REIMBURSEMENTS Based on current Admin Cost Allocation Plan pending new plan GRANT EXPENDITURES Based on the awarded grants
OPERATING TRANSFERS
OUT
Recurring and onetime subsidies to Non-GF programs. Reimagining Public Safety allocations same as current year.
17 General Fund Expenditures
18 *FY 2023-24 Revised Budget includes $11.9 Million for several City Council approved Capital Projects on September 26, 2023 and March 5, 2024 (appropriations from prior year unspent fund balance).
GENERAL FUND FY2023-24 REVISED BUDGET FY2024-25 PROPOSED BUDGET PCT CHANGE SALARIES AND WAGES 85,847,575 95,236,672 10.9%
PYRLL/FRINGE BENEFIT 65,538,296 70,666,261 7.8%
PROF & ADMIN 21,688,714 21,301,798 -1.8%
OTHER OPERATING 8,963,844 8,762,886 -2.2%
UTILITIES 5,690,630 5,594,204 -1.7%
EQPT & CONTRACT SVCS 5,946,835 4,315,665 -27.4%
PROVISN FOR INS LOSS 34,200 35,500 3.8%
COST POOL 21,593,734 24,700,598 14.4%
ASSET/CAPITAL OUTLAY 2,817,457 2,502,328 -11.2%
DEBT SVC EXPENDITURE 841,353 850,905 1.1%
A87 COST PLAN REIMBS (3,514,373) (3,514,373) 0.0%
GRANT EXPENDITURES 98,723 49,013 -50.4%
*OPER XFERS OUT 30,748,126 22,007,597 -28.4%
TOTAL EXPENDITURES 246,295,113 252,509,054 2.5%
FY2023-24 Vs. FY2024-25 General Fund Expenditures
19 -20,000,000
0 20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000Amount
Expenditure Category
FY2023-24 REVISED BUDGET FY2024-25 DRAFT BUDGET
FY2024-25 Proposed General Fund Expenditures
SALARIES AND WAGES
38%
PYRLL/FRINGE BENEFIT
28%
PROF & ADMIN
8%
OTHER OPERATING
3%
UTILITIES
4%
OTHER
10%
OPER XFERS OUT
9%
20 General Fund FY2024-25 DRAFT Budget
21 FY2023-24 FY2024-25 PCT
GENERAL FUND REVISED BUDGET PROPOSED BUDGET CHANGE
TOTAL REVENUES (234,380,287) (252,509,054) 7.7%
TOTAL EXPENDITURES 246,295,113* 252,509,054 2.5%
NET (-SURPLUS)/+DEFICIT 11,914,826* - -
*FY 2023-24 Revised Budget includes $11.9 Million for several City Council approved Capital Projects on September 26, 2023 and March 5, 2024 (appropriations from prior year unspent fund balance).
Historical General Fund
Revenues vs. Expenditures
*2024 Revised Budget as of Mid-Year, Adopted on March 5, 2024 **2025 Proposed Budget as of May 28, 2024
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2025** Amount
Fiscal Year
Chart Title
Expenditures Revenue
22 Pension Costs
Plan Normal Cost
Unfunded
Accrued
Liability ( UAL)
Payment
Total
Minimum for
FY2024-25
Total
Unfunded
Accrued
Liability
Retirees
Public Safety 6,967,185 18,906,301 25,873,486 246,679,818 559 Miscellaneous 4,514,746 10,460,916 14,975,662 134,277,556 1,015 Total 11,481,931 29,367,217 40,849,148 380,957,374 1,574 23 Other Post Employment Benefits (OPEB)
24 Plan Unfunded Liability Funded Ratio
City Plan 66,878,939 38.2%
RPOA Plan 7,841,862 55.4%
Total 74,720,801
American Rescue Plan Act (ARPA) ( Continued)
Project Amount Department
Library Infrastructure Grant Match $2,258,113 Public Works & Community Services
MLK Park Turf Field $150,000 Public Works & Community
Services
Nevin Community Center - Heating, Ventilation, Air
Conditioning (HVAC) Improvements $10,250 Public Works
Nevin Plaza Housing Project $1,750,000 Economic Development - Richmond Housing Authority
North Richmond Pump Station $1,068,152 Public Works - Waste Water Recovery
Nystrom Village $2,000,000 Economic Development -
Richmond Housing Authority
Parks/Restrooms $7,703,008 Public Works
25 American Rescue Plan Act (ARPA)
Project Amount Department Status
ADA Misc. Sidewalk Rehabilitation Project $2,360,094 Public Works ARPA Technical Assistance $150,000 Finance
Art Initiative $250,000 Economic Development
Blue/Green New Deal & Just Transition $300,000 Economic Development Booker T. Anderson Community Center - HVAC
Improvements $500,000 Public Works
Community Beautification (13Th Street Complete Streets
Project) $1,000,000 Public Works
Community Needs Assessment $250,000 Community Services
Ferry Point Dornan Pump Station $731,848 Public Works - Waste Water Recovery
Infrastructure: Booker T Anderson Center $1,000,000 Public Works Infrastructure: Stormwater $750,000 Public Works - Stormwater 26 American Rescue Plan Act (ARPA) ( Continued)
Recreation Center Administration - HVAC
Improvements $25,025 Public Works
Richmond Rapid Response Fund (Direct
Disbursements, Rent Relief & Guaranteed Income) $1,000,000 Community Development
Small Business Support $1,250,000 Economic Development
Tenant Protection & Rental Assistance $1,984,233 Community Development
Unhoused Flex Funds $50,000 Community
Development
Youthworks $1,200,000 Community Services
Total $27,740,723
27 Hilltop and Marina Bay District Updates
Hilltop Landscape Maintenance District Engineer’s Report An Intent to Adopt June 4,2024
Plan Adoption July 2, 2024
Marina Bay Landscape Maintenance District Engineer’s Report An Intent to Adopt June 4, 2024
Plan Adoption July 2, 2024
28 TRAFFIC CALMING 18 LOCATION FY23-24 UPDATE
Priority Location Type Phase Construction
Schedule
Alternate
Construction
Schedule
Method of
Construction
1 15th St/ Macdonald Ave RRFB Bid/Award Aug 24 – Oct 24 JOC 2 Carlson Blvd and Carl Ave RRFB Design Oct 24 – Dec 24 Sept 24 JOC/On-Call 3 16th St/Macdonald Ave Bike Signal/Timing Design Oct 24 – Dec 24 JOC 4 Esmond Ave: 24th St and 26th St Speed Hump Completed Completed Operations 5 S 37th St and Wall Ave Sideshow Bid/Award Aug 24 – Oct 24 JOC 6 Merced St/Carl Ave Striping/Signs Design Oct 24 – Dec 24 JOC JOC = Job Order Contracting
RRFB = Rectangular Rapid Flashing Beacon
*Aggressive schedule pending bid/award (~3 Month Variation) 29 TRAFFIC CALMING 18 LOCATION FY23-24 UPDATE
(Continued)
Priority Location Type Phase Construction
Schedule
Alternate
Construction
Schedule
Method of
Construction
7 32nd St: Garvin Ave and Clinton Ave Speed Hump Completed Completed Operations 8 Mariposa St and Carl Ave Drainage Design Sept 24 On-Call 9 Bayview Ave/I-580 Overpass Sidewalk Design Oct 24 – Dec 24 JOC 10 29th St and Vale Rd Striping/Signs Bid/Award Aug 24 – Oct 24 JOC 11 41st/42nd St Striping/Signs Design Oct 24 – Dec 24 JOC 12 S 55th St Speed Hump Construction May 24 – Jun 24 Operations JOC = Job Order Contracting
RRFB = Rectangular Rapid Flashing Beacon
*Aggressive schedule pending bid/award (~3 Month Variation) 30 TRAFFIC CALMING 18 LOCATION FY23-24 UPDATE
(Continued)
Priority Location Type Phase Construction
Schedule
Alternate
Construction
Schedule
Method of
Construction
13 State Ave and 49th St Speed Hump Completed Completed Operations 14 Carlson Blvd/Sutter Ave RRFB Design Oct 24 – Dec 24 Sept 24 JOC/On-Call 15 Carlson Blvd/Shasta St RRFB Design Oct 24 – Dec 24 Sept 24 JOC/On-Call 16 Carlson Blvd/Tehama Ave RRFB Design Oct 24 – Dec 24 Sept 24 JOC/On-Call 17 Three Rail Crossings: Point Richmond Striping/Signs Design Oct 24 – Dec 24 Sept 24 JOC/On-Call 18 Barrett Ave and Key Blvd Sideshow Bid/Award Aug 24 – Oct 24 JOC JOC = Job Order Contracting
RRFB = Rectangular Rapid Flashing Beacon
*Aggressive schedule pending bid/award (~3 Month Variation) 31 Estimated Completion by June 2024
32 1. 23G06 ATP Quick Build Cutting/Hoffman
2. 23G07 ATP Quick Build Harbour Way S. Cycle Track
3. CSA20 Auditorium Convention Center Upgrades
4. 23008 Booker T. Anderson Community Center Fire Restoration
5. 01Z10 Dornan Drive Force Main Rehabilitation
6. 01U10 Ferry Pump Station
7. 22A01 Full Trash Capture Facilities
8. 29125 Greening the Yellow Brick Road
9. 23023 Greenway Rehab and Bike Education
10. 23010 Process Building Window Repair
11. 23037 Santa Rita Road Stabilization Project
12. SB115 Street Paving – SB1 – Cutting Harbour Way S. Bikeway
13. 29113 Yellow Brick Road
Santa Rita Rd. Stabilization Road
ATP Quick Build Projects
Booker T. Anderson Community Center
Fire Restoration
Anticipated End of 2024
1. AR247 Booker T. Anderson Community Center HVAC Renovation and Rebuild
2. 23029 Dirt World Bike Park
3. 22A02 Flood Risk Reduction - Rheem Creek
4. 23041 Lincoln Safe Routes to School
5. 07001 Nevin Ave. from 19th to 27th St - Closeout Only
6. 23048 Street Sweeping Signs
7. 23021 Terminal 4 Wharf Removal
8. 23047 Traffic Signal Improvement - 6th St and Macdonald Ave
9. 23011 Area FM CAP
10. 36028 Cafeteria Building at Shipyard #3
*Schedules are subject to change due to bid/award process, material procurement and weather Dirt World Bike Park
33 Anticipated Completion of 2024 (Continued)
11. 01X10 Grit and Aeration Replacement
12. PM902 Point Molate Cottage Roof Stabilization
13. 36011 Point Potrero Marine Terminal (PPMT) ElectricalMaintenance
14. 23030 Richmond Communities Clean Collaborative - Boorman Park Site Remediation
15. 16G20 TCC/E-Bike Share
16. 36020 Terminals 7 & 8 Dredging
17. 36021 Yacht Entrance Harbour Dredging
18. 23032 Yellow Brick Road Clean, Green and Beautiful
*Schedules are subject to change due to bid/award process, material procurement and weather 34 FY2024-25 Budget Development Next Steps
35 ACTION / ACTIVITY DATE
Hilltop and Marina Bay Special Districts Update June 4
Review and Direction on Budget Checklist and changes to Proposed Budget June 4
City Council to Adopt FY2024-25 Operating Budget, FY2024-29 Five Year Capital Improvement Plan, and Gann Limit June 18 Adopted FY2024-25 Budget available in MUNIS July 1
Recommended Action
36 RECEIVE the draft Fiscal Year 2024-25 Annual Operating Budget and Fiscal Year 2024-29 Five-Year Capital Improvement Plan Budget presentation; and PROVIDE DIRECTION to staff prior to final budget adoption
37