DRAFT
FY2023-24 Quarter 4 Financial Report and Administrative Budget Adjustments
City of Richmond, October 1, 2024
1 Cinco de Mayo 2024 – Richmond, CA
Overview
2 • Recommended Action
• Fiscal Challenges
• General Fund Revenue and Expenditure
• Non-General Fund Revenue and Expenditure
• Proposed Budget Adjustments
• General Fund Reserve and Unspent Funds
• Unspent Funds Appropriations
• Next Steps
• Questions
Recommended Action
RECEIVE the Fiscal Year (FY) 2023-24 Quarter 4 (Q4) Report for the period of July 1, 2023, through June 30, 2024;
ADOPT RESOLUTONS to APPROPRIATE proposed
administrative year-end budget adjustments in FY 2023-24; PROVIDE DIRECTION on draft framework to appropriate Unspent Funds; and
PROVIDE DIRECTION and APPROPRIATE Unspent Funds in FY
2024-25.
3 Local Economic Challenges
4 https://beaconecon.com/publications/the-beacon-outlook/california-outlook/
12.30%
10.90%
9.30%
7.50%
6.00%
5.10%
4.50%
3.60% 3.60%
3.20%
10.40%
5.20%
3.40%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Unemployment Rate
Year
December Unemployment Rate of Each Year
https://labormarketinfo.edd.ca.gov/data/unemployment-and-labor-force.html
On the Horizon
5 Even though the City is ending the FY 2023-24 on a
positive note and has adopted a balanced FY 2024-25
Budget, there are still significant fiscal matters on the horizon:
• CalPERS Pension Unfunded Liability – $396.4
Million
• Other Post Employment Benefits unfunded Liability
-- $77.3 Million
• CalPERS Healthcare Premium – 2025 rate
increase by 10.795 percent
• Continue Decreasing the City-wide vacancy rate
• Barging unit negotiations will commence in 2025
General Fund Summary
General Fund
FY 2023-24
ORIGINAL
BUDGET
FY 2023-24
REVISED
BUDGET
ESTIMATED
(UNAUDITED)
YEAR-END
ACTUALS
VARIANCE
REVENUE TOTAL (225,374,607) (234,380,287) (239,547,022) 102% EXPENSE TOTAL 225,374,607 250,642,277 236,028,146 94%
GENERAL FUND NET
(-SURPLUS)/+DEFICIT 16,261,991 (3,518,876)
6 FY 2023-24 General Fund Revenue
7 General Fund
FY 2023-24
ORIGINAL
BUDGET
FY 2023-24
REVISED
BUDGET
ESTIMATED
YEAR-END
ACTUALS
VARIANCE
PROPOSED
BUDGET
ADJUSTMENTS
30 PROPERTY TAXES (50,567,173) (52,181,354) (53,802,373) 103% 31 SALES & USE TAX (56,752,495) (57,897,341) (61,609,565) 106% 32 UTILITY USERS TAX (55,775,083) (57,938,011) (59,085,274) 102% 33 OTHER TAXES (23,237,723) (24,144,377) (18,541,970) 77% 34 LICENSES,PRMITS&FEES (13,286,195) (15,779,175) (16,580,441) 105% 35 FINES & FORFEITURES (331,144) (151,438) (241,876) 160% 36 USE OF MONEY&PROPRTY (1,011,535) (1,796,421) (3,664,487) 204% 37 CHARGES FOR SERVICES (2,561,992) (2,536,992) (2,453,316) 97% 38 OTHER REVENUE (238,480) (238,480) (340,605) 143%
39 RENTAL INCOME (777,028) (777,028) (943,467) 121%
3A STATE TAXES (125,000) (125,000) (143,154) 115%
3C STATE GRANT (110,000) (183,911) (169,152) 92%
3D OTHER GRANT (250,000) (280,000) (328,851) 117%
60 SALE OF PROPERTY 0 0 (4,987) -
61 LOAN/BOND PROCEEDS (40,400) (40,400) 0 0%
90 OPER TRANSFERS IN (20,310,358) (20,310,358) (21,637,505) 107% (1,327,147) REVENUE TOTAL (225,374,607) (234,380,287) (239,547,022) 102% (1,327,147) FY 2023-24 General Fund Revenue
8 -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000Dollars
Revenue
FY 2023-24 REVISED BUDGET ESTIMATED YEAR-END ACTUALS
FY 2023-24 General Fund Expenditures
9 GENERAL FUND
FY 2023-24
ORIGINAL
BUDGET
FY 2023-24
REVISED
BUDGET
ESTIMATED
YEAR-END
ACTUALS
VARIANCE
40 SALARIES AND WAGES 83,345,132 85,785,825 81,224,733 95% 41 FRINGE BENEFIT 62,867,833 65,404,796 66,294,439 101% 42 PROFFESSIONAL & ADMINISTRATIVE 20,302,711 21,842,093 15,299,359 70% 43 OTHER OPERATING 8,611,971 8,720,906 6,782,123 78%
44 UTILITIES 5,288,272 5,700,398 5,358,785 94%
45 EQUOPMENT & CONTRACT SERVICES 5,918,655 6,128,020 3,931,955 64% 46 PROVISN FOR INSURANCE LOSS 34,200 34,342 30,214 88%
47 COST POOL 21,593,734 21,593,734 21,593,734 100%
48 ASSET/CAPITAL OUTLAY 1,893,500 2,911,169 2,427,738 83% 49 DEBT SERVICE EXPENDITURE 841,353 841,353 841,387 100% 4A A87 COST PLAN REIMBS (3,531,611) (3,514,373) (3,638,409) 104% 50 GRANT EXPENDITURES 19,155 98,723 4,652 5%
91 OPER TRANSFERS OUT 18,189,702 35,095,290 35,877,436 102% EXPENDITURE TOTAL 225,374,607 250,642,277 236,028,146 94% General Fund Expenditures
10 (10,000,000)
0 10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000Dollars
Expenditure
FY 2023-24 REVISED BUDGET ESTIMATED YEAR-END ACTUALS
Non-General Fund Revenue
FUND
FY2023-24
ORIGINAL
BUDGET
FY2023-24 REVISED
BUDGET
ESTIMATED YEAR-END
ACTUALS VARIANCE
Capital Improvement Funds (45,085,732) (81,236,266) (45,208,457) 56% Debt Service Funds (19,551,216) (19,551,216) (19,602,962) 100% Enterprise Funds (41,443,141) (41,493,141) (44,101,392) 106% Housing Funds (1,911,772) (1,986,772) (2,767,937) 139%
Housing Authority Funds (5,563,388) (5,549,921) (5,985,874) 108% Internal Service Funds (30,919,340) (30,919,340) (34,667,794) 112% Other Operations Funds (32,931,748) (36,028,174) (22,527,221) 63% Special Revenue Funds (52,120,364) (96,362,154) (48,860,586) 51% TOTAL REVENUES (229,526,702) (313,126,985) (223,722,223) 71% 11 Non-General Fund Revenue
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000Million
Fund Type
REVISED BUDGET YTD ACTUALS
12 FY 2023-24 Non-General Fund Expenditure
FUND TYPE FY2023-24
ORIGINAL BUDGET
FY2023-24
REVISED BUDGET
ESTIMATED
YEAR-END
ACTUALS
VARIANCE
Capital Improvement Funds 71,270,921 118,828,239 23,978,215 20% Debt Service Funds 19,174,878 19,174,878 19,192,428 100% Enterprise Funds 86,084,855 104,668,850 51,699,920 49%
Housing Funds 6,249,305 6,324,305 698,699 11%
Housing Authority Funds 5,570,438 5,763,509 5,546,988 96% Internal Service Funds 36,799,838 42,837,206 31,441,810 73% Other Operations Funds 33,182,604 41,880,636 27,241,503 65% Special Revenue Funds 68,197,088 129,516,823 46,974,503 36% TOTAL EXPENSES 326,529,928 468,994,447 206,774,065 44%
13 FY 2023-24 Non-General Fund Expenditure
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000Dollars
Fund Type
FY2023-24 REVISED BUDGET ESTIMATED YEAR-END ACTUALS
14 Proposed Budget Adjustments
Type Fund Fund Description Revenue Expenditures
General Fund 0001 General Fund 1,327,147 782,146
Capital Improvement 2110 Impact Fee Parks/PW 13,764 788 Capital Improvement 2111 Impact Fee Traffic 62,186 3,650 Capital Improvement 2113 Impact Fee Fire 14,638 809
Capital Improvement 2114 Impact Fee Police 12,146 687
Capital Improvement 2115 Impact Fee Comm/Aquatic 52,746 3,105 Capital Improvement 2116 Impact Fee Open Park 219,914 12,947 Capital Improvement 2117 Impact Fee Library 60,256 3,632 Capital Improvement 2119 Impact Fee Storm Drainage 22,072 1,250 Capital Improvement 2120 Impact Fee Wastewater 5,868 176 Housing 1201 Community Development Block Grant 126,722 - Housing 1202 Home Program 12,462 -
Housing 1208 COR Successor Housing Agency 83,040 -
Housing 1209 Cal-Home Grant Fund 95,404 -
Housing 1302 Housing In Lieu Fee Developer 420,127 -
Other Operations 1205 Employment & Training 113,203 -
Other Operations 1012 Hilltop Lanscaping District 87,700 - Other Operations 1050 CR-Planning and Building 27,043 - Special Revenue 1303 Kids First Initiative 733,320 -
Special Revenue 1017 ECIA 16,500 -
Special Revenue 1001 Secured Pension Override 773,940 1,326,327 Total 4,280,199 2,135,516
15 General Fund Reserve
Item Amount
FY 2023-24 Beginning Fund Balance (Reserve) 55,196,962
FY 2024-25 Policy Target Beginning Fund Balance (Reserve) 52,276,428 Reserve Above Policy Target (2,920,534)
16 In FY 2022-23, the General fund audited reserve was $55,196,962, which was approximately 24.49 percent of the FY 2023-24 Adopted Budget at the time, the City’s policy target reserve level is 21 percent. Based on the FY 2024-25 General Fund Adopted Budget, the 21 percent reserve is $52,276,428. Based on the FY 2023-24 Year-End estimated Reserve level and the FY 2024-25 Adopted Budget of $248,935,372, there is an estimated $2,920,534 that is above the minimum required reserve for the General Fund that the City Council may allocate in “Unspent Funds”.
FY 2023-24 General Fund Unspent Funds
17 Item Amount
FY 2023-24 Actual Revenue (239,547,022)
FY 2023-24 Actual Expenditure 236,028,146
FY 2023-24 Actual Revenue minus Expenditures (3,518,876) Contribution to Reserve* -
Contribution to OPEB @ 10% 351,888
Contribution to Pension @ 10% 351,888
Unspent from FY 2023-24 (2,815,101)
Item Amount
Reserve Above Policy Target (2,920,534)
Unspent from FY 2023-24 (2,815,101)
Other Unused Fund Balance TBD
Total (5,735,634)
DRAFT: Unspent Funds Appropriations - Option A
18 Council
Goal &
Priority #
Description Requested
Funds Potential Department Status
Staff Recommendation $6,870,000
2.1.b LEAP Graduation 5,000 5,000 Community
Services/Library Completed
2.2.a Mobile Vendor Program Temp.
Ordinance Enforcement 100,000 100,000 Public Works Program implementation costs
3.1.e Boorman Park 1,900,000 1,900,000 Public Works
Additional funding is required
to implement the remediation
plan being developed. Grant
funding must be utilized by
6/30/2025.
4.4.c
Fire Apparatus (Pending
Apparatus Replacement
Policy)
1,300,000 1,300,000 Public Works/Fire Draft policy in progress
3.2.e Built Environment Needs
Assessment 500,000 130,634 Public Works RFP in process
Canal Boulevard Gates 65,000 100,000 Public Works
4.1.a Carlson Crosstown Phase II 3,000,000 2,200,000 Public Works Currently in design phase Sub-Total $6,870,000 5,735,634
4.1.a Carlson Crosstown Phase II 800,000 Funding from MTC Total $6,870,000 6,535,634
DRAFT: Unspent Funds Appropriations - Option B
19 Council
Goal &
Priority #
Description Requested
Funds Potential Department
June 24, 2024, City Council Motion $1,168,000
4.2 Gun Violence Reduction Initiative (Additional Staff Required for Implementation) 50,000 50,000 Community Services/ONS
Poet Laureate ($10K) and Poetry Contest ($3K) (Additional Staff Required) 13,000 13,000 Economic Development
2.1.b LEAP Graduation 5,000 5,000 Community
Services/Library
2.2.a Mobile Vendor Program Temp. Ordinance Enforcement 100,000 500,000 Public Works
1.2.b Unhoused Intervention (~$4 million remaining in ERF-2 Grant) 1,000,000 1,000,000 Community Development
Budget Development Checklist Items
3.1.e Boorman Park 1,900,000 1,900,000 Public Works
4.4.c Fire Apparatus (Pending Apparatus Replacement Policy) 1,300,000 1,300,000 Public Works/Fire
3.2.e Built Environment Needs Assessment 500,000 500,000 Public Works Canal Boulevard Gates 65,000 100,000 Public Works
3.2.b Main Library Renovation Project Additional Funding 4,100,000 367,634 Public Works
3.1.e Point Molate Bay Trail Erosion 3,000,000 - Public Works
3.2.a Booker T. Anderson Community Center Exterior Improvements 2,300,000 - Public Works City-wide Historic Preservation TBD - Public Works
3.1.e Dog Park Assessment TBD - Public Works
4.1.a Point Richmond Street Safety Improvements TBD - Public Works
4.1.a Carlson Crosstown Phase II 3,000,000 - Public Works Total 17,333,000 5,735,634
Services for Unhoused
Sources Total Expenditure/
FY 22, 23, 24 FY 2024-25 FY 2025-26 FY 2026-27
ARPA
($50,000) (Federal) $50,000
ERF Round 1- Grant
($4.8Million)(State) $4,881,272
Reimagining Public Safety
($1.8Million/Year) (General Fund) $2,255,477 $800,000 $1,800,000 $1,800,000 ERF Round 2 Grant
($8.6Million) (State) $4,706,596 $1,947,995 $1,947,995 $0 Total $11,893,345 $2,747,995 $3,747,995 $1,800,000
Grants $28,749,406
Homekey Grant
($14M) (State) $14,512,660 $12,093,460 $500,000 $525,000 Homekey (City Contribution)
(Affordable Housing In-lieu funds) $4,900,000* $2,343,460 $0
$0
ERF Round 3 Grant $9,336,746
(Awaiting
announcement of
awards)
20 June 24, 2024, City Council Motion
21 Motion by Vice Mayor Jimenez Seconded by Councilmember McLaughlin To adopt resolutions approving the proposed operating and Capital Improvement Plan budgets with the following changes: add $50,000 to an initiative to reduce gun violence; increase the poet laureate's stipend to $10,000; allocate $5,000 to LEAP (city's literacy program) for graduations; add an extra $100,000 for street vendors for a total $200,000; and commit from the unspent funds, $1 million to fill the gap for unhoused interventions.
A friendly amendment was made by Councilmember Bana to allocate $3,000 for prizes of poetry contests and other expenses for the three high schools.
A friendly amendment was made by Councilmember Robinson as a part of passing the budget, to direct Public Works staff to increase the dedicated staffing to General Fund parks, streetscapes, and medians; before the end of fiscal year 2024-2025, increase the skill sets capacity of the tree crew to include supervisory skills, arborist skills, and someone who could create and follow an integrated management plan; two plus staff with Class B driver license to drive their specialized truck; and two plus staff who had the ability to make cuts and prune the trees.
The friendly amendments were accepted. Further discussion ensued.
Another friendly amendment was made by Councilmember Robinson to create a process to bring forward, vet, and vote on projects considered for unspent funds; and any traffic calming projects (not included in the 18 projects) should go through the assessment process that was created by Public Works. The friendly amendment was accepted.
The motion maker added to the motion that the allocations for the requested changes could be from the unspent funds; and staff could return to the council at a later date to discuss the poet laureate.
Ayes (6): Councilmember Bana, Councilmember McLaughlin, Councilmember Robinson, Councilmember Willis, Councilmember Zepeda, and Vice Mayor Jimenez
Absent (1): Mayor Martinez
Passed (6 to 1)
DRAFT - Proposed Framework
Appropriate Unspent Funds in Priority Order
1. City Mandated Services & Policies
2. Existing Grant Funded Capital Projects with Funding
Gaps
3. City Council Goals and Priorities
4. Unfunded Capital Projects List (Legacy Built
Environment Needs Assessment RFP In-progress)
5. New Capital Projects
6. Unfunded Department Requests
22 DRAFT - Next Steps
23 1. An option is to defer the appropriations of unspent funds until FY 2024-25 Quarter 1 (Q1), which will be provided in November 2024, at Council direction.
2. Continue working with the auditors to complete the FY 2023-24 year- end audit and publish the Annual Comprehensive Financial Report (ACFR).
3. Present the year-end audit results and ACFR to the City Council in January/February 2025 along with the actual General Fund Unspent Funds and appropriate those funds in March of 2025 (Fund Balance).
4. Return to the City Council on September 24, 2024, with a status update of American Rescue Plan Act (ARPA) fundingand a proposal to reallocate project funding as-needed.
Questions?
Thank You!
24 DRAFT - Other Unused Fund Balance
25 Date Description Budget
9/12/2023 Fire - Mark43 438,863
11/28/2023 Unspent Funds Appropriated 9,520,218
1/23/2024 Carryforward from FY 2022-23 from last year in Point Molate Costs 237,678 2/6/2024 Street Sweeping 550,000
3/5/2024 10% of Unspent Funds into OPEB and Pension 115 Trust 2,671,322 3/5/2024 Unspent Funds Appropriated During Mid-Year 400,000 3/5/2024 Mid-Year Revenue Expenses Over Expenditures (1,903,254) 4/16/2024 Unspent Funds Allocated 4,058,438
5/28/2024 Rent Program Subsidy 288,726
Total 16,261,991