Cily of
Bichuma
AGENDA
Finance Department REPORT
DATE: March 11, 2025
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
SUBJECT: Fiscal Year (FY) 2023-24 Audited Unspent Funds FINANCIAL IMPACT: Appropriate General Fund FY 2023-24 audited unspent funds of $5,571,504 and Increase the General Fund loan
commitment to Homekey Project by $1,400,000 for total
unspent funds of $6,971,504.
PREVIOUS COUNCIL October 1, 2024, November 19, 2024, December 17, 2024, ACTION: February 4, 2025, and March 4, 2025.
STATEMENT OF THE City staff are presenting the Fiscal Year (FY) 2023-24 ISSUE: Audited Unspent Funds and recommending appropriations totaling $6,971,504
RECOMMENDED DISCUSS and ADOPT resolutions to APPROPRIATE Fiscal ACTION: Year 2023-24 audited unspent funds in the amount of $5,571,504 and COMMITTING an additional $1,400,000 to
the Homekey Project loan, for total unspent funds of
$6,971,504 - Finance Department (Andrea Miller 510-620- 6790/Mubeen Qader 510-412-2077/Jerry Gurule 510-620-
6591).
DISCUSSION:
The Fiscal Year (FY) 2023-24 budget was adopted on June 20, 2023, and later revised during the mid-year budget review on March 5, 2024. Serving as a financial blueprint, the budget outlines projected revenues and planned expenditures for the fiscal year while aligning with City Council's priorities. During the budget development process, the City Council identified a set of high-priority expenditures to be funded if additional
March 11, 2025
revenue became available. On October 1, 2024, City staff presented estimated unspent funds of $5,735,634, which the City Council appropriated to various programs and projects (Attachment 1 - Resolution No. 110-24).
On February 4, 2025, City staff presented the Annual Comprehensive Financial Report (ACFR) to the City Council for the Fiscal Year ending June 30, 2024 (City-of-Richmond- ACFR-FY2024). The ACR includes the City of Richmond's basic financial statements, auditor's report, and key supplemental information, providing a comprehensive overview of the City's financial position and activities.
The City's General Fund cash reserve policy requires the City to maintain a minimum year-end contingency reserve balance of 21 percent ($52.3 million) of next year's budgeted General Fund expenditures, including transfers out. As of June 30, 2024, the City's cash reserve, a component of the unassigned fund balance, is $65.3 million or
26.2 percent.
The $6.9 million in unspent funds is available after (1) calculating the difference between the 21 percent fund balance target and the 26 percent ending unassigned fund balance amount; (2) adjustments made for approved policies on Pension and Other Post-Employment Benefits (OPEB) contributions; and (3) appropriations approved by the City Council on November 19, 2024, and December 17, 2024 (Attachment 2).
Table 1 below details the appropriations approved by the City Council through December 2024.
Table 1: Appropriations approved by the City Council
Item Amount
Operating Costs Appropriated during Q1 update - November 19, 2024 (334,464) Library Renovation Project - November 19, 2024* (4,100,000) Legal Costs - Nevers, Palazzo, Packard, Wildermuth & Wynner, PC - December 17, 2024 (200,000) Legal Costs - Bertrand, Fox, Elliot, Osman, & Wenzel - December 17, 2024 (200,000) Legal Costs - Dave Aleshire - December 17, 2024 (154,626) Total (4,989,091)
* Adopted a resolution to appropriate $4,100,000 from the General Fund to the General Capital Fund to the Revitalizing the Historic Main Library Project - Public Works.
Table 2 below summarizes the ACR and audited unspent funds.
Table 2: Audited Amounts
Item Audited Amount
FY 2023-24 Ending Unassigned Fund Balance (Reserve) (26%) 65,262,325 FY 2024-25 Policy Target Beginning Fund Balance (Reserve) (21%) 52,276,428 Reserve Above Policy Target (12,985,897)
Unspent from FY 2023-24 (12,985,897)
Additional Contribution to OPEB @ 10% of Unspent Funds 512,651 Additional Contribution to Pension @ 10% of Unspent Funds 512,651 Additional Appropriations from 11/19/24 and 12/17/24 (See table 1 above) 4,989,091 Total Available Unspent Funds (6,971,504)
March 11, 2025
Recommendations for Unspent Funds
Economists note that the tariff threats, federal government worker layoffs, and federal contractors' terminations are cooling the economy. Businesses find it hard to plan costs, delaying investments, and hiring. These uncertainties may impact the City's revenues negatively and also increase costs for existing services and projects.
In addition, prior year unspent funds are considered one-time funding and per the Government Finance Officers Association, the best practice is to appropriate one-time funds to one-time expenditures (i.e., non-recurring projects or programs). To help guide the City Council's discussion, City staff are recommending a commitment of funds or an appropriation that may include the following projects in the amount of $5,971,504:
• Homekey Project - $1.4 million (loan)
• Boorman Park Remediation - $250,000
• Boorman Park Revitalization - $400,000
• Booker T. Anderson Community Center (Phase III) - $2.7 million • Carlson Blvd Crosstown Connection (Phase II) - $1.22 million The remaining $1 million was allocated to support immigration services per City Council direction during its March 4, 2025, City Council meeting.
Homekey Project
The City's Homekey project, which includes the acquisition of Motel 6 at 425 24th Street, to convert it into a 48-unit permanent supportive housing development serving the chronically homeless, has been identified as requiring additional funding. Currently, it is estimated that an additional $3.4 million can be divided into two phases of the project: 1) rehabilitation (capital costs), and 2) operations. As such, $1.4 million can be allocated to fund capital costs related to the conversion and rehabilitation of the former motel, which is anticipated to begin construction in April 2025. The remaining $2 million needed can be spread over the first 7 years, from occupancy to support operating costs, including rent and capital reserves.
Table 3: Homekey Project Funding
Current Budget/ Funding Total Unspent
Sources Shortfal Budget Funds
STATE HOMEKEY 14,512,660 14,512,660
Capital (Development Costs) 12,093,460 12,093,460
Operating (Capitalized Reserve) 2,419,200 2,419,200
CITY OF RICHMOND 4,900,000 3,400,000 8,300,000 1,400,000 Capital 2,343,460 1,400,000 3,743,460 1.400,000
Operating 2,556,540 2,000,000 4,556,540
CONTRA COSTA COUNTY 1,000,000 1,000,000
Capital 1,000,000 1,000,000
TOTAL COSTS 20,412,660 3,400,000 23,812,660 1,400,000
March 11, 2025
To move forward, City staff recommend committing an additional General Fund loan in the amount of $1,400,000 to the Housing In-Lieu fund, to be repaid as fees are collected from new development, which requires amending resolution 63-23 and adopting the attached resolution reflecting the additional $1.4 million loan (Attachment 3). The remaining $2 million loan can be committed from the General Fund to the Housing In- Lieu fund in the coming months. The amended resolution increases the total General Fund loan amount to $8.3 million.
Capital Improvement Project Funding Shortfalls
A list of Capital Improvement Projects (CIP) with funding shortfalls is provided as a draft (Attachment 4). Some projects have a funding shortfall due to increased costs from the original estimates, whereas other projects' funding shortfall is due to the expanded scope of work. The projects below are recommended for further funding from the FY 2023-24 unspent funds based on the ability of staff to move the projects forward within the current fiscal year, potential cost increases, the urgency of funding needed to complete the work and/or meet grant requirements, commitments to and input from residents, and inclusion of the projects in the City Council Goals and Objectives.
Table 4: Capital Improvement Projects Funding Shortfalls for Unspent Funds Total
Project Unspent Funds
Shortfall
Boorman Park Site Remediation 250,000 250,000
Boorman Park Revitalization 400,000 400,000
Booker T. Anderson Community Center (Phase I!!) 2,700,000 2,700,000 Carlson Blvd Crosstown Connection (Phase II) 3,000,000 1,221,504 Total 6,350,000 4,571,504
Boorman Park Site Remediation - Project Summary
Originally constructed in 1976, Boorman Park was designed to serve the surrounding neighborhood. Before becoming a park, the site was home to a tile manufacturing business and is bound by industry to the north and a railroad corridor to the north and east.
Currently, the City of Richmond's design team worked with the park's neighbors, the Cortez-Stege Neighborhood Council, and members of three non-profit groups: the West County Regional Group of First, Rising Juntos, and Healthy & Active Before Five to design the park. This park project aims to improve health and wellness for people of all ages and abilities, safety, beauty, and access to outdoor recreation.
The Park plan identifies berm removal to provide clear visibility to and throughout the site. The project will assess and remove soil contaminants in the park, ensuring it meets safety standards for the revitalization of the park. Construction rubble from the old tile facility requires disposal and clean-up. The site is currently being cleaned up through a Department of Toxic Substance Control (DTSC) permitted project. Funds are needed to support an anticipated cost increase in Q4 FY2024-25 due to the project's complexity in dealing with soil remediation.
March 11, 2025
Boorman Park Revitalization - Project Summary
The Richmond Parks Master Plan (2010) identifies a major renovation and master planning effort to revitalize the park. Boorman Park serves multiple user groups: It currently includes a children's play area, grassy lawns for informal sports and play, and basketball courts. The park accommodates senior and teen activities and provides space for passive recreation, socializing, and group gatherings.
The City of Richmond worked with First, Rising Juntos, and Healthy & Active Before Five in a series of five public meetings to prepare a schematic design for the park that reflected the neighborhood's wants and needs. The design was submitted for a grant, and in 2020, the City of Richmond was awarded the very competitive Proposition 68 grant funds for the Revitalization of Boorman Park.
The project will create a new recreation area with a trail, skate park, sports facilities, play areas, and community space. It emphasizes sustainability through green infrastructure, low-water landscaping, and recycled materials.
Funds support projected bid alternate costs, which include resilient surfacing, a concrete-paved pathway, a chain-link fence around the grass field, and mile marks on the pathway.
Booker T. Anderson Community Center (Phase III) - Project Summary The project aims to significantly enhance the aesthetic appeal, exterior integrity, and resident experience of the Booker T. Anderson (BTA) complex. The next phase of BTA includes outer work focusing on critical exterior improvements, including roof and gutter replacement, complete exterior building repainting, and a transformative exterior courtyard renovation with new fencing.
Carlson Blvd. Crosstown Connection (Phase II) - Project Summary This project intends to complete Carlson Bld Crosstown Connection Improvements Project from Broadway to Tehama Ave by installing bicycle lanes, pedestrian ramp facilities, bus shelter connections for future make-ready installation, asphalt paving, sidewalk and root repairs, signing and striping, and streetlight study. Broadway to Tehama will feature a Class II bike lane, and Class IV bike lanes where feasible. This corridor will be upgraded to enhance safety and improve traffic flow along Carlson Boulevard. The new bikeway will connect existing bike lanes on Carlson Boulevard at San Pablo Avenue in El Cerrito north to Broadway, near Richmond Civic Center.
The original scope of work did not include the funds needed to address the paving needs for the corridor. The cost consists of the associated increase in design, construction management, and adherence to the 1.5 percent public art ordinance allocation requirement
March 11, 2025
Carlson Blvd. Crosstown Connection (Phase III) - Future Funding This project is currently in the planning phase from Broadway through San Jose Ave (the City Limit). It will include traffic signal upgrades and safety enhancements.
Summary of the Staff Report
A summary of the potential FY 2023-24 unspent funds is as follows:
Table 5: Summary of Unspent Appropriations/Commitments
Action Amount
Immigration Services (City Council Action March 4, 2025) Appropriate 1,000,000 Project Homekey Loan Commitment 1,400,000
Capital Projects Appropriate 4,571,504
Total 6,971,504
Next Steps
Staff recommend the City Council appropriate remaining unspent funds for immigration services, Capital Projects, and an additional loan amount for the Homekey project.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution 110-24
Attachment 2 - Appropriations approved by the City Council Attachment 3 - Homekey resolution
Attachment 4 - CIP project Budget shortfalls
Attachment 5 - Unspent funds resolution
March 11, 2025
RESOLUTION NO. 23-25
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA,
TO APPROPRIATE IMPACT FEES FUNDS TO CAPITAL IMPROVEMENT PROJECTS IN FY 2024-25 AND APPROPRIATE REMAINING GENERAL FUND FY 2023-24 UNSPENT FUNDS TO CAPITAL IMPROVEMENT PROJECTS WHEREAS, pursuant to Section 1(b) of Article IV of the Richmond City Charter the Council, ager is required to preparo an anual budast for the review and approval by the City WHEREAS, the City's Audited financials for Fiscal Year 2023-24 reported an assigned fund balance of Sixty-Five Million, Two Hundred Sixty-Two Thousand, Thr undred Twenty-Five Dollars ($65,262,325); al
WHEREAS, the General Fund unspent funds are available for Council goals and priorities; and
to the Atrial Houngry Come preousy die origina City fontie ails foral Fund Homekey Program (the "Project"); and
WHEREAS, at present the Affordable Housing Fund lacks sufficient resources to provide the additional subsidies needed for the Project; and WHEREAS, the City General Fund will provide a commitment of One Million, Four Hundred Thousand Dollars ($1,400,000) in FY2024-25 and Two Million Dollars ($2,000,000) in future years to increase the interfund loan in the amount of Three Million, Four Hundred Thousand Dollars ($3,400,000) to the Affordable Housing Fund in order to make funds available to finance operating and capital subsidies for the Project: and WHEREAS, the City Council reviewed the list of capital improvement projects with a projected funding shortfall in FY 2024-25, totaling One Hundred Sixty Six Million, One Hundred Ten Thousand Dollars ($166,110,000); and
WHEREAS, General Fund unspent funds were identified as sources to fund estimated capital projects shortfall in the amount of Four Million, Five Hundred Seventy-One Thousand and Five Hundred and Four Dollars ($4,571,504); and
NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE
RICHMOND CITY COUNCIL, COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA, THAT:
The City Council hereby Commits FY2023-24 Unspent General Fund to Homekey Project in the amount of One Million, Four Hundred Thousand Dollars ($1,400,000) to the Affordable Housing Fund in FY24-25 to provide an interfund loan.
2. The City Council approves in future years, Two Million Dollars ($2,000,000) to the affordable Housing Fund after annual operating cost appropriations are better known for a Loan amount up to Eight Million, Three Hundred Thousand Dollars ($8,300,000).
3. The City Council hereby appropriates Unspent Funds in the amount of Five Million, Five Hundred Seventy-One Thousand, and Five Hundred and Four Dollars ($5,571,504) as follows:
Reso. No. 23-25
General Fund Appropriations
Fund FY 2024-25
General Fund - Transfers Out to General Capital 4,571,504 General Fund - Immigration Services (Council Direction on March 4, 2025) 1,000,000 Total 5,571,504
Fund FY 2024-25
General Capital Fund - Transfers In (4,571,504)
General Capital Fund - Booker T. Anderson Community Center (Phase III) 2,200,000 General Capital Fund - Parchester Area Infrastructure Plan 500,000 General Capital Fund - Boorman Park Remediation 250,000 General Capital Fund - Boorman Park Revitalization 400,000 General Capital Fund - Carlson Blvd Crosstown Connection (Phase II) 1,221,504 Total
General Fund Commitment
Fund FY 2024-25
General Fund - Commitment to Homekey Project 1,400,000
Total 1,400,000
4. The City Council approves to allocate Five hundred Thousand Dollars ($500,000) to Booker T. Anderson Community Center (Phase III) in the FY2025-26 Budget. ************************
8808202:55
I certify that the foregoing resolution was passed and adopted by the City Council of the City of Richmond at a regular meeting thereof held on March 11, 2025, by the following vote:
AYES: Councilmembers Bana, Brown, Jimenez, Robinson,
Wilson, Vice Mayor Zepeda, and Mayor Martinez.
NOES: None.
ABSTENTIONS: None.
ABSENT: None.
PAMELA CHRISTIAN
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
EDUARDO MARTINEZ
Mayor
Approved as to form:
DAVE ALESHIRE
City Attorney
State of California }
County of Contra Costa : SS.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No. 23-25, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on March 11, Yamala Chuot:
Pamela Christian, Clerk of the City of Richmond
Reso. No. 23-25
RESOLUTION NO. 128-24
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, ADOPTING THE FISCAL YEAR 2024-25 FOR QUARTER 1 BUDGET ADJUSTMENTS WHEREAS, pursuant to Section 1(b) of Article IV of the Richmond City Charter the City Manager is required to prepare an annual budget for the review and approval by the City Council; and
WHEREAS, the City's budget was originally adopted on June 24, 2024; and trends berete in period or 1,204, and sprite 3020 2, anior budget actual WHEREAS, the City Council has reviewed the proposed budget adjustments in the first quarter budget report; and at a public meeting on November 19, 2024; and NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Richmond, California hereby adopts the resolution to receive the City's first quarter budget report and approve the proposed budget adjustments set forth in Table 1, below:
Table 1: Budget Adjustments
General Fund Requests
Revenue Expense
Fund Net
Fund Increase/ Increase/ Justification
Description Impact
(Decrease) (Decrease)
Carried-forward PO for IT
0001 General Fund 88,716 (88,716) architectural services for network refresh, approved FY2023-24
midyear
Carried-forward PO for
0001 General Fund 78,794 (78,794) RingCentral MVP Services, 0001 General Fund 95,352 (95,352)
0001 General Fund 36,769 (36,769)
midyear
Carried-forward PO for
0001 General Fund 44,434 (44,434) replacement and installation of UPS batteries 440 building
approved FY2023-24 midyear
0001 General Fund 707,000 707,000 pdated sales tax update fror onsultant, Avenu Analytic
0001 General Fund (97,000) (97,000) Updated sales tax update from consultant, Avenu Analytics
(66,400) Updated sales tax update from
0001 General Fund (66,400)
consultant, Avenu Analytics
0001 General Fund (99,000) (99,000) Updated sales tax update from consultant, Avenu Analytics
0001 General Fund 100,000 100,000 2% admin fee collected from credit card transactions
0001 General Fund 100,000 (100,000) Property tax bills to Contra Cost County and Richmond Main Stree
0001 General Fund 355,000 (355,000) CCTV Cameras (Police/Public Works) - Transfer Out
New radios for Code Enforcement
0001 General Fund 80,000 (80,000) (11) APX6000 radios with software features
Reso. No. 128-24
General Fund -
Net Impact 544,600 879,064
(334,464)
Non-General Fund Requests
1018 Rent Program (10,000) (10,000) Decrease revenue and expense due to Rent Board deciding not to
1018 Rent Program (10,000) 10,000 conduct the 360-performance evaluations
Fund Revenue Expense
Increase/ Increase/ Net
Fund Description Justification
(Decrease) (Decrease) Impact
Appropriate TDA Grant fo
1054 Erniering 178,400 178,400 Downtown Point Richmone
Bicycle Connectivity Project that
supports the Ferry to Bridge to
Greenway (F2B2G) Plan. This
1054 orangering 178,400 (178,400) was approved by City Council i Resolution 12-22 adopted or
01/25/2022
Appropriate $3M from the genera
capital fund balance for the Mair
Library Remodel Project as
Project team anticipates
encumbering/spending
General Capital approximately $3M by April 2025
2001 3,000,000 (3,000,000) for public art appropriation, Fund
construction management
services, permit fees, utility fees,
relocation costs, temporary facility
upgrades and procuring a contrac
for furniture, fixtures and
equipment
Appropriate from Fund Balance to
General Capital complete and close out the Santa
2001 110,739 (110,739) Rita Road Stabilization project.
Fund
Funding was approved in FY23-24
City Council meeting 05/21/24
Appropriate from Fund Balance
General Capital fund for the Downtown Point
2001 Fund 267,500 (267,500) Richmond Bicycle Connectivity Project 23060 funded in part by
TDA Grant
2001 General Capital 355,000 CCTV Cameras (Police/Public Fund 355,000
Vorks) - Transfer I
2001 General Capital 355,000 (355,000) CTV Cameras (Police/Publi Fund Works)
Appropriate budget for WWTP
Dichlorination SBS Project.
4003 Wastewater 732,938 (732,938) Contract increase was approved by the City Council on 6-25-24,
after FY2024-25's budget was
adopted
4003 Wastewater 7,797,456 (7,797,456)
after FY2024-25's budget was
adopted
Non-General
Fund Requests 523,400 12,432,033 (11,908,633)
- Net Impact
**********************
Reo, 2 0221
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond, California at a regular meeting thereof held November 19, 2024, by the following AYES: Councilmembers Bana, McLaughlin, Robinson, Willis, Zepeda, Vice Mayor Jimenez, and Mayor Jimenez.
NOES: None.
ABSTENTIONS: None.
ABSENT: None.
PAMELA CHRISTIAN
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
EDUARDO MARTINEZ
Mayor
Approved as to form:
DAVE ALESHIRE
City Attorney
State of California
County of Contra Costa : SS.
City of Richmond
I certify that the foregoing is a true copy of Resolution No. 128-24, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on November 19, Pamela Christ:
Pamela Christian, Clerk of the City of Richmond
Reso. No. 128-24
RESOLUTION NO. 133-24
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, TO APPROPRIATE $4,100,000 TOWARDS REVITALIZING THE HISTORIC
RICHMOND MAIN LIBRARY PROJECT
WHEREAS, the City of Richmond has started to implement the project entitled "Revitalizing the Historic Richmond Main Library"; and
WHEREAS, the City of Richmond has originally estimated costs to implement the project at $29,933,657; and
WHEREAS, the City of Richmond has identified a project shortfall to fund critical improvements to the building; and
WHEREAS, the project currently requires additional funds estimated in the amount of $4,100,000; and
WHEREAS, the City of Richmond has identified the General Fund as the funding source for the additional costs; and
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Richmond, appropriates $4,100,000 from the General fund into the General Capital Fund for the Revitalizing the Historic Richmond Main Library project as follows:
Item Amount
General Fund (Transfer Out) ($4,100,000)
General Capital Fund (Transfer In) $4,100,000
General Capital Fund (Revitalizing the Historic Richmond Main $4,100,000 Library)
Reso No.133-24
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond, California at a regular meeting thereof held November 19, 2024, by the following AYES: Councilmembers Bana, McLaughlin, Robinson, Willis, Zepeda, Vice Mayor Jimenez, and Mayor Martinez.
NOES: None.
ABSTENTIONS: None.
ABSENT: None.
PAMELA CHRISTIAN
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
EDUARDO MARTINEZ
Mayor
Approved as to form:
DAVE ALESHIRE
City Attorney
State of California }
County of Contra Costa : SS.
City of Richmond
I certify that the foregoing is a true copy of Resolution No. 133-24, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on November 19, Panela Christ-
Pamela Christian, Clerk of the City of Richmond
Reso No. 133-24