1/6/2023
1 RiversideCA.gov
1 RiversideCA.gov
FY 2021/22 Fourth
Quarter Report
City Council
January 24, 2023
Finance Department
RiversideCA.gov
2 GENERAL FUND OVERVIEW
Focused on immediate fiscal
challenges:
• Unpredictable impacts of
COVID-19 pandemic
• Rising retirement costs
• Projected structural deficit
• Upcoming MOU
negotiations
• Challenge to the Electric
GFT
Balancing measures included:
• $10.0M balancing measure
allocated to departments
• Flat non-personnel costs
with exceptions
Budget Strategy Revenue Highlights
Budget Strategy:
• Based on prior fiscal year-
to-date revenue trends
• Gradual recovery from the
pandemic
Mid-Cycle Adjustments:
• $13.7M increase in
projections based on FY
2021/22 audited results,
updated trends.
Fiscal Year End Results:
• $10.8M above revised
projections, primarily in
sales tax.
Expenditure Highlights
Budget Strategy:
• $10M balancing measure
allocated to departments
• Flat non-personnel costs
with exceptions
Mid-Cycle Adjustments:
• Rescind $10M balancing
measure upon certification
of Measure C; not
recorded due to late ruling
Fiscal Year End Results:
• $15.4M savings, largely due
to vacancies
1 2
1/6/2023
2 RiversideCA.gov
3 GENERAL FUND VACANCIES
0%
5%
10%
15%
20%
25%
30%
GENERAL FUND AVERAGE FTE VACANCY RATE
FY 2020/21 FY 2021/22
RiversideCA.gov
4 GENERAL FUND – FUND BALANCE
(in millions)
Beginning Fund Balance $ 64.69
FY 2021/22 Activity
Revenues $ 312.60
Expenditures (271.32)
Encumbrances (6.50)
Restricted Carryovers* (0.89)
Discretionary Carryovers* (2.44)
Subtotal $ 31.45
Change in Other Reserves (0.31)
Net Change in Fund Balance $ 31.14
(in millions)
Fund Balance Reserves
15% Emergency Reserve $ (45.85)
5% Contingency Reserve (15.28)
Total Policy Reserves $ (61.13)
Projected Surplus Reserves $ 34.70
*Subject to Council approval
3 4
1/6/2023
3 RiversideCA.gov
5 GENERAL FUND – SURPLUS RESERVES
RECOMMENDED USE OF SURPLUS RESERVES
(in millions)
Projected Surplus Reserves $34.70
Proposed Use of Surplus Reserves
MOU Impacts $(15.00)
Capital Replacement Fund (10.00)
Section 115 Trust (9.70)
Total $(34.70)
Remaining Surplus Reserves $0.00
RiversideCA.gov
6 MEASURE Z FY 2021/22 RESULTS
(in millions) 2017 2018 2019 2020 2021 2022
Revenue $12.61 $ 56.24 $ 62.82 $ 63.14 $ 72.65 $ 83.91
Expenditures (9.98) (36.14) (40.99) (49.56) (50.85) (67.86) Encumbrances & Carryovers (49.05)
Net Change in Fund Balance $ 2.63 $ 20.10 $ 21.83 $ 13.58 $ 21.80 $(33.00) Beginning Unallocated Fund Reserves $ - $ 2.63 $ 22.73 $ 39.56 $ 53.14 $ 74.94 Net Change in Fund Balance 2.63 20.10 21.83 13.58 21.80 (33.00) Fund Balance Reserve Policy - - (5.00) - - -
Ending Unallocated Fund Reserves $ 2.63 $ 22.73 $ 39.56 $ 53.14 $ 74.94 $ 41.94 The FY 2022-2024 Adopted Budget and updated 5-Year Spending Plan includes a draw on unallocated reserves through FY 2026/27 totaling $33 million. 5 6
1/6/2023
4 RiversideCA.gov
7 ELECTRIC FUND - OPERATING
$ 394.5M
$ 401.9M
$ 394.5M
$ 414.3M
$ 387.5M
$ 381.9M
$ 360.0M
$ 370.0M
$ 380.0M
$ 390.0M
$ 400.0M
$ 410.0M
$ 420.0M
Revenue Expenditures
ELECTRIC FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
$5.69M
Net Gain
RiversideCA.gov
8 WATER FUND - OPERATING
$ 85.0M
$ 77.9M
$ 87.8M
$ 83.3M
$ 89.3M
$ 75.3M
$ 60.0M
$ 65.0M
$ 70.0M
$ 75.0M
$ 80.0M
$ 85.0M
$ 90.0M
$ 95.0M
Revenue Expenditures
WATER FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
$13.91M
Net Gain
7 8
1/6/2023
5 RiversideCA.gov
9 REFUSE FUND - OPERATING
$ 29.9M
$ 30.9M
$ 29.9M
$ 34.2M
$ 29.6M
$ 32.8M
$ 26.0M
$ 27.0M
$ 28.0M
$ 29.0M
$ 30.0M
$ 31.0M
$ 32.0M
$ 33.0M
$ 34.0M
$ 35.0M
Revenue Expenditures
REFUSE FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
$3.15M
Net Loss
$3.33M
Reserves
RiversideCA.gov
10 SEWER FUND
$ 71.1M
$ 66.4M
$ 71.1M
$ 75.9M
$ 69.7M
$ 65.0M
$ 50.0M
$ 55.0M
$ 60.0M
$ 65.0M
$ 70.0M
$ 75.0M
$ 80.0M
Revenue Expenditures
SEWER FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
$4.73M
Net Gain
$55.54M
Reserves
9 10
1/6/2023
6 RiversideCA.gov
11 PUBLIC PARKING FUND
$0.25M
Net Gain
$1.81M
Reserves
$ 6.2M
$ 7.1M
$ 7.5M
$ 8.5M
$ 6.9M
$ 6.6M
$ 3.0M
$ 4.0M
$ 5.0M
$ 6.0M
$ 7.0M
$ 8.0M
$ 9.0M
Revenue Expenditures
PUBLIC PARKING FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
RiversideCA.gov
12 CARRYOVERS
Fund Restricted Discretionary Total
General Fund $ 890,184 $2,442,594 $3,332,778
Measure Z Fund - 16,472,798 16,472,798
Electric Fund - 9,154,491 9,154,491
Water Fund - 965,891 965,891
Refuse Fund - 113,812 113,812
Sewer Fund 9,991 6,722 16,713
Other Funds 4,002,036 8,567,337 12,569,373
Total Carryovers $4,902,211 $37,723,645 $42,625,856
11 12
1/6/2023
7 RiversideCA.gov
13 STRATEGIC PLAN ALIGNMENT
HIGH PERFORMING GOVERNMENT
CROSS-CUTTING THREADS
Equity
Innovation
Community Trust
Fiscal
Responsibility
Sustainability
and Resiliency
RiversideCA.gov
14 That the City Council:
1. Receive and provide input on the Fiscal Year 2021/22 Fourth Quarter Financial Report;
2. With at least five affirmative votes, approve a carryover of unexpended funds of approximately $3.3 million in the
General Fund and $39.3 million in other City funds into fiscal year 2022/23; and
3. Approve staff’s recommendation on use of the $34.7
million in surplus reserves in the General Fund.
RECOMMENDATIONS
13 14