5/4/2023
1 RiversideCA.gov
1 RiversideCA.gov
Proposed Amendment of
the FY 2023/24 Budget
City Council
May 16, 2023
Finance Department
RiversideCA.gov
2 • June 21, 2022: FY 2022-24 Biennial Budget and FY 2022-2027 Capital Improvement Plan adopted.
• Update Year 2 (FY 2023/24):
– Assess developments over last fiscal year
• Revenue performance
• Council Actions with fiscal impact
• Rising costs
• Emerging operational needs, ability to advance strategic priorities – Assess opportunities
– General Fund and Measure Z adjustments leverage increased revenues – Sewer Fund addresses rising costs and capital needs
BACKGROUND
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3 GENERAL FUND OVERVIEW
• Leverage one-time sales
tax revenue growth, new
baseline for future
projections
• Recognize hiring
challenges and personnel
savings – allocate
projected 5% personnel
savings to spending
priorities
• Assess operational needs
• Assess ways to advance
the City’s strategic priorities
through funding
allocations
Update Strategy Revenue Highlights
Adopted:
• Based on FY 2020/21 and
year-to-date (Spring 2022)
revenue trends
• Gradual recovery from the
pandemic
Adjustments:
• Based on FY 2021/22 and
year-to-date (Spring 2023)
revenue trends
• $15.3M increase in revenue
projections
Expenditure Highlights
Adopted:
• CPI increase, no balancing
measures, all positions
funded
Adjustments:
• Personnel refresh
• Address rising costs
• Address operational needs
following years of budget
constraints
• Propose funding initiatives
to advance the City’s
strategic priorities,
including shoring up
internal support services
RiversideCA.gov
4 GENERAL FUND SUMMARY
Category
Adopted
Budget
Proposed
Adjustments
Amended
Budget
Revenues and Other Resources $318,229,147 $15,267,116 $333,496,263 Expenditures and Transfers Out 311,113,181 15,637,616 326,750,797 Surplus/(Deficit) $7,115,966 $(370,500) $6,745,466
Contribution to Infrastructure &
Technology Reserve 5,000,000
Remaining Balance $1,745,466
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5 GENERAL FUND REVENUE ADJUSTMENTS
Revenue Category
Adopted
Budget
Proposed
Adjustments
Amended
Budget
%
Amended
Property Taxes $79,895,400 $4,536,046 $84,431,446 5.7%
Sales and Use Tax 85,914,880 8,121,316 94,036,196 9.5%
Transient Occupancy Tax 7,317,100 1,265,000 8,582,100 17.3% Licenses and Non-Developer Permits 9,166,455 862,400 10,028,855 9.4% Non-Development Charges for Services 10,769,145 145,000 10,914,145 1.3% Developer Fees and Charges for Services 6,946,746 425,000 7,371,746 6.1% Fines and Forfeits 1,921,827 (4,000) 1,917,827 -0.2%
Miscellaneous Revenues 3,203,929 (83,646) 3,120,283 -2.6% General Fund Transfer 53,202,300 - 53,202,300 0.0%
Other Revenues 59,891,365 - 59,891,365 0.0%
Total $318,229,147 $15,267,116 $333,496,263 4.8%
RiversideCA.gov
6 GENERAL FUND EXPENDITURE ADJUSTMENTS
Expenditure Category
Adopted
Budget
Proposed
Adjustments
Amended
Budget
%
Amended
Personnel $220,287,273 $7,353,660 $227,640,933 3.3%
CalPERS UAL 28,415,464 802,830 29,218,294 2.8%
Non-Personnel 61,463,307 5,516,363 66,979,670 9.0%
Special Projects 7,234,345 2,410,000 9,644,345 33.3%
Minor Capital 416,613 885,000 1,301,613 212.4%
Debt Service 22,716,810 - 22,716,810 0.0%
Charges To/From (18,357,110) (527,696) (18,884,806) 2.9% Cost Allocation Plan (22,677,171) (1,454,581) (24,131,752) 6.4% Fund Subsidies 11,613,650 2,040 11,615,690 0.0%
Transfers to Other Funds - 650,000 650,000 -
Total $311,113,181 $15,637,616 $326,750,797 5.0%
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7 COMMUNITY & ECONOMIC DEVELOPMENT
Community & Economic Development (CEDD), $2.1M, Add 13.0 FTE Economic Development: Add 5.0 FTE to advance the Economic Development Division and its mission to meet 2025 Envision Riverside Strategic Plan priorities, including Economic Opportunity and High Performing Government.
Planning: Add 5.0 FTE to support Citywide development services and increase the expediency, production, and predictability of both the Current and Advanced Planning teams, including case processing and special projects.
Building and Safety: Add 3.0 FTE to improve development services by increasing the expediency and predictability of building permit processing and plan check services.
RiversideCA.gov
8 CEDD STAFFING HISTORY
CEDD Division FTE 2007 FTE Today Proposed
Planning 37 25 30
Building 26 22 25
Economic Development 11 6.5 11.5
CEDD
Square Miles
Populations
Riverside
81 314,998
Anaheim
51 346,824
Santa Ana
27 310,227
Long Beach
80 466,742
Economic Development 6.5 10 11 20
Building 25 30 28 36
Planning 22 30 32 82
The proposed staffing changes partially restores CEDD to 2007 staffing levels:
Riverside CEDD has fewer staff members compared with other cities:
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9 ARTS, CULTURE, AND RECREATION
Expand Library Hours, $600,000, 8.0 FTE: Add 8.0 part-time, non-benefitted FTE to allow for the expansion of library hours. All library branches will expand open days to include Sundays, and the Main Library will be open for an additional 2 hours in the evenings.
Parks Maintenance & Equipment, $1.3 million: Increase funding to maintain the City’s many parks, sports park, and over 2,000 acres of undeveloped parkland.
Security at Libraries and Community Centers, $1 million: Continue security services at all library branches and expand security services to community centers.
Citywide Events, $876,000, 1.0 FTE: Event funding to encourage and expand community engagement, tourism, and economic development within the City.
Citywide events support and promote local business growth which will ultimately lead to increased revenue generation in the City.
RiversideCA.gov
10 INTERNAL SERVICE DEPARTMENTS
Internal Support Services. $1.9M, 14.75 FTE
City Manager’s Office, 3.0 FTE: Additional staffing will ensure that the City government is managed effectively and that initiatives are addressed quickly and efficiently.
City Attorney, 1.0 FTE: Reorganization replacing 1.0 senior level FTE with
2.0 FTE at a near-breakeven cost.
Human Resources, 4.0 FTE: Add two staff members to enhance Workforce Development programs; 1.0 FTE to help address hiring and recruitment challenges; and 1.0 FTE to the Benefits team. 9 10
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11 INTERNAL SERVICE DEPARTMENTS
Internal Support Services. $1.9M, 14.75 FTE (continued) General Services, 1.0 FTE: Add a project manager to assist with deferred maintenance and new major capital projects.
Finance, 3.0 FTE: Create a Compliance and Reporting Division to research, plan, implement, and maintain the many new reporting requirements issued by the Governmental Accounting Standards Board (GASB).
Innovation and Technology, 2.75 FTE: Reorganization to swap higher- level positions with lower-level positions to provide more resources to address the City’s growing technology needs.
RiversideCA.gov
12 OTHER CRITICAL NEEDS
Fire, $665,000: The Fire Department does not currently have a budget that provides for the replacement of firefighter gear and equipment as they near the end of useful life. This request will fund a rotational replacement program of critical equipment and firefighter gear and address ongoing maintenance needs.
Public Works, $500,000, 4.0 FTE:
• Landscape: Add 1.0 FTE Landscape Inspector and contract funds to increase landscape maintenance frequency.
• Storm Drain: Add 2.0 FTE to meet regulatory requirements, inspect and clean 80% of the storm drain system annually, and install a new storm drain system. • Traffic Engineering: Add 1.0 FTE to respond to signal timing requests and make corridor-wide improvements.
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13 MEASURE Z SPENDING PLAN
Projected Proposed
(in millions) 2023 2024 2025 2026 2027 2028
Revenue $ 84.43 $ 84.46 $ 86.69 $ 88.41 $ 90.18 $ 91.97 Expenditures (Includes items under
discussion) (96.51) (96.25) (92.54) (96.82) (99.15) (95.22) Net Change in Fund Balance $(12.08) $ (11.79) $ (5.85) $ (8.41) $ (8.97) $ (3.25) Beginning Unallocated Fund Reserves $ 58.96 $ 46.88 $ 35.09 $ 29.24 $ 20.83 $ 11.86 Net Change in Fund Balance (12.08) (11.79) (5.85) (8.41) (8.97) (3.25) Ending Unallocated Fund Reserves $ 46.88 $ 35.09 $ 29.24 $ 20.83 $ 11.86 $ 8.61 RiversideCA.gov
14 MEASURE Z SPENDING PLAN PROPOSALS
Proposed
(in millions) 2024 2025 2026 2027 2028
# 2 4 – E a s t s i d e L i b r a r y $ 2 . 0 0 $- $- $- $- #33 – Technology Improvements 0.50 0.50 0.50 0.50 0.50
#39 – Public Safety & Engagement
Team Program (PSET) – Urban 0.35 0.35 0.35 0.35 0.35
Fire Analog Simulcast
Communication System 1 . 5 7----
Total $ 4.42 $ 0.85 $ 0.85 $ 0.85 $ 0.85
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15 Biosolids Hauling and Disposal Budget: $2.02 million increase to accommodate a projected increase in volume.
Chemical Budget: $1.42 million increase to accommodate
substantial cost increases that the supply & logistics sector has experienced the past two years.
Add 1.0 FTE Senior Engineer: The additional FTE is needed to assist with planned capital projects per capital improvement plan set for in the 2019 Wastewater Master Plan.
SEWER FUND ADJUSTMENTS
RiversideCA.gov
16 PROPOSED BUDGET ADJUSTMENTS
Expenditure Category
Adopted
Budget
Proposed
Adjustments
Amended
Budget
%
Amended
101 - General Fund $ 311,113,181 $ 15,637,616 $ 326,750,797 5.0% 110 - Measure Z Operating Fund 86,969,369 9,826,135 96,795,504 11.3% 215 - Grants and Restricted Programs 1,847,105 (162,492) 1,684,613 -8.8% 260 - NPDES Storm Drain 1,375,764 103,495 1,479,259 7.5% 280 - Housing Authority 1,830,032 (196,078) 1,633,954 -10.7% 292 - Riverwalk LMD 583,412 252,040 835,452 43.2%
390 - General Debt Service Fund 41,939,644 2,291,483 44,231,127 5.5% 401 - Capital Outlay - 650,000 650,000 100.0%
420 - Measure Z Capital Fund 12,975,000 24,412,898 37,387,898 188.2% 510 - Sewer 69,147,573 4,498,298 73,645,871 6.5%
570 - Public Parking 8,128,602 419,056 8,547,658 5.2%
763 - CFD 2015 - 2 Pomelo - 333,470 333,470 100.0%
Other City Funds 782,227,093 7,016,567 789,243,660 0.9% Total $ 1,318,136,775 $ 65,082,488 $ 1,383,219,263 4.9% 15 16
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17 • Fairmount Park Golf Course – $175,000 for a new and secure cart barn and 35 additional golf carts.
• Historic Preservation Trust Fund – transfer balance of $127,779 to the Old Riverside Foundation, a 501(c)3
non-profit civic organization.
FY 2022/23 BUDGET ADJUSTMENTS
RiversideCA.gov
18 STRATEGIC PLAN ALIGNMENT
STRATEGIC PRIORITY 5 - HIGH PERFORMING GOVERNMENT
CROSS-CUTTING THREADS
Equity
Innovation
Community Trust
Fiscal
Responsibility
Sustainability
and Resiliency
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19 That the City Council:
1. Receive and provide input on the proposed amendment of Fiscal Year 2023/24 of the previously adopted Fiscal Year 2022-2024 Biennial Budget; and
2. Set a public hearing for adoption of the Amended Fiscal Year 2023/24 Budget on June 27, 2023.
RECOMMENDATIONS
RiversideCA.gov
20 3. By at least five affirmative votes, authorize a FY 2022/23 transfer of $127,779.36 from the Interest-Bearing Special Deposits Fund – Historic Preservation Fund to the Old Riverside Foundation 501(c)3 non-profit civic organization to administer the funds; and
4. Authorize the City Manager to execute an Agreement with the Old Riverside Foundation 501(c)3 n on-profit civic organization to administer the transferred Historic Preservation Fund funds on behalf of the City.
RECOMMENDATIONS
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