Description
Increase/
(Decrease)
Property Taxes
Property tax revenue reflects activity occurring 18-24 months prior to the current period, as property sales and transfers activity make their way onto the County’s tax assessment rolls. In the summer of 2021, Riverside saw median price increases, likely due to low interest rates, high demand, and limited properties for sale.
1,500,000$
Sales Tax
FY 2021/22 sales tax revenue continued to experience exceptional results, posting a growth rate of 16.0% over the prior year. Based on fiscal year performance to date, the higher sales tax base is expected to stabilize, providing a new baseline for revised FY 2022/23 projections. The City’s sales tax consultant, HdL, projects sales tax revenue will come within 2.3% of prior year actuals, which is 13.1% more than the amount budgeted.
10,930,000
Utility Users Tax
An increase in natural gas prices has resulted in 30% higher utility users tax collected to date for natural gas, as compared to the same period last year.
300,000
Transient Occupancy Tax
Col
lections in FY 2021/22 were 50.9% higher than those for FY 2020/21. Second-quarter results are tracking about 5% behind last year’s pace, and 18.4% higher than original projections. 1,310,000
Licenses & Non-Developer Permits
Business License revenue is trending 5% higher than the prior year, attributable to positive business growth and the ongoing amnesty program to bring businesses in compliance with business license regulations. 500,000
General Fund Transfer
T
he adjustment is based on FY 2021/22 actual revenue receipts. (310,000) Total Revenues & Transfers In 14,230,000$
Non-personnel Expenses
W
ater costs are trending 18% higher than the previous fiscal year with 75% of the budget expended to date.
Public Works Department 85,000$
Parks,
Recreation and Community Services Department 640,000
The i
ncrease in natural gas prices are resulting higher costs than anticipated.
Parks, Recreation and Community Services Department 120,000 The cost of contracted refuse serv
ices is higher than projected.
Police Department 20,000
Parks,
Recreation and Community Services Department 90,000
The cost of fuel
for City vehicles is higher than projected.
Police Department 470,000
Fi
re Department 170,000
Fi
re Department: In 2016, the Fire Department received grant funding to purchase 25 LifePak 15 portable monitor defibrillators, which included a 5-year maintenance and service agreement. The agreement expired January 3, 2023. The cost renew the maintenance agreement is $60,000. 60,000
Proposed FY 2022/23 Mid-cycle Budget Adjustments
101 - General Fund
Revenues & Transfers In
Expenditures & Transfers Out
Description
Increase/
(Decrease)
Proposed FY 2022/23 Mid-cycle Budget Adjustments
Parks, Recreation and Community Services Department: The department has experienced costs outside of its control, including vandalism, theft, and other emergencies. To date, these events have resulted in increased costs of $338,599. Staff recommends a total budget increase of $700,000 to address past and future events as they arise.
700,000
On January 5,
2021, City Council approved a $25,000 supplemental appropriation to the Northside Heritage Meadows Project and on December 14, 2021, City Council approved the carryover of an additional $104,868.94 to the Northside Heritage Meadows Project for its construction located at 895 and 900 Clark. The unexpended appropriations were not carried over from FY 2021/22 to FY 2022/23 and therefore need to be reappropriated in FY 2022/23 in the total amount of $129,868.94. 129,869
Suppl
emental request to cover unexpectedly high costs of publication associated with paper and printing of the Explore Riverside magazine. The Explore Riverside magazine includes the Park and Recreation Activity Guide and is a key City newsletter published three times per year. 25,000
Suppl
emental request to cover Common Area Maintenance (CAM) expenses associated with The Office of the City Attorney's lease at 3750 University Avenue, Suite 200, prorated to cover eight of twelve months. The CAM is an annual expense that will increases 3% each fiscal year effective July 1. 20,148
Fi
re Department: Internal process issues resulted in unpaid invoices from prior fiscal years being paid from current year budget, and resulting in insufficient funds for current year expenditures. 99,500
Fi
re Department: Numerous broken appliances at the City's fire stations need replacement, but insufficient funds exist in the budget: (2) dishwashers; (2) ice machines; (1) electric range; (2) Sub-Zero Refrigerators 51,500
Subtotal Non-personnel Expenses 2,681,017$
Special Programs
A
nimal Control: Costs related to the animal services contract with the County of Riverside (Object 450319) are projected to be $738,025 over budget due to continued cost increases by the County Board of Supervisors. This deficit is at the bare minimum of service levels and does not include any unforeseen events, after hours calls, etc. Staff is working on a one-year extension to the contract and will be requesting an additional appropriation when the item goes before the City Council. Costs associated with the one-year extension are still being discussed between City and County leadership. 800,000$
Charges to Others
A supplemental appropriation of $210,214 in the Community Facility and Assessment District Funds is recommended to reimburse the General Fund for administration costs associated with managing each district’s debt.
CFD 92-1 Sycamore (15,938)
CFD 2006-1 Riverwalk IA1 (69,729)
CFD 2006-1 Riverwalk IA2 (11,980)
CFD 2014-2 Highlands (13,493)
CFD 2015-1 Orangecrest (37,494)
Hunter Park AD (40,682)
Riverwalk Business Center Assessment District (5,975)
Riverwalk Assessment District (14,923)
Subtotal Charges to Others (210,214)$
Capital Projects
10,000,000$
Public Works Department: Allocate $10 million of the projected General Fund net gain toward Street Projects.
Public Works Department: Allocate $1.7 million of the projected General Fund net gain toward median improvement projects.
1,700,000
Description
Increase/
(Decrease)
Proposed FY 2022/23 Mid-cycle Budget Adjustments
Innovation and Technology Department: Allocate $300,000 of the projected General Fund net gain toward a new transfer switch at City Hall.
300,000
Police Department and Fire Department: Allocate $550,000 of the projected General Fund net gain toward the repair of Magnolia Police Station generator ($50,000) and the replacement of five Fire Station location generators ($500,000).
550,000
Museum Department: Allocate $200,000 of the projected General Fund net gain toward Heritage House improvements. Vandalism at the Heritage House has caused severe damage to both HVAC units. The fencing needs to be replaced and extended. Both HVAC units will require a full replacement. To help mitigate future occurrences of vandalism, a wireless detection unit providing real-time awareness of perimeter breaches will be installed along the perimeter fence and security cameras will be installed in strategic locations to monitor the area.
200,000
Subtotal Capital Projects 12,750,000$
Infrastructure Reserve
Refuse Fund - The solid waste program is experiencing significant vehicle maintenance issues that are impacting the timeliness and quality of service to City residents. The Refuse Fund user rates are insufficient to cover ongoing operating costs and capital needs; without a rate increase, fund reserves are expected to be fully depleted within two years. Therefore, staff recommends utilizing General Fund infrastructure reserves to provide funding for vehicle replacement.
5,000,000
Public Parking Fund - $2 million interfund loan. Parking Garages 1 & 2, previously categorized as surplus properties, will be operated for several more years. They require an estimated $1.2 million of urgent and significant maintenance as described in structural engineering reports from 2016 and 2022. Additionally, the Parking Access Revenue Control Systems (PARCS) and LED lighting will be installed. The Parking Fund has insufficient reserves and user rate revenue to support these capital investments. The amount is expected to be repaid to the General Fund from future Parking Fund revenues. 2,000,000
Subtotal Infrastructure Reserve 7,000,000$
Total Expenditures & Transfers Out 23,020,803$
Net Impact to General Fund (8,790,803)$
Taxes
Increase in Transaction and Use Tax projections based on updated revenue trends. 7,631,000 $ Total Revenues & Transfers In 7,631,000$
Non-Personnel
Police Department: One-Time allocation for the replacement of up to five Police Service Dogs. 140,000 $ Total Expenditures & Transfers Out 140,000$
Net Impact to Measure Z Fund 7,491,000$
Revenues & Transfers In
110 - Measure Z Fund
Expenditures & Transfers Out
Description
Increase/
(Decrease)
Proposed FY 2022/23 Mid-cycle Budget Adjustments
Total Revenues & Transfers In -$
Non-personnel Expenses
On August 3, 2021, City Council approved a lease agreement with the County of Riverside to facilitate building renovations of a city-owned property located at 2800 Hulen Place and authorized a corresponding supplemental appropriation in the Grants and Restricted Programs Fund. The appropriation was not carried over from FY 2021/22 to FY 2022/23 and therefore needs to be reappropriated in FY 2022/23 in the amount of $2,338,176. 2,338,176$
Total Expenditures & Transfers Out 2,338,176$
Net Impact to Grants and Restricted Programs (2,338,176)$ Operating Transfers In
Transfer from General Fund, for Public Works Street Projects 10,000,000 $ Transfer from General Fund, for Public Works Median Projects 1,785,000 Transfer from General Fund, for Innovation and Technology's Transfer Switch Project 300,000 Transfer from General Fund, for Police and Fire Departments' Generator Projects 550,000 Transfer from General Fund, for Museum's Heritage House Project 200,000 Total Revenues & Transfers In 12,835,000$
Capital Outlay
Public Works Street Projects 10,000,000$
Public Works Median Projects 1,785,000
Innovation and Technology Transfer Switch Project 300,000 Police and Fire Departments' Generator Projects 550,000 Museum Heritage House Project 200,000
Total Expenditures & Transfers Out 12,835,000$
Net Impact to General Capital Fund -$
Expenditures & Transfers Out
215 - Grants and Restricted Programs
Revenues & Transfers In
Expenditures & Transfers Out
401 - General Capital Fund
Revenues & Transfers In
Description
Increase/
(Decrease)
Proposed FY 2022/23 Mid-cycle Budget Adjustments
Total Revenues & Transfers In -$
Personnel
The compounded fiscal impact of the Memorandums of Understanding (MOUs) for IBEW and IBEW Supervisory adopted on July 5, 2022, is approximately $3.6 million. The recommended action presented in the staff report inadvertently combined the needed supplemental appropriation for the Water Fund with that presented for the Electric Fund. Therefore, staff recommends Council formally approve a supplemental appropriation from the Water Fund’s cash reserves in the amount of $1,448,425. 1,448,425$
Total Expenditures & Transfers Out 1,448,425$
Net Impact to Water (1,448,425)$
Transfers In
Refuse Fund - Public Works Department: The solid waste program is experiencing significant vehicle maintenance issues that are impacting the timeliness and quality of service to City residents. The Refuse Fund user rates are insufficient to cover ongoing operating costs and capital needs; without a rate increase, fund reserves are expected to be fully depleted within two years. Therefore, staff recommends utilizing General Fund infrastructure reserves to provide funding for vehicle replacement. 5,000,000$
Total Revenues & Transfers In 5,000,000$
Equipment Outlay
Refuse Fund - Public Works Department: The solid waste program is experiencing significant vehicle maintenance issues that are impacting the timeliness and quality of service to City residents. The Refuse Fund user rates are insufficient to cover ongoing operating costs and capital needs; without a rate increase, fund reserves are expected to be fully depleted within two years. Therefore, staff recommends utilizing General Fund infrastructure reserves to provide funding for vehicle replacement. 5,000,000$
Total Expenditures & Transfers Out 5,000,000$
Net Impact to Refuse -$
520 - Water
Revenues & Transfers In
Expenditures & Transfers Out
540 - Refuse
Revenues & Transfers In
Expenditures & Transfers Out
Description
Increase/
(Decrease)
Proposed FY 2022/23 Mid-cycle Budget Adjustments
Operating Revenue
Adjust revenue projections to reflect City Council's July 19, 2022 roll-back of rate increases.
Monthly Rentals Parking Lots (39,852)$
Garage 1 - 3743 Orange (333,356)
Garage 2 - 3851 Orange (222,026)
Garage 3 - 3750 Market (564,994)
Garage 4 - 3750 University (56,160)
Terrace 6 - 3901 Orange (92,665)
Garage 7 - Fox Ent Plaza (614,861)
Metered Parking Zone (628,200)
Parking Fines (336,016)
Parking Fines-Street Sweeping 297,147
Interfund Transfer
Capital Outlay - $2 million interfund loan from the General Fund: Parking Garages 1 & 2, previously categorized as surplus properties, will be operated for several more years. They require an estimated $1.2 million of urgent and significant maintenance as described in structural engineering reports from 2016 and 2022. Additionally, the Parking Access Revenue Control Systems (PARCS) and LED lighting will be installed. The Parking Fund has insufficient reserves and user rate revenue to support these capital investments; the amount is expected to be repaid to the General Fund from future Parking Fund revenues.
2,000,000$
Total Revenues & Transfers In (590,983)$
Capital Outlay
Garage 1 & 2 Deferred Maintenance (Interfund loan from General Fund) 2,000,000 $ Delay Garage 3 Deferred Maintenance due to rescinded rate increase (300,000) Delay LED Lighting Upgrades in the Garages due to rescinded rate increase (190,000) Total Expenditures & Transfers Out 1,510,000$
Net Impact to Public Parking (2,100,983)$
Total Revenues & Transfers In -$
Charges to/from Others
Reimburse the General Fund for administration costs associated with managing the district’s debt. 40,682 $ Total Expenditures & Transfers Out 40,682$
Net Impact to Hunter Business Park Assmt Dist (40,682)$ 570 - Public Parking
Revenues & Transfers In
Expenditures & Transfers Out
742 - Hunter Business Park Assmt Dist
Revenues & Transfers In
Expenditures & Transfers Out
745 - Riverwalk Assessment District
Description
Increase/
(Decrease)
Proposed FY 2022/23 Mid-cycle Budget Adjustments
Total Revenues & Transfers In -$
Charges to/from Others
Reimburse the General Fund for administration costs associated with managing the district’s debt. 14,923 $ Total Expenditures & Transfers Out 14,923$
Net Impact to Riverwalk Assessment District (14,923)$
Total Revenues & Transfers In -$
Charges to/from Others
Reimburse the General Fund for administration costs associated with managing the district’s debt. 5,975 $ Total Expenditures & Transfers Out 5,975$
Net Impact to Riverwalk Bus. Assmt. Dist. (5,975)$
Total Revenues & Transfers In -$
Charges to/from Others
Reimburse the General Fund for administration costs associated with managing the district’s debt. 69,729 $ Total Expenditures & Transfers Out 69,729$
Net Impact to CFD-Riverwalk Vista (69,729)$
Total Revenues & Transfers In -$
Charges to/from Others
Reimburse the General Fund for administration costs associated with managing the district’s debt. 15,938 $ Total Expenditures & Transfers Out 15,938$
Net Impact to CFD Syc. Canyon 92-1 (15,938)$
Revenues & Transfers In
Revenues & Transfers In
Expenditures & Transfers Out
746 - Riverwalk Bus. Assmt. Dist.
Revenues & Transfers In
Expenditures & Transfers Out
756 - CFD-Riverwalk Vista
Revenues & Transfers In
Expenditures & Transfers Out
758 - CFD Syc. Canyon 92-1
Revenues & Transfers In
Expenditures & Transfers Out
759 - CFD 2006-1-RW Vista Area #2
Description
Increase/
(Decrease)
Proposed FY 2022/23 Mid-cycle Budget Adjustments
Total Revenues & Transfers In -$
Charges to/from Others
Reimburse the General Fund for administration costs associated with managing the district’s debt. 11,980 $ Total Expenditures & Transfers Out 11,980$
Net Impact to CFD 2006-1-RW Vista Area #2 (11,980)$
Total Revenues & Transfers In -$
Charges to/from Others
Reimburse the General Fund for administration costs associated with managing the district’s debt. 13,493 $ Total Expenditures & Transfers Out 13,493$
Net Impact to CFD 2014-2 Highlands (13,493)$
Total Revenues & Transfers In -$
Charges from Others
Reimburse the General Fund for administration costs associated with managing the district’s debt. 37,494 $ Total Expenditures & Transfers Out 37,494$
Net Impact to CFD 2015-1 Orangecrest Grove (37,494)$
Revenues & Transfers In (sum of Fund tables above) 39,105,017$ Expenditures & Transfers Out (sum of Fund tables above) 46,502,618 Surplus / (Deficit) (7,397,601)$
Expenditures & Transfers Out
CITYWIDE BUDGET ADJUSTMENTS
Expenditures & Transfers Out
760 - CFD 2014-2 Highlands
Revenues & Transfers In
Expenditures & Transfers Out
762 - CFD 2015-1 Orangecrest Grove
Revenues & Transfers In