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RiversideCA.govProposed Amendment of the FY 2023/24 Budget City CouncilJune 27, 2023Finance Department
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•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 needsBACKGROUND 6/15/2023
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GENERAL FUND SUMMARYCategoryAdopted BudgetProposed AdjustmentsAmended BudgetRevenues and Other Resources $318,229,147 $15,267,116 $333,496,263Expenditures and Transfers Out 311,113,181 15,636,070 326,749,251Surplus/(Deficit) $7,115,966 $(368,954) $6,747,012Contribution to Infrastructure & Technology Reserve5,000,000Remaining Balance $1,747,012Impact of the June 13, 2023, adoption of the Fire Management Group MOU has been incorporated.
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GENERAL FUND REVENUE ADJUSTMENTSRevenue CategoryAdoptedBudgetProposedAdjustmentsAmendedBudget% AmendedProperty 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 Revenues59,891,365 -59,891,365 0.0%Total$318,229,147 $15,267,116 $333,496,263 4.8% 6/15/2023
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GENERAL FUND EXPENDITURE ADJUSTMENTSExpenditure CategoryAdoptedBudgetProposedAdjustmentsAmendedBudget% AmendedPersonnel $220,287,273 $7,238,605$227,525,878 3.3%CalPERS UAL28,415,464 802,83029,218,294 2.8%Non-Personnel61,463,307 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) (1,341,072) (24,018,243) 5.9%Fund Subsidies11,613,650 2,040 11,615,690 0.0%Transfers to Other Funds -650,000 650,000 -Total$311,113,181 $15,636,070 $326,749,251 5.0% RiversideCA.gov6
COMMUNITY & ECONOMIC DEVELOPMENTCommunity & Economic Development (CEDD), $2.1M, Add 13.0 FTEEconomic 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.
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ARTS, CULTURE, AND RECREATIONExpand Library Hours, $600,000, 8.0 FTE: Add 16.0 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.
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INTERNAL SERVICE DEPARTMENTSInternal Support Services. $1.9M, 14.75 FTECity 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.
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INTERNAL SERVICE DEPARTMENTSInternal 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.
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OTHER CRITICAL NEEDSFire, $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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•Seven 0.5 FTE per ward increase to Council Assistants, resulting in 2.0 Council Assistants per ward at each City Council member’s discretion. ($272,272)•$175,000 in the City Clerk’s Office to provide Spanish interpretation servicesat City Council and Council Committee meetings. •The impact to the cost allocation plan of additions to internal service departments will be approximately 60% to the General Fund and 40% to other City funds.POTENTIAL ADDITIONS RiversideCA.gov12
•$250,000 in the General Fund, Police Department for license plate recognition camerasat major City arteries and intersections to enhance public safety in the City.POTENTIAL ADDITIONS 6/15/2023
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MEASURE Z SPENDING PLANProjected Proposed(in millions)2023 2024 2025 2026 2027 2028Revenue $ 84.43 $ 84.46 $ 86.69 $ 88.41 $ 90.18 $ 91.97Expenditures(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 $ 11.86Net 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 $ 8.61Impact of the June 13, 2023, adoption of the Fire Management Group MOU has been incorporated.
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MEASURE Z SPENDING PLAN PROPOSALSProposed(in millions)2024 2025 2026 2027 2028#24 – SPC Jesus S. Duran Eastside Library$ 2.00 $ - $ - $ - $ -#33 – Technology Improvements0.50 0.50 0.50 0.50 0.50#39 – Public Safety & Engagement Team Program (PSET) – Urban0.35 0.35 0.35 0.35 0.35Fire Analog Simulcast Communication System1.57 - - - -Total $ 4.42 $ 0.85 $ 0.85 $ 0.85 $ 0.85
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•$550,000 in Measure Z for the demolition, fencing, and security costs following a fire at 3460 Orange Street. Insurance reimbursement expected.POTENTIAL ADDITION RiversideCA.gov16
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
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PROPOSED BUDGET ADJUSTMENTSExpenditure CategoryAdoptedBudgetProposedAdjustmentsAmendedBudget% Amended101 - General Fund $ 311,113,181 $ 15,636,070 $ 326,749,251 5.0%110 - Measure Z Operating Fund 86,969,369 9,828,975 96,798,344 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 (197,095) 1,632,937 -10.8%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 4,488,422 73,635,995 6.5%570 - Public Parking 8,128,602 416,720 8,545,322 5.1%763 - CFD 2015 - 2 Pomelo - 333,470 333,470 100.0%Other City Funds 782,227,093 6,923,549 789,150,642 0.9%Total $ 1,318,136,775 $ 64,977,535 $ 1,383,114,310 4.9% RiversideCA.gov18
STRATEGIC PLAN ALIGNMENT
STRATEGIC PRIORITY 5 - HIGH PERFORMING GOVERNMENTCROSS-CUTTING THREADS Equity
Innovation
Community Trust
Fiscal Responsibility
Sustainability and Resiliency
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That the City Council:1. Conduct a public hearing on the proposed amendment ofFiscal Year 2023/24 of the previously adopted Fiscal Year 2022-2024 Biennial Budget;2. Direct staff on the addition of seven 0.5 part-time equivalentCouncil Assistants to the proposed amended budget with afiscal impact of $272,272 and authorize related adjustments tothe cost allocation plan;3. Approve the addition of $175,000 for contracted Spanishinterpretation services to the proposed amended budget forthe General Fund and authorize related adjustments to the costallocation plan;RECOMMENDATIONS RiversideCA.gov20
4. Approve the addition to the proposed amended budget of$250,000 in the General Fund for License Plate Recognition Cameraswith no related impact to the cost allocation plan and $550,000 inthe Measure Z Fund for the demolition and securing of 3460 OrangeStreet;5. Adopt a resolution approving the proposed amended annualbudget for Fiscal Year 2023/24 totaling $1,383,114,310, with theaddition of any revisions that the City Council may deem advisableper Section 1102 of the City Charter; and6. Delegate investment authority to the City’s Chief FinancialOfficer/City Treasurer for a period of one year beginning July 1, 2023and ending June 30, 2024.RECOMMENDATIONS