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1 RiversideCA.gov
1 RiversideCA.gov
FY 2022/23 Fourth
Quarter Report
City Council
December 19, 2023
Finance Department
RiversideCA.gov
2 GENERAL FUND OVERVIEW
Two primary goals established:
• Leverage Priority Based
Budgeting (PBB) to add
transparency in resource
allocation and ensure
alignment with strategic
priorities and service needs.
• Long-Term Management of
Retirement Costs through
implementation of the Section
115 Trust to smooth annual
pension related costs.
Budget Goals Revenue Highlights
Budget Strategy:
• Based on prior fiscal year-to-
date revenue trends
• Shift in consumer buying
patterns, pent up demand,
and government stimulus
Mid-Cycle Adjustments:
• $14.4M increase in projections
based on FY 2021/22 audited
results, updated trends.
Fiscal Year End Results:
• $18.2M above revised
projections, due to strong
revenue performance
Expenditure Highlights
Budget Strategy:
• No MOU increases assumed
• 4.5% CPI Increase in non-
personnel
Budget Adjustments:
• $16.0M for capital & other
needs
• $7M allocated to Refuse &
Public Parking Funds
• $18.7M for MOU increases,
including $11.6M for
employee stipends
Fiscal Year End Results:
• $14.2M savings, largely in
personnel
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2 RiversideCA.gov
3 GENERAL FUND VACANCIES
0%
5%
10%
15%
20%
25%
30%
GENERAL FUND AVERAGE FTE VACANCY RATE
FY 2021/22 FY 2022/23
RiversideCA.gov
4 GENERAL FUND – FUND BALANCE
(in millions)
$ 70.77Beginning Fund Balance
FY 2022/23 Activity
$ 360.69Revenues
7.00Use of Infrastructure Reserves
(333.24)Expenditures
(7.07)Encumbrances/Projects/Grants
(4.43)Restricted Carryovers*
(1.30)Discretionary Carryovers*
$ 21.65Subtotal
(2.23)Change in Other Reserves
$ 19.42Net Change in Fund Balance
(in millions)
Fund Balance Reserves
$( 4 9 . 0 6 )15% Emergency Reserve
(16.36)5% Contingency Reserve
$ (65.42)Total Policy Reserves
$ 24.77Projected Surplus Reserves
*Subject to Council approval
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5 GENERAL FUND – SURPLUS RESERVES
RECOMMENDED USE OF SURPLUS RESERVES
Section 115 Trust: Strategically allocate the $20.00 million surplus reserves towards offsetting the annual projected contributions to the Section 115 Trust over the FY 2024-26 General Fund Five-Year Plan. In addition, reallocate $15.00 million from other General Fund Reserves.
Infrastructure Reserves: Allocate $4.77 million of the surplus reserves to the Infrastructure Reserves to address the ongoing maintenance and/or replacement of capital assets.
RiversideCA.gov
6 MEASURE Z FY 2022/23 RESULTS
2023202220212020201920182017(in millions)
$ 85.84$ 83.91$ 72.65$ 63.14$ 62.82$ 56.24$ 12.61Revenue (69.61)(67.45)(50.85)(49.57)(40.99)(36.14)(9.98)Expenditures (48.65)Encumbrances & Carryovers
$ (32.42)$16.46$ 21.80$ 13.57$ 21.83$ 20.10$2 . 6 3Net Change in Fund Balance $ 91.40$ 74.94$ 53.14$ 39.56$ 22.73$2 . 6 3$-Beginning Unallocated Fund Reserves (32.42)16.4621.8013.5721.8320.102.63Net Change in Fund Balance ----(5.00)--Fund Balance Reserve Policy
$ 58.98$ 91.40$ 74.94$ 53.13$ 39.56$ 22.73$2 . 6 3Ending Unallocated Fund Reserves The FY 2022-2024 Amended Budget and updated 5-Year Spending Plan includes a draw on unallocated reserves through FY 2027/28 totaling $38.27 million. 5 6
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7 ELECTRIC FUND - OPERATING
$409.1
$431.1
$409.1
$454.8
$436.0 $437.9
$380.0
$390.0
$400.0
$410.0
$420.0
$430.0
$440.0
$450.0
$460.0
Revenue Expenditures
ELECTRIC FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
$1.84M
Net Loss
RiversideCA.gov
8 $ 89.7M
$ 84.7M
$ 91.3M $ 91.8M
$ 88.7M
$ 81.5M
$ 76.0M
$ 80.0M
$ 84.0M
$ 88.0M
$ 92.0M
$ 96.0M
Revenue Expenditures
WATER FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
WATER FUND - OPERATING
$7.19M*
Net Gain
*Net gain is due to one-time savings, including $3.2M in personnel cost due to high vacancies, $3.3M due to timing for the issuance of a revenue bond, and $3.8M in operating costs for professional services and software support. 7 8
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9 $ 30.5M
$ 32.2M
$ 41.5M
$ 48.5M
$ 43.0M
$ 44.3M
$ 26.0M
$ 31.0M
$ 36.0M
$ 41.0M
$ 46.0M
$ 51.0M
Revenue Expenditures
REFUSE FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
REFUSE FUND - OPERATING
$1.29M
Net Loss
RiversideCA.gov
10 $ 68.3M
$ 66.0M
$ 68.3M
$ 73.1M$ 73.6M
$ 66.0M
$ 60.0M
$ 64.0M
$ 68.0M
$ 72.0M
$ 76.0M
Revenue Expenditures
SEWER FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
SEWER FUND
$7.55M
Net Gain
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11 $ 9.0M
$ 7.6M
$ 10.0M
$ 9.2M
$ 10.5M
$ 7.9M
$ 0.0M
$ 2.0M
$ 4.0M
$ 6.0M
$ 8.0M
$ 10.0M
$ 12.0M
Revenue Expenditures
PUBLIC PARKING FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
PUBLIC PARKING FUND
$3.74M
Net Gain
RiversideCA.gov
12 CARRYOVERS
TotalDiscretionaryRestrictedFund
$ 5,726,579 $ 4,428,212 $ 1,298,367General Fund
12,534,07712,534,077-Measure Z Fund
8,398,263 8,398,263 -Electric Fund
501,493 501,493 -Water Fund
1,222,790 1,222,790 -Refuse Fund
825,722 825,722 -Sewer Fund
16,479,131 10,224,811 6,254,320 Other Funds
$ 46,688,055 $ 38,135,368 $ 7,552,687 Total Carryovers 11 12
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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 2022/23 Fourth Quarter Financial Report;
2. With at least five affirmative votes, approve a carryover of unexpended funds of approximately $5.7 million in the General Fund and $40.0 million in other City funds into Fiscal Year 2023/24; and
3. With at least five affirmative votes , approve staff’s recommendation for the use of the projected $24.8 million in surplus reserves in the General Fund towards the Section 115 Trust and Infrastructure Reserves.
4. With at least five affirmative votes , approve staff’s recommendation for reallocation of $15.0 million in General Fund reserves to the Section 115 Trust.
RECOMMENDATIONS
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