FY 2023/24
Financial
Report
(Major Funds)
FISCAL YEAR ENDED
JUNE 30, 2024
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TABLE OF CONTENTS
General Fund ............................................................................................................................................ 2 Revenue ................................................................................................................................................. 3 Revenues by Category ..................................................................................................................... 4 10-Year Revenue History ................................................................................................................... 7 Expenditures .......................................................................................................................................... 8 Expenditures by Category ................................................................................................................ 9 Expenditures by Department ......................................................................................................... 10 10-Year Expenditure History ............................................................................................................ 11 Personnel .......................................................................................................................................... 13 Fund Reserves ...................................................................................................................................... 17 General Fund Reserves ................................................................................................................... 18 General Fund Outlook .................................................................................................................... 19 Measure Z Funds ..................................................................................................................................... 20 Revenue ............................................................................................................................................... 20 Expenditures ........................................................................................................................................ 20 Unallocated Fund Reserves ............................................................................................................... 21 Electric Fund ............................................................................................................................................ 22 Revenue ............................................................................................................................................... 22 Expenditures ........................................................................................................................................ 23 Fund Reserves ...................................................................................................................................... 25 Water Fund .............................................................................................................................................. 26 Revenue ............................................................................................................................................... 26 Expenditures ........................................................................................................................................ 27 Fund Reserves ...................................................................................................................................... 28 Refuse Fund ............................................................................................................................................. 29 Revenue ............................................................................................................................................... 29 Expenditures ........................................................................................................................................ 30 Fund Reserves ...................................................................................................................................... 31 Sewer Fund .............................................................................................................................................. 32 Revenue ............................................................................................................................................... 32 Expenditures ........................................................................................................................................ 33 Fund Reserves ...................................................................................................................................... 34 Public Parking Fund ................................................................................................................................ 35 Revenue ............................................................................................................................................... 35 Expenditures ........................................................................................................................................ 36 Fund Reserves ...................................................................................................................................... 37 Appendix A – Carryover Recommendations ...................................................................................... 38 Appendix B – Measure Z Spending Plan .............................................................................................. 46
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GENERAL FUND
The City adopts a biennial budget and five -year planning process to provide a more informative, long-term outlook on City finances. Typically, amendments to the second fiscal year are minor, focusing on the following:
• Reviewing and adjusting forecasts of major revenue sources. • Incorporating the financial impact of City Council actions taken during the fiscal year, including the impacts of new employee Memorandums of Understanding. • Addressing new and significant changes in the operating needs of City departments, including rising costs in certain sectors (utilities, fuel, chemicals). • Reviewing and re-prioritizing capital project funding.
To proactively address financial and operational changes, an update to the second year of the fiscal year ( FY) 2022-2024 biennial budget was necessary for the General Fund and Measure Z .
Revenue projections for the FY 2022-2024 Biennial Budget were initially based on early Spring 2022 performance. However, FY 2021/22 year -end results presented significant growth in sales tax revenue, with a 33% increase in both the General Fund and Measure Z revenues since FY 2018/19.
The City’s sales and property tax consultant, HdL, anticipated 0% growth in FY 2023/24 with the Federal Reserve forecasting a mild recession beginning in the latter part of calendar year 2023.
However, the post- pandemic growth provided a one -time increase in base sales tax es, resetting revenue expectations going forward . Unlike prior years, this budget update allowed the City to leverage these positive financial results to address numerous City priorities and initiatives.
The General Fund’s unaudited actuals present a net gain of $ 6.10M net of encumbrances and recommended carryovers, primarily due to revenues performing exceptionally well and actual expenditure savings of $3.83M. *Excludes $1.42M in Fire Mutual Aid and $2.47M in sale of capital assets revenues which were anticipated to be received in the following year.
General Fund Results at a Glance (Unaudited)
$6.10M
NET GAIN
Net of Carryovers
-0.1%
Revenues
Below
Revised Budget
Projections*
1.0%
Projected
Expenditure
Savings
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The adopted FY 2023/24 amended budget for the General Fund totaled $3 27.09 million (M) with a projected $ 6.41M surplus. In the event of a fiscal year- end budget surplus, the adopted budget included a planned contribution of $5.00 M to the Infrastructure Reserve. Budget adjustments throughout the fiscal year presented a potential $1.30M shortfall, primarily due to the $8.57M set-aside of the Water General Fund Transfer (GFT) revenue , the projected fiscal impact of labor negotiations, and the economic slowdown impacting sales tax revenues. Unaudited actuals present a net gain of $6.10M resulting from positive revenue results and expenditure savings.
GENERAL FUND SUMMARY
(in millions)
Adopted
Budget
Adjusted
Budget
Unaudited
Actuals
Incoming Resources
FY 2023/24 Revenue $ 333.50 $ 346.52 $ 350.09
FY 2023/24 Use of Reserves 29.81 29.81
Total Incoming Resources $ 333.50 $ 376.33 $ 379.90
Outgoing Resources
FY 2023/24 Expenditures $ 327.09 $ 351.26 $ 345.63
FY 2023/24 Contributions to Reserves 5.00 5.00
FY 2023/24 Water GFT Escrow 8.57 8.11
FY 2022/23 Encumbrances 7.05
FY 2022/23 Carryovers 5.75
FY 2023/24 Encumbrances 10.37
FY 2023/24 Carryovers 4.69
Total Outgoing Resources $ 327.09 $ 377.63 $ 373.80
Projected Net Gain / (Loss) $ 6.41 $ (1.30) $ 6.10
Revenue
Revenue estimates for the adopted FY 2023/24 amended budget were developed using a range of sources, including historical revenue analysis , economic data , input from t he City’s sales and property tax consultant, City departments, and the County of Riverside. Approximately 80% of the General Fund revenue budget comes from sales tax, property tax, utility users tax, and the General Fund transfers.
Sales tax is a major revenue source for the General Fund, accounting for approximately 28% of the overall revenue budget. The FY 2023/24 amended budget increased revenue projections by 9.5% over the original adopted budget. The revision reflected the strong post -COVID-19 rebound in business and consumer activity, combined with inflation driven by government stimulus measures, supply chain disruptions, and tight labor markets, which led to a significant one-time growth in the City's sales tax revenue base.
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Another primary source of General Fund revenue is property tax, accounting for approximately 26% of the overall revenue budget. The amended budget increased property tax revenue estimates by
5.7%, based on updated projections from HdL. This adjustment reflects significant growth in property values driven by low interest rates, high demand, and a housing shortage.
Other revenue adjustments in the FY 2023/24 amended budget reflected faster- than-anticipated recovery from the pandemic in sources such as Transient Occupancy Tax and Developer Fees, along with stronger-than-expected growth in Business Tax revenue and other minor adjustments.
With the Second and Third Quarter Financial Reports, revenue projections were adjusted upward by a net $8.40 M based on FY 2022/23 actual results, year -to-date performance, and anticipated economic impacts through the end of the fiscal year. Actual revenues were below the revised budget by $320,000, or 0.1%, excluding unbudgeted amounts of $1.42M in Fire Mutual Aid revenue and $2.47M from the sale of surplus Riverside Police Department capital assets. The table below includes the impact of these unbudgeted revenues in the "Other Revenues and Transfers In" category.
REVENUES BY CATEGORY
FISCAL YEAR REVENUE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals
$
Variance
%
Variance
Property Tax $ 84.43 $ 88.83 $ 88.84 $ 0.01 0.0%
Sales Tax 94.04 93.44 92.41 (1.03) -1.1%
Utility Users Tax 33.52 32.92 32.22 (0.70) -2.1%
Transient Occupancy Tax 8.58 8.43 8.78 0.35 4.2%
Franchise Fees 5.84 6.59 6.69 0.10 1.5%
Licenses & Non-Developer Permits 10.03 11.29 10.28 (1.01) -8.9% Non-Development Charges for Services 10.91 11.05 12.25 1.20 10.9% Developer Fees & Charges for Services 7.37 7.37 8.11 0.74 10.0% General Fund Transfer 53.20 53.40 53.40 0.00 0.0%
Measure Z Transfer 18.27 18.27 18.27 0.00 0.0%
Other Revenues & Transfers In 7.31 11.55 17.43 5.88 50.9% ARPA Revenue Replacement - 3.38 1.41 (1.97) -58.3%
Use of Reserves - 29.81 29.81 - 0.0%
Total Revenues & Transfers In $ 333.50 $376.33 $ 379.90 $ 3.57 0.9% Explanation of Significant Budget Variances
• Property Taxes – Property tax revenues increased by 7.3% over the prior year. In the Second Quarter Financial Report, property tax revenue projections were increased by $4.41 M. The City of Riverside continue d to experience substantial growth in assessed property values, as
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evidenced by the 8.2% increase reported by the County of Riverside Assessor in July 2023. This growth has translated into significant increases in the City’s property tax revenues .
Additionally, property tax revenue from successor agencies (previously tied to redevelopment) grew by a significant $1.73M (14.9%) compared to prior year. • Sales Tax – Although slightly below the adjusted budget estimate, sales tax revenue decreased by 1.4% compared to the prior year, primarily driven by the economic slowdown resulting from the Federal Reserve’s efforts to counter inflation. In the second quarter, a $2.10M downward adjustment in projected revenues was made to account for the economic slowdown. However, this overall decline in sales tax revenue was partially mitigated by $726,000 in sales tax revenue from a new source under the March JPA territory tax and revenue-sharing agreement with the County of Riverside and surrounding cities, which was incorporated into the budget in the third quarter.
• Non-Development Charges for Services – Revenues exceeded projections by $1.20M (10.9%), with the main contributing factors being higher- than-expected revenues from the following sources:
o $674,000 for the American Medical Response paramedics program o $371,000 for police special services and miscellaneous receipts o $342,000 from Parks and Recreation Fairmount Golf Course • Developer Fees & Charges for Services – Revenues exceeded projections by $741,000 (10.0%) due to the following key factors:
o Building and mechanical permits generated $400,000 (21%) more than expected. o On October 17, 2023, the City Council adopted new guidelines for Storefront Retail Commercial Cannabis Business Permits. The selection process required applicants to pay both an Application Fee and a Site Review Fee, generating $764,000 in unbudgeted revenue.
o Offsetting these increases, plan check and inspection fees were $455,000 (14%) lower than projected.
• Other Revenues & Transfers In – Other Revenues and Transfers In are $8. 16M (70.6%) higher than projected. This variance is largely due to a mix of unpredictable or volatile revenue sources and unbudgeted items. Key contributors to the increase include:
o $1.42M in unbudgeted Fire Mutual Aid revenue
o $2.47M from the unbudgeted sale of surplus Riverside Police Department capital assets (this revenue was anticipated to be received in the following fiscal year) o $945,000 investment revenue, surpassing the updated projection, which had already been adjusted upward by $1.50M in the second quarter
o $392,000 from the Festival of Lights, above expectations o $450,000 in State Mandated Claim reimbursements, exceeding projections o $3.10M from an unbudgeted write -up of investments to market value , a required accounting adjustment that is not typically included in the budget due to its non-cash nature and market volatility
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o $1.62M in lease proceeds recognition
o $5.57M in revenue reclassifications to unavailable revenue partially offset these increases
• American Rescue Plan Act (ARPA) Revenue Replacement – The ARPA revenue replacement was $1.97M (58.3%) below projections due to a delay in transferring $2.36 M from the Grants and Restricted Fund, American Rescue Plan Act accounts, to FY 2024/25. However, this shortfall was partially offset by recognizing $389,000 in ARPA revenue for Park & Recreation youth program scholarships.
• Use of Reserves – The following details the use of reserves approved by Council during FY 2023/24:
o Use of General Fund available fund balance for encumbrances and carryovers carried forward from FY 2022/23 as provided for in the Riverside Municipal Code:
$7,072,747
o Use of General Fund available fund balance surplus for restricted and discretionary carryovers approved by City Council in the FY 2022/23 fourth quarter report: $5,726,579 o Use of General Fund Insurance Proceed Reserve for interfund transfer from the General Fund to Public Parking Fund for surface parking lot construction: $900,000 o Use of General Fund Infrastructure Reserve for interfund transfer from the General Fund to the Capital Outlay Fund for the Museum Expansion and Renovation Project:
$10,000,000
o Use of General Fund Infrastructure Reserve for interfund transfer from the General Fund to the Airport fund for Airport building remedial repairs: $1,000,000 o Use of General Fund Infrastructure Reserve for interfund transfer from the General Fund to the Capital Outlay Fund for the SPC Jesus S. Duran Eastside Library: $3,500,000 o Use of General Fund Infrastructure Reserve for interfund transfer from the General Fund to the Capital Outlay Fund for the Magnolia Roof Replacement Project: $832,078 o Use of General Fund Infrastructure Reserve for interfund transfer from the General Fund to the Capital Outlay Fund for the Victoria Avenue Beautification Project: $775,000 The following table and chart present the 10-year history of General Fund revenues with the impact of General Fund restructuring and debt proceeds removed to accommodate year- over-year comparability. The following are not included for any fiscal year: Fire Bond property tax; Fire Mutual Aid; debt proceeds; required non-operating accounting adjustments (such as adjusting investments to market value), and items moved to other funds during General Fund restructuring in 2015-2017.
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10-YEAR REVENUE HISTORY
GENERAL FUND REVENUES – 10-YEAR HISTORY
(in millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Property Tax $ 52.6 $ 54.0 $ 57.8 $ 61.7 $ 67.4 $ 70.8 $ 73.6 $ 77.9 $ 82.8 $ 88.8 Sales Tax 59.4 61.0 63.3 64.1 68.4 66.3 78.3 90.8 93.7 92.4 Utility Users Tax 28.1 27.8 28.0 27.5 28.0 29.0 30.6 32.5 35.0 32.2 General Fund Transfer 45.3 44.8 44.9 46.2 46.5 46.1 46.9 47.1 50.5 53.4 Measure Z Transfer 9.5 20.5 13.2 18.3 18.3 18.3 18.3 18.3 All Other Revenues 51.1 43.9 53.0 50.6 48.4 44.7 42.2 49.4 56.7 57.2 Total Revenues* $ 236.5 $ 231.5 $ 256.5 $ 270.6 $ 271.9 $ 275.2 $ 289.9 $ 316.0 $ 337.0 $ 342.3 Growth over Prior Year 5.7% -2.1% 10.8% 5.5% 0.5% 1.2% 5.3% 9.0% 6.6% 1.6% *Excludes items that impair comparability from year-to-year, as previously described.
In this view, Property Tax, Sales Tax, Utility Users Tax, and the General Fund Transfer accounted for
77.9% of all General Fund revenues in 2024. In the past 10 years, the total of these revenue sources as a percent of total revenues has ranged from a low of 73.7% in 2018 to a high of 81.0% in 2016.
As illustrated in the chart, Property Tax has experienced strong, steady growth over the past decade, driven by increases in assessed property values . Sales Tax exhibited nominal growth until a surge in fiscal years 2021 through 2023, with revenues rising 37% over 2019 levels due to the pandemic, shifts in consumer spending, and inflationary pressures. However, in 2024, revenues declined by 1.4%, reflecting the economic slowdown prompted by the Federal Reserve's actions to curb inflation.
Growth in Sales Tax revenue is anticipated to return to typical levels as interest rates are projected to decrease in the latter half of 2024.
After several years of stagnant revenue, Utility Users Tax (UUT) began increasing in 2020, showing a steady upward trend through 2022. A significant spike occurred in 2023, driven by rising natural gas $ 88.8 $ 92.4
$ 32.2
$ 53.4
$ 18.3
$ 57.2
$-
$20.0
$40.0
$60.0
$80.0
$100.0
Property Tax Sales Tax Utility Users Tax General Fund
Transfer
Measure Z
Transfer
All Other
Revenues
10-YEAR GENERAL FUND REVENUE (in millions)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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prices. In 2024, natural gas prices returned to normal due to record -high production levels, leading to an oversupply in the market and a decline in revenues.
The General Fund Transfer saw 0% growth on average until 2023, when rate increases in electric and water services offset declining consumption. All Other Revenues will continue to fluctuate due to factors like interest earnings, bad debt write-offs, and the sale of land and capital assets. The current year's increase compared to the prior year is attributed to strong investment earnings, State Mandated Claim reimbursements, new cannabis application and site review fees, and higher revenues from non-development charges for service.
Expenditures
The FY 2023 /24 expenditure budget is comprised of the adopted budget of $ 327.09M, $12.80M of unexpended funds carried forward from the previous fiscal year, $ 24.17M of budget adjustments occurring during the fiscal year, the $8.57M escrow of the Water GFT, and a $5.00M contribution to the General Fund Infrastructure and Technology Reserve. In the FY 2023/24 second quarter report, supplemental appropriations leveraged a projected net surplus of $9.41M to contribute $3.00 M to the Infrastructure Reserve and $2.0 M to the Technology Reserve . Major supplemental adjustments posted during the fiscal year included:
• Revisions to various labor MOUs compensation and benefits package: $1.08M • Use of Infrastructure for capital project needs totaling $16.11M, including o Museum Expansion and Renovation Project: $10.00M
o Airport building remedial repairs: $1.00M
o SPC Jesus S. Duran Eastside Library: $3.5M
o Magnolia Roof Replacement Project: $832,078
o Victoria Avenue Beautification Project: $775,000
The total adjusted budget for FY 202 3/24 is $377.63M. Actual expenditures at fiscal year -end are $345.63M, before factoring in encumbrances and recommended carryovers totaling $15.06M.
Encumbrances of $10.37M and grant carryovers of $0.03M have been carried forward to FY 2024/25 in accordance with th e Riverside Municipal Code. Staff is requesting Council approval of an additional $4.66M in discretionary and restricted carryovers, detailed in Appendix A of this report. If approved, total expenditures savings for FY 2023/2 4 will be $3.83M, or 1.0%, of the total adjusted budget.
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EXPENDITURES BY CATEGORY
FISCAL YEAR EXPENDITURE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals*
$
Variance
%
Variance
Personnel $ 227.54 $ 228.87 $ 232.22 $ 3.35 1.5%
CalPERS UAL – Safety 8.95 8.95 8.66 (0.29) -3.2%
CalPERS UAL – Miscellaneous - - - - 0.0%
Non-Personnel Costs 67.40 80.98 79.44 (1.54) -1.9%
Special Projects 9.65 11.84 9.82 (2.02) -17.1%
Minor Capital & Grants 1.30 1.90 1.43 (0.47) -24.7%
Debt Service 28.88 28.88 29.42 0.54 1.9%
Charges To/From (18.88) (19.72) (20.74) (1.02) 5.2%
Cost Allocation Plan (24.11) (24.11) (24.11) - 0.0%
Operating Transfers 20.92 41.03 39.72 (1.31) -3.2%
Special Districts Fund Contribution 1.43 1.43 1.56 0.13 9.1% Convention Center Fund
Contribution 2.27 2.27 2.32 0.05 2.2%
Entertainment Fund Contribution 0.73 0.73 - (0.73) -100.0% Cheech Marin Center Fund
Contribution 1.01 1.01 0.95 (0.06) -5.9%
Infrastructure Reserve Contribution - 3.00 3.00 - 0.0% Technology Reserve Contribution - 2.00 2.00 - 0.0%
Water GFT Escrow - 8.57 8.11 (0.46) -5.4%
Total Expenditures & Transfers Out $ 327.09 $ 377.63 $ 373.80 $ (3.83) -1.0% *Unaudited Actuals includes $10.37M in encumbrances and $0.03M project/grant carryovers recorded as allowed by the Riverside Municipal Code; and $4.66M in other carryovers recommended for Council approval (refer to Appendix A).
Explanation of Significant Budget Variances
• Personnel: Personnel costs are $3.36 M (1.5%) higher than projected. Based on the 13% vacancy rate at the time of the proposed amendment of the FY 2023/24 budget, recruitment and hiring challenges, and fiscal year -end personnel savings during the previous two fiscal years, a 5% savings on total personnel costs was programmed into the amended budget, freeing up funds for allocation to City priorities. Actual savings fell short of this vacancy savings projection by $1.03M. Additionally, overtime exceeded budget by $ 1.61M, net of $0.71M in fire mutual aid reimbursements. Police Department overtime exceeded budget by $1.35M , likely influenced by salary increases, personnel shortages, and training incoming staff. • Special Projects: Savings were experienced in the Non-Departmental programs for the City Manager’s Audit Program , Riverside County Ani mal Control , Citywide Fiscal Management accounts, and Education Reimbursement Program.
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• Minor Capital & Grants: Savings in this category is primarily attributable to under-expenditure of the Building and Structures Improvements budget in General Services and Automotive Equipment budget in Parks, Recreation & Cultural Services (PRCS). • Fund Contributions: The General Fund covers debt obligations and provides operating contributions to the Convention Center, Entertainment Fund, and Cheech Marin Center. Total operating revenues for t he Fox Performing Arts Theater, the Riverside Municipal Auditorium, and the Box outperformed projected revenues by $1.81M, resulting in a lower contribution required from the General Fund.
EXPENDITURES BY DEPARTMENT
FISCAL YEAR DEPARTMENTAL RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals*
Overage/
(Savings)
%
Variance
Mayor $ 0.93 $ 0.96 $ 0.84 $ (0.12) -12.5%
City Council 1.64 1.64 1.76 0.12 7.3%
City Manager 5.70 6.28 5.41 (0.87) -13.9%
City Clerk 2.18 2.33 2.08 (0.25) -10.7%
City Attorney 5.48 5.94 6.18 0.24 4.0%
Human Resources 4.23 4.75 4.39 (0.36) -7.6%
General Services 5.17 5.40 4.82 (0.58) -10.7%
Finance 8.49 9.73 9.26 (0.47) -4.8%
Innovation & Technology 13.21 14.78 15.23 0.45 3.0% Housing & Human Services - 2.16 1.49 (0.67) -31.0% Community Development 21.15 22.82 18.70 (4.12) -18.1% Police 111.80 113.94 112.15 (1.79) -1.6%
Fire 63.58 64.00 64.15 0.15 0.2%
Public Works 20.10 22.31 20.29 (2.02) -9.1%
Library 9.52 9.81 9.08 (0.73) -7.4%
Parks, Rec, & Comm. Services 27.45 29.18 28.45 (0.73) -2.5% Museum 2.28 2.57 2.21 (0.36) -14.0%
Non-Departmental 48.29 69.57 78.31 8.74 12.6%
Cost Allocation Plan (24.11) (24.11) (24.11) 0.00 0.0% Total Expenditures & Transfers Out $ 327.09 $ 364.06 $ 360.69 $ (3.37) -0.9% * Unaudited Actuals includes $10.37M in encumbrances and $0.03M project/grant carryovers recorded as allowed by the Riverside Municipal Code; and $4.66M in other carryovers recommended for Council approval (refer to Appendix A).
Explanation of Significant Budget Variances
• Mayor: The department realized $64,000 in personnel savings due to vacancies, along with $39,000 in under-expenditures in the budget for special projects.
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• City Manager: The department was $485,000 below budget in professional services spending, along with $205,000 in expenditure offsets due to higher-than-expected charges for interfund services.
• City Clerk: The department experienced $272,000 in savings on election services spending. • General Services: The department experienced $306,000 in personnel savings due to vacancies and $172,000 in unspent funds from the budget allocated for building and structure improvements.
• Housing & Human Services: The department experienced $210,000 in personnel savings due to vacancies , along with $ 389,000 in expenditure offsets due to higher-than-expected charges for interfund services.
• Community Development: The department realized savings across several areas, including $2.78M from personnel vacancies, $205,000 from under -utilized professional services, and $689,000 from the Special Projects budget allocated for Citywide Events. • Museum: The department realized savings of $192,000 from personnel vacancies and $124,000 from the Special Projects budget allocated for Heritage House Projects. • Non-Departmental: The $8.74M overage is primarily due to a $12.00M budget adjustment for vacancy savings, which allowed for the reallocation of funds to other spending needs. This amount was not allocated at the departmental level to avoid it being perceived as a specific savings target , but is offset by vacancy savings totaling $ 10.97M within the various City departments. Offsetting this adjustment within the Non -Departmental budget, savings were realized in several areas:
o $520,000 in under-expenditures in professional services o $542,000 in under-expenditures for Riverside Plaza development agreements o $1.07M in under-expenditures in the Special Projects budgets for the City Manager’s Audit Program, Riverside County Animal Control, and the Citywide Fiscal Management accounts
o $1.3 million savings due to the timing of operating transfers 10-YEAR EXPENDITURE HISTORY
The following table and chart show the 10- year history of General Fund expenditures , excluding Operating Transfers. The 2024 actuals in the following table will differ from the previous charts as the actuals below do not include carryovers and encumbrances totaling $ 15.06M. FY 2023/24 expenditures increased by a nominal 1% as compared to the prior year; including carryovers for both years, the increase is 1.6%.
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GENERAL FUND EXPENDITURES – 10-YEAR HISTORY
(in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Personnel Costs $ 177.9 $ 191.3 $ 197.0 $ 185.2 $ 193.8 $ 196.0 $ 196.0 $ 195.1 $ 213.1 $ 232.0 CalPERS UAL – Safety 11.4 14.3 17.2 7.2 9.5 11.2 8.7 CalPERS UAL – Misc 6.8 8.6 9.8 3.9 4.8 5.0 -
Non-Personnel Costs 63.6 62.9 58.6 48.5 50.3 47.1 46.6 53.1 61.4 67.8 Special Projects 13.9 14.6 16.8 7.3 6.8 6.2 4.5 5.4 7.4 7.8 Minor Capital 4.0 8.0 3.9 2.9 2.1 0.8 0.4 0.3 0.7 0.2
Grants 5.1 5.5 4.1 4.9 0.4 0.2 0.8 0.1 0.3 -
Debt Service 60.9 61.8 62.2 24.3 24.5 21.6 30.2 32.8 32.9 22.7 Charges To/From (16.9) (17.2) (16.7) (17.4) (19.5) (17.2) (20.6) (18.6) (19.3) (20.7) Cost Allocation Plan (18.1) (20.2) (19.9) (18.9) (24.1) (26.3) (23.4) (23.5) (21.7) (24.1) Fund Subsidies 10.3 9.9 11.9 13.2 12.7 12.0 11.5
Total Expenditures $ 290.4 $ 306.7 $ 306.0 $ 265.3 $ 267.1 $ 267.3 $ 258.8 $ 271.7 $ 303.0 $ 305.9 Growth over Prior
Year 5.3% 5.6% -0.2% -13.3% 0.7% 0.1% -3.2% 5.0% 11.5% 1.0%
$ 232.0
$ 8.7
$ 67.8
$ 22.7
$ 11.5 $ 8.0
$-
$ 50.0
$ 100.0
$ 150.0
$ 200.0
$ 250.0
Personnel Costs CalPERS UAL Non-Personnel
Costs
Debt Service Fund Support All Other
Expenses
10-YEAR GENERAL FUND EXPENDITURES (in millions)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
FISCAL YEAR END REVIEW | 13
Explanation of Significant Trend Variations
• Personnel Costs: The 7.5% spike in 2016 is due to an additional pay period in the fiscal year and the impact of MOU negotiations. In 2018 and 2019, the Partnership Compensation Model led to maximum salary increases under MOU provisions. The 6.0% reduction in 2018 was due to balancing measures addressing the General Fund’s structural deficit and the reallocation of some personnel to Measure Z. The $18 M (9.2%) increase in 2023 is attributed to a lower average annual vacancy rate as compared to the previous year, $11.6 M in employee stipends, and increases in compensation and benefits. The $18.9M increase in 2024 reflects MOU-approved salary and benefit adjustments, additional budgeted positions, and a continued decline in the average annual vacancy rate.
• CalPERS UAL: CalPERS separated the Unfunded Actuarial Liability ( UAL) from normal retirement costs in 2018 and established a UAL payment methodology to address unfunded retirement costs. In 2021, the City issued a Pension Obligation Bond which shifted some CalPERS UAL costs to the Debt Service category. The reduction in 2024 costs is attributable to CalPERS exceeding its investment target in 2021, resulting in lower required UAL payments for 2024.
• Debt Service: Through 2017, citywide activity related to outstanding Pension Obligation Bonds were passed through the General Fund for accumulation before sending the resources to the Debt Service Fund to make the annual debt payment. This intermediate step was discontinued in 2018. In 2023, the 2004 Safety Pension Obligation Bond was paid off, resulting in a reduction in debt service costs in future years.
• Fund Support and All Other Expenses: The entertainment venues that are now housed in the Convention Center and Entertainment Funds were moved into the General Fund in 2015 (reflected in All Other Expenses) and later removed and established as enterprise funds in 2018. General Fund support of these funds is recorded as Fund Support for transparency. All Other Expenses further declined with restructuring that moved activities funded by restricted funds to the new Grants and Restricted Programs Fund. In 2023, All Other Expenses increased due to a $1.30M increase in Animal Control, which is a service contracted through the County of Riverside, and the resumption of the Festival of Lights following a 2 -year hiatus during the pandemic.
PERSONNEL
Explanation of Actual Personnel Expenditures
During the fiscal year, the personnel budget was increased by approximately $ 1.08M to accommodate approved MOU fiscal impacts.
By the end of FY 2023/24, the General Fund saw a continued improvement in its vacancy rate, decreasing from 11.5% at the close of FY 2022/23 to 9.2%. This reduction reflects significant progress in filling vacant positions. This is consistent with respondents to the 2024 State and Local Workforce Survey, where state and local governments are finally experiencing some relief in recruitment
FISCAL YEAR END REVIEW | 14
challenges. The Human Resources (HR) Department continues its efforts to fill vacant positions through extended job postings and, in some cases, maintained continuous posting s; bolstered advertising efforts; and actively participated in hiring and career fair events. Furthermore, HR is actively working to position the City as an employer of choice, focusing on outreach initiatives to attract a diverse and highly skilled workforce while aligning the recruitment and selection process with values of diversity, equity, and inclusion. However, a significant workforce issue still looms: the impending wave of public service worker retirements.
The following chart depicts the average vacancy rate for FY 202 2/23 and FY 2023/2 4 for each department in the General Fund, as well as the General Fund as a whole. Several departments experienced similar or higher average vacancy rates in FY 2023/24 as compared to the prior year. 0%
5%
10%
15%
20%
25%
30%
GENERAL FUND AVERAGE FTE VACANCY RATE
FY 2022/23 FY 2023/24
FISCAL YEAR END REVIEW | 15
10-Year Personnel Cost History
GENERAL FUND PERSONNEL COSTS – 10-YEAR HISTORY
(in millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Salaries $ 104.9 $ 117.9 $ 115.6 $ 116.7 $ 122.2 $ 124.4 $124.7 $122.3 $140.5 $150.8 Leave Payoffs 4.3 3.4 4.0 4.7 5.5 6.1 7.0 6.2 6.7 4.1
Overtime 12.4 13.2 12.3 14.7 15.0 15.4 17.1 17.4 16.1 18.8 Insurances 17.5 19.0 19.0 19.1 20.6 19.7 18.1 21.4 21.6 24.0 Retirement 35.3 40.8 42.6 44.9 49.8 53.6 37.5 38.5 40.5 37.5 Payroll Accruals 1.0 (5.9) 0.6 0.4 0.3 1.1 0.3 0.7 0.5 1.8 Other 2.5 2.9 2.9 3.0 3.2 2.7 2.4 2.8 3.5 3.6
Total Personnel &
CalPERS UAL Costs $ 177.9 $ 191.3 $ 197.0 $ 203.5 $ 216.6 $ 223.0 $ 207.1 $ 209.4 $ 22 9.3 $ 240.6 Growth over Prior Year 2.9% 7.6% 3.0% 3.3% 6.4% 3.0% - 7.1% 1.1% 9.5% 4.9% Explanation of Significant Trend Variations
• Salaries:
o In 2016, the spike in salary costs is attributable to several factors, including:
27 biweekly pay periods in 2016, as compared to the usual 26 pay periods per year.
Renegotiation of Memoranda of Understanding (MOU), which included an estimated $3.90M immediate impact related to the Police MOUs. o In 2018 and 2019, t he Partnership Compensation Model produced maximum salary increases under MOU provisions. The 2018 impact was partially offset by the shifting of some personnel to Measure Z.
o In 2023, renegotiation of MOUs resulted in salary increase s and employee stipends, leading to a significant growth in salary costs.
• Overtime: The 7.5% reduction in overtime in 2023 is due to a $1.57M decrease in Fire Mutual Aid overtime compared to the previous year. In 2024, excluding Fire Mutual Aid, total overtime increased by 23.8%, with 23.6% attributable to Safety, including a 31.2% increase in Police overtime and 19.0% increase in Fire overtime as compared to 2023. The increases are likely influenced by salary increases, personnel shortages, and training incoming staff. • Retirement: Retirement costs declined $16.20M in 2021 due to a lump sum paydown with the issuance of a Pension Obligation Bond (POB).
FISCAL YEAR END REVIEW | 16
• Other: The 25% increase in other personnel costs in 2023 includes an increase in deferred compensation benefits; heightened use of temporary services to backfill position vacancies; and higher Medicare costs coinciding with compensation increases.
$ 150.8
$ 4.1
$ 18.8 $ 24.0
$ 37.5
$ 3.5
$-
$ 20.0
$ 40.0
$ 60.0
$ 80.0
$ 100.0
$ 120.0
$ 140.0
$ 160.0
Salaries Payoffs Overtime Insurance Retirement Other
10-YEAR GENERAL FUND PERSONNEL COSTS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
FISCAL YEAR END REVIEW | 17
Fund Reserves
The beginning fund balance includes all amounts
available to spend at the end of the previous fiscal year and 20% policy reserves. Current year activity, including new encumbrance and carryover balances, required
accounting changes in other fund reserves , and
recomputed policy reserves are subtracted or added to
the beginning fund balance to arrive at the projected
ending available reserve balance. This amount is
available for allocation per Council direction.
FUND BALANCE
(in millions)
Beginning Fund Balance (Audited) $ 65.50
FY 2023/24 Activity
Revenues $ 350.09
Use of Infrastructure Reserve 16.11
Use of Insurance Proceed
Reserve
0.90 Use of Encumbrance/Carryover
Reserve
12.80 Expenditures (345.63)
Escrow of Water GFT (8.11)
Contribution to Infrastructure
Reserve
(3.00)
Contribution to Technology
Reserve
(2.00)
Encumbrances/Projects/Grants (10.40)
Restricted Carryovers* (0.82)
Discretionary Carryovers* (3.84)
Subtotal $ 6.10
Change in Other Reserves $ (0.90)
Net Change in Fund Balance $ 5.20
Policy Reserves
15% Emergency Reserve $ (54.18)
5% Contingency Reserve (18.06)
Total Policy Reserves $ (72.24)
Projected Available Reserves $ (1.54)
*Subject to Council approval – refer to Appendix A.
MAINTAINING RESERVES
The City’s policy reserve level is
20%, comprised of a 15%
Emergency Reserve and a 5%
Contingency Reserve.
At each fiscal year end, fund
reserves are calculated as a
percentage of the following
year’s adopted budget. Since
adopted appropriations
typically increase from year to
year, a 20% corresponding
increase in reserves is required
to maintain the reserve level
($200,000 for each $1M
increase in appropriations).
However, this annual increase
in the reserve requirement is
not formally incorporated into
the adopted budget, due to
the timing of budget adoption
.
Therefore, General Fund
savings is typically needed at
the end of each fiscal year to
ensure that the reserve level is
maintained.
The required increase in the
20% General Fund policy
reserve based on the adopted
FY 2023/24 budget is $6.74
million.
The FY 2024/25 adopted
budget totals $361.23 million,
requiring 20% reserves of
$72.24 million.
FISCAL YEAR END REVIEW | 18
GENERAL FUND RESERVES
The General Fund ended FY 2023/24 with a projected net gain of $6.10 M, driven by outperforming revenues and expenditure savings. At each fiscal year end, a portion of the net gain must be allocated to maintain the 20% policy reserve requirement, along with any necessary adjustments to unavailable fund balances. For FY 2023/ 24, the required 20% policy reserve contribution is $6.74 M, with other adjustments to unavailable fund balances totaling $ 0.90M. As a result, the available reserve shows a negative balance of $1.54M. However, this negative balance is fully offset by other reserves that are currently in nonspendable form, which will transition to spendable form in the future, mitigating the short-term impact on the General Fund’s financial position.
Projected General Fund Reserves are comprised of the following:
GENERAL FUND RESERVES
(in millions) Amount Subtotal
Nonspendable
Inventories, prepaids, deposits $ 1.80
Parking Fund Loan Receivable 1.81
Land & Improvements held for resale 0.17 $ 3.78
Committed
20% Policy Reserves 72.24
Reserved for Section 115 Trust Contributions 35.00
Infrastructure Reserve 12.19
Technology Reserve 5.00
Water GFT Escrow 8.11
Other required reserves 0.52 133.06
Assigned
Encumbrances/Projects/Grants 10.40
Restricted Carryovers* 0.82
Discretionary Carryovers* 3.84 15.06
Unassigned
Available Reserves(1) (1.54) (1.54)
Total General Fund Reserves $ 150.36
*Subject to Council approval – refer to Appendix A
The General Fund’s Unassigned fund balance currently shows a negative balance of $ 1.54M, primarily due to the nonspendable classification of an interfund loan to the Parking Fund . This nonspendable portion represents resources that are not immediately available for spending but are expected to become available as the loan is repaid. As such, the negative unassigned balance
FISCAL YEAR END REVIEW | 19
reflects a timing difference rather than a structural deficit and will be offset as these resources transition back to spendable form.
Section 115 Trust
Section 115 Trust assets are accounted for in a separate fund. This reserve will help the City to smooth fluctuations in the required annual CalPERS UAL payments and minimize the fiscal impact of significant increases that could disrupt the City’s ability to maintain service levels and fund ongoing operations. As of 6/30/2024, the unaudited reserve balance is $58.29M.
GENERAL FUND OUTLOOK
Although sales tax revenue was impacted by the economic slowdown resulting from the Federal Reserve's efforts to combat inflation, overall General Fund revenues grew, partly due to significant increases in property tax revenue. In the short term, the City must prepare for potential headwinds in both sales and property tax revenues as slower economic growth and rising unemployment, driven by industry weaknesses across the state, present challenges. While we took these factors into consideration in the FY 202 4/25 revenue projections, the extent of their impact on City revenues remains uncertain. Additionally, in the long term, the General Fund faces financial challenges that could pose risks to its fiscal health:
• Water General Fund Transfer: The Water General Fund Transfer (GFT) accounts for approximately 5% of ongoing General Fund revenues. On September 19, 2023, the City Council directed that all future Water GFT collections be placed in a reserve account pending the outcome of litigation. The potential revenue loss ranges from $8.52M to $11.26M annually over the next five years, or $49.31M over the next five years. • Deferred Maintenance and Infrastructure: Following several years of structural deficits in the General Fund, the City has struggled to allocate funding toward capital needs. Historically, capital investments have largely been funded through debt financing, such as the issuance of 2008 Certificates of Participation for street improvements, and Riverside Renaissance Tax Allocation Bonds for new facilities and capital improvements. However, debt financing does not provide a sustainable method to fund annual and ongoing needs for infrastructure repairs and maintenance and the added debt service reduces the amount of funding available for ongoing deferred maintenance.
• Rising Pension Costs: The financial markets influenced the CalPERS retirement fund, which yielded a 9.3% return for the fiscal year ended June 30, 2024, exceeding the 6.8% forecasted rate. While this marks a notable improvement over the past two fiscal years, it does not fully offset previous losses. Additionally, future returns below expectations could increase unfunded liabilities and required annual payments.
• Labor Costs: With most MOU contracts set to expire in June 2025, the outcome of future labor negotiations holds the potential to significantly impact personnel costs for the City. Balancing the need to provide competitive salary increases to recruit and retain highly q ualified employees, while maintaining financial sustainability, will present a challenge.
FISCAL YEAR END REVIEW | 20
MEASURE Z FUNDS
The financial reporting of Measure Z focuses on a Spending Plan format, which is a different presentation method than the financial reporting of other funds. Th e spending plan methodology provides a transparent and accessible illustration of Measure Z activity without the “noise” of formal accounting requirements and debt-funded capital projects:
• Measure Z activity is tracked in two funds as required by accounting rules: the Measure Z operating fund and the Measure Z capital fund. The capital fund includes all major capital activity, while the operating fund includes all other activity. Fund resources are transferred from the operating fund to the capital fund as needed to fund approved capital projects.
These interfund transfers have a net zero impact and are not reported in the Spending Plan. • Some Measure Z capital items are funded by debt, such as Library construction, Fire vehicle replacement, and Police helicopters . Measure Z ’s current resources are used to pay the annual debt obligations , and these debt payments are reported in the Spending Plan . The spending debt proceeds on capital projects does not represent a use of Measure Z tax revenue, so these expenses are not reported in the Spending Plan.
Revenue
The adopted FY 2023/24 amended budget projected revenues of $84.46M. However, due to a decline in consumer spending from the Federal Reserve’s efforts to slow the economy, transaction and use tax revenue projections were reduced to $80.54 M in the second quarter report. Since its approval in 2017, the Measure Z Transaction and Use Tax (TUT) ha s grown steadily, peaking at $84.02M in FY 2022/23. In FY 2023/24, revenues declined 2.5% to $81.90M from the prior fiscal year, marking the first revenue drop since Measure Z's inception. Previous years ’ significant growth was driven by post-pandemic shifts in consumer spending patterns and rising inflation.
The following table reports the revenue history for Measure Z since inception:
Expenditures
Measure Z expenditures are inconsistent due to the number of long -term initiatives and projects financed by Measure Z resources. This results in an accumulation of resources and carryover of funding in spending items of those types. Actual expenditures at fiscal year-end are $86.10M before
MEASURE Z REVENUES SINCE INCEPTION
(in millions) 2017 2018 2019 2020 2021 2022 2023 2024
Transaction & Use Tax (TUT) $12.61 $ 56.20 $ 62.29 $ 62.38 $ 72.00 $ 83.16 $ 84.02 $ 81.90 Interest Revenue - 0.04 0.53 0.76 0.65 0.75 1.82 2.30
Total Revenues $12.61 $ 56.24 $ 62.82 $ 63.14 $ 72.65 $ 83.91 $ 85.84 $ 84.20 TUT Growth over Prior Year 100.0% 346.1% 11.7% 0.5% 15.1% 15.5% 2.3% (1.9%) FISCAL YEAR END REVIEW | 21
encumbrances and carryovers of $ 47.20M. Encumbrances of $ 27.38M and capital carryovers of $13.43M have been carried forward to FY 202 4/25 as provided for in the Riverside Municipal Code.
Staff is requesting Council approval of an additional $6.39M in discretionary carryovers, detailed in Appendix A of this report.
For inception-to-date expenditure reporting by funded item, refer to the Measure Z Spending Plan in Appendix B of this report.
Unallocated Fund Reserves
Actual Measure Z revenues of $84.20M and expenditures of $86.10M produced a net decrease of fund reserves of $1.91M. The projected available fund balance (unaudited) is anticipated to total $58.52M net of encumbrances and recommended carryovers total ing $47.20M. The FY 2024-2026 Biennial Budget includes a Five -Year Spending Plan with a programmed draw on reserves from FY 2024/25 through FY 202 8/29 totaling $ 48.79M. Staff recommends that available reserves remain intact pending a FY 2024-2026 mid-cycle budget update.
MEASURE Z ACTIVITY AND PROJECTED FUND RESERVES
(
in millions) 2018 2019 2020 2021 2022 2023 2024
Revenue $ 56.24 $ 62.82 $ 63.14 $ 72.65 $ 83.91 $ 85.84 $ 84.20 Expenditures (36.14) ( 40.99) ( 49.57) ( 50.85) ( 67.45) ( 69.61) ( 86.10) Encumbrances & Carryovers - - - - - - (47.20)
Net Change in Fund Balance $ 20.10 $ 21.83 $ 13.57 $ 21.80 $16.46 $ 16.24 $ (49.10) Beginning Available Fund Balance $ 2.63 $ 22.73 $ 39.56 $ 53.14 $ 74.94 $ 91.40 $ 107.63 Net Change in Fund Balance 20.10 21.83 13.57 21.80 16.46 16.24 ( 49.10) Fund Balance Reserve Policy - (5.00) - - - - -
Ending Available Fund Balance $ 22.73 $ 39.56 $ 53.13 $ 74.94 $ 91.40 $ 107.63 $ 58.52 Permanent Policy Reserve Set-Aside: $5M
The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund balance in 2019 and is held intact separately of the available fund balance reported in the Spending Plan.
FISCAL YEAR END REVIEW | 22
ELECTRIC FUND
The FY 2023 /24 adopted operating budget for the Electric Fund include d a programmed $ 9.12M operating deficit and draw on fund reserves. This is a financial strategy employed to draw reserves down to keep utility rates as low as possible. Unaudited fiscal year end results present an operating deficit of $6.15M including outstanding encumbrances and carryovers of $19.75M.
The Total Budget in the following chart and tables includes the carryover of the previous fiscal year’s unexpended funds and adjustments to the revenue and expenditure budgets made during the normal course of business. Actual expenditures include $19.75M of outstanding encumbrances and carryovers to reflect budgetary savings.
Revenue
Total revenues at fiscal year -end are $27.86M (6.6%) greater than revenue projections in the total budget.
FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals
$
Variance
%
Variance
Retail Sales $ 362.51 $ 362.51 $ 352.50 $ (10.01) -2.8% Transmission Revenue 29.22 29.22 39.93 10.71 36.7%
Other Operating Revenue 15.60 15.60 26.09 10.49 67.2%
Miscellaneous Revenue 11.26 11.26 23.33 12.07 107.2%
Capital Contributions 2.95 2.95 7.55 4.60 155.9%
Total Revenues $ 421.54 $ 421.54 $ 449.40 $ 27.86 6.6%
$421.54
$430.66
$421.54
$448.61 $449.40
$455.55
$400.00
$410.00
$420.00
$430.00
$440.00
$450.00
$460.00
Revenue Expenditures
ELECTRIC FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
FISCAL YEAR END REVIEW | 23
Explanation of Significant Budget Variances
• Retail Sales: Electric revenues were $10.01 M below projections, with overall retail revenues and consumption lower than expected due to milder temperatures. While residential revenues met budget expectations, commercial and industrial revenues were 4.9% below budget, driven by an 8.5% decrease in consumption compared to forecasts. Partially offsetting these declines were nine months of the first -year rate increase from the five -year rate plan approved by City Council on September 19, 2023. • Transmission Revenue Requirements: Revenue exceeded projections by $10. 71M, or 36.7%, due to an increase in transmission r evenue requirements reflecting increased transmission costs from Southern California Edison for operating and maintaining the transmission system. • Other Operating Revenue: The City received an allocation of emissions allowances that exceeded what was needed to offset its greenhouse gas emissions. These surplus allowances were sold at higher-than-anticipated market prices, resulting in a revenue increase of $7.36M.
Furthermore, revenue from the sale of excess electricity to external entities exceeded projections by an additional $4.11M.
• Miscellaneous Revenue: Revenue exceeded projections by $12.07 M, or 107.2%, primarily driven by interest revenue, which surpassed expectations by $11.21 M due to higher- than- anticipated market interest rates and required year-end accounting adjustments to reflect investment market value.
• Capital Contributions: Revenue exceeded projections by $4.60M, or 155.9%, due to increased developer activity (construction) and donated underground electrical conduit, donated street lighting, and donated land rights and easement s. Revenue from the latter is not budgeted as it is highly unpredictable.
Expenditures
The FY 2023/24 total expenditure budget for the Electric Fund is $448.61M , which includes the adopted budget of $430.66M, $17.33M in unexpended funds carried forward from the previous fiscal year, and $624,000 in other budget adjustments made during the normal course of business . The table below shows a net budgetary loss of $6.94M after accounting for $19.75 M in encumbrances and carryovers:
FISCAL YEAR END REVIEW | 24
FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals*
$
Variance
%
Variance
Personnel $ 74.13 $ 74.13 $ 70.52 $ (3.61) -4.9%
Power Supply 225.00 224.12 239.65 15.53 6.9%
Operating & Maintenance 24.83 43.01 47.74 4.73 11.0%
Debt Service 58.55 58.55 48.84 (9.71) -16.6%
General Fund Transfer 44.64 45.29 45.29 - 0.0%
Transfers to Other Funds 3.51 3.51 3.51 - 0.0%
Total Expenditures & Transfers Out $ 430.66 $ 448.61 $ 455.55 $ 6.94 1.5% *Includes $8.62M in encumbrances as allowed by the Riverside Municipal Code; and $11.13M in other carryovers recommended for Council approval (refer to Appendix A).
Explanation of Significant Budget Variances
• Personnel: Personnel costs were $3.61M, or 4.9%, less than total budget due to a high average annual vacancy rate of 15.3% during the fiscal year. At June 30, 2023, the Electric Fund had 75 vacant positions.
• Power Supply: Power supply costs were $ 15.53M, or 6.9%, higher than total budget due to Intermountain Power Project dispatch restrictions, continuing elevated power prices, and continuing global market disturbances.
• Operating & Maintenance: Operating and maintenance costs were $4. 73M, or 11.0%, higher than total budget primarily due to carryovers for professional services, maintenance of buildings, heavy vehicle purchases, and software, which will be utilized on an 'as-needed' basis or as technology projects are implemented.
• Debt Service: Savings of $9.71M, or 16.6%, were primarily due to the delay of a revenue bond issuance intended to restructure electric variable rate debt, originally scheduled for FY 2022/23.
Additional savings resulted from refinancing this variable debt into fixed -rate debt, with repayments starting in FY 2024/25. Although the variable debt was budgeted for the full fiscal year, only eight months of debt service funding was needed due to the restructuring. Further savings came from the amortization of debt issuance costs, includi ng the debt premium, a non-cash accounting adjustment spread over the term of the debt.
Actual operating expenditures at fiscal year- end are $ 435.80M before encumbrances and carryovers of $ 19.75M. Encumbrances of $ 8.62M have been carried forward to FY 202 3/24 as provided for in the Riverside Municipal Code. Staff is requesting Council approval of an additional $11.13M in operating carryovers , detailed in Appendix A of this report. If the carryovers are approved, the operating expenditure loss for FY 2023/24 will be $6.94M, or 1.5%, of the total budget.
FISCAL YEAR END REVIEW | 25
Capital expenditures totaling $ 320.80M were recorded during the fiscal year; this amount includes $77.0M of encumbrances and $ 217.39M of unexpended capital project funds that have been carried forward to FY 2024/25 as provided for in the Riverside Municipal Code.
Fund Reserves
Reserve levels at fiscal year-end are expected to be within established policy levels; final results are pending the completion of the financial audit.
FISCAL YEAR END REVIEW | 26
WATER FUND
The FY 2023/24 adopted operating budget for the Water Fund includes an operating gain of $4.56M.
Unaudited fiscal year end results present a budgetary operating gain of $ 5.20M after outstanding encumbrances and carryovers of $7.08M.
The Total Budget in the following chart and tables includes the carryover of the previous fiscal year’s unexpended funds, and adjustments to the revenue and expenditure budgets made during the normal course of business. Actual expenditures include $7.08M of outstanding encumbrances and carryovers to reflect budgetary savings.
Revenue
Total revenues at fiscal year -end are $4.70M (5.1%) greater than revenue projections in the total budget.
FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals
$
Variance
%
Variance
Retail Sales $ 76.61 $ 76.61 $ 73.09 $ (3.52) -4.6%
Conveyance/Wholesale 6.00 6.00 4.63 (1.37) -22.8%
Other Operating Revenue 2.72 2.72 2.72 0.00 0.0%
Miscellaneous Revenue 6.28 6.60 16.19 9.59 145.3%
Total Revenues $ 91.61 $ 91.93 $ 96.63 $ 4.70 5.1%
$91.61
$87.05
$91.93
$94.24
$96.63
$91.43
$82.00
$84.00
$86.00
$88.00
$90.00
$92.00
$94.00
$96.00
$98.00
Revenue Expenditures
WATER FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
FISCAL YEAR END REVIEW | 27
Explanation of Significant Budget Variances
• Retail Sales: Water revenues were $3.52 M below projections due to increased precipitation and milder weather, leading to a 12.9% decrease in residential consumption and a 13.1% decrease in non-residential consumption compared to budget forecasts. These declines were partially offset by nine mont hs of the first -year rate increase from the five -year rate plan approved by City Council on September 19, 2023.
• Conveyance/Wholesale: Revenues fell short of projections by $1.37M , or 22.8%, entirely due to reduced demand from external entities in the wholesale water market. • Miscellaneous Revenue: Revenue exceeded projections by $9.59M, or 145.3%, due to interest revenues exceeding expectations by $ 3.46M, including $2. 51M in additional bond interest revenue earned on cash held by fiscal agent for the 2022 Water Revenue Bonds Series A issuance; $620,000 in excess land and building rental revenues from an one-time temporary construction easement; and $3.24M unbudgeted contributions due to increased developer activity (construction) and unbudgeted donated plant assets from developers consisting of transmission mains, transmission and distribution services, and transmission and distribution fire hydrants.
Expenditures
The FY 2023/24 total expenditure budget for the Water Fund is $94.24M, which includes the adopted budget of $87.05M; $2.85M of unexpended funds carried forward from the previous fiscal year; and $4.34M in other budget adjustments made during the normal course of business. The following table shows budgetary savings of $2.81M after $7.08M of encumbrances and carryovers:
FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals*
$
Variance
%
Variance
Personnel $ 25.41 $ 25.41 $ 25.11 $ (0.30) -1.2%
System Operations 27.67 35.32 33.45 (1.87) -5.3%
Debt Service 24.24 24.24 23.60 (0.64) -2.6%
General Fund Transfer 8.57 8.11 8.11 - 0.0%
Transfers to Other Funds 1.16 1.16 1.16 - 0.0%
Total Expenditures & Transfers Out $ 87.05 $ 94.24 $ 91.43 $ (2.81) -3.0% *Includes $6.10M in encumbrances and $0.10M grant carryovers recorded as allowed by the Riverside Municipal Code; and $0.88M in other carryovers recommended for Council approval (refer to Appendix A).
Explanation of Significant Budget Variances
• Personnel: Personnel costs were $297,000, or 1.2%, less than total budget due to an average annual vacancy rate of 13.68% during the fiscal year. On June 30, 2024, the Water Fund had 18 vacant positions.
FISCAL YEAR END REVIEW | 28
• System Operations: Savings of $1.87M, or 5.3%, were realized in the budgets for professional services and software maintenance, which are used on an 'as -needed' basis. These savings were partially offset by an overage in chemical supply costs. • Debt Service: Savings of $642,000, or 2.6%, were partially due to budgeting for a full year of debt service for a vehicle capital lease in FY 2023/24. However, delays in vehicle manufacturing, purchasing, and delivery postponed the financing, which was finalized in July 2024. As a result, debt service payments will begin in the third quarter of FY 2024/25. Additional savings came from the amortization of debt issuance costs, including the premium on debt, a non-cash accounting adjustment spread over the debt’s term.
Actual operating expenditures at fiscal year-end are $84.33M before encumbrances and carryovers of $7.08M. Encumbrances of $6.10M and grant carryovers of $102,000 have been carried forward to FY 2024/25 as provided for in the Riverside Municipal Code. Staff is requesting Council approval of an additional $880,510 in operating carryovers, detailed in Appendix A of this report. If the carryovers are approved, operating expenditure savings for FY 202 3/24 will be $ 2.81M, or 3. 0% of the total budget.
Capital expenditures totaling $ 75.98M were recorded during the fiscal year; this amount includes $13.28M of encumbrances and $ 32.65M of unexpended capital project funds that have been carried forward to FY 2024/25 as provided for in the Riverside Municipal Code.
Fund Reserves
The Water Fund is expected to end the fiscal year with reserves within required policy levels; final results are pending the completion of the financial audit.
FISCAL YEAR END REVIEW | 29
REFUSE FUND
The adopted operating budget for the Refuse Fund project ed a draw on fund reserves of $1.16M, driven by rising operations costs and ongoing personnel shortages, which were expected to cause excess overtime costs. Unaudited fiscal year end results present a n operating loss of $10.83M. This is primarily a timing loss attributable to the carryover of unspent funds for vehicle purchases, totaling $9.50M, from FY 2023/24. The revenue to fund these purchases was recognized in FY 2022/23 and subsequently fell to fund reserves . The associated expenditures will be drawn from these reserves upon receipt of the vehicles, which has been delayed due to extended procurement timelines.
Excluding the impact of this carryover, the Refuse Fund's adjusted operating loss aligns more closely with the budgeted reserve drawdown projection.
The Total Budget in the following chart and tables includes the carryover of the previous fiscal year’s unexpended funds totaling $ 10.78M and adjustments to revenue and expenditure budgets made during the normal course of business. Actual expenditures include $ 9.50M in outstanding encumbrances and carryovers.
Revenue
Total revenue at fiscal year -end is $2.31M (7.2%) greater than revenue projections in the total budget.
$ 32.0M $ 33.1M$ 32.1M
$ 44.3M
$ 34.4M
$ 45.2M
$ 26.00
$ 31.00
$ 36.00
$ 41.00
$ 46.00
$ 51.00
Revenue Expenditures
REFUSE FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
FISCAL YEAR END REVIEW | 30
Explanation of Significant Budget Variances
• Contracted Services: Revenues exceeded projections by $727,000, or 11.6%, due to a billing adjustment. Waste collection services for a specific area within the City were mistakenly billed under a private waste hauler. The billing correction was required to accurately reflect the City as the service provider.
• Street Sweeping Fines: Revenues were $201,000 below budget due to fewer parking fines issued than forecasted in the budget.
• Miscellaneous Revenue: This category included interest income that exceeded projection by approximately $360,000 and refunds and reimbursement of $316,000 for fuel rebates.
Expenditures
The FY 2023/24 total expenditure budget for the Refuse Fund is $44.26M, which includes the adopted budget of $33.13M, $10.78M of unexpended funds carried forward from the previous fiscal year, and budget adjustments made during the normal course of business. Unexpended funds include $9.50M of encumbrances for the replacement of heavy vehicles for the fund. The following table shows a net budgetary overage of $930,000 after $9.50M in encumbrances and carryovers.
FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals
$
Variance
%
Variance
City Service $ 16.91 $ 16.91 $ 17.59 $ 0.68 4.0%
Contracted Service 6.32 6.32 7.05 0.73 11.6%
Administrative Fees 7.17 7.17 7.52 0.35 4.9%
Street Sweeping Fines 1.50 1.50 1.29 (0.21) -14.0%
Miscellaneous Revenue 0.08 0.16 0.92 0.76 475.0%
Total Revenues $ 31.98 $ 32.06 $ 34.37 $ 2.31 7.2%
FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals*
$
Variance
%
Variance
Personnel $ 6.66 $ 6.66 $ 7.23 $ 0.57 8.6%
Non-Personnel 13.70 16.01 16.68 0.67 4.2%
Special Projects 6.74 7.30 7.28 (0.02) -0.3%
Minor Capital & Equipment 0.50 8.75 8.75 - 0.0%
Debt Service 0.60 0.60 0.60 - 0.0%
Charges To/From Others 4.94 4.94 4.65 (0.29) -5.9%
Total Expenditures & Transfers Out $ 33.14 $ 44.26 $ 45.19 $ 0.93 2.1% *Includes $9.50M in encumbrances recorded as allowed by the Riverside Municipal Code for the purpose of procuring new trash and street sweeping vehicles.
FISCAL YEAR END REVIEW | 31
Explanation of Significant Budget Variances
• Personnel: Personnel costs exceeded total budget by $570,000, or 8.6%, due to overtime overages caused by personnel shortages and breakdowns of older vehicles, which led to delays in waste pickups. On June 30, 2024, the Refuse Fund had 15 vacant positions. • Non-Personnel: Expenditures were $670,000 (4.2%) higher than budgeted, primarily due to an aging fleet, which led to increased vehicle repair costs and higher fuel consumption. Rising CNG fuel costs also contributed to overages in motor fuels and lubricants Actual operating expenditures at fiscal year-end are $35.69M before encumbrances and carryovers.
Encumbrances and carryovers of $ 9.50M have been carried forward to FY 2024/25 as provided for in the Riverside Municipal Code . Staff is requesting Council approval of an additional $83,000 in operating carryovers, detailed in Appendix A of this report.
Fund Reserves
The Refuse Fund is projected to end the fiscal year with $ 6.00M in fund reserves , reflecting an operating loss of $1 .33M, excluding the $9.50M carryover of unspent funds for vehicle purchases, which were recognized as revenue in a prior year.
FISCAL YEAR END REVIEW | 32
SEWER FUND
The adopted budget for the Sewer Fund projected a net operating gain of approximately $1.84M which would be used to fund $1.34M of planned capital projects included in the FY 2023/24 adopted budget and capital improvement plan . Unaudited fiscal year end results present a budgetary operating gain of $10.24M after outstanding encumbrances.
The Total Budget in the following chart and tables includes $2.49M in unexpended funds carried forward from the previous fiscal year and adjustments to the revenue and expenditure budgets made during the normal course of business. Actual expenditures include $ 2.50M in outstanding encumbrances to reflect budgetary savings.
Revenue
Total operating revenues at fiscal year-end are $11.16M (16.1%) higher than revenue projections in the adopted budget.
FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals
$
Variance
%
Variance
Residential Rate Revenue $ 46.28 $ 46.28 $ 46.62 $ 0.34 0.7% Commercial Rate Revenue 16.49 16.49 15.36 (1.13) -6.9%
Wastewater Service Contracts 3.13 3.13 5.15 2.02 64.5%
Miscellaneous Revenue 3.48 3.48 13.42 9.94 284.6%
Total Revenues $ 69.38 $ 69.38 $ 80.55 $ 11.17 16.1%
$ 69.4M $ 67.5M$ 69.4M
$ 76.4M$ 80.6M
$ 70.3M
$ 0.00
$ 10.00
$ 20.00
$ 30.00
$ 40.00
$ 50.00
$ 60.00
$ 70.00
$ 80.00
$ 90.00
$ 100.00
Revenue Expenditures
SEWER FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
FISCAL YEAR END REVIEW | 33
Explanation of Significant Budget Variances
• Wastewater Service Contracts: Revenue from Wastewater Service Contracts with the Rubidoux, Jurupa, and Edgemont Community Service areas exceeded projections by $2.02M, representing a 6 4.5% increase. This variance is primarily attributable to surcharges resulting from higher levels of wastewater sent to the Regional Water Quality Control Plant. • Miscellaneous Revenue: This category was bolstered by $6.37M in sewer connection fees, exceeding the budget due to increased planned development. Additionally, interest revenues were $3.86M higher than budget, driven by higher-than-anticipated market interest rates and market value adjustments.
Expenditures
The FY 2023/24 total expenditure budget for the Sewer Fund is $76.41M, which includes the adopted budget of $67.54; $2.49M of unexpended funds carried forward from the previous fiscal year; and budget adjustments made during the normal course of business. The following table shows a net budgetary savings of $6.10M after $2.50M in encumbrances.
FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals*
$
Variance
%
Variance
Personnel $ 15.87 $ 15.94 $ 15.06 $ (0.88) -5.5%
Non-Personnel 16.92 24.84 23.09 (1.75) -7.0%
Special Projects 2.33 2.28 2.21 (0.07) -3.1%
Minor Capital & Equipment 0.98 0.92 0.36 (0.56) -60.9%
Debt Service 28.02 28.02 25.85 (2.17) -7.7%
Charges To/From Others 3.42 4.41 3.74 (0.67) -15.2%
Total Expenditures & Transfers Out $67.54 $ 76.41 $ 70.31 $ (6.10) -8.0% *Includes $2.50M in encumbrances recorded as allowed by the Riverside Municipal Code.
Explanation of Significant Budget Variances
• Personnel: Personnel costs were $ 879,000, or 5.5 %, less than total budget due an average annual vacancy rate of 19.9% during the fiscal year. On June 30, 2024, the Sewer Fund had 20 vacant positions.
• Non-Personnel: Non-personnel costs were $1.75M under budget, primarily due to $1.60M in savings from the transportation and disposal of biosolids under a new sewer contract. • Minor Capital & Equipment: Savings of $560,000, or 60.9%, were realized in the budget for sewer equipment and construction that is budgeted on an “as needed” basis.
FISCAL YEAR END REVIEW | 34
• Debt Service: Savings of $2.17M resulted from the amortization of debt issuance costs, which includes the premium on debt. This is a non -cash accounting adjustment that reflects the gradual allocation of costs over the term of the debt.
• Charges To/From Others: The amount charged to capital projects will vary depending upon project activity.
Actual operating expenditures at fiscal year -end are $ 67.81M before encumbrances of $ 2.50M, which have been carried forward to FY 2024/25 as provided for in the Riverside Municipal Code.
Capital expenditures totaling $ 53.07M were recorded during the fiscal year; this amount includes $23.63M of encumbrances and $ 20.42M of unexpended capital project funds that have been carried forward to FY 2024/25 as provided for in the Riverside Municipal Code.
Fund Reserves
The Sewer Fund is expected to end the fiscal year with $ 58.80M in fund reserves following a n operating gain of $10.24M.
FISCAL YEAR END REVIEW | 35
PUBLIC PARKING FUND
The FY 2023/24 adopted operating budget for the Public Parking Fund included a projected $470,000 operating loss. Unaudited fiscal year end results present a budgetary operating gain of $3.01M after outstanding encumbrances of $211,000.
The Total Budget in the following chart includes the carryover of $97,000 in unexpended funds carried forward from the previous fiscal year and adjustments to the revenue and expenditure budgets made during the normal course of business. Actual expenditures include $212,000 of outstanding encumbrances to reflect budgetary savings.
Revenue
On April 18, 2023, the City Council approved a new Parking Rate and Hour Schedule effective July 1, 2023. These adjustments, along with other related expenditure adjustments, are incorporated into the adopted amended budget for FY 2023/24. The total revenue budget for the Public Parking Fund includes a $900,000 contribution from the General Fund Insurance Reimbursement Reserve for the demolition and repaving of a parking structure.
Total operating revenues at fiscal year-end are $3.15M (37.4%) higher than revenue projections. The downtown parking operation has experienced a significant turnaround in utilization due to the implementation of the Parking Your Way program. This program includes more accessible free parking, new parking rates, expanded hours, new monthly parking programs, the Park Riverside app, and the installation of Parking Access Revenue Control Systems (PARCS) in garages. $ 7.6M $ 8.1M$ 8.4M
$ 9.4M
$ 11.6M
$ 8.6M
$ 0.0M
$ 2.0M
$ 4.0M
$ 6.0M
$ 8.0M
$ 10.0M
$ 12.0M
$ 14.0M
Revenue Expenditures
PUBLIC PARKING FUND BUDGET TO ACTUAL (in millions)
Adopted Budget Total Budget Unaudited Actuals
FISCAL YEAR END REVIEW | 36
FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals
$
Variance
%
Variance
User Fees $ 6.47 $ 6.42 $ 9.02 $ 2.60 40.5%
Miscellaneous Revenue 1.11 1.11 1.66 0.55 49.5%
General Fund Contribution - 0.90 0.90 - 0.0%
Total Revenues $ 7.58 $ 8.43 $ 11.58 $ 3.15 37.4%
Explanation of Significant Budget Variances
• User Fees: Parking revenues significantly exceeded projections, driven by the new Council- approved Parking Rate and Hour Schedule, increased demand as people returned to work and resumed pre-pandemic activities, and the implementation of the Parking Your Way program. These factors resulted in a 40.5% increase in parking revenue compared to original estimates.
• Miscellaneous Revenue: A one-time land sale of Parking Fund property, alongside higher- than-average interest earnings, contributed $550,000 (49.5%) to the positive variance.
Expenditures
The FY 2023/24 total expenditure budget for the Public Parking Fund is $9.37M, which includes the adopted budget of $ 8.05M, $97,000 of unexpended funds carried forward from the previous fiscal year, and budget adjustments made during the normal course of business. The following table shows budgetary savings of $804,000 after $212,000 of encumbrances:
FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted
Budget
Total
Budget
Unaudited
Actuals*
$
Variance
%
Variance
Personnel $ 1.49 $ 1.49 $ 1.40 $ (0.09) -6.0%
Non-Personnel 5.05 6.37 5.59 (0.78) -12.2%
Debt Service 1.78 1.78 1.85 0.07 3.9%
Charges To/From Others (0.27) (0.27) (0.27) - 0%
Total Expenditures & Transfers Out $ 8.05 $ 9.37 $ 8.57 $ (0.80) -8.5% *Includes $0.21M in encumbrances recorded as allowed by the Riverside Municipal Code.
Explanation of Significant Budget Variances
• Non-Personnel: Expenditures were $778,000 (12.2%) below budget, largely due to $790,000 in savings from underutilized professional services, which were budgeted on an 'as-needed' basis.
FISCAL YEAR END REVIEW | 37
Actual operating expenditures at fiscal year-end are $8.57M after $212,000 in encumbrances, which have been carried forward to FY 2024/25 as provided for in the Riverside Municipal Code.
Capital expenditures totaling $ 3.32M were recorded during the fiscal year; this amount includes $459,000 of encumbrances and $1.70M of unexpended capital project funds that have been carried forward to FY 2024/25 as provided for in the Riverside Municipal Code.
Fund Reserves
Following a FY 2023/24 net gain of $3.01M, the Public Parking Fund is expected to end the fiscal year with $5.88M in fund reserves.
FISCAL YEAR END REVIEW | 38
APPENDIX A – CARRYOVER RECOMMENDATIONS
Restricted Carryovers represent appropriations of funding designated for a specific use per a third-party agreement, including donations, endowments, and grant matches.
Discretionary Carryovers include amounts appropriated for a specific purpose in previous periods, but unexpended due to timing or for other reasons. Discretionary carryovers may also include a reallocation of amounts from their original purpose to a new purpose, either identified as an emerging need or not funded in the adopted budget due to budget constraints.
CARRYOVER SUMMARY BY FUND
Restricted Discretionary Total
General Fund $ 818,322.23 $ 3,837,062.44 $ 4,655,384.67 Measure Z Fund - 6,385,292.77 6,385,292.77
Grants and Restricted Programs Fund 7,205,771.42 - 7,205,771.42 Gas Tax Fund - 206,044.92 206,044.92
Housing Authority Fund 652,721.47 - 652,721.47
Special Districts Fund 406,968.13 - 406,968.13
Riverwalk Landscape Maintenance District Fund 281,268.00 - 281,268.00 Storm Drain Fund - 90,313.12 90,313.12
Regional Park Special Capital Fund - 50,161.49 50,161.49 Measure A Fund - 771,861.51 771,861.51
Redevelopment Successor Agency 2007 Bonds 573,593.23 - 573,593.23 Electric Fund - 11,128,497.01 11,128,497.01
Electric Public Benefits Programs Fund - 8,397,252.98 8,397,252.98 Water Fund - 880,510.02 880,510.02
Water Conservation Fund
- 1,601,189.97 1,601,189.97
Refuse Fund 83,000.00 - 83,000.00
Central Stores Fund - 56,417.07 56,417.07
Central Garage Fund - 125,800.00 125,800.00
CFD 90-1-Highlander Fund 191,816.00 - 191,816.00
Total Recommended Carryovers $ 10,213,460.48 $ 33,530,403.30 $ 43,743,863.78
FISCAL YEAR END REVIEW | 39
101 – GENERAL FUND
Department Description Amount
Restricted
Cmmty & Econ Dev SB-1186 Certified Access Specialist Training $ 546,168.22 Cmmty & Econ Dev Seismic Education Training & Supplies 5,004.86 Housing & Hum Svcs Donations for Hulen Pet Shelter 14.99 Museum Endowment Fund for Botany Exhibit 67,401.49
Parks & Recreation ARPA Scholarship Program 84,685.63
Parks & Recreation Maintenance Endowment Fund 14,537.75 Police Donations for K-9s 2,784.81
Police Evidence Trust Funds - Renovation of Police Facilities 52,845.45 Police Vehicle Purchase for PACT 44,879.03
Total Restricted $ 818,322.23
Discretionary
City Clerk Destruction of Records/Archival Materials for City Archive $ 70,221.00 City Manager On-Call Grant Writing Services 50,000.00
Cmmty & Econ Dev Grow Riverside 51,210.32
Cmmty & Econ Dev Improvements to Computronix to Enhance Customer Service 97,400.43 Cmmty & Econ Dev Northside Specific Plan 67,886.62
Cmmty & Econ Dev Riverside Alive 50,408.75
Finance ARPA Consultant 100,000.00
Finance Budget Software Upgrade/Customizations 12,000.00 Finance Harvard Kennedy GPL Consultant – Procurement Reform Project 330,000.00 Finance Cubicle construction 33,820.59
Finance Development Fee Impact Study 120,000.00
Finance Citywide Fees & Charges Study 20,120.00
Finance Payment Card Industry (PCI) Compliance 246,670.00 Finance Payment Reconciliation Streamlining – Software Enhancements 52,479.55 Fire Clothing/ Linen/Safety Supplies - Turnout Gear 17,840.00 Fire Hazmat Team Required Annual Physicals 13,358.00
Human Resources City-Wide Employee Training 137,988.08 Human Resources Education Reimbursement 208,354.03
Innov & Tech Citywide Security Cameras 152,657.00
Museum Harada House 2,014.85
Parks & Recreation Citywide Events 257,000.00
Parks & Recreation Downtown Summer Concert Series 47,544.18 Public Works Median Landscape Improvements 1,599,485.60 Public Works Public Works Vehicles & Equipment 98,603.44 Total Discretionary $ 3,837,062.44
Total Carryover Recommendations – General Fund $ 4,655,384.67
FISCAL YEAR END REVIEW | 40
110 - MEASURE Z
Department Spending Item & Description Amount
Discretionary
Cmmty & Econ Dev #19 - General Plan Update $ 1,886.08
Fire #14 - Fire Vehicle Replacement (Cash Funding) 2,254,396.69 Fire #34 - Clothing/Linen/Safety Supplies - Turnout Gear 4,130.63 General Services #28 - Annual Deferred Maintenance 24,687.41 Innov & Tech #33 - Technology Improvements 3,024,926.79 Museum #26 - Museum Rehabilitation - Grand Opening 444,343.00 Police #12 - PD Vehicle Replacement and Maintenance Plan 443,542.10 Police #46 - Park and Neighborhood Specialist (PANS) Program 10,000.00 Police #54 - Police K9 118,443.51
Public Works #43 - Public Works Vehicles & Equipment 58,936.56 Total Discretionary $ 6,385,292.77
Total Carryover Recommendations – Measure Z $ 6,385,292.77
215 - GRANTS AND RESTRICTED PROGRAMS
Department Description Amount
Restricted
City Manager Grant Management $ 75,000.00
City Manager Non-Profit Revolving Loan Funds 2,813,766.00 Cmmty & Econ Dev Downtown Safety Ambassador Program 61,323.75 Fire California Fire and Rescue Training Authority Task Force Mobilization Training 140,861.39
Fire Certified Unified Program Agencies (CUPA) 47,432.88 Fire CFFJAC Firefighter Joint Apprentice 125,726.53
Fire Rancho Santiago/Riverside Community College Moreno Valley Inter-Agency Instructional Services Agreement 116,624.14 Housing & Hum Svcs Homeless Campus (Department of Public Social Services) 596,423.17 Housing & Hum Svcs Hulen Campus Rehab Sponsorship 16,225.00 Housing & Hum Svcs Hulen Place-Access Center 177,808.86 Housing & Hum Svcs Hulen Rehabilitation 2,061,383.87
Housing & Hum Svcs PSET Riverside County Flood Control MOU 130,331.42 Human Resources Donations for the Wellness Program 123,640.40 Library Donations, Gifts, and Trust Funds 128,518.61
Mktg & Comm PEG (Public, Educational, or Governmental access) 218,198.62 Museum Donations from The Riverside Museum Associates for Museum Projects 13,107.00
Parks & Recreation Donation for Aquatics 20,981.67
Parks & Recreation Donation for Riverside Arts Academy 38,456.40 Parks & Recreation Donation for Senior Programming 840.00
FISCAL YEAR END REVIEW | 41
Department Description Amount
Parks & Recreation Donation for Special Events 7,931.70 Parks & Recreation Donations from LA84 Foundation for Learn-to-Swim Lessons 2,100.39 Police Asset Forfeiture 286,089.62
Police Donations for Shop With a Cop 3,000.00
Total Restricted $ 7,205,771.42
Total Carryover Recommendations – Grants and Restricted Programs $ 7,205,771.42
230 – GAS TAX
Department Description Amount
Discretionary
Public Works Pavement Management Program $ 15,505.61
Public Works Railroad Project Management 140,403.02
Public Works Surplus Property Disposal 50,136.29
Total Discretionary $ 206,044.92
Total Carryover Recommendations – Gas Tax $ 206,044.92
280 – HOUSING AUTHORITY
Department Description Amount
Restricted
Housing & Hum Svcs Housing Authority Projects (Multiple) $ 652,721.47 Total Restricted $ 652,721.47
Total Carryover Recommendations – Housing Authority $ 652,721.47
291 – SPECIAL DISTRICTS
Department Description Amount
Restricted
Parks & Recreation Loving Homes Landscape Maintenance District $ 77,776.45 Parks & Recreation Village at Canyon Crest Landscape Maintenance District 329,191.68 Total Restricted $ 406,968.13
Total Carryover Recommendations – Special Districts $ 406,968.13
FISCAL YEAR END REVIEW | 42
292 – RIVERWALK LANDSCAPE MAINTENANCE DISTRICT FUND
Department Description Amount
Restricted
Parks & Recreation Riverwalk Trail Fencing $ 281,268.00 Total Restricted $ 281,268.00
Total Carryover Recommendations – Riverwalk Landscape Maintenance District Fund $ 281,268.00
410 – STORM DRAIN
Department Description Amount
Discretionary
Public Works Miscellaneous Drainage Studies $ 84,815.30 Public Works Sycamore Canyon Business Park Habitat Restoration 5,497.82 Total Discretionary $ 90,313.12
Total Carryover Recommendations – Storm Drain $ 90,313.12
413 – REGIONAL PARK SPECIAL CAPITAL FUND
Department Description Amount
Discretionary
Parks & Recreation Sycamore Canyon Trail Development $ 50,161.49 Total Discretionary $ 50,161.49
Total Carryover Recommendations – Regional Park Special Capital Fund $ 50,161.49
432 – MEASURE A
Department Description Amount
Discretionary
Public Works Railroad Project Management $ 716,783.43
Public Works Railroad Quiet Zone Maintenance 55,078.08
Total Discretionary $ 771,861.51
Total Carryover Recommendations – Measure A $ 771,861.51
FISCAL YEAR END REVIEW | 43
480 - REDEVELOPMENT SUCCESSOR AGENCY 2007 BONDS
Department Description Amount
Restricted
Cmmty & Econ Dev Unprogrammed 2007 Taxable Bonds $ 443,516.41 Cmmty & Econ Dev Splash Pad 23,095.00
Cmmty & Econ Dev Villegas Park Brown Room Renovation 51,996.86 Cmmty & Econ Dev Villegas Park Construction 54,034.39
Cmmty & Econ Dev Ward 3 Street Improvements 950.57
Total Restricted $ 573,593.23
Total Carryover Recommendations – Redevelopment Successor Agency 2007 Bonds $ 573,593.23
510 - ELECTRIC
Department Description Amount
Discretionary
RPU - Administration 311 Upgrade Project $ 418,752.13
RPU - Administration Customer Information System (CIS) Disaster Recovery Project 500,000.00 RPU - Administration Customer Web Portal 1,037,502.16
RPU - Administration Department of Homeland Security Recommended Security Projects 128,224.12
RPU - Administration Electric Fund Cost of Service Analysis (COSA) 400,000.00 RPU - Administration Mission Square ADA Accommodations (Floors 3-5) 122,623.73 RPU - Administration Mission Square Heating and Air Conditioning (HVAC) Improvements 1,500,000.00
RPU - Administration Mission Square Outdoor Concourse Improvements 324,951.00 RPU - Administration Mission Square Roof Replacement 500,000.00 RPU - Administration Obsolete Inventory Write-off 250,000.00 RPU - Administration Orange Square Generator 100,000.00 RPU - Administration Physical Security Projects 93,150.00 RPU - Administration Proportional Share of Measure Z Technology Projects 1,163,876.91 RPU - Administration Workforce Development (WFD) Internal Training 119,440.97 RPU - Electric Integrated Resource Plan 68,565.43
RPU - Electric Legal Fees for FERC Proceedings and TRR Filing 544,567.30 RPU - Electric Maintenance Projects for RERC 150,000.00 RPU - Electric Maintenance Projects for Springs 250,000.00 RPU - Electric National Joint Apprenticeship and Training Committee (NJATC) Training for Linework Power Line Technicians (PLT) 347,755.00 RPU - Electric New Trucks Purchased 300,000.00
RPU - Electric Obsolete Inventory Write-off 642,221.50 RPU - Electric Publicly Accessible Electric Vehicles Charging Stations 500,000.00 RPU - Electric Vehicle Capital Leases 1,666,866.76
Total Discretionary $ 11,128,497.01
Total Carryover Recommendations – Electric $ 11,128,497.01
FISCAL YEAR END REVIEW | 44
511 – ELECTRIC PUBLIC BENEFITS PROGRAM
Department Description Amount
Discretionary
RPU - Administration Implement Energy Efficient Measures at Medium and Small Sized Businesses $ 125,000
RPU - Administration Unprogrammed Funds 8,272,252.98
Total Discretionary $ 8,397,252.98
Total Carryover Recommendations – Electric Public Benefits Program $ 8,397,252.98
520 - WATER
Department Description Amount
Discretionary
RPU - Water Advanced Metering Infrastructure project $ 174,787.00 RPU - Water Foreman Academy training 3,261.04
RPU - Water Obsolete Inventory Write-off 100,000.00
RPU - Water Seven Oaks Dam Operations and Maintenance 176,326.63 RPU - Water Proportional Share of Measure Z Technology Projects 426,135.35 Total Discretionary $ 880,510.02
Total Carryover Recommendations – Water $ 880,510.02
521 – WATER CONSERVATION
Department Description Amount
Discretionary
RPU - Water Water Energy Community Action Network's Turf Removal Program $ 1,067,787.34 RPU - Water Water Conservation Surcharge Programs Enhancements 533,402.63 Total Discretionary $ 1,601,189.97
Total Carryover Recommendations – Water Conservation $ 1,601,189.97
540- REFUSE
Department Description Amount
Restricted
Public Works Solid Waste SHARE Program – City Funded $ 83,000.00 Total Restricted $ 83,000.00
Total Carryover Recommendations – Refuse $ 83,000.00
FISCAL YEAR END REVIEW | 45
640 - CENTRAL STORES
Department Description Amount
Discretionary
Finance Vending Machine and Barcode Scanning System $ 56,417.07 Total Discretionary $ 56,417.07
Total Carryover Recommendations – Central Stores $ 56,417.07
650 - CENTRAL GARAGE
Department Description Amount
Discretionary
General Services Payment Card Industry (PCI) Compliance $ 125,800.00 Total Discretionary $ 125,800.00
Total Carryover Recommendations – Central Garage $ 125,800.00
753 – CFD 90-1-HIGHLANDER
Department Description Amount
Restricted
Finance Community Facilities District 90-1 Irrigation Maintenance $ 191,816.00 Total Restricted $ 191,816.00
Total Carryover Recommendations – CFD 90-1 – Highlander $ 191,816.00
FISCAL YEAR END REVIEW | 46
APPENDIX B – MEASURE Z SPENDING PLAN
The Measure Z Spending plan includes only those expenditures and carryovers that utilize current revenues. Expenditures and carryovers related to the use of debt proceeds are not included in the Spending Plan. Refer to the description of the Measure Z Spending Plan on page 20.
Spending Items Actual
FY 2017/18
Actual
FY 2018/19
Actual
FY 2019/20
Actual
FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Carryover
FY 2023/24
REVENUE
Transaction & Use Tax $ 56,201,937 $ 62,283,444 $ 62,380,085 $ 71,999,092 $ 83,156,696 $ 84,015,703 $ 81,892,623 $ - Interest Earnings 35,265 532,684 755,392 654,898 752,491 1,825,380 2,303,372 - Total Revenues $ 56,237,202 $ 62,816,128 $ 63,135,477 $ 72,653,990 $ 83,909,187 $ 85,841,083 $ 84,195,995 $ -
EXPENDITURES
1 20% General Fund Reserve $ 15,000,000 $ - $ - $ - $ - $ - $ - $ - 2 Payoff of the Balloon $32 million
Pension Obligation Bond 1,706,290 1,673,554 1,674,490 1,674,500 1,679,490 1,673,080 1,673,530 - 3 Funding for Workers' Compensation
and General Liability 2,500,000 2,500,000 - - - - - - 4 Measure Z Spending Contingency -
General Fund Balancing Measure - - - - - - - -
5 Additional Sworn Police Positions 2,671,321 5,588,853 7,639,210 10,163,726 10,745,658 13,751,855 14,278,338 - 6 Public Safety Non-Sworn Positions
and Recruitment Costs 450,833 795,676 877,104 913,458 897,576 952,016 981,520 - 7 Police Officer Lateral Hire Incentives
and Recruitment Costs - 30,049 9,994 300 46,856 73,986 133,853 45,000 8 Additional Public Safety Dispatchers 254,112 477,694 566,809 656,263 857,136 1,407,570 1,372,577 - 9 Maintain Firefighter Staffing Level 838,478 992,571 1,291,460 1,406,709 4,137,516 2,178,353 2,135,230 - 10 Reinstatement of Fire Captains
(Training and Arson) 522,192 559,538 556,919 469,733 507,235 657,475 693,595 - 11 Reinstatement of Fire Battalion Chief 355,402 368,948 390,025 611,747 396,056 416,987 405,715 - 12 Police Vehicle Replacement and
Maintenance Plan 2,434,081 1,738,555 1,199,786 627,585 3,735,056 2,143,480 2,063,080 1,533,036 13 Refurbish Police Vehicles (Pilot
Program) 50,000 - - - - - - -
14 Fire Vehicle Replacement and
Maintenance Plan 823,208 1,607,452 3,143,742 2,521,600 1,572,275 1,706,747 1,939,520 6,525,564
FISCAL YEAR END REVIEW | 47
Spending Items Actual
FY 2017/18
Actual
FY 2018/19
Actual
FY 2019/20
Actual
FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Carryover
FY 2023/24
15 Fleet Facility Capital Repairs 100,000 - - - - - - - 16 Additional Fleet Mechanics for
Police Department 176,329 173,230 202,610 219,713 225,454 149,860 184,487 - 17 Additional Fleet Mechanics for Fire
Department 184,275 221,068 231,352 237,262 244,309 297,025 280,007 - 18 General Fund Support - Maintain
Existing Services 5,482,007 13,238,623 18,266,026 18,266,026 18,266,026 18,266,026 18,266,026 - 19 General Plan Update - 33,419 9,525 300,069 37,534 279,886 30,249 4,309,318 20 Homeless Services 8,775 184,619 528,954 4,197 693,012 503,743 434,065 679,745 21 Principal Management Analyst - City
Manager's Office 108,724 148,684 161,803 175,948 180,941 170,144 126,740 - 22 Budget Engagement Commission
Support 10,280 27,000 8,365 23,364 15,648 10,868 15,384 338 23 New Downtown Main Library &
Archives 1,541,139 3,386,205 5,119,500 (434,155) 2,751,200 2,738,151 2,738,750 - 24 SPC Jesus S. Duran Eastside Library - - - 18,900 75,600 - 1,117,999 887,501 25 New Police Headquarters - - 26,394 43,556 - - - - 26 Museum Expansion and
Rehabilitation - - 89,053 175 - 1,474 44,801 963,717 27 New Downtown Parking Garage - - - - - - - -
28 Annual Deferred Maintenance
(Existing Facilities) 458,210 1,111,923 1,025,461 838,450 959,363 1,859,493 1,630,681 111,752 29 Maximize Roads/Streets (Pavement
Condition Index) 58,482 2,276,844 460,494 4,825,070 12,974,269 7,219,089 16,927,952 12,882,802 30 Tree Trimming 114,807 890,259 2,018,472 994,585 983,450 1,842,682 3,956,958 1,216,909 31 Ward Action Team - City Attorney's
Office 173,578 263,704 295,205 303,967 326,426 388,006 343,233 - 32 Ward Action Team - City Manager's
Office - - - - - - - -
33 Technology Improvements 112,288 433,629 679,248 2,792,116 1,686,690 1,470,850 1,033,871 3,590,438 34 4-Person Staffing on Fire Trucks - 202,119 1,284,098 1,244,499 1,006,903 979,106 1,017,827 4,131 35 Fire Equipment and One-Time
Operating Needs - 60,473 64,019 52,466 89,769 - - -
36 Fire Radios - 1,931,769 45,920 - - - - -
37 Recreation – Summer Pools - 50,000 50,000 - 3,006 - - -
FISCAL YEAR END REVIEW | 48
Spending Items Actual
FY 2017/18
Actual
FY 2018/19
Actual
FY 2019/20
Actual
FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Carryover
FY 2023/24
38 Bourns Family Youth Innovation
Center – Furnishing & Operating
Costs
- - 183,961 49,536 342,145 (2,808) - -
39 Public Safety & Engagement Team
(PSET) – Urban - 21,691 1,226,821 1,518,578 1,126,665 2,657,537 2,731,728 347,031 40 Library Security Guards - - 121,809 339,822 380,393 - - - 41 Homeless Temporary Housing - - 112,204 (112,204) - - - - 42 Orangecrest Fire Station Dormitory
Improvements - - 427 108,384 - - - -
43 Public Works Streets Vehicle &
Equipment Needs - - - - - 490,337 1,578,114 3,161,514 44 Parks, Recreation & Community
Services Infrastructure, Vehicles, and
Equipment
- - - - 11,735 189,894 288,277 1,236,062
45 Motorhome Removal & Disposal - - - - 5,000 9,000 12,000 3,000 46 Park and Neighborhood Safety
(PANS) Program - - - - 493,808 1,296,852 1,692,713 10,000 47 Police Helicopter Capital Lease - - - - - 1,238,158 1,238,158 - 48 Office of Homeless Solutions
Expansion - - - - - 47,454 147,518 -
49 Public Safety & Engagement Team
(PSET) - Wildlands - - - - - 613,870 3,443,270 660,829 50 Public Safety Enterprise
Communication System (PSEC)
Radios
- - - - - 343,438 456,456 -
51 Office of Sustainability - - - - - 13,402 53,809 55,445 52 Sidewalk Repair - - - - - 371,776 20,238 807,986
53 Mt Rubidoux Trail Resurfacing - - - - - 1,198,947 404,350 176,703 54 Police K9 - - - - - - 21,556 118,444
55 Parks Capital Improvement Projects - - - - - - 186,897 6,305,103 56 Fire - Analog Simulcast
Communication System - - - - - - 3,788 1,562,653
Total Expenditures $ 36,134,811 $ 40,988,149 $ 49,561,260 $ 50,855,945 $ 67,454,200 $ 69,605,809 $ 86,104,860 $ 47,195,021
Five-Year Financial Plan
Surplus/(Deficit) $ 20,102,391 $ 21,827,979 $ 13,574,217 $ 21,798,045 $ 16,454,987 $ 16,235,274 $ (1,908,865) $ (47,195,021)
FISCAL YEAR END REVIEW | 49
Spending Items Actual
FY 2017/18
Actual
FY 2018/19
Actual
FY 2019/20
Actual
FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Carryover
FY 2023/24
FUND RESERVES
Beginning Measure Z Available Balance $ 2,632,981 $ 22,735,372 $ 39,563,351 $ 53,137,568 $ 74,935,613 $ 91,390,600 $ 107,625,874 $ 105,717,009 Five-Year Financial Plan Surplus/(Deficit) 20,102,391 21,827,979 13,574,217 21,798,045 16,454,987 16,235,274 (1,908,865) (47,195,021) Permanent Policy Reserve Set-Aside (5,000,000)
Ending Measure Z Available Balance $ 22,735,372 $ 39,563,351 $ 53,137,568 $ 74,935,613 $ 91,390,600 $ 107,625,874 $ 105,717,009 $ 58,521,988 Permanent Policy Reserve Set-Aside: $5M
The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund
balance in 2019 and is held intact, separately of the
available fund balance reported in the Spending Plan.