FY2021/22
Midyear Budget
Overview
City Council
City of Sacramento
February 15, 2022
Midyear
Review
Overview
Update to City Council on major changes
following budget approval.
FY2020/21 year-end results provided
one-time resources.
Recommendations address Council-led
Strategic initiatives and City operational
needs.
Recommendations from Budget & Audit
Committee.
FY2021/22 General/Measure U Fund Balance
Available Fund Balance (dollars in 000s)
Column1
FY2020/21 Year-End Resources (General Fund) 30,315
FY2020/21 Year-End Resources (Measure U Fund) 12,045
FY2021/22 Deficit (Approved Budget) (421)
FY2021/22 Midyear Revenue Adjustments 26,163
FY2021/22 Midyear Expenditure Adjustments (322)
Citywide Organizational Needs (ARPA/HTF) - Labor Contracts 14,894 ARPA G/MU Fund Out-Year Costs -
Pandemic Debt Service Community Center and Parking Fund (12,308) Estimated Labor Contract Costs (20,504)
Surplus/(Deficit) 49,861
Reserve for Budget Development (49,861)
Available Fund Balance (AFB) -$
¹
¹Labor negotiations are in progress and estimate is based on best available data.
ARPA
Midyear
Revisions
❑Citywide Equity Study ($250k)
❑Towing Admin Fee Reform ($200k)
❑Sacramento Native American Health
Center ($100k)
Council Initiatives
❑Support alternative response to
homelessness
Community Response
❑ARPA funding in FY2022/23 COPS grant
match
Community Oriented Policing Services
(COPS)
❑One-time funding to support increased
labor costs
Labor Contracts
FY2021/22 Midyear G/MU Fund Revenue
Revisions
Revenue Type (dollars in 000s)
FY2021/22
Approved
FY2021/22
Amended
$
Change
%
Change
Measure U Transactions & Use Tax 108,801 124,238 15,437 14.2% Real Property Transfer Tax 12,659 16,659 4,000 31.6%
General Sales & Use Tax 96,411 98,963 2,552 2.6%
Utility User Tax 61,594 63,000 1,406 2.3%
Property Tax In-Lieu of Vehicle License Fee 53,363 54,619 1,256 2.4% Cannabis Business Operations Tax 20,651 21,448 797 3.9% Transient Occupancy Tax 3,743 4,458 715 19.1%
Recommended Midyear Revisions 357,222$ 383,385$ 26,163$ 7.3% FY2021/22 Pandemic Debt Service Shortfall
FY2021/22 Midyear Revisions (dollars in 000s) Column1
Community Center Fund 6,718
Parking Fund 5,148
Sacramento Tourism Infrastructure District Fund 442
Total 12,308$
Pandemic Debt Service Shortfall (in 000s)
❖SAFE Credit Union (C3 Project)
❖Golden 1 Center
❖Ballroom at Convention Center
City Manager Midyear Recommendations
G/MU Funds 44.5 FTE $322k
❑Community Response - 17.0 FTE; ARPA through FY2021/22:
❖Support homelessness programs/services
❖Implement alternative response to homelessness model
❖Program monitoring & compliance
❖Administrative support
❖Code enforcement (2.0 FTE CDD)
❑Police - 15.0 FTE; CHP Grant/ARPA match through FY2023/24:
❖CHP grant authorized by Council in January
❖Community policing strategy engagement
❑Public Works - 2.0 FTE
❖ Solid Waste Authority Dissolution
City Manager Midyear Recommendations
(Continued)
❑Community Development– 7.5 FTE
❖After-hour veterinary care & supervision
❖Building plan review & inspections
❑City Clerk – 4.0 FTE
❖Citywide Boards & Commissions support
❑City Manager – 2.0 FTE
❖Workforce development coordination & housing program
support
❑YPCE – (3.0 FTE)
❖Position changes to align workload with program needs
❖Fund Plumber (PW) for facilities
❖Sacramento River East Levee Improvement project
City Manager Midyear Recommendations
(Continued)
❑Fire
❖Regional Communications Center
❖Fire 911 Dispatch
Other Funds (1.0 FTE) $4.1m
❑Public Works
❖Residential garbage collection contract
❖Delinquent account late payment waiver
❖Streetlight pole maintenance
❖Vehicle replacements
❖Electric Vehicle Infrastructure Design
G/MU 5-Year Forecast Proposed
5-Year Forecast
General (G) and Measure U (MU) Funds ($ in 000s)
FY2021/22
Amended
FY2022/23
Projection
FY2023/24
Projection
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
Revenues
Revenues and Other Sources 684,565 693,377 713,008 735,480 751,966 767,157 Total Revenues/Resources 684,565 693,377 713,008 735,480 751,966 767,157 Expenditures
Operations (Operating, Debt, MYOPs, Other Uses, EUR) 670,363 686,829 703,604 722,202 735,954 746,350 Capital Projects 14,623 12,690 12,840 12,940 13,040 13,040 Total Expenditures/Uses 684,986 699,519 716,444 735,142 748,994 759,390 Surplus/(Deficit) (421) (6,142) (3,436) 338 2,972 7,767 One-Time Resources/(Uses)
FY2021/22 Midyear Revenue Adjustments 26,163 15,551 14,863 14,516 16,612 19,834 FY2020/21 Year-End Resources (General Fund) 30,315 - - - - - FY2020/21 Year-End Resources (Measure U Fund) 12,045 - - - - - Citywide Organizational Needs (ARPA/HTF) - Labor MOUs 14,894 - - - - - CalPERS Earnings/Discount Rate Change (7.0% to 6.8%) - - 2,770 8,510 14,160 19,810 FY2021/22 Midyear Expenditure Adjustments (322) (320) (320) (321) (323) (324) ARPA G/MU Fund Out-Year Costs - (5,375) (5,931) (9,826) (10,540) (10,663) Pandemic Debt Service (12,308) - - - - - Estimated Labor Contract Costs (20,504) (26,471) (23,259) (23,724) (24,199) (24,683) Surplus/(Deficit) 49,861 (22,757) (15,313) (10,506) (1,318) 11,741 Reserve for Budget Development (49,861) 22,757 15,313 10,506 1,285 - ENDING AVAILABLE FUND BALANCE - - - - (33) 11,741 G/MU 5-Year Forecast (With HTF)
5-Year Forecast
General (G) and Measure U (MU) Funds ($ in 000s)
FY2021/22
Amended
FY2022/23
Projection
FY2023/24
Projection
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
Revenues
Revenues and Other Sources 684,565 693,377 713,008 735,480 751,966 767,157 Total Revenues/Resources 684,565 693,377 713,008 735,480 751,966 767,157 Expenditures
Operations (Operating, Debt, MYOPs, Other Uses, EUR) 670,363 686,829 703,604 722,202 735,954 746,350 Capital Projects 14,623 12,690 12,840 12,940 13,040 13,040 Total Expenditures/Uses 684,986 699,519 716,444 735,142 748,994 759,390 Surplus/(Deficit) (421) (6,142) (3,436) 338 2,972 7,767 One-Time Resources/(Uses)
FY2021/22 Midyear Revenue Adjustments 26,163 15,551 14,863 14,516 16,612 19,834 FY2020/21 Year-End Resources (General Fund) 30,315 - - - - - FY2020/21 Year-End Resources (Measure U Fund) 12,045 - - - - - Citywide Organizational Needs (ARPA/HTF) - Labor MOUs 14,894 - - - - - CalPERS Earnings/Discount Rate Change (7.0% to 6.8%) - - 2,770 8,510 14,160 19,810 FY2021/22 Midyear Expenditure Adjustments (322) (320) (320) (321) (323) (324) ARPA G/MU Fund Out-Year Costs - (5,375) (5,931) (9,826) (10,540) (10,663) Pandemic Debt Service (12,308) - - - - - Estimated Labor Contract Costs (20,504) (26,471) (23,259) (23,724) (24,199) (24,683) Surplus/(Deficit) 49,861 (22,757) (15,313) (10,506) (1,318) 11,741 Reserve for Budget Development (42,661) 22,757 15,313 4,591 - - REPLENISH HTF (7,200) - - - - - ENDING AVAILABLE FUND BALANCE - - - (5,915) (1,318) 11,741 Budget & Audit Committee
Recommendations
Budget & Audit Recommendations (in 000s) Midyear
Cost
Affordable Housing and Homelessness
Housing Trust Fund 10,000$
Department of Community Response Outreach 2,800
Sacramento Steps Forward Coordinated Access System 1,000 Women's and Children's Shelter 1,000
Economic Development
La Familia Opportunity Center 2,000
California Mobility Center 1,000
Winn Park/Latino Center of Art & Culture 200
Youth and Inclusive Community Investment
Youth Investment 5,500
Marina Vista/Alder Grove Neighborhood Revitalization 2,500 City’s Racial Equity Initiatives
Racial Equity Virtual Resource Center 50
Development of Racial Equity Council 100
Grants 150
Development of Sacramento Municipal Reparations
committee
200
Fuel Network 500
Total 27,000$
G/MU 5-Year Forecast (Budget & Audit Committee
Recommendations)
5-Year Forecast
General (G) and Measure U (MU) Funds ($ in 000s)
FY2021/22
Amended
FY2022/23
Projection
FY2023/24
Projection
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
Revenues
Revenues and Other Sources 684,565 693,377 713,008 735,480 751,966 767,157 Total Revenues/Resources 684,565 693,377 713,008 735,480 751,966 767,157 Expenditures
Operations (Operating, Debt, MYOPs, Other Uses, EUR) 670,363 686,829 703,604 722,202 735,954 746,350 Capital Projects 14,623 12,690 12,840 12,940 13,040 13,040 Total Expenditures/Uses 684,986 699,519 716,444 735,142 748,994 759,390 Surplus/(Deficit) (421) (6,142) (3,436) 338 2,972 7,767 One-Time Resources/(Uses)
FY2021/22 Midyear Revenue Adjustments 26,163 15,551 14,863 14,516 16,612 19,834 FY2020/21 Year-End Resources (General Fund) 30,315 - - - - - FY2020/21 Year-End Resources (Measure U Fund) 12,045 - - - - - Citywide Organizational Needs (ARPA/HTF) - Labor MOUs 14,894 - - - - - CalPERS Earnings/Discount Rate Change (7.0% to 6.8%) - - 2,770 8,510 14,160 19,810 FY2021/22 Midyear Expenditure Adjustments (322) (320) (320) (321) (323) (324) ARPA G/MU Fund Out-Year Costs - (5,375) (5,931) (9,826) (10,540) (10,663) Pandemic Debt Service (12,308) - - - - - Estimated Labor Contract Costs (20,504) (26,471) (23,259) (23,724) (24,199) (24,683) Surplus/(Deficit) 49,861 (22,757) (15,313) (10,506) (1,318) 11,741 Reserve for Budget Development (22,861) 22,757 104 - - - Mayor's Proposal (27,000) - - - - - ENDING AVAILABLE FUND BALANCE - - (15,209) (10,506) (1,318) 11,741 • Proposed Budget Release:
Week of April 18, 2022
• Budget & Audit
Committee: May 3, 2022
• City Council Hearings:
May & June 2022
• Approved Budget
Adoption: June 14, 2022
FY2022/23 Budget Development Timeline