May 10, 2022
FY2022/23
Budget Overview
Overview
Proposed Budget Summary
General/Measure U
Expenditures
General/Measure U Revenues
General/Measure U Forecast
Enterprise Funds
Future Challenges/Liabilities
What’s Next?
FY2022/23 Proposed Budget:
$1.4 billion
General/Measure U (G/MU) Funds:
$706M Operations
$18M Capital
Enterprise Funds:
$347M Operations
$32M Capital
Other Funds:
$242M Operations
$70M in Capital
G/MU Fund Expenditures
$33.6M increase in Labor
$16.3M increase in wages (contracts, steps)
$8.7M increase in Pension Unfunded Liability
$2.1M increase in health costs
$8.3M in one-time funds to continue homelessness response $3.7M increase in General and Auto Liability Insurance $1.4M increase for year 2 of Diversity Outreach and
Recruitment Program (DOR)
$366K for Center of Sacramento History and Crocker Art Museum (lease and collection maintenance)
G/MU Fund Revenues
$754 million
Revenue growth primary drivers
Property Tax (6.5%)
Sales and Measure U Transaction & Use Tax (4.2%)
Revenue Challenges
Parking (on and off street)
Transient Occupancy Tax (hotel tax)
Revenue Source ($ in 000s)
FY2021/22
Amended
FY2022/23
Proposed
FY2023/24
Projected
FY2024/25
Projected
FY2025/26
Projected
FY2026/27
Projected
Property Tax 192,318 204,944 212,708 218,755 224,993 231,429 Measure U Transaction & Use Tax 124,238 135,769 139,735 137,856 142,649 147,135 General Sales & Use Tax 98,963 108,467 111,873 112,782 116,723 120,303 Utility User Tax 63,000 65,665 65,994 66,324 66,655 66,989 Other Revenue/Other Sources 212,889 238,881 233,506 238,404 243,015 247,865 Total G/MU Revenue 691,408 753,726 763,816 774,121 794,035 813,721 G/MU Fund Forecast
5-Year Forecast
General (G) and Measure U (MU) Funds ($ in 000s)
FY2022/23
Projection
FY2023/24
Projection
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
Revenues
Revenues 740,864 761,316 771,621 791,535 811,221
Other Sources 12,862 2,500 2,500 2,500 2,500 Total Revenues/Resources 753,726 763,816 774,121 794,035 813,721 Expenditures
Department Operating, Debt, and MYOPs 713,883 735,234 754,515 770,151 783,828 Capital Projects 18,080 12,840 13,296 13,321 13,321
EUR Contribution 11,731 3,707 3,810 3,909 4,002
Total Expenditures/Uses 743,694 751,781 771,620 787,381 801,151 Surplus/(Deficit) 10,032 12,036 2,501 6,654 12,570
One-Time Resources/(Uses)
Reserve for FY2023/24 Budget Development - 10,000 - - - Homeless Services Resources 13,847 - - - - Homeless Services Funding Gap (22,120) (40,155) (41,856) (42,902) (43,974) ENDING AVAILABLE FUND BALANCE 1,759 (18,119) (39,354) (36,247) (31,404) G/MU Fund Forecast
With HHAP 4
5-Year Forecast
General (G) and Measure U (MU) Funds ($ in 000s)
FY2022/23
Projection
FY2023/24
Projection
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
Revenues
Revenues 740,864 761,316 771,621 791,535 811,221
Other Sources 12,862 2,500 2,500 2,500 2,500 Total Revenues/Resources 753,726 763,816 774,121 794,035 813,721 Expenditures
Department Operating, Debt, and MYOPs 713,883 735,234 754,515 770,151 783,828 Capital Projects 18,080 12,840 13,296 13,321 13,321
EUR Contribution 11,731 3,707 3,810 3,909 4,002
Total Expenditures/Uses 743,694 751,781 771,620 787,381 801,151 Surplus/(Deficit) 10,032 12,036 2,501 6,654 12,570
One-Time Resources/(Uses)
Reserve for FY2023/24 Budget Development - 10,000 - - - Homeless Services Resources 13,847 13,847 - - - Homeless Services Funding Gap (22,120) (40,155) (41,856) (42,902) (43,974) ENDING AVAILABLE FUND BALANCE 1,759 (4,272) (39,354) (36,247) (31,404) Enterprise Funds
Community Center Fund
TOT collections to reach 89% of pre-pandemic levels
One-time Midyear funds of $6.7M expected to stabilize Fund
Debt service obligations payments expected to be met
Parking Fund
Parking revenues recovering, but less than Midyear
estimate
One-time Midyear funds of $5.1M not expected to
stabilize Fund
Projected deficits over five years
Future Challenges/Liabilities
Pension costs expected to increase 24% over forecast
General/auto liability expected to increase 44% over the forecast
Potential recession impacts
Lack of funding to maintain current homeless services Future labor MOU costs
May 10, 2022
FY2022/23 Proposed
Consolidated Report
Overview
Mayor and City Council
Charter Offices
Community Development
Community Response
Convention and Cultural Services
Public Works
Support Departments
Finance
Human Resources
Information Technology
Utilities
Citywide and Community Support
Augmentations
General/Measure U Funds
Department FTE
FY2022/23
Amount
Mayor/Council - 22,098
City Treasurer - (600,000)
Community Development 7.00 -
Community Response - 8,272,327
Convention and Cultural Services (1.25) 264,002
Finance 1.90 -
Human Resources 1.00 117,150
Information Technology 1.00 -
Public Works 1.00 -
Citywide and Community Support - 791,953
Grand Total 10.65 8,867,530$
Augmentations
Other Funds
Department/Fund FTE
FY2022/23
Amount
Convention and Cultural Services
Community Center 0.75 24,920
Public Works
Gas Tax - 58,996
General/Gas Tax/Parking 1.00 -
Recycling and Solid Waste 13.00 -
Utilities
Water 1.00 21,396
Grand Total 15.75 105,312$
Reorganization
The Office of Violence Prevention moved from Community Response to Police
• Division includes 2.0 FTE
Police Department
The Office of Diversity and Equity moved from CMO to HR • Division includes 3.0 FTE
Human Resources (HR)
The Office of Youth Policy Development will remain in CMO but will be housed within the Office of Innovation and
Economic Development
• Division includes 6.0 FTE
City Manager’s Office (CMO)
Post-Budget Release Changes
Storm Drainage Property Fee Fund
New fund approved by City Council on April 12,
2022
Finalizing revenues and expenditures
Evaluating impact of the fee on General Fund
and other programs
May 17 – Council Budget Hearing
2 p.m. – CIP , Citywide Fees and Charges, and
Youth, Parks, and Community Enrichment
5 p.m. – Fire and Police Departments
May 31 – Budget & Audit
Budget Recommendation to Council
June 14 – Budget Adoption