FY 2023/24 Mid-Year Report
Barbara Whitehorn, Director of Finance & Management
Services
Zuyva Ruiz, Budget Manager
March 20, 2024
FY 2023/24 Mid-Year Report
Presentation Overview
• Economic Update
• Revenue Review
• Budget Performance
• Necessary Budget Amendments
• City Manager’s Recommendations
• Discussion
2 ECONOMIC UPDATE
3 Economic Update
National Economic Trends - 4th Quarter of
2023
• GDP growth of 3.3% - exceeded expectations
• Personal income increased by $224.8 billion
• Disposable personal income increased 4.2%
• Personal savings was $818.9 billion, down from
$851.2 billion in Q3
4 Economic Update
Local Economic Trends
• San Bernardino County Unemployment Rate
• November 2023: 5.0%
• November 2022: 4.0%
5 Economic Update
6 CPI-
unchanged
from
October to
November
Economic Update
CPI Details
• Increased 4.3% over last 12 months
• Food prices up 3.8%
• Energy index decreased overall by 6.0%
• Gasoline prices down but electricity up 7.2%
• Overall increase in Cost of Living in the area
7 REVENUE REVIEW
FY 2023/24
8 FY 2023/24 Revenue
9 FY 2023/24 Revenue
10 FY 2023/24
Revenue
Forecast
Amended
Budget:
$208.35M
Forecast:
$218.57M
FY 2023-24 Revenue
Revenues Forecast
Under Budget
• Sales & Use Tax (1.6%)
• Measure S Transaction
& Use Tax (0.9%)
• Cannabis Tax (6.7%)
Revenues Forecast
Over Budget
• Franchise Tax 3.8%
• Licenses & Permits
12.6%
• Utility Users Tax 19.0%
11 Revenue Performance
BUDGET PERFORMANCE
FY 2023/24
12 FY 2023/24 Mid-Year Expenditures - GF
13 General Fund Departments
• Key to Note:
• CalPERS required annual payment for City’s
Unfunded Pension Liability is paid annually in July
- $32.8M
• Safety (Police): $23.2M – PD personnel budget
• Miscellaneous (all other employees) $9.6M – all other personnel budgets
14 Department Budget Performance
General Fund Departments
• Police
• Community Dev.
• Parks & Recreation
• Library
• Public Works
• Human Resources
• Finance
• City Manager’s Office
15 Department Budget Performance
Departments on Track or Under Budget
General Fund Departments
General Fund – To Maintain Existing Service Levels
• Legal Services
• $1,000,000 for outside specialized legal counsel
• Will go over budget without additional funding
• Police Department
• $875,000 for additional Overtime
• Reimbursable – NO BUDGET IMPACT
16 Necessary Budget Amendments
FY 2023/24 Mid-Year Expenditures – Other
Funds
17 Other Funds
• Animal Services
• Fleet Services
• Information Technology
18 Budget Performance
Funds on Track or Under Budget
Other Funds
Liability Fund – To Maintain Existing Service
Levels
• $7,000,000 allocation
• 84% of budget spent through 12/31/2023
• $7.7M of $9.2M Budget
• Higher than anticipated legal settlements in first
half of FY 2023/24
19 Necessary Budget Amendments
Other Funds
Liability Fund – Additional Details
• Settlements in the last 5 years have
exceeded $13.5M
• Settling outstanding cases, City more of a
target now that bankruptcy is resolved
20 Necessary Budget Amendments
CITY MANAGER RECOMMENDATIONS
MEETING THE NEEDS OF THE COMMUNITY
FY 2023/24
21 Manager Recommendations
22 Community Development &
Housing
Challenges:
• Dependent on contract services for Building Inspectors • Labor market is extremely competitive to recruit
Requests:
• 1 full-time Building Inspector position
• $33,788 in FY 2023/24 and $104,520 in FY 2024/25
Manager Recommendations
23 Library
Challenges:
• Lack of management support structure for Director
• Difficulty recruiting, lack of personnel to track grant reporting and compliance
• Increased hours of branches require more personnel
Requests:
• 1 full-time Management Analyst position
• $32,372 in FY 2023/24 and $108,217 in FY 2024/25
• 1 full-time Library Technician position
• $31,197 in FY 2023/24 and $76,340 in FY 2024/25
Manager Recommendations
24 Challenges:
• Renovations at Roosevelt Bowl will interrupt events
• Lack of staff to address increasing needs for Senior Citizen Services Requests:
• $125,000 – Stage Trailer – one-time expenditure
• 1 full-time Community Recreation Program Supervisor position • $37,818 in FY 2023/24 and $82,899 in FY 2024/25
Parks &
Recreation
Manager Recommendations
25 Police
Challenges:
• Grant funding with demanding reporting requirements
• Expiration of grant funding, need to absorb grant-funded personnel Requests:
• 1 full-time Accounting Technician position
• $28,833 in FY 2023/24 and $81,863 in FY 2024/25
• 1 full-time Marketing & Public Relations position and 1 full-time Criminal Investigation Officer position
• $72,568 in FY 2023/24 and $222,482 in FY 2024/25
Manager Recommendations
26 Police
Challenges:
• State mandated crime statistics reporting
• Lack of personnel to adequately support that
Requests:
• 1 full-time Police Records Supervisor, 3 full-time Police Records Technicians
• $125,870 in FY 2023/24 and $339,205 in FY 2024/25
Mid-Year Budget Amendment Summary
27 Manager Recommendations and Identified
Needs
Ongoing Costs
11 Full-Time positions
• FY 2023/24: $362,446
• Ongoing: $1,015,526
Specialized Legal
• FY 2023/24: $1,000,000
• Ongoing: $1,000,000
TOTAL FY 2023/24:
$1,362,446
TOTAL Ongoing: $2,015,526
One-Time Costs
Police overtime*
• $875,000 Fully reimbursable
Parks Stage Trailer
• $125,000
Liability Fund
• $7,000,000
TOTAL FY 2023/24: $8,050,000
Budget impact: $7,175,000
28 Summary
FY 2023/24 Budget with Recommendations –
GF
29 FY 2023/24 Budget with Recommendations –
Other
30 General Fund Bottom Line
31 The Amended Budget assumes a Use of Fund Balance;
however, the forecast, given spending and revenue
expectations, is to ADD to Fund Balance.
DISCUSSION
32