RESOLUTION 2023-XXX
CONSIDER RESOLUTION (1) ACCEPTING THE PRESENTATION ON THE CITY’S 10 -
YEAR LONG -RANGE FINANCIAL PLAN TO INCLUDE THE BASELINE FINANCIAL
MODEL, BUDGET ASSUMPTIONS AND PRELIMINARY RECOMMENDED MEASURES
TO REDUCE GENERAL FUND OPERATING DEFICITS AND SUBSIDIES AS FORECASTED FOR PERIOD 2024 -2034; (2) AMENDING THE FY 2023 -25 CITY
COUNCIL PRIORITY WORKPLAN TO INCLUDE NEW RECOMMENDED STRATEGIC BUDGET INITIATIVES FOR FY 2025 -27 PERIOD; AND (3) AUTHORIZING THE CITY
MANAGER TO EXPLORE F EASIBILITY AND RECOMMEND FUTURE
IMPLEMENTATION OF STRATEGIC BUDGET INIT IATIVES AND MEASURES TO
REDUCE FORECASTED GENERAL FUND DEFICITS AND SUBSIDIES PRIOR TO ADOPTION OF THE PROPOSED FY 2025 -2027 MULTI -YEAR GENERAL FUND OPERATING BUDGET, EFFECTIVE JULY 1, 2024.
WHEREAS, “Continue Fiscal Resilience, Fiscal Excellence and Fiscal Transparency” is an adopted City Council Priority contained in the adopted Fiscal Year 2023- 2025 City Council Priority Workplan, effective May 1, 2023;
WHEREAS, the development of a Long- Range Financial Plan (LRFP) is one of the solutions that will help the City of San Pablo to be more strategic, resilient, and sustainable in navigating economic uncertainties and downturns, catastrophic events, future costs such as infrastructure repair and maintenance, and pension liabilities;
WHEREAS, to assist the City with this effort, the City engaged PFM Group Consulting LLC, following City Council approval on September 5, 2023, via adopted Resolution No. #2023-132, to develop a LRFP and a financial modeling tool to provide information to the City Council for strategic decision making affecting the City’s fiscal sustainability in the short and long term; and
WHEREAS, to ensure that the City can maintain existing “status quo” service delivery, operations and maintenance (O&M) levels, and respond to future economic challenges, the City Manager desires to explore new options to plan for longer -term and more complex budget solutions in the coming years.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Pablo hereby accepts the presentation of the City’s 10-Year Long-Range Financial Plan;
BE IT FURTHER RESOLVED that the City Council hereby amends the FY 2023-25 Council Priority Workplan as follows to include new strategic budget initiatives and cost - saving measures as recommended by the City Manager:
MAJOR POLICY GOAL: FOCUS ON ECONOMIC DEVELOPMENT AND FISCAL
DIVERSIFICATION
Add Policy No. #414 – NEW STRATEGIC BUDGET INITIATIVES TO ADDRESS NEW STRUCTURAL DEFICITS FORECASTED FOR FY 2025-2027 PERIOD
1. Implement a zero-based budget (ZBB) planning model for FY 2025- 27 budget planning cycle to optimize City service delivery and generate annual GF operati ng cost savings for all City Departmental expenses.
2. Eliminate or substantially reduce all Annual GF operating subsidies.
3. Identify new General Fund annual revenue sources.
4. No (0) new FTE increases authorized during FY 2025-2027 period (i.e., Zero-growth; status-quo)
5. Extend FTE hiring freeze on all FTE vacancies during FY 2025-2027 period.
6. Re-tool & revise adopted fiscal resiliency policy requirements to reverse forecasted structural deficits as one-time balancing measures (for FY 2025-2027 period only)
7. Explore use of one- time funds from GFDR fund balance to reverse forecasted structural deficits as one-time budget balancing measures (for FY 2025-2027 period only)
8. Explore additional fiscal measures using forecast model to reverse forecasted structural deficits as recommended by the City Manager
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to explore the feasibility and recommend future implementation of all recommended strategic budget initiatives and proposed measures to reduce forecasted General Fund deficits and subsidies prior to adoption of the proposed FY 2025- 2027 Multi-Year General Fund Operating Budget, effective July 1, 2024.
BE IT FURTHER RESOLVED that the foregoing recitations are true and correct and are included herein by reference as findings.
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ADOPTED this 13th day of December 2023, by the following votes:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ATTEST: APPROVED:
______________________ _________________
Dorothy Gantt, City Clerk Patricia Ponce, Mayor