FOR THE COUNCIL MEETING OF NOVEMBER 21, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
Prepared by: Interim Director of Finance Xenia Bradford
SUBJECT: Review of the Financial Report for the First Quarter Ending September 30, 2023, and Adoption of a Resolution Approving First Quarter Amendments to the 2023-24 Budget
Description:
The City Council will consider receiving the 2023 -24 First Quarter Financial Report and adoption of a Resolution approving amendments to 2023-24 budget.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1) Receive and file the Financial Report for the First Quarter ending September 30, 2023; and 2) Adopt a Resolution approving First Quarter amendments to the 2023 -24 Budget for personnel and operational changes.
BACKGROUND:
Four times each year, City staff completes a comprehensive analysis of City finances, including projected fund balances, revenues to date, departmental expenditures, encumbrances, and potential adjustments. This financial report summarizes the first quarter financial analysis.
Additionally, as part of the City’s budget process, staff presents to the City Council various personnel and operational changes in conjunction with the quarterly financial report.
DISCUSSION:
The Quarterly Financial Report First Quarter Ending September 30, 2023 (Attachment A) provides an overview of the current economic outlook at the State and National levels; General Fund revenues, expenditures, projected fund balances; Measure U activity; and, activity in the three Enterprise Funds. Though this information is not audited and does not contain all the usual year-end adjustments, accruals, or disclosures, the information does provide a general picture of the City’s activity and the developing financial trends.
2 The Proposed Budget Amendments (Attachment B) discuss the personnel allocation and Capital Improvement Program budget amendment requests for incorporation into the current 2023-24 Budget.
Alternative:
A decision not to approve the budget amendments is an altern ative to this recommendation. However, doing so will limit the ability to maintain required operational services, and would prevent specific capital improvement projects from being completed.
Fiscal Considerations:
If approved, the total fiscal impact of the proposed budget adjustments is summarized by fund in the following table. Sufficient resources are available in the respective funds to accommodate the recommendations. The requested capital project allocation fo r the Solid Waste Disposal Fund was previously included in the four-year Summary of Capital and Maintenance Projects presented with the Fiscal Year 2022-24 Budget. The project is proposed to be moved forward sooner than planned.
PROPOSED BUDGET AMENDMENTS
Fund
Revenues
Expenditures
Net Impact to
Fund Reserves
General Fund $ - $ 385,000 $ (385,000)
Water Fund - 215,000 (215,000)
Wastewater Fund - 175,000 (175,000)
Solid Waste Collection Fund - 45,000 (45,000)
Solid Waste Disposal Fund - 1,000,000 (1,000,000)
Citywide Total $ - $ 1,820,000 $ (1,820,000)
Impact to the Community
The interim financial statement provides the community with an understanding of the financial activity of the City’s primary funds. The requested budget amendments will enable staff to maintain operations and meet new State regulatory requirements.
Proposed Resolution
Attachment A - Quarterly Financial Report First Quarter Ending September 30, 2023 Attachment B - Proposed Budget Amendments