FOR THE COUNCIL MEETING OF FEBRUARY 20, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Finance Director Xenia Bradford
SUBJECT: Review Second Quarter Financial Report Ending December 31, 2023 ; Adoption of a Resolution Approving Second Quarter Amendments to 2023-24 Budget for Proposed Personnel and Budget Adjustments ; Adoption of a Resolution Approving the Updated Salary Schematic
Description:
The City Council will consider receiving the 2023-24 Second Quarter Financial Report and adoption of Resolutions 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 Second Quarter ending December 31, 2023; 2) Adopt a Resolution approving Second Quarter amendments to the 2023 -24 Budget for personnel and operational changes ; and 3) Adopt a Resolution establishing the City of Santa Maria Administrative Leader, Program Leader, and Business Leader job classes, approving the corresponding job specific ations for each, and approving the updated comprehensive salary schematic.
BACKGROUND:
Four times each year, City staff completes a comprehensive analysis of City finances, including projected fund balances, revenues to date, departmental expenditure s, encumbrances, and potential adjustments. This financial report summarizes the second 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 Second Quarter Ending December 31, 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 2 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.
The Proposed Budget Amendments (Attachment B) discuss the personnel allocation and budget amendment requests for incorporation into the 2023-24 Budget.
The agenda item also proposes to restructure the Business Program Leader job classification and establish three new job classifications (Administrative Leader, Program Leader, and Business Leader) to separate and distinguish the three levels (Attachments C through G). Each level within the new leadership series will include entry, journey, and senior based on the scope and level of a variety of factors including organizational responsibility, level of authority, decision -making, independence, and influence across the organizati on. Each of the newly proposed job classifications will have a new pay structure of eight steps (A through H) on the schematic of approved pay scales and advance to the next step based on satisfactory performance. It is expected that that the modified employee classification structure, will result in a positive impact and increase to current service levels to the public achieved by attracting new candidates, increased employee job satisfaction and retention, and increased performance due to the flexibility and advancement opportunities in this new structure. There is no fiscal impact associated with this action as the newly proposed three-tier compensation structure falls within the existing Business Program Leader classification pay range. No additional full-time equivalent positions are requested with this action.
Alternative(s)
A decision not to approve the budget amendments is an alternative to this recommendation. However, doing so will limit the ability to maintain required operational services.
Fiscal Considerations
If approved, the total fiscal impact of the proposed budget adjustments through the remainder of FY 2023 -24 is summarized by fund in the following table. Resources are available within undesignated fund balances in the respective funds to accommodate the recommendations in the current fiscal year. The current fiscal year impact resulting from the proposed budget amendments is $1,185,400 and will be drawn from the respective fund balances. The City adopted the 2023 -24 Budget with the in tent of using approximately $2.02 million in one -time Local Economic Augmentation Fund (LEAF) to help balance the 2023 -24 Budget. The City Council further approved $1.8 million in additional appropriations with the First Quarter Financial Report, including $365,000 within the General Fund. The ongoing annualized fiscal impact of the proposed budget amendments beginning in FY 2024-25 is estimated at $4,249,350.
3 PROPOSED BUDGET AMENDMENTS
Fund
2023-24
Revenues
2023-24
Expenditures
Net Impact to
2023-24 Fund
Reserves
Annualized
Ongoing
Fiscal Impact
General Fund $ - $ 916,900 $ (916,900) $ 3,499,200
Water Fund - 70,500 (70,500) 281,600
Wastewater Fund - 154,700 (154,700) 218,700
Solid Waste Collection Fund - 10,400 (10,400) 41,400 Solid Waste Disposal Fund - 10,400 (10,400) 41,400
Northwest Landscape
District
- 22,500 (22,500) 89,850
Insurance Fund - - - 94,700
Citywide Total $ - $ 1,185,400 $ (1,185,400) $ 4,266,850
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.
ATTACHMENTS
Resolution - Approving Second Quarter Amendments to the 2023-24 Budget for Personnel and Operational Changes.
Resolution - Establishing the City of Santa Maria Administrative Leader, Program Leader, and Business Leader job classes, approving corresponding job specifications for each, and approving updated comprehensive salary schematic.
Attachment A - Quarterly Financial Report Second Quarter Ending December 31, 2023.
Attachment B - Proposed Budget Amendments.
Attachment C: Existing Business Program Leader Job Classification Attachment D - Administrative Leader Job Classification Attachment E - Program Leader Job Classification
Attachment F - Business Leader Job Classification
Attachment G - Comprehensive Salary Schematic Schedule