City Council
Housing Authority
Parking Authority
Report
City Council Meeting: April 11, 2023
Agenda Item: 11.A
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To: Housing Authority, Parking Authority, Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Budget Subject: Fiscal Year 2022-23 Midyear Budget
Recommended Action
Staff recommends that the City Council, Housing Authority and Parking Authority:
1. Appropriate FY 2022-23 midyear revenue and expenditure budget adjustments (Attachment A).
Staff also recommends that the City Council:
1. Adopt a Resolution establishing new classifications and adopting salary rates for various positions (Attachment B);
2. Approve the position and classification changes (Attachment C);
3. Adopt the attached resolution authorizing the application for approved grant funds in the amount of $10 million from the California Arts Council for the Santa Monica City Yards Modernization Microgrid Projects (Attachment D);
4. Adopt the attached resolution authorizing execution of agency-state Master Agreement for State and Federal-Aid funded transportation projects with the California Department of Transportation, in the amount of $4.8 million, for the Lincoln Neighborhood Corridor Streetscape (LiNC) projects (Attachment E);
5. Authorize the City Manager to accept a grant award in the amount of $51,173 from the U.S. Department of Justice (DOJ) Edward Byrne Memorial Justice Assistance Grant (JAG) for implementation of the JAG 2022 Project “Overtime Operations to Keep Neighborhoods Safe” and execute all necessary documents to accept the grant and all grant renewals;
6. Authorize the City Manager to accept a grant award in the amount of $34,497 from the U.S. Department of Justice (DOJ) Bureau of Justice Assistance 2022 Bulletproof Vest Partnership (BVP) Grant to support the replacement of bulletproof vests and execute all necessary documents to accept the grant and all grant renewals;
7. Authorize staff to amend the City’s Fiscal Policy to allow for the suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 to FY 2027-28 or later, pending restoration of City services and maintenance budgets and reserves; and,
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8. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
Summary
The Midyear Budget Review provides an opportunity to assess whether adopted budget projections should be adjusted based on eight months of actual data. Adjustments in current year projections are important as they may inform future year projections and therefore assist staff in developing the five-year financial forecast and the budget targets for the next biennial budget.
Actual data shows that while our economy has been recovering, indicators are still reflecting high volatility and uncertainty in the economy, with continued inflation, interest rate increases, labor shortages, and changes in office work, consumer and visitor behavior. Additionally, recent bank failures have caused concerns regarding potential weakness in the global financial system, which in some cases has already required government intervention in the U.S. and abroad.
The City’s General Fund primarily relies on revenue streams that are indicators of local economic activity, including sales and hotel taxes, parking revenues, and property taxes. While General Fund revenues are growing, a sign that our local economy has been recovering, levels are still below what they would have been had the economy not been disrupted by the pandemic. At the same time, as reported in the FY 2023-24 through FY 2027-28 Five Year Financial Forecast presented to City Council at the 2023 Council Workshop on March 11, 2023, while the City’s economy showed a strong recovery over the past 18 months, it is now showing signs of softening. The $21.9 million increase to budgeted FY 2022-23 General Fund revenues recommended in this report is for the most part a one-time increase, reflecting an earlier than anticipated recovery that will now shift to a significantly moderated recovery.
Adding to the fiscal challenge is the current condition of the General Fund reserves.
Strong reserves are necessary to cushion the delivery of services from the impact of emergency expenditures, contingent liabilities, and economic uncertainty. Since 2020, 3 of 17
the City has had to program General Fund reserves to deliver essential services during the COVID-19 pandemic and to cover a significant portion of the $107.3 million in legal settlement payments related to allegations of sexual abuse by former employees. The General Fund non-restricted reserves are now 70% of what they were as of June 30, 2019. Looking ahead, the City is facing some extraordinary, one-time contingent liabilities that further threaten reserve levels.
To summarize, it is important to keep the following conditions in mind as we adjust the budget at midyear:
• There is still a great amount of volatility and concerns about weaknesses in the economy;
• General Fund revenue levels, even as adjusted, are still below the levels they were projected to have reached had the pandemic not occurred, explaining the City’s limited ability to restore services;
• The pace of economic recovery has been earlier than anticipated (and budgeted), but is now showing signs of softening; and
• The City’s General Fund reserves, important to maintain uninterrupted essential service delivery and maintain financial stability, are at a reduced level while contingent liabilities loom in the future.
For this reason, midyear expenditure changes are kept to a minimum, with a net increase of 8.2 FTE permanent positions (7.2 FTE in the General Fund), offset by a decrease of 4.7 as-needed FTE positions (4.27 FTE in the General Fund), primarily focused on the expansion of youth programs, as preliminarily approved by Council at the 2023 Council Workshop. The expenditure adjustments also include items based on Council actions taken after the adoption of the FY 2022-23 Budget, adjustments related to revenue-sharing payments as a result of revenue changes, corrections, and adjustments based on new information. The table below summarizes the revenue and expenditure budget adjustments. The complete list of adjustments is included in Attachment A.
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Proposed Budget Adjustments
(in millions)
Fund Revenues Expenditures
Operating Capital Total
General Fund $ 21.9 $ 11.6 $ 0.2 $ 11.8
Other Funds $ 42.0 $ 4.1 $ 17.0 $ 21.1
Total All Funds $ 63.9 $ 15.7 $17.2 $ 32.9
The report also includes recommendations to adopt two resolutions for State earmarks for the City Yards Modernization Microgrid and the Lincoln Neighborhood Corridor Streetscape (LiNC) projects, accept two federal grants from the U.S. Department of Justice and to authorize staff to suspend future pension fund paydown payments starting in FY 2022-23 through FY 2027-28, or later, based on Council direction at that time, providing the ability to reallocate those funds to restoring General Fund services while revenues continue to recover.
Background
The FY 2022-23 Operating Budget and FY 2022-24 Biennial Capital Improvement Budget was adopted by Council on June 28, 2022 (Attachment F). The FY 2022-23 Operating Budget was built in an environment of significant economic uncertainty and is focused on key areas that improve service delivery for the community. The first year (FY 2022-23) of the FY 2022- 24 Adopted Biennial Capital Improvement Program (CIP) Budget is focused on strategic investments in maintaining and enhancing critical City infrastructure and City facilities essential to providing services.
At the March 11, 2023 City Council Workshop, staff presented the FY 2023-24 through FY 2027-28 Five Year Financial Forecast. The General Fund forecast, which includes the midyear adjustments proposed in this report, reflects a positive balance of revenues and expenditures for the next three years, with a low level of deficits in the last two years of the forecasted period. An overview of other funds noted that the Resource, Recycling and Recovery (RRR) Fund would achieve positive balances with the help of 5 of 17
rate increases, anticipated to be brought to Council for approval in June 2023, and that the Beach and Pier Funds would require subsidies from the General Fund during the forecast period.
At the same meeting, Council:
• Set the organizational priorities that will guide the development and implementation of the FY 2023-2025 biennial budget; and • Provided direction and preliminary approval for proposed FY 2023-25 budget items, including
o the allocation of Measure CS funds,
o the suspension of the unfunded pension liability paydown policy to allow the reallocation of $2.5 million in the General Fund to cover service restoration in key areas,
o approval of the organizational realignment of the Community Service Department to align and focus the City’s work on Council priorities and implementation of newly adopted tax measures including Measure GS.
With the exception of the priorities, which were slightly amended during the Workshop meeting (priorities as finalized are included as Attachment G), the attached March 11, 2023 staff report provides a thorough summary of the actions that were unanimously adopted.
Discussion
Midyear budget adjustments are made to reflect updated revenue projections, and to facilitate continuity in key service areas, for the reasons noted below.
FY 2022-23 Midyear Revenue and Operating Expenditure Budget Adjustments Revenue Adjustments - General Fund
Staff projects General Fund revenues to reach approximately $425.3 million in FY 2022-
23. This projection is based on actual data from July to February 2023 as well as 6 of 17
anticipated changes in economic conditions and community behaviors over the remainder of the fiscal year. These projections require adjustments to increase FY 2022-23 Revised Budget revenue targets in the General Fund by approximately $21.9 million. A summary of the significant budget changes is shown below. Attachment A lists all revenue budget changes by department and fund.
Sales Taxes Including GSH transaction and use tax
FY 2022-23 revenues are anticipated to be $7.3 million (~10%) above budget. Much of this is carryforward of strong FY 2021-22 results which reached and even slightly exceeded pre-COVID levels. However, FY 2022-23 levels are only 2% more than FY 2021-22 actuals. It is important to note that the FY 2022-23 revenue increase is accompanied by a $3.68 million expenditure increase, reflecting greater Measure GSH contributions to the School District and affordable housing.
Utility Users Tax
FY 2022-23 estimated revenues are exceeding budget by $2.8 million (8%), mostly due to spikes in electricity and gas costs.
Transient Occupancy Tax (TOT)
FY 2022-23 estimated revenues are $3.1 million (5%) above budget, primarily due to the impact of Measure CS increasing TOT rates, and higher than anticipated average room rates, partially offset by a number of rooms being off-line due to property renovations.
Parking Facility Taxes
FY 2022-23 estimated revenues are $1.3 million (14%) greater than budget, mostly driven by higher than anticipated revenues from private parking facilities.
Property Taxes
FY 2022-23 estimated revenues are $1.9 million (2.5%) above budget, reflecting higher than anticipated assessed value increases.
Business License Tax
FY 2022-23 estimated revenues are approximately $1 million (3%) more than budget.
Documentary Transfer Tax
FY 2022-23 revenues are projected to be $1 million below budget and nearly $7 7 of 17
million below last fiscal year as the number of transfers has declined significantly.
Parking
FY 2022-23 revenues are approximately $0.6 million less than budget primarily due to shifts from metered parking, which reach capacity during peak hours, to parking garages, which offer free parking for short stays; lower sales of monthly parking permits in favor of discounted parking validations as downtown businesses close, downsize, or offer more teleworking options; and less business activity than projected.
Fees/Charges/Other
FY 2022-23 revenues are about $2.1 million more than budget primarily reflecting a one-time SB 90 (mandated cost) reimbursement from the State.
Investment Income
FY 2022-23 revenues on a cash basis (excluding a typical year-end adjustment made for financial reporting purposes only) are approximately $1.1 million more than budget, reflecting a greater than anticipated increase in interest rates.
Administrative Indirect (related to Cost Allocation Plan) FY 2022-23 revenues are approximately $2.9 million more than budget. This reflects an increased reimbursement to the General Fund from other funds for administrative support services, based on a recently-updated cost allocation plan. The transactions related to this item appear as expenditures throughout all of the non-General Funds in Attachment A. Those expenditures are then recorded as revenue to the General Fund.
Revenue Adjustments - Other Funds
FY 2022-23 revenue changes in the Other Funds result in an increase of approximately $42.0 million. Significant revenue adjustments in other funds are summarized below and detailed in Attachment A, along with all other revenue budget changes. • Beach Fund – Decrease of $580,352, primarily from a reduction in parking revenues due to delayed implementation of a projected rate increase pending California Coastal Commission (CCC) approvals, partially offset by greater than projected concession and event related revenues at the Annenberg Community Beach House.
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• Big Blue Bus Fund - Increase of approximately $18.1 million is primarily related to final funding allocations from LA Metro due to higher than projected sales tax revenue and diesel sales, higher rental income related to the City’s transition from operating a ground lease to providing property management of the Bergamot Station property, and adjustments to reimbursement revenues for bus purchases, bus components, and labor.
• Local Return Fund – Increase of $787,723 to align revenue based on revised funding allocations from LA Metro due to higher than projected sales tax revenue and diesel sales. Funds are to be used for local transportation projects. • Miscellaneous Grants Fund – Increase of approximately $19.4 million, reflecting funding from the State to fund the City Yards Modernization Microgrid and the LiNC projects; receipt of one-time federal HOME Investment Partnerships – American Rescue Plan (HOME-ARP) funding to provide eviction prevention services including legal services, case management, behavioral health care, and financial assistance (as approved by City Council on 9/13/22); two grant awards from the U.S. Department of Justice to support the replacement of bulletproof vests and overtime operations to keep neighborhoods safe; the annual award of the Used Oil Pay Program funds for public education, events and collection related to used oil recycling; and, other adjustments for grant funded projects projected to be completed and reimbursed by June 2023.
• Resource Recovery and Recycling Fund - Decrease of approximately $2.1 million related to reduced collections fees resulting from a later than anticipated implementation of rate increases. Staff presented rate change recommendations to Council on February 28, 2023, with the new rates anticipated to be adopted by Council in June 2023 and effective in August 2023.
• Self-Insurance, General Liability and Auto Fund - Increase of $3.1 million, reflecting a legal settlement payment from the General Fund related to allegations of sexual abuse by a former employee.
• Special Revenue Source Fund – Increase of approximately $6.4 million reflecting initial payment received from Providence St. John's development agreement to 9 of 17
be used for Santa Monica behavioral health initiatives, increase in transportation impact fees due to a rebound to pre-pandemic levels of residential and commercial development activity, partially offset by decreased revenue from the revised allocation of annual entitlement funding from the State under the Permanent Local Housing Allocation Program, which is used for affordable housing production.
• Vehicle Management Fund - Increase of approximately $872,000, reflecting increased vehicle maintenance revenue, which is paid by other City departments and funds. This reflects increased labor costs associated with revised salary and benefit changes based on the most recent labor agreements. • Wastewater Fund - Decrease of approximately $572,000 from decreased sewer service charges resulting from water use reduction as mandated by the City's Water Conservation Ordinance.
• Water Fund - Decrease of approximately $3.4 million from decreased water sales resulting from water use reduction as mandated by the City's Water Conservation Ordinance.
Operating Budget - General Fund - Expenditure Adjustments Staff proposes General Fund operating expenditure adjustments that result in an approximate $11.6 million net increase to the General Fund budget. It is important to note that $3.1 million of this amount represents the payment of funds set aside in General Fund reserves to the Liability Self Insurance Fund to pay for settlement of claims brought against the City and approximately $3.7 million is related to Measure GSH payments to the Santa Monica Malibu Unified School District and the Affordable Housing Trust Fund related to increased Transaction and Use Tax revenues. The remaining $4.8 million in operating budget adjustments reflect corrections and labor agreement impacts not included in the FY 2022-23 Adopted Budget and items that require immediate attention to maintain service levels. While Attachment A includes details of all expenditure adjustments, highlights are noted below. 10 of 17
Budget adjustments reflecting labor agreement impacts and corrections not included in the FY 2022-23 Adopted Budget:
• Net zero adjustment to allocate funds to all departments’ budgets based on approved labor agreements. Funding for this adjustment was set aside in nondepartmental to be appropriated during the midyear budget. • Appropriation of approximately $2.0 million for compensation adjustments in the Police Department, reflecting terms in the Santa Monica Police Officers Association (POA) Memorandum of Understanding, which requires base salaries of POA employees be adjusted to cause the ”net pay” of the Police Officer job classification to be the second highest in comparison local police departments. • Appropriation of $90,635 related to the Fire Executive Management Association item that is being considered in tonight’s consent calendar. • Appropriation of approximately $1.7 million to correct the Police Department’s budget for a compensation-related item that was inadvertently omitted during budget development.
• Appropriation of $120,000, to provide tenant counseling services to assist residents at risk of being evicted from their homes. This is a budget correction to program funds for the second year of the two-year pilot program, as approved by Council on January 26, 2021.
Budget adjustments for revenue-sharing payments, reflecting increased revenues:
• Appropriation of approximately $2.5 million to increase the Measure GSH payment to the Santa Monica Malibu Unified School District from the General Fund, reflecting increased Transaction and Use Tax (TUT) revenues. • Appropriation of approximately $1.2 million to increase the Measure GSH transfer to the Affordable Housing Trust Fund from the General Fund, reflecting increased TUT revenues.
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• Reduction of approximately $105,000 to decrease the payment for parking management services related to the parking revenue sharing agreement for Parking Structures 7 & 8, reflecting decreased parking revenues.
Adjustments to Maintain Services
• Appropriation of approximately $92,000 and the restoration of a net 2.93 permanent full time equivalent (FTE) positions for youth programs to meet and maintain updated staffing ratios per the City’s Child Protection protocols. This adjustment reflects the prorated FY 2022-23 costs associated with adding 7.2 permanent Community Services Program Coordinator and Community Services Program Specialist FTE positions, offset by the deletion of 4.27 As-Needed FTEs. While Council preliminarily approved this item as one of the uses for the proposed reallocation of pension pay-down funding in the next biennial budget, it is imperative that the process to recruit the positions start as soon as possible.
Staff’s attempts to recruit temporary staff to achieve the needed ratios have been unsuccessful in the current labor market. The lack of consistent staffing coverage to support enrollment numbers is threatening to shut down a number of youth-related programs. Permanent positions offer candidates a consistent schedule, benefits and better pay, often resulting in more successful recruitments than those for temporary positions. Staff anticipates that these position restorations will enable the City to accomplish the following:
o Move approximately 20-30 families off waitlists at PAL and VAP, o Maintain the Summer Lunch Program at VAP,
o Enable the VAP Teen Center to expand operations to include high school students,
o Enable the PAL Fitness Center to reopen, and
o Provide some degree of stability for CREST operations at all but one SMMUSD school site, which will see the elimination of CREST Club while maintaining Enrichment.
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• Elimination of a $500,000 FY 2022-23 credit to the General Fund from the Community Broadband (CBB) Fund. This credit, or transfer, was established during the City’s 2020 restructure to help the General Fund recover from revenue losses related to the pandemic. The elimination of this transfer will help ensure that the CBB Fund has sufficient funds to address critical operational needs. • Appropriation of approximately $444,000 to replace copper wire on City streetlights, as a result of a recent rash of copper wire thefts. • Appropriation of approximately $111,000 to continue contracted security services at the Pier in support of the DART team. This appropriation will access Measure CS funds received in FY 2022-23. At its March 11, 2023 meeting, Council preliminarily approved ongoing funding for continuation of DART activities from Measure CS funds. Programming of Measure CS funds, including the remainder of the funds received in FY 2022-23, will be included in the FY 2023-25 budget process.
Operating Budget – Other Funds - Expenditure Adjustments Staff proposes operating expenditure adjustments that result in an approximate $4.1 million net increase in funds other than the General Fund. Attachment A details all expenditure adjustments. Significant increases are summarized below:
• $2.3 million for various grant-funded programs appropriated in the Miscellaneous Grants Fund.
• $2.8 million in payments to the General Fund for administrative support services provided to non-General Fund operations (reflecting the updated Cost Allocation Plan).
• An offsetting amount of $1.2 million, representing an increased Measure GSH transfer (appearing as a credit) into the Housing Trust Fund from increases in sales taxes.
• Staffing changes in the Department of Transportation (DOT) – Big Blue Bus Fund, result in a net addition of 1.0 FTE permanent position at a net cost of 13 of 17
$44,979. The changes include the addition of 1.0 FTE Principal Administrative Analyst position, partially offset by the deletion of 1.0 Senior Transit Operations Analyst position, which will address service restoration to pre-pandemic levels, implementation of the Comprehensive Operational Analysis recommendations, new Computer Aided Dispatch/Automated Vehicle Location (CAD/AVL) system and assist with the department’s ongoing recruitment and retention efforts for Motor Coach Operators (MCOs). DOT also proposes to add 1.0 FTE permanent Staff Assistant III position, partially offset by the deletion of 0.5 FTE as-needed position, to provide full time support in training, recruitment and retention of staff, specifically Motor Coach Operators, as there is a critical national shortage resulting in adverse impacts to service.
Operating Budget – All Funds - Staffing Adjustments
The combined midyear staffing adjustments in all funds result in a net increase of 8.2 permanent FTE positions (7.2 in the General Fund) and deletion of 4.73 as-needed FTE positions (4.27 in the General Fund). Attachment A describes each budget change in detail. Attachment B is a Salary Resolution detailing new classifications and salary rates, and Attachment C details all staffing adjustments.
Capital Improvement Program (CIP) Budget Adjustments
Recommended changes to the FY 2022-23 CIP budget include a net budget increase of approximately $17.2 million. The budget changes are detailed in Attachment A and summarized below.
General Fund- Capital Budget
Staff recommends the use of one-time CIP budget savings for an appropriation of $212,600 to fund the Rooftop Fall Protection and Access Retrofits project as part of the continued implementation and compliance of the OSHA Fall Protection Plan. This project will construct physical barriers, fall protection systems, and miscellaneous other engineering solutions to ensure safety for all staff accessing roofs of City buildings. 14 of 17
Non-General Funds- Capital Budget
Miscellaneous Grant Fund
As part of AB-179 Budget Act of 2022 legislation, the State's budget authorized two earmarks, totaling $14.8 million, to the City of Santa Monica for the City Yards Modernization Microgrid and the Lincoln Neighborhood Corridor Streetscape (LiNC) projects. In addition, the State delegated the California Arts Council and the California Department of Transportation as the pass thru agencies to distribute the two earmarks awarded to the City. Staff recommends allocating $10 million to the City Yards Modernization Microgrid project and approving the attached resolution required by the California Arts Council (Attachment D). This microgrid would provide efficient, reliable, and cost-effective energy that has a low environmental and carbon impact. It could also store energy, allowing the City Yards and surrounding businesses to continue critical operations in case of a major power outage. In addition, staff recommends allocating $4.8 million to the LiNC project and approving the attached resolution required by the California Department of Transportation (Attachment E). The LiNC project will construct medians and bulb-outs to promote efficient vehicular travel and enhance pedestrian safety.
Water and Wastewater Funds
Staff recommends appropriating $2.2 million in Water and Wastewater Funds for the Water Resources Tenant Improvements at the City Yards and Roof and HVAC repairs at the Arcadia Water Treatment Plant (AWTP). The tenant improvement project will relocate and construct a new bulk material storage, decant area, laydown, and equipment storage at the City Yards to support operations in the Water Resources Division. Relocating the storage area away from the homes on the east side of the City Yards would minimize noise and aesthetic impacts to residents. The roof and HVAC repairs at the AWTP will prevent water leaks in the administration building, laboratory, and control building.
Amendment of Fiscal Policy to Pay Down Unfunded Pension Liabilities over a 15 Year Period
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Following Council’s direction at its March 11, 2023 Workshop, this report includes a recommended action to amend the City’s Fiscal Policy to allow for the suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 to FY 2027-28 or later, pending restoration of City services and maintenance budgets and reserves. As noted in the March 11, 2023 staff report, Council had suspended these payments in May 2020, with a planned resumption in FY 2022-23. While paying down unfunded liabilities at an accelerated rate is a prudent fiscal management tool, mitigating future year interest costs, the City needs to weigh this long-term fiscal management tool against the current state of our community services and our reserves.
An allocation of $2.5 million in General Funds could otherwise be used to restore City services in key areas to deliver critical services and new programs that support the City’s work in economic and community revitalization, racial equity and social diversity, and sustainability.
Acceptance of Grant Awards
Justice Assistance Grant (JAG) 2022 - $51,173
The JAG program is a formula grant that provides funding to support a range of program areas including law enforcement. Santa Monica has been an annual recipient of varying amounts of Justice Department grant funds for the past twelve years. Santa Monica Police Department plans to leverage these funds for additional overtime operations for special details, mainly targeting analysis of crime patterns, that reduce crime and keep neighborhoods safe. Without the JAG funds, the opportunity to respond to unanticipated neighborhood crime and public safety concerns is reduced.
Justice Assistance 2022 Bulletproof Vest Partnership (BVP) Grant - $34,497 The US Department of Justice, Bureau of Justice Assistance awarded the Santa Monica Police Department a two-year grant as part of the 2022 BVP grant program. This grant would reimburse SMPD for 50 percent of the cost of approximately 70 replacement bulletproof vests purchased under the program. Bulletproof vests are an important tool for keeping officers safe in the field. Bulletproof vests are on a five-year replacement 16 of 17
cycle because of the degradation of the Kevlar from repetitive use. These funds will support the purchase of vests through 2024.
Environmental Review
The FY 2022-23 Midyear Budget is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The Midyear Budget is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA.
Past Council Actions
Meeting Date Description
06/28/22
(Attachment F)
Adoption of the Second Year of the FY 2021-23 Biennial
Budget, Adoption of the First Year and Approval of the
Second Year of the FY 2022-24 Biennial Capital
Improvement Program Budget
03/11/23
(Attachment H)
2023 Council Workshop to Select Council Priorities and
Provide Direction on the Fiscal Year 2023-2025 Budget
Financial Impacts and Budget Actions
Recommended FY 2022-23 midyear budget adjustments result in:
• Revenues: Approximately $21.9 million increase in the General Fund and $42.0 million increases in all Other Funds, for a combined $63.9 million net increase to the citywide revenue budget.
• Expenditures: Approximately $11.8 million increase in the General Fund and $21.1 million decrease in all Other Funds, for a net combined $32.9 million increase throughout the citywide expenditure budget.
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• FTEs: The combined midyear staffing adjustments in all funds result in a net increase of 8.2 permanent FTE positions (7.2 in the General Fund) and deletion of 4.7 as-needed FTE positions (4.3 in the General Fund).
Details of FY 2022-23 midyear adjustments are in Attachment A.
Prepared By: Oscar Santiago, Budget Manager
Approved Forwarded to Council
Attachments:
A. Attachment A - Budget Adjustments FY 2022-23
B. Attachment B - Salary Resolution
C. Attachment C - Position and Classification Changes
D. Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project
E. Attachment E - Resolution re State and Federal Aid Funded Projects F. Attachment F - June 28, 2022 Staff Report (Web Link) G. Attachment G - Council Priorities
H. Attachment H - 2023 Council Workshop to Select Council Priorities and Provide Direction on the Fiscal Year 2023-2025 Budget (Web Link) I. Written Comments
J. PowerPoint Presentation