Santa Monica City Council
April 11, 2023

City Council – April 11, 2023
FY 2022-23 Midyear Budget
June 2022
• FY 2022- 23 Budget Adoption
and Public Hearing
March 11 Retreat
• Staff presents 5 Year
Forecast for all funds, state
of operations
• Council affirms & adopts
priorities for FY 2023- 25
Biennial Budget
April 11
• Council adopts FY
2022- 23 midyear
budget adjustments
May 23
• Proposed FY 2023- 25
Budget Published
• Presented to City
Council – Study
Sessions for feedback
June 27
• FY 2023- 25 Budget
Public Hearing and
Adoption
The City’s Biennial Budget Timeline
General Fund - FY 2022-23 Midyear Revenue Adjustments
FY 2022-23 Adopted
Budget
Midyear Adjustments FY 2022-23
Revised Budget
$403.4 million $21.9 million $425.3 million
Earlier Recovery (~$15M)
• ~$7M Sales and TUT Tax
• ~$3M Transient Occupancy
(Hotel) Tax
• ~$1M Parking Facility Tax
• $1M Business License Tax
• ~$2M Fees/Charges/Other
Updated Data (~$7M)
• ~$3M Utility Users Tax
• ~$2M Property Tax
• -$1.0M Documentary Transfer
Tax
• ~$3M Administrative Indirect
General Fund FY 2022-23 Midyear Revenue Uses:
4 Revenue Sharing
Obligations
(Primarily Measure
GSH)
$3.5 million
Items to maintain
services
$1.1
Corrections and
Impacts of Labor
Agreements
$3.8 million
Payment of
settlement of claims
brought against the
City
$3.1
Enables us to keep
funds in Reserves
for future working
capital
$10.3 million
~$21.9 million in Revenues
General Fund - Operating Budget
FY 2022-23 Midyear Expenditure Adjustments ~ $11.6 million ~$3.5 million
Adjustments for revenuesharing payments and based
on new information
• GSH payment to SMMUSD ($2.5M)
• GSH transfer to Affordable Housing
Trust Fund ($1.2M)
• Reductions based on parking revenue
sharing and lease agreement ($.2M)
~$1.1 million
Require immediate attention to
maintain services
• Increase capacity of youth programs,
net +7.2 permanent FTEs and – 4.3 asneeded FTEs ($.09M) • Eliminate transfer from CBB Fund
($.5M)
• Funding for copper wire thefts
($.44M)
• Funding for security services at Pier
($.11M)
General Fund - Operating Budget
FY 2022-23 Midyear Expenditure Adjustments ~ $11.6 million ~$3.9 million
Labor agreements and
corrections not included in
adopted budget
• POA MOU
• FEMA MOU
• Correction Police Dept. budget
• Correction for tenant counseling
services funding
• Net zero adjustment allocating funds
for approved labor agreements
$3.1 million
Liability Self Insurance Fund
• Payment for settlement of claims
brought against the City
Revenues ~$42M
• Funding Allocations, Grants & DA
• BBB $18.1M and Local Return $.8M
• Miscellaneous Grants $19.4M
• DA & Impact Fees $6.4M
• Water Use Reduction ($4M)
• Pending rate changes
• RRR collection fees ($2.1M)
• Beach parking rates ($0.6M)
• Interfund Contributions $4M
Expenditures ~$4M
• Miscellaneous Grants $2.3M
• BBB .5FTE and $.05M
• Housing Trust Fund $.5M
• Administrative Indirect (all) $2.8M
• Special Revenue and Community
Broadband -$1.6M
Other Funds Operating Budget
FY 2022-23 Midyear Revenue and Expenditure Adjustments
FY 2022-23 Midyear CIP Budget Adjustments
General Fund
+$212,600 for Rooftop Fall Protection and Access
Retrofits – funded with one-time CIP budget
savings
Other Funds
Miscellaneous Grants
$10M City Yards Modernization Microgrid Project
$4.8M Lincoln Neighborhood Corridor Streetscape
(LiNC) Project
Wastewater Fund
$0.45M Water Resources Tenant Improvements at
City Yards
Water Fund
$1.1M Water Resources Tenant Improvements at City
Yards
$0.7M Roof and HVAC Repairs at Arcadia Water
Treatment Plant
$17.0 million net increase
Other Business
• Adopt Resolution to apply for grant funds from the California Arts Council • Adopt Resolution authorizing execution of Master Agreement for State and Federal-Aid funded transportation projects with the California Department of Transportation • Authorization to accept a grant award from the U.S. Department of Justice (DOJ) Edward Byrne Memorial Justice Assistance Grant (JAG)
• Authorization to accept a grant award from the U.S. Department of Justice (DOJ) Bureau of Justice Assistance 2022 Bulletproof Vest Partnership (BVP) Grant • Authorization 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
Progress on FY 2023-25 Biennial Budget
March 11, 2023 Council
Retreat
• Financial Overview
• Adoption of Priorities
Addressing
Homelessness
Clean & Safe
Santa Monica
Cultivate
Economic Recovery &
Expand Community
& Cultural Amenities
Racial Justice, Equity &
Social Diversity
Sustainable
& Connected
Community
Progress on FY 2023-25 Biennial Budget
March 11, 2023 Council Retreat
• Preliminary direction on FY 2023-25 Biennial Budget allocations  Measure CS Fund Allocation
 Reallocation of $2.5M
 Organizational Realignment
Allocation of Measure CS funds
• Expand Homeless Liaison Program in PD
• Expand homeless multidisciplinary outreach team beyond Downtown & Beach
• 24/7 intakes at SAMOSHEL interim housing
• Continue Clean & Safe programs in Police, Public Works, Code Enforcement, Parking
• Short term rental enforcement
• Homelessness Strategic Plan
Implementing Priorities: FY 2023-25
Resource Reallocation for Restorations $2.5M GF
• Support public, free, art and cultural programming and events through the Art of Recovery program
• Further restore Library hours and services
• Increase capacity of youth programs
• Continue funding Playground Club
• Establish RRR low-income reduced rate program
• Create Small Business Tenant Improvement Fund
• Restore Planning and Economic Development staffing to support economic development Diversity, Equity and Inclusion Fund
• Designate 2% earnings from Out of Home Wayfinding agreement w/Big Outdoor • Approximately $100,000-$250,000 per year starting in FY 2025-2026 Implementing Priorities: FY 2023-25
May 12, 2023
• Budget Document published
May 23, 2023
• Council Budget Study Session
June 27, 2023
• Council Budget Adoption
Progress on FY 2023-25 Biennial Budget
Recommended Actions
• Approve midyear budget adjustments and position and classification changes • Adopt resolutions:
 Establishing new classifications and adopting salary rates for various positions  Authorizing the application for approved grant funds from the California Arts Council for the Santa Monica City Yards Modernization Microgrid Projects
 Authorizing execution of agency-state Master Agreement for State and Federal-Aid funded transportation projects with the California Department of Transportation, for the Lincoln Neighborhood Corridor Streetscape (LiNC) projects
• Authorize staff to:
 Accept a grant award 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  Accept a grant award 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;
 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,
• 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.